R e t a i l M a r k e t M o n i t o r Tuesday, 29 November ... · Ichimoku chart, a buying signal...

R e t a i l M a r k e t M o n i t o r Tu esday , 29 Nov em be r 2 01 6

w w w . u t r a d e . c o m . m y 1

M A L A Y S I A

MARKET NEWS

The FBMKLCI rose 1.40pt to close at 1,628.66 yesterday. Meanwhile, Asian equities

climbed as metal surged on President-elect Donald Trump’s promise to boost

infrastructure spending. The MSCI Asia Pacific Index rose 0.8%, with the sub-gauge of

utilities gaining 1.3%. The FBMKLCI’s top gainers were Maxis (+3.3%), Genting Malaysia

(+2.1%) and PPB Group (+1.1%) while the top losers were Axiata Group (-1.2%), RHB

Bank (-1.1%) and MISC (-0.96%). In the broader market, losers outpaced gainers 594 to

224 with 318 counters unchanged. Turnover was 1.32b shares valued at RM1.44b.

From a technical perspective, the benchmark index tried to breach the BBI line yesterday

while RSI lines continued pointing upward, suggesting the presence of buying momentum

which may continue to rise higher in the near term. This is supported by the MACD that is

currently on the verge of making a golden cross to the positive signal. Nevertheless, given

the current volatility, we advise investors to be extra careful with their open positions.

Support and resistance levels are maintained as follows:

Support: 1,612,1,600

Resistance: 1,665, 1,680

US stocks closed lower on Monday after setting record highs throughout last week. The

DJIA lost 54.24pt, or 0.28%, to close at 19,097.90 while the S&P500 edged lower by

11.63pt, or 0.53%, to 2,201.72. The price of benchmark US oil surged 2.3% to above

US$47/bbl. Major oil producers from OPEC will meet Wednesday to discuss output cuts

to shore up prices. Meanwhile, the yield on the 10-year US Treasury note fell to 2.33%

from 2.36%. On the economic front, Chicago PMI for November is set to be released on

Wednesday, while Markit releases its manufacturing PMI gauge and the Institute of

Supply Management releases its November manufacturing figures on Thursday. Friday’s

jobs report will come before the widely-expected Fed rate hike in December. Falling

stocks outnumbered advancing ones on the NYSE by 2,055 to 1,096 and 91 ended

unchanged.

WHAT’S IN THE PACK

Carlsberg Brewery Malaysia (CAB MK/HOLD/RM14.00/Target: RM14.00)

3Q16: Missed expectations. The

underperformance came from a weak

top-line in Malaysia and higher A&P

expenses from both Malaysia and

Singapore arms. 4Q16 outlook subdued.

IJM Corporation (IJM MK/BUY/RM3.30/Target: RM3.95)

2QFY17: Broadly in line, with the

construction division being the key growth

driver.

Muar Ban Lee Group (MBL MK) Technical BUY with +26.8% potential return

BUY with a target price of RM1.26 and

stop-loss at RM1.04. Based on the daily

Ichimoku chart, a buying signal was seen

as the stock has been trading above the

Ichimoku cloud.

Public Packages Holdings(PP MK) Technical BUY with +19.6% potential return


stop-loss at RM0.91. A successful closing

above the BBI line on the back of higher

trading volumes points to improving

sentiment as PP looks set to resume the

upward move.

Sedania Innovator (SDNA MK) Technical BUY on breakout with +43.6%

potential return

BUY on breakout with a target price of

RM0.395 and stop-loss at RM0.22. Having

sustained above the BBI line over the past

few days, SDNA surged on renewed

buying interest to retest the breakout level

of RM0.275 yesterday.

FBMKLC I CHART

Source: Bursa Station

KEY IND ICES

Prev Close Chg (%)

YTD (%)

DJIA 19,097.90 (0.28) 9.60 S&P 500 2,201.72 (0.53) 7.72 FTSE 100 6,799.47 (0.60) 8.93 CSI 300 3,535.08 0.39 (5.25) FSSTI 2,874.65 0.54 (0.28) HSCEI 9,875.54 0.87 2.22 HSI 22,830.57 0.47 4.18 JCI 5,114.57 (0.15) 11.36 KLCI 1,628.66 0.09 (3.77) KOSPI 1,978.13 0.19 0.86 Nikkei 225 18,356.89 (0.13) (3.56) SET 1,500.78 0.03 16.52 TWSE 9,222.24 0.69 10.60 BDI 1,184.00 0.25 147.70 CPO (RM/mt) 3,077.00 1.48 23.82 Nymex Crude (US$/bbl) 46.74 (0.72) 5.72

TOP VOLUME

Stock Price (RM)

Chg (%)

Vol (‘000)

Airasia X Bhd 0.37 (3.90) 46,079 Hibiscus Petroleum Bhd

0.28 (6.67) 38,918

Felda Global Ventures Holdings

1.44 (7.69) 33,986 Bumi Armada Bhd 0.51 (7.27) 30,072 Gadang Holdings Bhd 0.94 (6.93) 19,980

TOP GA INERS

Stock Price (RM)

Chg (%)

Vol (‘000)

Kim Hin Industry Bhd 1.84 17.95

1,127 Dbe Gurney Resources Bhd

0.05 12.50

2,338

Idimension Consolidated Bhd

0.05 11.11

54

Perwaja Holdings Bhd 0.11 10.53

5,877 Nwp Holdings Bhd 0.22 10.2

6 2,984

TOP LOSERS

Stock Price (RM)

Chg (%)

Vol (‘000)

Maxwell International Holdings

0.02 (25.00) 3

China Automobile Parts Holding

0.02 (20.00) 671

Lion Diversified Holdings Bhd

0.03 (16.67) 19

Mq Technology Bhd 0.08 (15.79) 13,096

Dgb Asia Bhd 0.04 (12.50) 392 Source: Bloomberg



M A L A Y S I A

TRADERS’ CORNER

Muar Ban Lee Group

(MBL MK) Technical BUY with +13.5% potential return

Last price : RM1.12

Target price : RM1.19, RM1.26

Support : RM1.05

Stop-loss : RM1.04


stop-loss at RM1.04. Based on the daily

Ichimoku chart, a buying signal was seen

as the stock has been trading above the

Ichimoku cloud. This is supported by the

Heat Wave indicators as the Tenkan-sen,

Kinjun-sen and Chikao span lines are

intercrossing, which suggest a bullish

signal. On yesterday’s movement, MBL

managed to penetrate above the breakout

level RM1.11. An uptick in the DMI

suggests buying momentum is set to

continue in the near term. Currently, the

MACD is showing a bullish crossover to

support the upward momentum. We peg

our targets at RM1.19 and RM1.26 in the

near term.

Expected time frame: 2 weeks to 2

months

Public Packages Holdings

(PP MK) Technical BUY with +19.6% potential return

Last price : RM0.97


Support : RM0.915

Stop-loss : RM0.91


stop-loss at RM0.91. A successful closing

above the BBI line on the back of higher

trading volumes points to improving

sentiment as PP looks set to resume the

upward move. An uptick in the DMI

suggests a strong momentum to push the

share price higher in the near term.

Additionally, the MACD is currently on a

bullish crossover, indicating a stronger

uptrend ahead. We peg our upside targets

at RM1.09 and RM1.16.

Expected time frame: 2 weeks to 2

months.



M A L A Y S I A

TRADERS’ CORNER

Sedania Innovator

(SDNA MK) Technical BUY on breakout with +43.6%

potential return

Last price : RM0.265


Support : RM0.225

Stop-loss : RM0.22

BUY on breakout with a target price of

RM0.395 and stop-loss at RM0.22. Having

sustained above the BBI line over the past

few days, SDNA surged on renewed buying

interest to retest the breakout level of

RM0.275 yesterday. Growing bullish

divergence in the MACD suggests that the

bullish trend will continue in the near term

while the steep upward movement of the RSI

suggests that buying momentum would

continue to pick up going forward. We peg our

targets at RM0.345 and RM0.395 once it

manages to penetrate above the breakout

level of RM0.275.

Expected Timeframe: 2 weeks to 2

months



M A L A Y S I A

CORPORATE NEWS

Matang: Inks underwriting deal with M&A Securities. Matang

Bhd has signed an underwriting agreement with M&A Securities Sdn Bhd as the plantation

company seeks a listing on the ACE Market of Bursa Malaysia Securities Bhd. The IPO will

involve the issuance of 130m new shares of 10 sen each in Matang, or 7.18% of the

enlarged issued and paid-up share capital after listing. Under the agreement, M&A

Securities will underwrite the entire 130m new Matang shares to be offered to the

Malaysian public via public balloting. Matang chairman Datuk Teh Kean Ming signed on

behalf of the company while M&A Securities was represented by its managing director of

corporate finance, Datuk Bill Tan Choon Peow. (Source: The Star)

Mulpha International: In talks to acquire Novotel Brisbane

Hotel. Mulpha International Bhd said it is in discussions to acquire the Novotel Brisbane

Hotel but has not inked any legally-binding contract for the purchase. The announcement

was made in response to a local news publication's report that said the group intended to

acquire the hotel from CDL Hospitality Trusts for A$85m (RM275.8m). “Mulpha continues

to actively pursue hotel acquisitions in the Australian market. “Mulpha will ensure that an

announcement is made in accordance with the Main Market Listing Requirements of Bursa

Malaysia Securities Bhd, should any binding agreement be reached to acquire assets that

are material to the group,” it said. Mulpha closed down 0.5 sen or 2.44% at 20 sen today,

giving it a market capitalisation of RM639.57m. (Source: The Edge Financial Daily)

Multi-Usage Holdings: Suspends two directors as part of

probe. Multi-Usage Holdings Bhd’s (MUH) board has decided to suspend two directors,

Gerald Mak Mun Keong and Tan Chew Hua, for two months as part of an investigation.

The property developer and building material manufacturer said Mak, an independent, non-

executive director, was suspended to “investigate his independence.” Whilst Tan, a non-

independent and non-executive director, was suspended to “investigate into the matters

highlighted in the qualified auditors’ report and the special audit report,” MUH said in a

filing with the bourse. “The board authorised the Nomination Committee to lead the

investigation into the above matters,” the company said. (Source: The Star)

The Store Corp: Group MD launches MGO for The Store,

plans to take it private. The Store Corp Bhd (TSCB) group MD Tan Sri Tang

Yeam Soon and his wife, executive director Puan Sri Khor Guik Lee, are making a

mandatory general offer (MGO) to acquire the remaining shares they do not own in the

retailer for RM3.52 each in cash. In a filing with Bursa Malaysia, the country's oldest

existing supermarket and departmental store chain said TYS Consolidated Sdn Bhd,

whose controlling and/or substantial shareholders are Tang and Khor, acquired a 13.88%

stake in TSCB on Monday. The stake, believed to be acquired from Nirvana Asia founder

Tan Sri Kong Hon Kong, boosted the collective shareholdings of the ultimate offerors

(Tang and Khor), TYS Consolidated and persons acting in concert (PACs) in TSCB from

28.16% to 42.05%. The PACs are Equatorial Century Sdn Bhd, TSCB’s single biggest

shareholder in which the ultimate offerors are the directors and the owners of its entire

paid-up capital, and the ultimate offeror’s son Tang Chee Weng. The offer price represents

a 21.38% premium to the lazt transacted price and volume weighted average market share

price of TSCB shares up to Nov 25, being the last full trading day prior to the takeover

notice. (Source: The Star)



M A L A Y S I A

TPC Plus: No longer PN17 firm from tomorrow. Egg producer

TPC Plus Bhd will be uplifted from being classified as a Practice Note 17 (PN17) company

from tomorrow. "TPC has regularised its financial condition and level of operations and no

longer triggers any of the criteria under Paragraph 2.1 of PN17 of the Main Market listing

requirements," Bursa Securities said in a statement today. The regulator said it will

continue to monitor the progress of PN17 companies, in respect of their compliance with

the listing requirements. TPC became a PN17 company on 28 Mar 14, after its auditors

expressed concern over the company, which posted a net loss of RM4.1m in financial year

ended 31 Dec 13. TPC's shareholders' equity as at 31 Dec 13 was also less than 50% of

its issued capital. Excluding TPC, there now remains 17 companies under PN17 which

represent 1.88% of the total number of 904 companies listed on Bursa Malaysia. TPC

shares closed down 0.5 sen or 0.9% at 55 sen today, bringing it to a market capitalisation

of RM108m. (Source: The Edge Financial Daily)

TRC Synergy: MRT contract terminated due to 'national

interest'. One of the two contracts secured by TRC Synergy Bhd’s unit, Trans

Resources Corp Sdn Bhd, from Mass Rapid Transit Corp Sdn Bhd (MRT Corp) in March

has been terminated. The RM74.4m contract was cancelled in accordance with Clause 62

of the conditions of contract (termination on national interest), said the construction and

property development group. In a filing with Bursa Malaysia on Monday, TRC Synergy said

it had on 20 May (received the notice of termination of works from MRT Corp’s project

delivery partner, MMC Gamuda KVMRT (PDP SSP) Sdn Bhd, for the contract that involved

renovating two blocks in Sultan Abdul Samad Building in Kuala Lumpur. (Source: The Star)

SECTOR

Banking: Bank Negara appoints new members to its

Financial Stability Executive Committee. Bank Negara has

announced the appointments of deputy governor Abdul Rasheed Ghaffour, Datuk Johan

Idris and Yoong Sin Min as members of its Financial Stability Executive Committee. Johan

and Yoong would serve as external experts for a three-year term with effect from 3 Nov 16,

following the resignation and expiry of membership of the previous external experts. These

appointments are in accordance with Section 37(2) of the Central Bank of Malaysia Act

2009 (CBA). (Source: The Star)

Banking: Bank Negara wants rules of NDF market to be

changed. Bank Negara Malaysia (BNM) wants a change in the rules for the offshore

ringgit non-deliverable forward (NDF) market following the recent weeks of speculative

position taking. Saying that “perhaps it is time to change the rules of the game,” central

bank governor, Datuk Muhammad Ibrahim said on Monday that the financial market

players, especially those in the NDF market, need to be as transparent as the demands

they expect of others. “Similarly, jurisdictions that govern them ought to make this opaque

market more transparent and accountable,” he added in his keynote address at the Global

Banking Leaders programme here. StarBiz reported there has been a substantial selldown

in government bonds, led by foreign selling, since the aftermath of the US presidential

election. The rout in the country’s bond market saw the Malaysian Government Securities

(MGS) yields rising at its fastest pace ever to around 15-month high in a matter of two

weeks. The ringgit is now hovering at its lowest levels in 19 years as a result of continued

capital outflow. (Source: The Star)



M A L A Y S I A

FROM THE REGIONAL MORNING NOTES...

Carlsberg Brewery Malaysia: 3Q16: Time To Sober Up (CAB MK/HOLD/RM14.00/Target: RM14.00) CAB’s 3Q16 results missed expectations. The underperformance came from: a) a weak

top-line from Malaysia on weak consumer sentiment, and b) higher A&P expenses in both

Malaysia and Singapore arms to spur sales. Its associate, Lion Brewery, was back in the

red due to a massive flood. 4Q16 outlook remains subdued due to still-weak consumer

sentiment. We cut our 2016-18 earnings forecasts by 6- 9.5%. Maintain HOLD with a lower

target price RM14.00, implying 17.5x 2017F PE. Entry price: RM13.00.

IJM Corporation: 2QFY17: Growth Driven By Construction

Division (IJM MK/BUY/RM3.30/Target: RM3.95) IJM reported a 2QFY17 core net profit of RM167.3m on revenue of RM1.5b. 1HFY17

results accounted for 47% of our and consensus full-year estimates each. We deem the

results in line as we expect the construction division to continue to record robust growth

momentum as billings accelerate. Key catalysts for the stock would be potential job wins

that may come in 2HFY17 as well as improving port operations throughput. Maintain BUY.

Target price: RM3.95.

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M A L A Y S I A

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R e t a i l M a r k e t M o n i t o r Tuesday, 29 November ... · Ichimoku chart, a buying signal...

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