• The FBM KLCI (+0.1%) continued to trade higher, in-tandem with the positive close in regional stockmarkets and a weaker Greenback. All the lower liners advanced, helmed by the FBM Ace (+0.5%) index amid a mostly positive broader market. The only sub-sectors to close lower were the Construction (-0.3%) and the Properties (-0.1%) indices.

• Market breadth turned positive as advancers overtook decliners on a ratio of 454-to-393 stocks. Traded volume also crept 4.0% higher to 2.25 bln shares, underpinned by mild buying-interest in the lower liners.

• Blue-chip outperformers include Petronas Gas (+16.0 sen), KLCC (+11.0 sen), Genting (+9.0 sen), Hong Leong Financial Group (+6.0 sen) and PPB Group (+6.0 sen). Ace Market-listed Palette Multimedia rose 12.5 sen, after announcing the emergence of two new substantial shareholders. Meanwhile, other broader market chart-toppers include Time Dotcom (+20.0 sen), Hai-O (+17.0 sen), Dutch Lady (+16.0 sen) and Nestle (+12.0 sen).

• On the flipside, Tasek (-30.0 sen), United Plantations (-30.0 sen), Malaysia Airports (-22.0 sen), Malaysian Pacific Industries (-22.0 sen) and Petron Malaysia Refining (-20.0 sen) dragged the broader market lower. Significant laggards on the key index were BAT (+30.0 sen), IJM (-6.0 sen), Westports (-4.0 sen), Hap Seng (-3.0 sen) and MISC (-3.0 sen).

• Key benchmark regional indices ended mostly higher, despite losses in energy related stocks. The Hang Seng soared 0.7%, boosted by consumer discretionary (+2.1%) and property-related counters (+1.2%). The Nikkei (+0.1%) finished a hair above the negative territory after paring earlier losses, while most of the ASEAN stockmarkets ended higher yesterday. China stockmarkets remained closed.

• Wall Street closed with minute gains after extending its run of record closing highs for the third consecutive session, driven by stronger-than-expected economic data and renewed optimism of the potential tax reform plans. The Dow rose 0.1% to 22,661.6 points – led by gains in Nike (+1.2%). The S&P 500 and the Nasdaq, meanwhile, also closed in the green, albeit slightly offset by losses in energy stocks.

• Major European bourses ended mostly lower, weighed down by unabated political turmoil in the region. The FTSE flatlined amid weakness in utilitiesrelated counters following Prime Minister Theresa May’s assurance of new caps on energy bills. The CAC (-0.1%) also closed with lower on mild profit-taking activities, although the DAX gained 0.5% - led by strong gains in automakers.

The Day Ahead

• We see further near term upsides as the FBM KLCI continues to recover from its bout of oversold. The calmer global equity environment will also provide some mild impetus for the recovery to extend for a third day with the key index targeting the 1,765 level.

• There continues to be some bargain hunting activities on some of the beaten down stocks, but we also think market players will be quick to lock-in their profits, thereby limiting the recovery potential, in our view.

• There should also be sustained trading interest among some of the lower liners and broader market shares, but we also think that the retail players will resort to quick profit taking activities that will also limit their upsides.

COMPANY BRIEF

• Advancecon Holdings Bhd has secured a RM32.8 mln contract from Mujur Minat Sdn Bhd for site clearing, earthwork and ancillary works at Gamuda Gardens in Rawang. The contract commenced on 28th September 2017. (The Star Online)

• Deleum Bhd, through 60.0%-owned subsidiary Deleum Primera Sdn Bhd, was awarded a contract by Petronas Carigali Sdn Bhd to provide maintenance, construction and modification (MCM) services. The contract will run for a primary period of five years with one-year extension option. However, there is no estimated value of contract provided in the announcement. (The Star Online)

• Pestech International Bhd has clinched its second power infrastructure project from the National Grid Corp of the Philippines (NGCP) worth RM50.2 mln to install secondary devices for the Calamba 230kV substation project in Luzon. The offshore portion of the project is valued at US$5.4 mln (RM22.7 mln), while the onshore portion is worth 332.1mln pesos (RM27.5 mln).

• The project is located in the city of Calamba, which is situated in the Laguna Province, Calabarzon region, about 60km from Manila Ninoy Aquino International Airport. Under the project, Pestech will deliver a new 230kV outdoor substation with 230kV/115kV facilities to serve the Laguna sector. The duration of the project is 540 days and NGCP will determine the commencement on a date later. (The Star Online)

• Palette Multimedia Holdings Bhd has attracted two investors – Wong Thean Soon and Brahmal Vasudevan. Wong is the Managing Director and single largest shareholder of MyEG Services Bhd. Brahmal meanwhile is the founder and Chief Executive Officer of private equity firm, Creador Sdn Bhd.

• Brahmal has twice invested in Wongcontrolled companies and was previously a substantial shareholder in MyEG in 2012. Last year, Brahmal also accumulated shares in Excel Force Bhd, to which he still holds a 5.5% stake. Meanwhile, Wong holds a 19.5% stake in Excel Force via his vehicle, Asia Internet Holdings Sdn Bhd. (The Edge Daily)

• The Sultan of Johor’s daughter, Tunku Tun Aminah Sultan Ibrahim Ismail, has been appointed Berjaya Assets Bhd's new Non-Independent and NonExecutive Chairman, effective 4th October 2017. (The Edge Daily)

• Talam Transform Bhd has bagged a contract worth RM36.6 mln for the construction of factory buildings as well as electric sub-stations in Dengkil, Selangor. Talam Transform has accepted the letter of award from property developer Projek Alam 2012 Sdn Bhd, to undertake the construction and completion of 24 units of semidetached two-storey factories, 14 units of semi-detached three-storey factories, and two units of Tenaga Nasional Bhd electric sub-stations. The project is to be completed in 18 months. (The Edge Daily)

• Marine & General Bhd has been awarded a contract worth RM25.0 mln by Repsol Oil & Gas Malaysia Ltd for the provision of two anchor handling tug supply vessels. The contract from Repsol commences immediately and is for one year, with a one-year optional extension. (The Edge Daily)

• Bioalpha Holdings Bhd has set up a new research and development (R&D) centre in Hong Kong to localise its nutritional and healthcare products for the Chinese market. The new wholly-owned subsidiary in Hong Kong, BioAlpha (HK) Ltd has an issued share capital of HK$2.0 mln, to carry out R&D activities in Hong Kong Science Park, in line with statutory body Hong Kong Science and Technology Parks Corp's tech-based initiatives in the region. (The Edge Daily)

• The High Court has struck out a law suit brought by three firms against a vessel belonging to PDZ Holdings Bhd which was compounded in January 2017 over alleged non-payment for fuel supplied. The court also ordered the firms — CCK Petroleum Sdn Bhd, CCK Capital Ltd and CCK Petroleum (Labuan) Ltd — to pay PDZ legal costs of RM5,000. (The Edge Daily)

• Perisai Petroleum Teknologi Bhd’s external auditor has warned of a material uncertainty in respect of the group’s financial statements for the year ended 30th June 2017, (FY17) which may cast doubt over the group’s ability to continue as a going concern. The auditor has expressed unqualified audit opinion on the financial statement of Perisai for FY17. (The Edge Daily)

• iDimension Consolidated Bhd's largest shareholders have called for an Extraordinary General Meeting (EGM) for the immediate removal of two of its Executive Directors. The shareholders, representing an aggregate of 18.0% of the total issued share capital of iDimension Consolidated, are seeking for the immediate removal Tan Kian Meng and Pang Lee Fung, and the appointment of Ang Beng Leong and Yap Tet Soon as replacement. (The Edge Daily)

• Ibraco Bhd has teamed up with HELP Education Services Sdn Bhd to offer education at the primary, secondary and pre-university levels. Ibraco has set up a joint venture (JV) company with HELP called Ibraco Help Education Sdn Bhd, with an initial paid-up capital of RM100. The JV company will be offering the education services with either local or foreign institutions. (The Edge Daily)  

Source: Mplus Research - 5 Oct 2017