R e t a i l M a r k e t M o n i t o r Wednesday, 13 ... · R e t a i l M a r k e t M o n i t o r Wednesday, 13 September 2017 w w w . u t r a d e . c o m . m y 2 M A L A Y S I A TRADERS’

R e t a i l M a r k e t M o n i t o r Wedn esd ay , 13 Se p te mb er 2 017

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 7.12pt to close at 1,789.86 yesterday, buoyed by positive sentiment in

overnight US markets. Meanwhile, Asian equities took another leg higher after the S&P

500 Index rose to a record high and Treasuries tumbled, with less damage than originally

feared from Hurricane Irma supporting the case for a gradually improving US economy.

The MSCI Asia Pacific Index climbed 0.4%. The FBMKLCI’s top gainers were Petronas

Gas (+3.5%), IHH Healthcare (+2.4%) and MISC (+1.2%), while the top losers were

Telekom Malaysia (-0.3%), Petronas Chemicals Group (-0.3%) and Sime Darby (-0.1%).

In the broader market, gainers outpaced losers 488 to 395 with 383 counters unchanged.

Turnover was 3.66b shares valued at RM2.25b.

In line with our earlier expectation, the FBMKLCI bucked regional sentiments and rose

higher yesterday, culminating in a negative bias which has been lurking over the index in

the past few weeks. Based on the daily chart, the index continues to form a series of

higher highs and higher lows and managed to penetrate the previous immediate

resistance of 1,787 yesterday. The bullish crossover in DMI suggests buying pressure has

started to gain traction, which could lead to further upside in the near term. Although the

negative bias in the short term has fully normalised, we maintain our long-term bullish

bias. Support and resistance levels are revised as follows:

Support: 1,766,1,752

Resistance: 1,793, 1,800

US stocks closed higher on Tuesday as investor appetite for risker assets remained

supported following a surge in financials amid a rebound in treasury yields while upbeat

comments from Treasury Secretary Steven Mnuchin lifted sentiment. At the close in

NYSE, the DJIA gained 0.28% to hit a new 1-month high, while the S&P 500 index gained

0.34%, and the NASDAQ Composite index added 0.34%. Rising stocks outnumbered

declining ones on the NYSE by 1,901 to 1,169 and 163 ended unchanged; on the Nasdaq

Stock Exchange, 1,561 rose and 933 declined, while 147 ended unchanged.

WHAT’S IN THE PACK

MISC (MISC MK/SELL/RM7.31/Target: RM6.30)

Despite a surge in lightering rates due to

Hurricane Harvey/Irma, utilisation rates

and cost impact to earnings remain

uncertain due to operational delays.

Maintain SELL.

Fibon (FIBON MK) Technical BUY on breakout with 20.5%

potential return

BUY on breakout with a target price of

RM0.795 and stop-loss at RM0.595. Based

on the daily chart, FIBON managed to

climb up from the low of RM0.55 to retrace

its recent loss.

WZ Satu (WENG MK) Technical BUY with +20.2% potential return

BUY with a target price of RM1.37 and

stop-loss at RM1.04. A successful closing

above the BBI line on yesterday’s

movement suggests improving sentiment

as WENG looks set to resume the upward

movement.

Bright Packaging Industry

(BPKG MK) Technical BUY on breakout with 23.2%

potential return


RM0.425 and stop-loss at RM0.295. Share

price has consolidated within the

immediate support of RM0.30 and

yesterday’s positive closing above the BBI

sets a new tone for the short-term outlook.

FBMKLC I CHART

Source: Bursa Station

KEY IND ICES

Prev Close Chg (%)

YTD (%)

DJIA 22,118.86 0.28 11.92 S&P 500 2,496.48 0.34 11.51 FTSE 100 7,400.69 (0.17) 3.61 CSI 300 3,837.93 0.32 15.95 FSSTI 3,235.69 0.22 12.32 HSCEI 11,242.06 0.19 19.66 HSI 27,972.24 0.06 27.14 JCI 5,872.38 0.01 10.87 KLCI 1,789.86 0.40 9.02 KOSPI 2,365.47 0.27 16.73 Nikkei 225 19,776.62 1.18 3.46 SET 1,643.55 0.37 6.52 TWSE 10,610.35 0.36 14.66 BDI 1,355.00 1.73 41.00 CPO (RM/mt) 2,829.00 0.96 (9.01) Nymex Crude (US$/bbl) 48.31 0.17 (15.29)

TOP VOLUME

Stock Price (RM)

Chg (%)

Vol (‘000)

Mq Technology Bhd 0.09 70.00 486,619

Netx Holdings Bhd 0.05 0.00 113,699

M3 Technologies Asia Bhd

0.11 5.00 97,425 Sino Hua-An International Bhd

0.24 (5.88) 75,185

Mlabs Systems Bhd 0.12 (11.54) 65,213

TOP GA INERS

Stock Price (RM)

Chg (%)

Vol (‘000)

Mq Technology Bhd 0.09 70.00

486,619

Ancom Logistics Bhd 0.15 42.86

16,537 Idimension Consolidated Bhd

0.08 33.33

10,704

Berjaya Media Bhd 0.34 24.07

0 Metronic Global Bhd 0.06 22.2

2 31,893

TOP LOSERS

Stock Price (RM)

Chg (%)

Vol (‘000)

Maxwell International Holdings

0.02 (20.00) 9,914 Apft Bhd 0.02 (20.00) 13,363

Dbe Gurney Resources Bhd

0.03 (14.29) 1,527 Mlabs Systems Bhd 0.12 (11.54) 65,213

Nexgram Holdings Bhd

0.04 (11.11) 1,684 Source: Bloomberg



M A L A Y S I A

TRADERS’ CORNER

Fibon (FIBON MK) Technical BUY on breakout with +20.5%

potential return

Last price: RM0.645

Target price: RM0.745, RM0.795

Support: RM0.60

Stop-loss: RM0.595


RM0.795 and stop-loss at RM0.595. Based

on the daily chart, FIBON managed to

climb up from the low of RM0.55 to retrace

its recent loss. This is supported by an

uptick in the RSI on higher trading volume

yesterday. This bullish signal is also

supported by the MACD and the DMI which

are currently on a bullish crossover. We

expect the stock to continue to move up

towards our targets at RM0.745 and

RM0.795 in the near term.

Expected Timeframe: 2 weeks to 2

months

WZ Satu (WENG MK) Technical BUY with +20.2% potential return

Last price: RM1.14

Target price: RM1.29, RM1.37

Support: RM1.06

Stop-loss: RM1.04

BUY with a target price of RM1.37 and

stop-loss at RM1.04. A successful closing

above the BBI line on yesterday’s

movement suggests improving sentiment

as WENG looks set to resume the upward

movement. This is supported by an uptick

in the RSI. The DMI and MACD are

showing a bullish crossover, which will

support the upward momentum. We expect

WENG to continue the upward movement

to the immediate resistance of RM1.31 and

our target at RM1.37


months



M A L A Y S I A

TRADERS’ CORNER

Bright Packaging Industry

(BPKG MK) Technical BUY on breakout with +23.2%

potential return

Last price: RM0.335

Target price: RM0.395 RM0.425

Support: RM0.30

Stop-loss: RM0.295


RM0.425 and stop-loss at RM0.295. Share

price has consolidated within the immediate

support of RM0.30 and yesterday’s positive

closing above the BBI sets a new tone for

the short-term outlook. We expect BPKG to

continue to move upwards if it penetrates

the breakout level of RM0.345. The bullish

bias has been established following an

uptick in the DMI. We peg our targets at

RM0.395 and RM0.425.


months

ANALYST

Mohd Fakhrul Asyraq, MSTA, CFTe

+603 2147 1994

[email protected]



M A L A Y S I A

CORPORATE NEWS

Axiata: Celcom to enhance network quality, consumer

experience. Celcom Axiata Bhd will focus on enhancing its network quality and

consumer experience for the second half of the year. Speaking at Celcom’s media briefing

yesterday, chief executive officer Michael Kuehner said the company would utilise its

remaining capital expenditure (capex) allocation to invest in these two areas. In the first

half of the year, Celcom had utilised some RM386m of its allocated capex, with a portion of

the funds being used for the spectrum refarming exercise. (Source: The Star)

Axiata: Sri Lankan operation takes control of finance firm. Axiata Group Bhd’s subsidiary Dialog Axiata PLC is set to launch a mandatory takeover

offer (MTO) for Sri Lanka-listed finance firm Colombo Trust Finance PLC (CTF). This

follows its purchase of 80.34% of the voting rights in CTF from Cargills Bank Ltd on

Tuesday for 1.072b Sri Lankan rupees (RM29.53m). Axiata, which owns an 83.32% stake

in Dialog Axiata, told Bursa Malaysia that the Sri Lankan mobile and fixed line player made

the move in a bid to expand into mainstream digital financial services. CTF, which is listed

on the Colombo Stock Exchange like Dialog Axiata, offers finance products and services

covering fixed deposits, lease and hire purchase facilities, margin trading, mortgage loans,

demand loans, revolving loans, cheque discounting, factoring, and other credit facilities.

(Source: The Star)

Willowglen MSC: Shareholders may be disappointed. Willowglen MSC Bhd shareholders, who have been anticipating a corporate exercise in line

with the 77% year-to-date rise in the share price of the supervisory and security solutions

firm, may end up being disappointed. They received a mandatory takeover offer (MTO)

yesterday from New Advent Sdn Bhd, a company owned by the family of Willowglen group

managing director Wong Ah Chiew. However, the 80-sen per share cash offer is 40%

below the previous day’s closing price of RM1.34. (Source: StarBiz)

SECTOR

Construction: Bids for Singapore-KL High Speed Rail

project wide open. The proposed Kuala Lumpur-Singapore high speed rail

project is still "wide open" to all and both countries will choose the builder based on merits

from tender expected to be opened in December. MyHSR Corporation chief executive

officer Mohd Nur Ismal Mohamed Kamal, who was speaking at a conference here on

Tuesday, said it’s not true when some countries had claimed the project is already in the

bag. Malaysia and Singapore will hold a second industry briefing in London on 26

September to share more information on high-speed rail project. The briefing was aimed at

sharing updates and in response to industry’s queries following first briefing in July and it

would also enable participants to have face-to-face meetings. A total of the 40% of

participants at the July briefing were from Europe; 20% from Malaysia; 10% from North

America; 15% from Singapore; 10% from Asia and 5% from Australia. MyHSR is Malaysia

govt’s project delivery vehicle for Kuala Lumpur-Singapore HSR project. (Source: The Star)

Infrastructure: Not selling stakes in PLUS highways. Two

shareholders of PLUS Malaysia Bhd – the Employees Provident Fund (EPF) and UEM

Group Bhd – have reiterated that they have no intention to sell their stakes in the country’s

largest highway concessionaire. UEM Group has a 51% stake in PLUS, while the EPF

owns the remaining 49%. Yesterday, the EPF and UEM Group confirmed that they had

received a takeover offer from Maju Holdings Sdn Bhd for their stakes in PLUS, but said

they “have no intention of selling our respective stakes”. Maju is controlled by businessman

Tan Sri Abu Sahid Mohamed, who has been in the news for his intention to buy PLUS

highways. The offer comes three years after Tan Sri Halim Saad sought to buy over PLUS.

(Source: The Star)



M A L A Y S I A

Construction: Undersea tunnel is still alive, says

Consortium Zenith. Construction of the proposed RM3.5b undersea tunnel

linking Penang and the mainland is still on the cards, despite speculation that a third bridge

would force state authorities to scrap the ambitious plan. (Source: The Malaysian Reserve)

Oil & Gas: Malaysia-Australia JV gets licence from

Petronas. A joint venture (JV) between Enra Group Bhd Australia’s ICON

Engineering Pty Ltd has secured a technology licence from Petroliam Nasional Bhd

(Petronas). The JV was to provide low-cost solutions to the upstream O&G industry within

and outside Malaysia. (Source: StarBiz)

Rubber: Higher rubber glove prices likely. According to the

Malaysian Rubber Glove Manufacturers Association (Margma), the devastation has

caused the prices of butadiene, an important material in the production of nitrile latex, to

soar as its production has been severely affected. “The rise in butadiene prices is expected

to contribute to an increase in nitrile latex prices,” Margma president Denis Low Jau Foo

said in a statement. Low added that besides the rising cost of nitrile latex, natural rubber

latex prices had also been affected by speculation, as the commodity is highly volatile.

(Source: The Star)



M A L A Y S I A

FROM THE REGIONAL MORNING NOTES...

MISC: Uncertain Impact In 3Q17 From Harvey/Irma (MISC MK/SELL/RM7.31/Target: RM6.30) MISC should experience a direct impact from Hurricane Harvey/Irma, given its market

leadership in US Gulf lightering activities. While we believe lightering rates had spiked

since end-August, this could be offset by uncertainties in cost and operational delays.

Overall, we do not expect this to be a positive catalyst, while sequentially weaker 3Q17

earnings are expected. Despite slight <5% upgrades, our forecasts remain below

consensus. Maintain SELL and target price of RM6.30.

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M A L A Y S I A

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Documents

R e t a i l M a r k e t M o n i t o r Wednesday, 13 ... · R e t a i l M a r k e t M o n i t o r Wednesday, 13 September 2017 w w w . u t r a d e . c o m . m y 2 M A L A Y S I A TRADERS’