Ending The Week Higher

• The FBM KLCI (-0.1%) finished mildly lower after erasing all its’ intraday gains on the eleventh hour profit taking in selected index heavyweights yesterday. The lower liners - the FBM Small Cap (+2.0%), FBM Fledgling (+1.6%) and FBM ACE (+2.7%), all marched higher, the plantation sector (-0.1%) underperformed the positive broader market

• Market breadth stayed positive as gainers outnumbered the losers on a ratio of 624-to-253 stocks. Traded volumes, however, fell 12.9% to 4.83 bln shares - but remains largely above the historical average.

• Key losers on the FBM KLCI were Malaysia Airport Holdings (-16.0 sen), Hap Seng Consolidated (-11.0 sen), PBB Group (-10.0 sen), KLK (-10.0 sen) and Hong Leong Bank (-8.0 sen). Notable losers on the broader market include Rapid Synergy (-25.0 sen), Heineken (- 10.0 sen), Keck seng (-9.0 sen), Kuchai Development (-9.0 sen) and IJM Corporation (-8.0 sen).

• Amongst the biggest gainers on the broader market were Dutch Lady (+98.0 sen), Carlsberg (+70.0 sen), LPI Capital (+70.0 sen), BAT (+38.0 sen) and Perusahaan Sadur Timah (+35.0 sen). Meanwhile, Nestle (+50.0 sen), Hong Leong Financial Group (+26.0 sen), Maxis (+16.0 sen), Public Bank (+10.0 sen) and MISC (+6.0 sen) advanced on the local bourse.

• Asia benchmark indices closed mostly lower as the Nikkei (-1.3%) extended its’ losses, taking cue from the decline on Wall Street overnight. The Hang Seng Index fell 0.6%, but the Shanghai Composite (+0.3%) rebounded on the re opening of factories, shops and other businesses. Asia stockmarkets, meanwhile, ended on a mixed note on Thursday.

• U.S. stockmarkets chalked in mild gains as the Dow rose 0.1% as U.S. President Donald Trump advocated a gradual reopening of the economy, whilst 5.2 mln of Americans filed for unemployment last week, bringing 22.0 mln of job losses during the Covid-19 outbreak. Likewise, the S&P 500 added 0.6%, led by the healthcare sector (+2.2%), while the Nasdaq jumped 1.7% higher on gains in technology shares like Netflix and Amazon amid the higher usage.

• European stockmarkets finished mostly higher as the FTSE and DAX gained 0.6% and 0.2% respectively despite the former’s consumer spending in March 2020 slumped -6.0% Y.o.Y. The CAC, however, fell 0.1%.

The Day Ahead

• We think that bargain activities remains on the cards as investors remain as any pullback bring opportunity for a quick bargain hunting. The move will be back by countries across the globe are mulling for a gradual reopening of the economy. At the same time, the stability of crude oil prices also provided some alleviation to the market sentiment.

• At current juncture, the key index’s recovery appears to hit another snag, with the immediate resistance located at the 1,400 psychological level. However, should the aforementioned level taken out, further recovery may power the local bourse towards the 1,420-1,455 levels. On the flipside, the 1,340 continues to serve as the immediate support level.

• It was a firmer performance on both the lower liners and broader market shares as they continue their quest on recovery yesterday. Although we reckon that the rotational play may prolong, we remain cautious that any upsides may be tempered by quick profit taking activities amid the volatile market conditions.

COMPANY BRIEF

• Datuk Shireen Ann Zaharah Muhiudeen has been removed from her position as Bursa Malaysia Bhd’s chairman by the Finance Minister over governance issues. The Securities Commission (SC) confirmed that Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz decided to revoke Shireen’s appointment.

• In exercising this power, the Minister had consulted with the SC before arriving at his decision. It is not known who will be replacing her. Shireen, who was appointed Bursa chairman on 1st March 2019, replacing Tan Sri Amirsham A. Aziz, is the founder of CorstonSmith Asset Management Sdn Bhd. (The Star)

• Tropicana Corp Bhd has proposed an RM1.50 bln Islamic Medium-Term Notes programme (Sukuk Wakalah) to repay borrowings to unencumbered secured properties. The proceeds will also be used for capital expenditure, investments and working capital. Malaysian Rating Corp Bhd (MARC) has assigned a preliminary rating of ‘A+’ with a stable outlook to the Sukuk Wakalah. (The Edge)

• XOX Bhd’s wholly-owned XOX Media Sdn Bhd has signed a Memorandum of Understanding with DGB Networks Sdn Bhd, a wholly-owned subsidiary of DGB Asia Bhd, to collaborate in the deployment of up to 1,000 artificial intelligence (AI) vending machines. The collaboration is in line with its strategy to focus on different silos of its business to create more revenue streams while providing synergies to its core business of being a mobile virtual network operator (MVNO), with the potential expansion of its dealers base and retail footprint. (The Edge)  

Source: Mplus Research - 17 Apr 2020