• Despite Wall Street closing at record high levels a day earlier, the FBM KLCI (-0.2%) endured mild profit taking activities in selective index heavyweights yesterday. The lower liners, however, ended mostly higher as the FBM Small Cap and FBM Fledgling rose 0.1% and 0.3% respectively, while the technology (+0.8%) and plantation sectors (+0.5%) outperformed the negative broader market.

• Market breadth turned negative as decliners overcame advancers on a ratio of 480-to-385 stocks. Traded volumes slipped 26.4% to 2.70 bln shares as investors turn cautious amid the profit taking activities.

• Key losers on the FBM KLCI were Genting Malaysia (-15.0 sen), Petronas Gas (-8.0 sen), CIMB (-8.0 sen), Public Bank (-4.0 sen) and Hap Seng (-4.0 sen). Consumer products giants like Nestle (-48.0 sen) and Dutch Lady (-30.0 sen) topped the broader market decliners list, while Hartalega and Globetronics fell 31.0 sen and 23.0 sen respectively. Willowglen sank 12.0 sen after receiving a takeover offer from its major shareholder at 80.0 sen per share.

• On the flip side, Panasonic (+60.0 sen), Ajinomoto (+46.0 sen), MPI (+36. 0sen) and KESM Industries (+32.0 sen) were amongst the biggest gainers on the broader market. TRIplc jumped 40.0 sen after receiving approval from regulatory authorities for a takeover offer from Puncak Niaga. Meanwhile, BAT (+30.0 sen), IOI Corporation (+9.0 sen), Telekom (+8.0), AmBank (+5.0 sen) and Hong Leong Financial Group (+4.0 sen) were notable advancers on the big board.

• Japanese stocks advanced for the third straight session as the Nikkei added 0.5% to close at a one-month high after the Japanese Yen pulled back against the Greenback. The Shanghai Composite added 0.1%, but the Hang Seng Index fell 0.3% on weakness in utilities shares. ASEAN stockmarkets ended on a mixed note yesterday.

• Wall Street closed with minute gains after hitting another session of fresh highs on the back of the gains in energy stocks, intandem with the renewed gains in crude oil prices. The Dow was 0.2% higher, buoyed by stronger energy counters, while the S&P 500 and the Nasdaq inched higher after taking a hit from Apple.

• Major European stockmarkets ended mostly on an upward bias, although gains were capped by profit-taking in metalrelated stocks. The FTSE weakened 0.3% to 7,379.7 points, weighed down by losses in mining stocks, although both the DAX and the CAC finished 0.2% higher, despite a volatile intraday session.

The Day Ahead

• The market could be finding the 1,790 resistance level a difficult level to breach after the recent recovery from around the 1,760 level with the 1,790-1,800 points levels proving to be a more formidable resistance for the market to clear. As a consequence, profit taking is setting in and we see further consolidation over the near term with the key index likely to retest the support at 1,785 and 1,780 levels.

• At the same time, the inability to clear the above levels is also a sign of market fatigue with the lack of sustainable catalysts also playing a role. Consequently, the recent gains have largely been on rotational and trading basis, which is making it difficult for the upsides to sustain as market players opt to lock in their profits earlier. ? Similarly, the lower liners and broader market shares are also showing some signs of fatigue and further consolidation is in the offing to allow the above stocks to take a breather.

Company Briefs

• Land and General Bhd (L&G) plans to launch two new property projects with a gross development value (GDV) of RM710.0 mln by 31st March 2018. The projects, namely Sena Parc (GDV RM230.0 mln) is expected to be launched in November 2017, whilst the other residential project, Seresta (GDV RM480.0 mln) will take off in February 2018.

• Sena Parc will be developed in three phases with the first scheduled for launch in November, comprising 543 doublestorey linked houses. L&G has an existing landbank of about 1,214.1-ha and is constantly looking to expand it. (Bernama)

• Versatile Creative Bhd plans to sell its 4.0% equity interest in smart card maker Iris Corp Bhd, which is worth RM18.2 mln based on the share price at 13th September 2017 market close. However, the packaging and printing solutions provider had not identified any specific purchaser for the 98.4 mln shares at this time.

• The company plans to use the disposal proceeds for repayment of bank borrowings (RM13.0 mln), while RM2.6 mln is earmarked for buying new equipment and machinery. (The Star Online)

• CAB Cakaran Corp Bhd is setting up a poultry slaughtering facility in Singapore, along with a dormitory for its workers. CAB’s 51.0%-owned unit, Tong Huat Poultry Processing Factory Pte Ltd has inked a shareholder agreement with four parties to subscribe to stakes in Singapore Poultry Hub Pte Ltd which will operate and manage the facility.

• CAB will be subscribing for a 25.0% stake in Singapore Poultry Hub. (The Edge Daily)

• EITA Resources Bhd’s wholly-owned subsidiary, EITA Elevator (M) Sdn Bhd has bagged a subcontract worth RM11.3 mln from Pembenaan Leow Tuck Chui & Sons Sdn Bhd to supply and install 23 lifts for a residential development in Setapak. (The Edge Daily)

• AbleGroup Bhd, a marble and granite slabs manufacturer, has announced that the trading of its securities on Bursa Malaysia will be suspended from 9.00am today, pending the release of a material announcement. (The Edge Daily)

• Syarikat Takaful Malaysia Bhd (STMB) is set to transfer its general takaful business to a newly-incorporated entity, Syarikat Takaful Malaysia Am Bhd (STMAB). STMAB is currently dormant. The family takaful business of the company will continue to be carried on under its proposed new name, Syarikat Takaful Malaysia Keluarga Bhd. (The Edge Daily)

• UEM Edgenta Bhd is selling its 61.2% stake in New Zealand-listed Opus International Consultants Ltd at a higher price of NZ$1.92 (about RM6.01) a share, after the buyer raised its offer.

• Back in August 2017, WSP offered to buy 100.0% of Opus, had originally proposed to pay NZ$1.78 a share for the Opus stake. (The Edge Daily)  

Source: Mplus Research - 14 Sept 2017