• Despite opening higher at the start of the trading bell, quick profit taking activities amongst selective banking heavyweights sent the FBM KLCI (-0.4%) lower and to snap its streak of four consecutive days of gains ahead of the extended Lunar New Year break. The lower liners, however, ended mostly higher as the FBM Fledgling and FBM Small Cap added 0.4% each, while the broader market closed mixed.

• Market breadth remained positive as gainers outnumbered decliners by a ratio of 367-to-244 stocks. Traded volumes declined 25.3% to 1.05 bln shares on the half-day trading session.

• More than two-thirds the key index components fell, dragged down by PPB Group (-34.0 sen), followed by KLK (-30.0 sen), Hong Leong Financial Group (-28.0 sen), Axiata (-15.0 sen) and Genting (- 13.0 sen). Notable decliners on the broader market were United Plantations (-16.0 sen), The Store Corporation (-13.0 sen), UMW Holdings (-9.0 sen), WangZheng (-9.0 sen) and ABM Afujiya (-8.0 sen).

• On the other side of the trade, Nestle (+98.0 sen), Panasonic (+50.0 sen), Allianz (+46.0 sen), Perusahaan Sadur Timah (+15.0 sen) and SP Setia (+15.0 sen) topped the broader market advancers lists. Big board advancers include BAT (+48.0 sen), Sime Darby (+41.0 sen), DIGI (+2.0 sen), MISC (+2.0 sen) and RHB Bank (+2.0 sen).

• Japanese equities retreated as the Nikkei (-0.5%) snapped a winning streak of three straight days as the stronger Japanese Yen against the U.S. Dollar weakened export sentiment, whilst financial shares lost ground. Both the Shanghai Composite and Hang Seng Index were closed for the Chinese New Year celebrations. ASEAN shares, meanwhile, closed mixed.

• U.S. stockmarkets endured its worst session since the Presidential election on November 2016 as the Dow (-0.6%) slipped below the 20,000 psychological level on concerns over President Trump new travel ban policy. On the broader market, the S&P 500 fell 0.6%, dragged down by the weakness in energy sector (- 1.9%), while the Nasdaq closed 0.8% lower.

• Earlier, European benchmark indices – the FTSE (-0.9%), CAC (-1.1%), and DAX (- 1.1%) all endured their biggest decline in two months on the U.S. President’s protectionist theme. Notable decliners include airline companies like Air FranceKLM (-2.7%) and International Consolidated Airlines Group (-2.5%)

The Day Ahead

• With most market participants still on their Lunar New Year break, coupled with another public holiday tomorrow, we think investor interest will remain thin on Bursa Malaysia over the near term. This is also likely to mean that the key index will continue to drift lower amid the lack of fresh buying impetus as well as in tandem with the overnight weakness on many key global stock indices.

• On the downside, we think the 1,680 level will serve as the near term support for now, while the 1,690-1,700 levels are still the key resistance levels.

• We also think interest on the lower liners and broader market shares are likely to stay thin as most retail players are still on their extended Chinese New Year break.

Company Briefs

• Prestariang Bhd is planning to purchase eight properties in Cyberjaya for RM25.5 mln from Joyful Star Sdn Bhd. The eight semi-detached signature corporate offices and retail suites lies within an ongoing mixed development project known as Star Corporate Park, Star Central@Cyberjaya.

• The properties are 55.0% completed and is slated to be fully completed by 1Q2018 and will range from 4,264 sq. ft. to 5,731 sq. ft.

• About RM2.8 mln of the total purchase price will be financed via internal funds, while the remaining RM22.7 mln will be funded through bank borrowings. (The Star Online)

• Yinson Holdings Bhd’s indirect whollyowned subsidiary, Yinson Production (West Africa) Pte Ltd has converted US$780.0 mln worth of conventional syndicated term loan into an Islamic Murabahah term financing facility.

• This was the largest Islamic facility for the floating production storage and offloading (FPSO) financing to-date and Maybank Investment Bank Bhd is the coordinating bank for the conversion, while Maybank Islamic Bhd will act as the syariah adviser.

• To recap, Yinson had issued its maiden Sukuk worth RM250.0 mln in nominal value on the 8th November, 2016 and proceeds from the issuance was used to refinance an existing conventional facility. (The Star Online)

• Media Prima Bhd has appointed Datuk Abdul Jalil Abdul Hamid as the new Chief Executive Officer (CEO) of its subsidiary, The New Straits Times Press (M) Bhd (NSTP), effective 1st March 2017. ? Datuk Abdul Jalil will be replacing Datuk Mohammad Azlan Abdullah, who will be resigning on the 28th February, 2017.

• The group has also appointed Mohamad Ariff Ibrahim as NSTP’s Executive Director, effective 1st March 2017. (The Star Online)

• Affin Holdings Bhd (AHB) is requesting a second extension of time from Bank Negara Malaysia (BNM) to conclude talks to buy Felda Marketing Services Sdn Bhd’s 16.0% stake in AXA Affin General Insurance Bhd (AAGI). The group is requesting for a six-month extension. (The Star Online)

• Malaysian Resources Corp Bhd (MRCB) has signed another Memorandum of Understanding (MoU) to develop an integrated transportation terminal at Bandar Malaysia, Kuala Lumpur. The MoU will see Wondrous Vista Development Bhd remain as a joint signatory, while the third partner will be Bandar Malaysia Sdn Bhd.

• To recap, the original MoU which include IWH CREC Sdn Bhd - a joint-venture between Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Group Ltd as the third partner signed in June 2016 has lapsed.

• The latest non-binding MoU signed on the 3th January, 2017 would also have a validity period of six months but may be terminated at any time by mutual consent.

• MRCB said 60 acres had been earmarked for the purpose of an integrated transportation terminal.

• MBM Resources Bhd has re-designated Datuk Abd Rahim Abd Halim from nonExecutive Chairman to Executive Chairman, following the resignation of its Group Managing Director Looi Kok Loon, effective 8th February, 2017.

• Datuk Abd Rahim will be responsible for the managing of day-to-day affairs of the group until a permanent Chief Executive Officer is appointed.

• IOI Properties Group Bhd is partnering MJR Investment Pte Ltd (MJRI) to undertake a condominium project at IOI Resort City, Putrajaya. The former’s 99.8%-owned Pine Properties Sdn Bhd and MJRI would develop the project on a 9.6-acre site.

• Pine Properties will be selling 45.0% of its existing equity stake in PINE MJR Development Sdn Bhd (PINE MJR) to MJRI.

• The parties will then increase PINE MJR’s paid-up capital through the subscription of ordinary shares and redeemable non-cumulative preference shares. (The Star Online)  

Source: Mplus Research - 31 Jan 2017