• The FBM KLCI fell 1.4% on Friday and 2.2% W.o.W on a weekly basis, weighed down by heavy selling-pressure on Tenaga Nasional after the national utility giant was slapped with a hefty tax bill by the tax authorities. Tracking the Main Board, the lower liners – the FBM Small Cap (-0.6%), FBM Fledgling (- 0.8%) and FBM ACE (-1.2%) also retreated, together with majority of the broader market.

• Market breadth was negative as losers more than doubled the winners, while traded volumes grew 22.0% to 2.6 bln shares amid the year-end portfolio rebalancing moves.

• Major key benchmark decliners include Nestle (-70.0 sen), Petronas Dagangan (- 60.0 sen), Petronas Gas (-56.0 sen), Tenaga Nasional (-56.0 sen) and Hong Leong Financial Group (-46.0 sen), while broader marker losers were Dutch Lady (-RM1.28), Chin Teck Plantations (-28.0 sen), United Plantations (-22.0 sen), Pentamaster (-21.0 sen) and Aeon Credit (-18.0 sen).

• Heineken Malaysia (+60.0 sen) led the broader market winners list after recording an upbeat quarterly corporate earnings result, followed by Zecon (+20.5 sen), Sarawak Oi Palms (+13.0 sen), Master-Pack (+12.0 sen) and Litrak (+11.0 sen). There were only four gainers on the FBM KLCI last Friday; namely, Malaysia Airports (+7.0 sen), Kuala Lumpur Kepong (+4.0 sen), Genting Malaysia (+3.0 sen) and Maybank (+1.0 sen).

• Key regional benchmark indices were painted red amid the ongoing public unrest in Hong Kong that has threatened to unravel the U.S.-Sino trade talks. The Nikkei (-0.5%) extended its losses to the second-straight day, together with the Hang Seng Index (- 2.0%) and the Shanghai Composite (- 0.6%). ASEAN equities, meanwhile were mixed on Friday.

• Wall Street also declined last Friday, weighed down by a widespread risk-off sentiment as the Dow, the S&P 500 and the Nasdaq all closed 0.4% lower amid the still uncertain trade talks.

• Earlier, notable European indexes finished mostly in the negative territory, weighed down by renewed trade tensions between China and the U.S. after President Donald Trump signed a bill supporting Hong Kong protestors. The FTSE ended 0.9% lower, albeit slightly cushioned by gains in Ocado after the online grocer announced its partnership with Aeon. Both the CAC and DAX (-0.3%) also closed down by 0.1% respectively.
  
  THE DAY AHEAD

• Hopes for a month-end window dressing quickly turned sour last Friday after sentiments dipped following the huge tax bill levied on Tenaga Nasional Bhd. The selldown has also resulted in the key index looking decidedly negative that is back to its six-week low.

• Although the immediate market outlook has turned dour, there is still hope for some mild reprieve after last Friday’s steep falls as bargain hunting activities could emerge to not only to arrest the fall, but to also allow the key index to find support at around the 1,560 level – its six-week low. However, we also think that any near term upside will be limited due to the generally frail market conditions as Malaysian equities are still devoid of significant catalysts that are compounded by the prognosis of tepid corporate earnings and economic growth prospects in 2020. If the 1,560 level fails to hold, the support moves back to the psychological1,550 level. The resistances, on the other hand, are at 1,570 and 1,580 respectively.

• The lower liners and broader market shares are also undergoing their consolidation spell after the most recent uptrend has seen the FBM Small Cap index gaining more than 8.0% in the past few months. Under the prevailing environment, we see more profit taking activities as market players could opt to lock-in some of their winning positions ahead of the year-end break, albeit we think there could be some fresh nibbling towards the end of the year as some players may take up positions for next year.
  
  COMPANY BRIEF

• AMMB Holdings Bhd’s (AmBank Group) 2QFY20 net profit declined 8.2% Y.o.Y to RM319.6 mln due to higher allowances for expected credit loss (ECL) and financial investments. Revenue for the quarter, however, added 1.7% Y.o.Y to RM2.35 bln.

• 1HFY20 net profit grew 2.2% Y.o.Y to RM711.0 mln, on consistent net interest income (NII) growth and stronger fixed income trading and investment gains. Revenue for the period gained 5.7% Y.o.Y to RM4.74 bln. An interim dividend of 6.0 sen a share was declared. (The Star Online)

• Boustead Holdings Bhd’s 3Q2019 net loss stood at RM155.0 mln vs. a net loss of RM7.3 mln, due to huge impairments on its heavy industry and property divisions amounting to RM161.3 mln, as well as weaker results in other units. Revenue for the period, however, added 5.0% Y.o.Y to RM2.73 bln.

• For 9M2019, cumulative net losses widened to RM153.1 mln, compared with net losses of RM14.2 mln recorded in the previous corresponding period. Revenue for the period, however, climbed 6.2% Y.o.Y to RM7.79 bln.

• Separately, Boustead Plantations Bhd (BPB) has appointed Ibrahim Abdul Majid as its new CEO effective 1st December 2019. He assumes the position from Mohamad Azlan Jaafar who was the acting CEO and will now resume his responsibilities as the company’s Deputy CEO. (The Star Online)

• IHH Healthcare Bhd’s 3Q2019 net profit stood at RM236.3 mln vs. a net loss of RM104.1 mln in the previous corresponding quarter, driven by sustained organic revenue growth from its existing operations. Revenue for the quarter jumped 74.4% Y.o.Y to RM3.79 bln.

• For 9M2019, cumulative net profit jumped leaped 331.9% Y.o.Y to RM510.9 mln. Revenue for the period grew 32.6% Y.o.Y to RM11.08 bln. (The Edge Daily)

• QL Resources Bhd’s 2QFY20 net profit rose 15.1% Y.o.Y to RM69.7 mln, mainly due to higher sales from its marine product manufacturing segment. Revenue for the quarter gained 16.6% Y.o.Y to RM1.07 bln.

• For 1HFY20, cumulative net profit added 15.2% Y.o.Y to RM120.2 mln. Revenue for the period grew 19.0% Y.o.Y to RM2.07 bln. (The Edge Daily)

• Duopharma Biotech Bhd’s 3Q2019 net profit climbed 20.9% Y.o.Y to RM14.9 mln, thanks to increased demand for the group's pharmaceutical products from the private and public health sectors. Revenue for the quarter rose 13.5% Y.o.Y to RM142.9 mln.

• For 9M2019, cumulative net profit rose 30.0% Y.o.Y to RM43.2 mln. Revenue for the quarter grew 14.5% Y.o.Y to RM438.7 mln. (The Edge Daily)

• Hengyuan Refining Company Bhd’s 3Q2019 net loss narrowed to RM11.4 mln, from a net loss of RM122.5 mln recorded in the previous corresponding quarter. Revenue for the quarter rose 56.0% Y.o.Y to RM3.23 bln.

• For the nine-month period, however, cumulative net profit slipped 56.6% Y.o.Y to RM13.4 mln. Revenue for the quarter increased 8.7% Y.o.Y to RM9.49 bln. (The Edge Daily)

• Bintulu Port Holdings Bhd's 3Q2019 net profit rose 33.2% Y.o.Y to RM24.7 mln, mainly from higher handling of liquefied natural gas (LNG) cargoes and vessel calls. Revenue for the quarter rose 7.4% Y.o.Y to RM174.0 mln.

• For 9M2019, cumulative net profit rose 45.1% Y.o.Y to RM85.9 mln. Revenue for the period increased 9.0% Y.o.Y to RM532.0 mln. An interim dividend of 4.0 sen per share, payable on 27th December 2019 was declared. (The Edge Daily)

• BIMB Holdings Bhd’s 3Q2019 net profit increased 4.9% Y.o.Y to RM208.4 mln on higher revenue for the quarter that gained 9.2% Y.o.Y to RM1.19 bln.

• For 9M2019, cumulative net profit added 16.4% Y.o.Y to RM606.1 mln. Revenue for the period rose 14.6% Y.o.Y to RM3.53 bln. (The Edge Daily)

• Menang Corp (M) Bhd’s 1QFY20 net loss stood at RM503,000 vs. a net profit of RM967,000 recorded in the previous corresponding quarter, on expenses stemming from land clearing, earthworks and provisions for the costs of proposed corporate exercises. Revenue for the quarter declined 21.4% Y.o.Y to RM22,000. (The Edge Daily)

• Mudajaya Group Bhd has returned to the black with a net profit of RM812,000 in 3Q2019, thanks to the ongoing MRT2 project and the recognition of remaining work done for its Pengerang projects in Johor. Revenue for the quarter, however, contracted 25.6% Y.o.Y to RM110.2 mln.

• For 9M2019, cumulative net loss narrowed to RM73.0 mln, from a net loss of RM161.0 mln registered in the previous corresponding period. Revenue for the period, however, slipped 53.5% Y.o.Y to RM296.3 mln. (The Edge Daily)

• Eversendai Corp Bhd's 3Q2019 net profit sank 88.8% Y.o.Y to RM1.5 mln, dragged by higher operating and administrative expenses. Revenue for the quarter contracted 4.3% Y.o.Y to RM413.5 mln.

• For 9M2019, cumulative net profit slipped 58.5% Y.o.Y to RM21.0 mln. Revenue for the period declined 1.7% Y.o.Y to RM1.19 bln. (The Edge Daily)

• Lion Industries Bhd’s 1QFY20 net loss stood at RM110.6 mln vs. a net profit of RM19.0 mln recorded in the previous corresponding quarter due to lower margin of its steel division and higher loss from associated companies and joint ventures. Revenue for the quarter fell 29.1% Y.o.Y to RM656.4 mln. (The Edge Daily)

• Chemical Company of Malaysia Bhd (CCM) has awarded Sime Darby Bhd a RM27.9 mln contract to construct a cogeneration plant in Pasir Gudang, Johor. The contract is expected to be carried out in 14 months. (The Edge Daily)

• LFE Corp Bhd has secured three new projects 2019 which contributed RM66.6 mln to the group's order book. The new projects secured are from Johor and Terengganu. The new projects are part of its efforts to address the audit issues raised by its external auditor Morison Anuarul Azizan Chew. The auditor has raised material uncertainty relating to the going concern for the financial period ended 31st December 2018 on 2nd May 2019. (The Edge Daily)

• Sime Darby Plantation Bhd’s 3Q2019 net profit stood at RM32.0 mln on the back of revenue of RM2.82 bln. There are no comparative figures due to the change in the company's financial year end from 30th June to 31st December.

• For 9M2019, cumulative net profit stood at RM167.0 mln. Revenue for the period came in at RM8.69 bln. (The Edge Daily)

• Straits Inter Logistics Bhd has appointed Datuk Seri Tengku Baharuddin Sultan Mahmud as nonindependent and non-executive chairman of the group effective 1st December 2019, replacing Tan Sri Mohd Bakri Mohd Zinin, 65, who remains as non-executive director. (The Edge Daily)

Source: Mplus Research - 2 Dec 2019