• The FBM KLCI (-0.2%) finished the week on soft footing on the back of profittaking activities in selected heavyweights. Similarly, the key-index also added 0.4% W.o.W to close slightly below the 1780.0 psychological mark. The majority of the lower liners, meanwhile, closed on an upward bias, with the exception of the FBM ACE (- 0.6%) amid a mixed broader market.

• Market breadth was positive as advancers outweighed decliners on a ratio of 473-to-384 stocks. Traded volume also expanded by 13.1% to 2.97 bln shares – mainly on selling-pressure in ACE counters.

• BAT shed 42.0 sen on the back of mild profit-taking activities, while other major decliners include Petronas Dagangan (- 26.0 sen), CIMB (-15.0 sen), IHH Healthcare (-12.0 sen) and Hap Seng Consolidated (-11.0 sen). Plantationsrelated counters like United Plantations (- 46.0 sen) and Sungei Bagan (-15.0 sen) weighed on the broader market, alongside Nestle (-34.0 sen), Ajinomoto (-20.0 sen) and Hengyuan Refinery (-15.0 sen).

• On the other side, Dutch Lady (+48.0 sen), Lafarge Malaysia (+28.0 sen) Mega First Corporation (+26.0 sen), Panasonic Manufacturing (+24.0 sen) and Scientex (+22.0 sen) advanced. Meanwhile, Hong Leong Bank (+16.0 sen), Kuala Lumpur Kepong (+12.0 sen), Maybank (+11.0 sen), PPB Group (+8.0 sen) and Petronas Chemicals outperformed its blue-chip counterparts on Friday.

• Asian equities ended mostly lower on a weaker U.S. Dollar after the European Central Bank signaled that its plans to trim its bond-buying programme in the near-term. Investor sentiments were also hurt by fears of a Saturday missile launch by North Korea. The Nikkei shed 0.6%, on the back of lower-than-expected GDP data and a strengthening Yen, while the Shanghai Composite inched into the negative territory. The Hang Seng index, however, rallied 0.5% to 27,668.5 points. There was mixed sentiments on ASEAN stockmarkets.

• U.S. equities were mostly lower in-line with the tepid global sentiments, weighed down by losses in Apple and banking stocks amid increasing doubts of higher interest rates in December. Consequently, the S&P 500 and the Nasdaq declined 0.2% and 0.6% respectively, albeit the Dow closed with slight gains as Hurricane Irma roared towards the east coast of United States.

• European stockmarkets slipped into the red, as investors monitor the impact of Hurricane Irma as it neared the United States. The FTSE weakened 0.3%, contributed by the weakness in commodities-related stocks like Anglo American and Antofagasta following softer-than-expected Chinese export figures. The CAC flatlined, while the DAX closed up with minute gains.

The Day Ahead

• Despite few noteworthy leads, we see the Malaysia stockmarket heading higher over the near term amid the calmer market conditions that will entice market players to nibble on selected stocks. As it is, there has been a healthy return of market breadth of late that will also help to shore up market depth; providing the necessary impetus for the market nudge higher.

• For now, however, we see the potential upsides remaining mild as the buying interest is likely to be rotational, thus the gains will be mild as market players will be quick to lock-in profits due to the toppish valuations. Hence, we see the near term upsides limited to the 1,785 level as it attempts to solidify its position around the 1,780 level. The near term support is pegged at the 1,775 level.

• The lower liners and broader market shares are poised to see increased trading activities as these stocks attempt to mount a stronger recovery after their recent weakness. Their upsides, however, will also be tempered by quick profit taking activities, albeit we think the improved market interest could sustain their gains for longer.

Company Briefs

• Northport (Malaysia) Bhd, a unit of MMC Corporation Bhd, have signed a Memorandum of Understanding (MoU) to form a strategic alliance called The East Malaysia Network or TEAM Network with Shin Yang Shipping Bhd and Harbour-Link Group Bhd. The MoU was aimed at achieving economies of scale through the sharing of resources such as vessels, terminals arrangements and networks. The three entities would be consolidated to jointly and effectively manage the shipping industry demands through strategic planning of resources. (Bernama)

• Datuk Wira Azhar Abdul Hamid will head Felda Global Ventures Holdings Bhd with effect on 8th September 2017. Datuk Wira Azhar was formerly with Sime Darby Bhd and resigned from Malakoff Corporation Bhd in June 2017. He joined Sime Darby in 1994 and was later appointed Group Chief Executive of Pernas International Holdings Bhd from November 2001 until October 2002. In 2003, Azhar returned to the Sime Darby group as Business Development Director in Sime Darby Plantation Sdn Bhd. (The Star Online)

• Wintoni Group Bhd new board members — elected at an extraordinary meeting on 20th June 2017, have submitted plans and new direction on how to improve its financial performance to Bursa Malaysia. Additionally, Wintoni has approached M&A Securities Sdn Bhd for re-appointment as its regularisation sponsor after the firm resigned from the role earlier this year. (The Edge Daily)

• Perak Transit Bhd is purchasing a parcel of leasehold land together with a nine-storey office building in Ipoh’s SOHO Ipoh Commercial Centre (Phase II), for RM10.0 mln. The purchase at an 11.3% discount to the building’s market value of RM11.3 mln will be satisfied via internal fundings and borrowings at a 30:70 ratio. (The Edge Daily)

• My E.G. Services Bhd (MyEG) will offer life insurance products by Hong Leong Assurance (HLA) via its website and digital platform. The partnership will allow MyEG to increase the number of products offered via the platform. For HLA, the move is part of its strategy to move away from conventional platforms and venture deeper into the wider digital market. (The Edge Daily)  

Source: Mplus Research - 11 Sept 2017