• The FBM KLCI (+0.2%) snapped a streak of four straight losses as the key index traded mostly in the positive territory on gains in selective banking and oil & gas heavyweights. The lower liners also closed mostly higher the FBM Small Cap (+1.1%) and FBM Fledgling (+0.6%) rebounded, but the FBM ACE fell 0.3%. Only the Properties (-0.6%) and Plantations (-0.1%) sectors underperformed the positive broader market.

• Market breadth turned positive as advancers outpaced decliners on a ratio of 546-to-360 stocks. Traded volume added 24.7% to 3.02 bln shares on renewed bargain hunting activities.

• More than half of the key index constituents advanced, led by Petronas Dagangan (+48.0 sen), followed by Axiata (+12.0 sen), CIMB (+12.0 sen), BAT (+10.0 sen) and RHB Bank (+10.0 sen). Consumer products giants like Dutch Lady (+92.0 sen), Heineken (+34.0 sen), Nestle (+32.0 sen), Carlsberg (+28.0 sen) and Padini (+20.0 sen) were amongst the biggest winners on the broader market.

• In contrast, notable losers on the broader market include Panasonic (-58.0 sen), NPC Resources (-27.0 sen), Time dotCom (-25.0 sen), Yinson (-22.0 sen) and Aeon Credit (-20.0 sen). Meanwhile, Hong Leong Bank (-24.0 sen), Genting (-13.0 sen), MISC (-10.0 sen) IHH (-9.0 sen) and Hap Seng (-8.0 sen) topped the big board decliners list.

• Asian benchmark indices advanced as the Nikkei jumped 1.4% to close at a twoweek high after the Japanese Yen weakened against the U.S. Dollar. The Shanghai Composite (+0.2%) was boosted by the upbeat manufacturing data that rose to 51.7 – above economist expectations of 50.8, while the Hang Seng Index closed 0.2% higher. ASEAN stockmarkets, meanwhile, closed mostly higher.

• Wall Street recorded its biggest rally post-Presidential election overnight as the Dow (+1.5%) topped the 21,000 psychological level following a mildly positive speech by President Donald Trump to the Congress. On the broader market, the S&P 500 added 1.4% to close marginally below the 2,400 psychological level, led by gains in the financial sector (+2.4%)

• European benchmark indices – the FTSE (+1.6%), CAC (+2.1%) and DAX (+2.0%) all rallied to extend their gains. The positive sentiment was spurred by the increase in U.S. government spending that will also benefit European companies. Meanwhile, the Eurozone’s Purchasing Managers Index rose to 55.4 in February 2017 (from 55.2 a month earlier).

The Day Ahead

• After seeing a consolidation spell over the past few sessions, buying interest appears to have returned yesterday as mild bargain hunting taking activities took hold. Investors also switched to a buying mode in tandem with the positive performance of overseas bourses and this trend looks set to continue after U.S. indices sprung to another new high overnight.

• We expect the positive undertone in overseas bourses to once again permeate to the local stockmarket and this could tip the key index back above the 1,700 points level again as the buying momentum looks to pick up, particularly among the lower liners and broader market shares where rotational plays are still prevalent. Bargain hunting among the index heavyweights will also be prevalent as funds adjust their portfolios following the conclusion of the recent results reporting season.

Company Briefs

• Matrix Concepts Holdings Bhd is partnering with Taiwan-based Changhua Christian Hospital (CCH) for the proposed establishment of a medical and specialist healthcare service center in Bandar Sri Sendayan, Negeri Sembilan, to be known as Matrix Global Specialist Center (MGSC).

• Following the signing of a Memorandum of Understanding (MoU), the parties will establish a joint working group for the review, feasibility study, construction and development of MGSC.

• The MoU is effective from 1st March, 2017 for a period of six months and with the option to extend its validity to a further six months. The group expects the MGSC to be the first hospital to incorporate state-of-art medical facilities in Bandar Sri Sendayan, catering for the current population of more than 30,000 residents, with a future target of more than 120,000 by 2022. (The Star Online)

• Petrol One Resources Bhd has clinched a support services agreement for the Asia Petroleum Hub Terminal Facilities project in Tanjung Bin, Johor. The contract was signed between its indirect wholly-owned subsidiary, Petrol One Offshore Sdn Bhd (POOSB) and Dalian Jinzhou Heavy Machinery Co Ltd (DJHM).

• Under the contract, POOSB will provide a supply base on a plot of land measuring five acres located adjacent to the Port of Tanjung Pelepas in Johor, along with warehouse and logistic support, agency services and custom clearance, and marine support services. Meanwhile, DJHM will pay a fee at a rate of cost plus 5%, although the cost of the project is not yet determined at the current juncture.

• The project is expected to contribute positively to Petrol One’s FY18 earnings. (The Edge Daily)

• Tiger Synergy Bhd has aborted its plan to undertake a series of corporate proposals announced in June last year, which includes a rights issue to raise as much as RM41.7 mln to fund its capital expenditure and working capital purposes.

• The proposed rights issue involved issue of Irredeemable Convertible Preference Shares (ICPS) on the basis of three rights ICPS-for-every one existing share. (The Edge Daily)

• HeiTech Padu Bhd have inked a RM41.9 mln contract with Permodalan Nasional Bhd (PNB) to provide managed wide area network (WAN) infrastructure for PNB and Amanah Saham Nasional Bhd.

• The five-year supply, installation, commissioning, operation and maintenance contract will expire at 31st August 2021. (The Star Online)  

Source: Mplus Research - 2 Mar 2017