• The FBM KLCI kick started the week on an upbeat tone – led by buying-support in banking heavyweights. The lower liners also staged a mild recovery after retreating last Friday with the FBM Ace (+0.8%) in the lead. Similarly, the broader market stocks were mostly positive, with the exception of the industrial products (- 0.1%) sub-sector.

• Market breadth turned positive as advancers outweighed decliners on a ratio of 456-to-397. Traded volumes, however, lost 25.3% to 2.89 bln due to the muted trading amid the Easter holiday celebrations.

• Outperforming stocks on the blue-chip gauge include PPB Group (+18.0 sen), Kuala Lumpur Kepong (+16.0 sen), CIMB (+7.0 sen) and Maybank (+7.0 sen). Meanwhile, BAT rose 20.0 sen after the government announced that it has no immediate plans to increase tax duties on tobacco products. Broader market charttoppers were consumer-products related companies like Dutch Lady (+52.0 sen), Nestle (+42.0 sen) and Ajinomoto (+36.0 sen). Other gainers include JHM Consolidation (+43.0 sen) and Pentamaster (+26.0 sen).

• On the contrary, Batu Kawan (-30.0 sen), HCK Capital Group (-25.0 sen), Anzo (- 19.5 sen), Genting Plantations (-18.0 sen) and Perusahaan Sadur Timah Malaysia (- 10.0 sen) weighed on the broader market. Main Board underperformers were Petronas Gas (-20.0 sen), Genting Malaysia (-13.0 sen), Hong Leong Financial Group (-4.0 sen), Astro (-2.0 sen) and Hong Leong Bank (-2.0 sen).

• Asian stockmarkets finished mixed as investors digested the slightly betterthan-expected China GDP data amid lingering concerns over the rising geopolitical risks in the region. The Nikkei ended marginally higher by 0.1%, after clawing back earlier losses, while the Shanghai Composite Index finished in the red on uncertainties surrounding China’s growing debt pile. ASEAN stockmarkets were lackluster on Monday’s close.

• Wall Street ended higher overnight – buoyed by gains in banking giants ahead of the corporate earnings season. The Dow rose 0.9%, flanked by gains in Boeing (+1.9%) and JPMorgan Chase (+1.7%). On the broader market, both the S&P 500 and the Nasdaq closed 0.9% higher alongside a stronger Dollar.

• U.K and European stockmarkets remain closed for the Easter holidays.

The Day Ahead

• The FBM KLCI has seemingly found support at the 1,730 level after yesterday’s rebound. With the U.S. equity markets springing up again, coupled with the waning geopolitical concerns, we think the key index’s rebound could sustain longer.

• The upsides could lift the key index back to around the 1,740 level over the near term as some of the mild bargain hunting activities could continue on stocks that have corrected recently, particularly among the index linked stocks

• We also see retail interest returning on the lower liners and broader market shares after many stocks have undergone a mild consolidation and bargain hunting activities could return. Still, some tentativeness could linger amid the lack of fresh compelling leads.

Company Briefs

• WCT Holdings Bhd is planning a share dividend on the basis of one treasury share-for every-165 existing units to reward its shareholders. The entitlement date of the said proposal will also be announced at a later time. (The Edge Daily)

• The Malaysian government has filed a liquidation petition against Country Heights Sdn Bhd (CHSB), a wholly-owned subsidiary of Country Heights Holdings Bhd over some RM22.7 mln of tax liabilities the unit owes the government.

• Country Heights said that CHSB has adequate funds to settle CHSB's purported tax obligations and/or the amount claimed by the government and that the latter is a solvent company.

• The group does not foresee a significant impact from the payment of the tax liabilities owed, except for some reduction in working capital funds. (The Edge Daily)

• Key Alliance Group Bhd (KAG) has secured a 15-month contract worth RM24.8 mln to design, build and manage a data centre in Persoft Tower in Petaling Jaya, Selangor.

• The project was awarded from Avenue Escapade Sdn Bhd (AESB), an investment holding company which owns the majority of the strata units at Persoft Tower. (The Star Online)

• Ekovest Bhd has been appointed as the design and build contractor to undertake the 'Blue River Project', valued at RM79.0 mln, by the Kuala Lumpur City Council (DBKL). The 18-month project is expected to be completed before 30th August and is within the vicinity of the River of Life Precint 7 — Masjid Jamek Kuala Lumpur Zone. ? The project’s contract value is inclusive of payment to operate and maintain the project for five years and it is expected to contribute positively to its revenue and earnings. (The Edge Daily)

• Asia Bioenergy Technologies Bhd is proposing a three-for-one consolidation of its share capital to reduce its share price fluctuation. Shareholders of its convertible securities may also convert their shares in the same manner. The group presently has an issued and paid up capital of 1.11 bln shares.

• It has two convertible securities, being 43.0 mln convertible share issuance scheme (SIS) options and 394.0 mln warrants — both convertible to one share each, pre-consolidation.

• The group expects the proposed exercise to be completed by the 2Q2017. (The Edge Daily)

• Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) have clinched a contract worth RM1.0 bln for the central processing platform (CPP) within Petroliam Nasional Bhd’s (Petronas) Bokor Phase 3 re-development project.

• The Engineering, Procurement, Construction, Installation and Commissioning contract was awarded by Petronas Carigali Sdn Bhd and will commence from 3Q2018 until 2Q2020. (The Star Online)

• BTM Resources Bhd is partnering two Chinese firms - namely the China Western Power International Pte Ltd and Sichuan No 2 Electric Power Construction Company (Sichuan Power), to establish a RM435.0 mln municipal solid waste-toenergy (WTE) generation plant in Melaka.

• The parties have inked a Memorandum of Understanding (MoU) for the aforementioned project and the WTE plant will have a capacity of more than 1,000 tonnes per day. (The Star Online)

• Thriven Global Bhd is planning to acquire the remaining 49.0% equity stake in its 51.0%-owned subsidiary Mulpha Argyle Property Sdn Bhd (MAPSB), after which it plans to dispose of the entire unit.

• Proceeds raised from sale will be used to recoup the losses suffered from its investment in MAPSB. (The Edge Daily)

• Gas delivery solutions provider, Kelington Group Bhd has bagged a S$7.7 mln (RM24.2 mln) contract to provide works for a process piping system from Givaudan Singapore Pte Ltd.

• The works include the provision of engineering, design, procurement, installation, testing and commissioning of process piping system in Singapore. The company expects to complete the contract by December 2017. (The Edge Daily)

• Anzo Holdings Bhd has been slapped with a second unusual market activity (UMA) query by Bursa Malaysia after its share price plunged by 19.5 sen or 35.1% to 36.0 sen yesterday.

• This is the second query in a month, albeit the company has replied that it was not aware of any corporate development that would have contributed to the abnormal share price movement. (The Edge Daily)

• Excel Force MSC Bhd is proposing a onefor-two share split to increase the liquidity of its shares. The share split entails the subdivision of every one existing share into two split shares, which would halve its share price to below RM1.00 per share. (The Edge Daily)  

Source: Mplus Research - 18 Apr 2017