• The FBM KLCI staged a mild recovery after the recent selldown, although Tenaga Nasional remained in the red. The lower liners also reversed its earlier losses and closed on an upbeat note – led by the FBM ACE (+1.0%), while more than half of the broader market constituents advanced.

• Market breadth turned positive as winners overturn the losers on a ratio of 441-to-376 stocks. Traded volumes, however, fell 21.6% to 2.04 bln shares as market conditions are still largely indifferent.

• Plantation-heavyweights like Kuala Lumpur Kepong (+40.0 sen) and Sime Darby Plantation (+14.0 sen) topped the gainers’ list amid stronger CPO prices, followed by Nestle (+RM2.40), Petronas Dagangan (+40.0 sen) and Digi (+15.0 sen). Other outperformers include SHL Consolidated (+36.0 sen), Master-Pack (+ 23.0 sen), Dayang (+15.0 sen), Public Packages (+13.5 sen) and Scanwolf (+13.5 sen).

• In contrast, Dutch Lady (-RM4.50), United Plantations (-36.0 sen), BAT (- 30.0 sen), Keck Seng (-19.0 sen) and Hengyuan Refining (-15.0 sen) were among the broader market decliners. Meanwhile, Hartalega (-8.0 sen), Tenaga Nasional (-8.0 sen), Public Bank (-6.0 sen), Ambank (-5.0 sen) and Maybank (- 2.0 sen) also weighed on the blue-chip bourse.

• Mainland Chinese equities rallied as investors cheered stronger-thanexpected factory data. The Shanghai Composite and the Hang Seng Index added 0.1% and 0.4% respectively, despite rising geopolitical concerns and trade uncertainties. The Nikkei (+1.0%), meanwhile, beat its regional peers and closed strongly, followed by most of ASEAN indices.

• Benchmark U.S. indexes retreated on the first trading day of the month, weighed down by profit-taking activities and weak manufacturing data. The Dow fell 1.0%, with the majority of its constituents in the red. Meanwhile, tech-dominated indices like the S&P 500 (-0.9%) and the Nasdaq (-1.1%) also recorded losses, intandem with the weakness in notable tech giants like Microsoft, Apple and Intel.

• Contrary to the mood in the Asian stockmarkets, major European blue-chip gauges were painted in red following the potential reinstatement of U.S. tariffs on metal imports from Brazil and Argentina, as well as the soft Eurozone manufacturing data. The FTSE, CAC and DAX finished down 0.8%, 2.0% and 2.1% respectively.
  
  THE DAY AHEAD
   
• After yesterday’s anticipated rebound from last Friday’s steep falls, we think the key index will attempt to continue its near term recovery now that it has rebounded back to the 1,570 level.
• Even with the possible upsides, however, we think there is still substantive tentativeness as there are remains few catalysts to entice a stronger recovery, in our view. As it is, market sentiments are still tepid amid concerns over the state of the country’s corporate earnings and economic environment in 2020 that is leaving the FBM KLCI to drift for longer.

• Also, an initial U.S-China trade deal remains in a limbo that could further leave market conditions guarded for longer. Consequently, we continue to think that the gains are likely to be limited with the next resistances pegged at 1,575 and 1,580 respectively. The supports, meanwhile, are at 1,565 and 1,560 respectively.

• The lower liners and broader market shares are also staging a rebound and may continue to pick-up some gains over the near term. However, the gains will still be tepid as market participation is still on the relatively thin side that we see limiting the upsides.
  
  COMPANY BRIEF

• Duopharma Biotech Bhd had its contract to supply human insulin product to the government extended by one year to 1st December 2020, with an additional contract value of RM91.1 mln. This program is under the Health Ministry's offtake agreement programme. (The Star Online)

• Ewein Bhd's indirect unit , Ewein Zenith II Sdn Bhd has entered a joint venture agreement with Consortium Zenith Construction Sdn Bhd to set out the terms and conditions of a collaboration to develop a 4.3-ac. freehold tract in Daerah Timur Laur in Pulau Pinang for RM159.8 mln.

• The the land is located along Gurney Drive to be alienated to Ewein Zenith Sdn Bhd by the Penang state government under the agreement signed on 14th January 2016, as partial consideration for construction and land acquisition works awarded to Consortium Zenith. (The Star Online)

• Perisai Petroleum Teknologi Bhd has bagged a contract extension worth US$7.6 mln (RM31.8 mln) from Petronas Carigali Sdn Bhd for the provision of a jack up drilling rig for the latter’s election two wells. (The Edge Daily)

• Crest Builder Holdings Bhd is buying a 2.6-ha. freehold land in Klang from WCT Holdings Bhd for RM55.0 mln. The preliminary plans for the land is a mixeddevelopment of three blocks of residential serviced apartments and retail shop lots with the gross development value estimated to be above RM500.0 mln. (The Edge Daily)

• Cuscapi Bhd has entered into a Memorandum of Understanding (MoU) with iPay88 (M) Sdn Bhd for a collaboration to offer competitive solutions to end-consumers in the food and beverage (F&B) industry.

• The MoU will enable Cuscapi to leverage on iPay88’s dominant position in the online and mobile payment space, whilst exploring business opportunities and potential cross-selling of Cuscapi’s C360engage — an intelligent cloud pointof-sales (POS) system to iPay88’s host of F&B customers. (The Edge Daily)

• Sanichi Technology Bhd's will be developing Malaysia's and ASEAN's first halal gelatin plant certified by Malaysian Islamic Development Department (JAKIM) and the first halal gelatin industrial park, to be known as Melaka Halal Gelatin Industrial Park (MHGIP).

• The plant will produce applications across various industries including food, pharmaceutical, cosmetics, industrial and films. The development will be completed in two phases over the next five years, with operations at the halal gelatin plant to commence by mid-2021. (The Edge Daily)

• Shareholders of Seacera Group Bhd has voted for the appointment of Rozaidi Baharudin as an independent director of the company’s but had voted against the election of Abdul Razak Jamaludin, Mohamad Safwan Abdul Malek and Rozana Ismail. These candidates were previously nominated by Non-Executive Director Ishak Ismail.
• The six candidates proposed by four Seacera shareholders — Ng Wai Yuan, Datin Sek Chian Nee, Low Swee Foong and Datuk Tan Wei Lian — who hold a collective 2.5% stake, were also rejected. The six were Rizvi Abdul Alim, Datin Ida Suzaini Abdullah, Marzuki Hussain, Tan Lee Chin, Ong Eng Taik and Ramnath R Sundaram.
• The company also saw the appointment of Mohd Adzhar Abd Hamed, Chu Chee Peng, Datuk Chong Loong Men, Nicholas Wong Yew Khid, Shi’aratul Akmar Sahari, Yong Ket Inn, Halim @ Ab Halim Ismail, Ling Chi Hoong, Tengku Ahmad Badli Shah Raja Hussin and Datuk Seri Abdul Azim Mohd Zabidi as directors.

• Meanwhile, Mohd Fazillah Kamaruddin was removed from the board after being voted out by shareholders, while Ishak Ismail, Zahari Wan Embong, Datuk Ismail Ahmad, Zamri Mohd Ramli, Datuk Seri Mansor Masikon, Koo Kien Yoon, Saharom Mohd Adas and Mazlan Mohamad retired from the board. (The Edge Daily)

Source: Mplus Research - 3 Dec 2019