• The FBM KLCI pared the majority of its losses in the final hour of trading, albeit still closing lower on Wednesday amid the prevailing negative sentiment abroad and weakness in selected telco heavyweights. The lower liners were also depressed, with the exception of the FBM ACE (+1.0%), while the broader market ended mostly in the red.

• Market breadth remained soft as losers beat the winners on a ratio of 492-to- 339 stocks, while traded volumes lost 8.5% to 2.14 bln shares as investors retreat to the sidelines following the recent selldown in riskier assets.

• Heavyweights underperformers were dominated by Nestle (-80.0 sen), Maxis (-18.0 sen), Public Bank (-16.0 sen), MISC (-10.0 sen) and Petronas Dagangan (-10.0 sen). Other decliners, meanwhile, were Dutch Lady (-48.0 sen), Chin Teck Plantations (-22.0 sen), Hong Leong Industries (-22.0 sen), KESM Industries (-13.0 sen) and Heineken Malaysia (-10.0 sen).

• In contrast, broader market winners include IGB Bhd (+52.0 sen), Aeon Credit (+40.0 sen), Litrak (+25.0 sen), Fraser & Neave (+20.0 sen) and Kobay Technology (+17.0 sen). Main Board gainers, meanwhile were Tenaga Nasional (+38.0 sen); backed by bargain-hunting activities, followed by Hong Leong Bank (+24.0 sen), Hap Seng (+14.0 sen), Hong Leong Financial Group (+6.0 sen) and Petronas Chemicals (+6.0 sen).

• Hong Kong stocks took the worst beating among the regional indices, weighed down by signs of slowing economic growth following its unresolved geopolitical uncertainties.The Hang Seng Index fell 1.3% after trading in the negative territory for the entire session. Similarly, the Nikkei and the Shanghai Composite also lost 1.1% and 0.2% respectively, while most of ASEAN equities retreated at Wednesday’s closing.
   
• Wall Street - the Dow (+0.5%), S&P 500 (+0.6%) and the Nasdaq (+0.5%) rallied amid renewed trade optimism after snapping three consecutive sessions’ of losses, supported by gains in financials, healthcare and tech-related stocks.
   
• Earlier, European equities regained their footing on hopes that China and the U.S. is close to sealing a trade deal before the mid-December deadline for additional tariffs on Chinese goods. Mining and banking heavyweights pushed the FTSE higher, albeit gains were capped by surge in Pound, while the DAX and the CAC added 1.2% and 1.3% higher respectively.
  
  THE DAY AHEAD

• Bursa Malaysia stocks have done well to claw back most of its losses yesterday to find support at around the 1,560 level despite the continuing uncertainties over a U.S-China trade deal. However, yesterday recovery could be a prelude for stocks to stage a firmer recovery over the near term as there appears to be some support emerging.

• At the same time, fresh developments on a trade deal to avoid higher tariffs on China goods in the middle of the month could help to renew the near term buying interest, in tandem with the gains in many overseas bourses overnight. This could help to arrest the recent falls on Malaysian equities as the more positive undertone could prompt some near term bargain hunting activities.

• With the 1,560 support holding, the FBM KLCI’s resistances are now pegged at the 1,568-1,570 levels, followed by the 1,580 level. The supports, meanwhile, are at 1,556 and 1,550 respectively – the latter its recent low and also its four-year low.

• The FBM Small Cap index and other lower liners also appear to be finding some support their current levels after their recent pullback. We expect these stocks to also tip higher over the near term in view of the improved market conditions. However, the near term trades could still be measured due to the quick profit taking activities.
  
  COMPANY BRIEF

• Astro Malaysia Holdings Bhd’s 3QFY20 net profit rose 11.5% Y.o.Y to RM170.9 mln, mainly due to lower net finance costs and tax expenses. Revenue for the quarter, however, fell 12.2% Y.o.Y to RM1.22 bln.

• For 9MFY20, cumulative net profit climbed 49.9% Y.o.Y to RM516.4 mln. Revenue for the period, however, declined 10.3% Y.o.Y to RM3.69 bln. A third interim dividend of 2.0 sen per share for the quarter was declared. (The Sun Daily)

• S&P Global Ratings has downgraded its long-term issuer credit rating on Genting Bhd to 'BBB+' from 'A-' in anticipation that the hotel and casino operator's leverage will increase amid an expected weakening in cash flow adequacy over the next 12 to 18 months, given the company's aggressive expansion plans.

• Its stable outlook on Genting, meanwhile, reflects its expectation that Genting will manage its leverage, despite its currently high capital expenditure. (The Edge Daily)

• Microlink Solutions Bhd has fixed the issue price for its private placement shares at 55 sen apiece. The issue price represents a discount of 4.5 sen or 7.5% from its five-day weighted average market price from 27th November 2019 to 3rd December 2019 of 59.5 sen per share.

• The group is planning to place out some 16.7 mln new shares, which represent 10.0% of its total share capital of 167.4 mln shares. (The Edge Daily)

• Seacera Group Bhd (SGB) has been served with a legal claim demanding that it auctions land in Perak to pay off a debt owed by its associate company. SGB wholly-owned subsidiary, Seacera Porcelain Sdn Bhd (SPSB) was served with a legal claim by The Small Medium Enterprise Bank Malaysia (SME Bank) for a dispute over RM31.3 mln owed through a credit facility granted to associate company SPAZ Sdn Bhd.

• The bank has requested for the land held under PN 380412, Lot 313647, Mukim Asam Kumbang, Daerah Larut & Matang, Negeri Perak be sold by public auction to settle the sum. The Taiping High Court will set the date and reserve price for the auction. (The Edge Daily)

• Bursa Malaysia Securities has publicly reprimanded G Neptune Bhd and four former directors of the Guidance Note 3 (GN3) company for delaying the issuance of its annual report and for announcing an inaccurate quarterly report that may have affected investors' investment decisions.

• G Neptune only issued its annual report for the 18-month financial period ended 30th June 2017 on 17th May 2018, after a six-and-a-half-month delay from the stipulated deadline.

• The company also failed to ensure that its quarterly report for the financial period ended 30th June 2017 — announced on 29th August 2017 was accurate and contained sufficient information to enable investors to make informed investment decisions. (The Edge Daily)

Source: Mplus Research - 5 Dec 2019