• The FBM KLCI rose 0.1% after rebounding from earlier losses, on the back of buying-support in selected heavyweights. The key-index also gained 0.1% W.o.W at 1741.7 points. Meanwhile, the majority of the lower liners rallied, with the exception the FBM Small Cap (-0.1%). Most of the broader market stocks, however, declined last Friday.

• Market breadth was on a downward bias as losers beat outperformers on a ratio of 535-to-425 stocks. Traded volumes jumped 35.4% to 5.12 bln shares – led by heavy trading interest in penny stocks.

• Banking giants like Public Bank (+8.0 sen) and Maybank (+6.0 sen) buoyed the key-index, alongside Genting (+7.0 sen), Axiata (+5.0 sen) and KLCC Properties & REITs (+5.0 sen). Meanwhile, charttoppers on the broader market include Ajinomoto (+50.0 sen), Airport Holdings (+20.0 sen), TAHPS (+15.0 sen), Hai-O (+14.0) and Carlsberg (+12.0 sen).

• On the flipside, significant broader markets underperformers include Panasonic Manufacturing (-40.0 sen), Fraser & Neave (-32.0 sen), United Plantations (-30.0 sen) and JHM Consolidation (-17.0 sen). George Kent, meanwhile, pullback 18.0 sen after three consecutive sessions of gains. Key-index losers were Tenaga (-8.0 sen), BAT (-6.0 sen), Westports (-6.0 sen), Astro (-5.0 sen) and CIMB (-3.0 sen).

• The majority of the key regional benchmark indices gained traction, alongside stronger crude oil prices after the U.S. launched several missile strikes against Syria. The Nikkei was 0.4% higher – led by gains in energy (+2.4%) and property (+1.7%) stocks, while the Shanghai Composite rallied 0.2% after the meeting between China and U.S. ended on amicable terms. The Hang Seng (-0.03%) pared back earlier losses, albeit closing marginally in the red amid the mixed sentiments in ASEAN stockmarkets.

• Wall Street inched into the red at the close of Friday’s trade in tandem with weaker-than-expected employment data and jittery sentiments following the U.S’ missile strike on Syria. The Dow and the Nasdaq edged lower by 0.03% and 0.02% respectively, while the S&P 500 shaved off 0.1%, dragged down by utilitiesrelated counters.

• Earlier, most European stockmarkets closed mixed as investors turn to safehaven assets like gold and Yen amid renewed on geopolitical concerns in the Middle East. The FTSE added 0.6% to 7,349.4 points on the back of gains in Randgold (+4.3%). The CAC also rose 0.3%, although the DAX lost slightly by 0.1%.

The Day Ahead

• The market managed to haul itself back above the 1,740 last Friday and this leads us to believe that the FBM KLCI will again trend within the 1,740 and the 1,750 levels over the near term. Despite the traded volumes surging to over 5.0 bln shares, market breadth is still tentative as investors scour for new leads.

• In the interim, the trading environment on Bursa Malaysia is likely to continue with retail players remaining active on the lower liners and broader market shares, while the index linked stocks are likely to stay rangebound. We also see market depth staying elevated amid the ongoing retail and trading interest on the lower liners and broader market shares.

Company Briefs

• SKH Consortium Bhd, whose share price has more than doubled in a span of two weeks, has reported that it is unaware of the reason behind the sharp rise in both price and volume of its shares in a reply to Bursa Malaysia’s Unusual Market Activity query.

• The company only noted to the recent announcement made on the new substantial shareholder named Fong Siling on 6th April 6 2017, with a shareholding of 5.4%. Fong had acquired 30.0 mln shares via the open market. (The Star Online)

• Ekovest Bhd plans to undertake a mixed development project with a gross development cost of RM293.8 mln in Setapak by combining its existing 1.6 ac. landbank with adjoining land measuring 1.2 ac.

• It’s unit, Ekovest Properties Sdn Bhd had sealed an agreement to buy the two adjoining parcels of land from Ekovest’s substantial shareholder, Lim Seong Hai Holdings Sdn Bhd (LSHHSB for RM26.8 mln. The acquisition would be financed via internally generated funds and borrowings in the proportion of 30%:70%.

• The purchase is a related party transaction as Ekovest Managing Director, Datuk Seri Lim Keng Cheng is a major shareholder and director of LSHHSB, which in turn owns 9.5% equity interest in Ekovest.

• The proposed mixed development project, called EkoQuay, consisted of serviced apartments and retail/commercial blocks. The company estimated to generate a profit of RM103.3 mln from the project, which is expected to start in 2018 and be completed within four years. (The Star Online)
   
• Key Alliance Group Bhd’s subsidiary, DVM Innovate Sdn Bhd has signed a Memorandum of Understanding to collaborate with enterprise cloud solutions provider, RapidCloud (M) Sdn Bhd to explore and expand market potential within the hosting and ecommerce industry.

• RapidCloud is a cloud solutions provider currently hosting in excess of 10,000 small and medium enterprises and corporate clients, and is also one of the established resellers of Alibaba Cloud in Malaysia. (The Edge Daily)

• CAB Cakaran Corp Bhd has tied up with Felcra Food Industries Sdn Bhd to mutually explore the possibility of collaborating in the agriculture and aquaculture business activities.

• It said that it has signed a non-binding Letter of Intent with Felcra and will make further announcements on the matter in the event both parties reach a formal agreement. (The Edge Daily)

• Yong Tai Bhd and KOF Holdings Sdn Bhd plan to jointly develop two adjoining pieces of land on Jalan U-Thant, Kuala Lumpur, with a potential gross development value of RM180.0 mln. The proposed development featuring residential units will take approximately three years to complete, subject to approvals. (The Edge Daily)

• Superlon Holdings Bhd plans to undertake a one-for-two share split to improve the liquidity of its shares on Bursa Malaysia. The share split is aimed at lowering its trading price and enhance the liquidity of its shares.

• The proposed share split would split each share into two held on an entitlement date to be determined later, increasing the company's issued share capital to 160.0 mln from 80.0 mln. (The Edge Daily)

• Kwantas Corporation Bhd plans to dispose of Dongma (Guangzhou Free Trade Zone) Oleochemicals Co Ltd (DMO) for RMB25.0 mln (RM16.1 mln) to streamline its exercise and improve its overall financial position and liquidity.

• Kwantas has entered in a share sale agreement with Guangzhou Lushang Technology Development Co Ltd, which is involved in technology promotion and application services on 7th April 2017. The share sale consideration would be used to repay borrowings and raise working capital. Meanwhile, it expects to make a net gain on disposal of about RM4.6 mln. (The Edge Daily)  

Source: Mplus Research - 10 Apr 2017