Malaysia: Daily Market Commentary - 20 March

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1. Daily Note Daily Market Commentary (A Participating Organisation of Bursa Malaysia Securities Bhd) Menara TA One, 22 Jalan P Ramlee, 50250 Kuala Lumpur Tel : 603 - 2072 1277. Fax : 603 - 2032 5048 Monday, 20 March 2017 TA Research e-mail : taresearch@ta.com.my For Internal Circulation Only KLSE Market Statistics (17.03.2017) (mil) Main Market 3,964.0 Warrants 236.0 ACE Market 766.5 Bond 15.1 ETF 0.0 Total 4,981.6 Off Market 139.8 Volume +/-chg (RMmn) 1575.6 4,900.2 -17.6 30.0 24.3 101.8 -0.1 4.6 0.00 0.0 5,036.6 128.1 434.1 Value +/-chg 1454.9 -4.7 -33.6 1.8 0.00 427.0 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP March Futures Other Markets DOW JONES NASDAQ (US) FTSE (UK) NIKKEI (JAPAN) KOSPI (KOREA) HANG SENG (HK) FSSTI (S'PORE) SET (BANGKOK) JCI (JAKARTA) SHANGHAI SHENZHEN AUSTRALIA (mn) 50.0 25.0 14.8 14.5 9.6 8.6 7.0 3.1 2.3 2.0 1.0 1.0 Up Down 428 253 88 69 65 42 8 3 2 1 591 368 % chg % YTD chg 1,745.20 12,341.34 16,848.46 1,756.50 8.06 64.10 31.47 12.50 0.46 0.52 0.19 0.72 6.30 7.63 14.49 7.40 20,914.62 5,901.00 7,424.96 19,521.59 2,164.58 24,309.93 3,169.38 1,560.98 5,540.43 3,237.45 2,029.73 5,799.65 -19.93 0.24 9.01 -68.55 14.50 21.65 5.86 3.93 22.19 -31.49 -16.58 13.86 -0.10 0.00 0.12 -0.35 0.67 0.09 0.19 0.25 0.40 -0.96 -0.81 0.24 5.83 9.62 3.95 2.13 6.82 10.50 10.02 1.17 4.60 4.31 3.08 2.36 Top 10 KLCI Movers Based on Mkt Cap. Off Market YTL SIME YTLPOWR IBRACO TITIJYA MAYBANK IRIS NWP SAMCHEM FPGROUP BAHVEST ATLAN Value/ Volume 1.24 0.13 0.13 0.30 1.07 1.01 3.10 @ @ @ @ @ @ @ @ @ @ @ @ (RM) 1.50 9.33 1.51 0.90 0.17 8.90 0.13 0.25 1.90 0.69 0.83 4.70 Exchange Rate USD/MYR 4.4370 -0.0004 USD/JPY 113.22 -0.2700 EUR/USD 1.077 0.0043 Counter Mkt Cap. (RM’mn) MAYBANK 90,721 PBBANK 77,925 SIME 63,520 PCHEM 59,440 CIMB 50,106 AXIATA 44,596 GENM 31,006 HLBANK 27,950 KLK 26,369 PETDAG 23,684 Chg (RM) 0.05 0.30 0.04 0.15 0.06 0.16 0.05 0.02 0.06 0.22 Vol. (mn) 34.24 16.41 21.50 14.43 54.96 19.33 18.97 3.31 3.07 1.29 Commodities Futures Palm Oil (RM/mt) 2,804.00 11.00 Crude Oil ($/Barrel) 48.72 -0.05 Gold ($/tr.oz.) 1,228.90 2.80 Important Dates IOIPG - 1:4 Rights Issue - RI of up to 1,109.9m shares. 1 rights share for every 4 existing shares held, at an issue price of RM1.38 per rights share. Application Closed: 17/03/2017. LISTING ON: 31/03/2017. Review & Outlook Daily and weekly momentum indicators for the FBM KLCI will turn more overbought if gains accelerate further this week, which should bring forth a more meaningful profit-taking correction. Nonetheless, strengthening trend indicators, and sustained robust buying momentum on lower liners and small caps should cushion downside to enable shallow profit-taking dips, with recovery in the ringgit, oil prices and stable global markets acting as positive catalysts. As for the index, next upside hurdles are at 1,758, the 23.6%FR of the 1,310 to 1,896 upswing, and 1,782, the 76.4%FR of the 1,867 to 1,503 correction, followed by 1,800 and the 18/5/15 high of 1,823. Immediate uptrend supports are at 1,726 and 1,710, representing the rising 10 and 30-day moving averages. Stock-wise, lower liners in the construction related sectors such as Hock Seng Lee, Kim Lun, Mudajaya and Sunway Construction should attract investors looking to accumulate on profit-taking dips, similarly for oil & gas related counters like Bumi Armada and SapuraKencana Petroleum. • • • • • • • • • • • • • • • • • News Bites Over the weekend, The Star reported that a merger between TM and Axiata was on the cards. Singapore telecom firm M1 Ltd's three biggest shareholders are evaluating selling their combined stakes worth more than S$1.1bn in the company, a source aware of the matter said, as the firm called for a trading halt. UMW Oil & Gas Corp Bhd announced that the value of two jack-up drilling contracts it secured this week, from Vestigo Petroleum Sdn Bhd and Petrofac Malaysia-PM304 Ltd, are US$2mn and US$5.4mn respectively. The Energy Commission has revoked its earlier approval for Malakoff Corp Bhd to undertake a 50MWac large-scale solar photovoltaic plant following a change in the proposed location. YTL Power International Bhd has completed the transfer of an additional 15% equity in Attarat Power Co, marking the financial close of APCO for the US$2.1bn oil shale power station project in Jordan. QL Resources Berhad wholly owned subsidiary has entered into a Share Sale Agreement with its related party namely Ruby Technique Sdn. Bhd. to dispose of approximately 62.0% equity interest in QL KK Properties Sdn. Bhd. for a cash consideration of RM11.8mn. Bintai Kinden Corp Bhd's property development segment will take a back seat as it has decided to focus on its core businesses of mechanical and engineering services as well as construction for now to ensure profitability. Lion Diversified Holdings Berhad through its unit has proposed to dispose two pieces of land in Malacca for a total cash consideration of RM18.2mn. Time dotCom Bhd is adding another 1.9% to its existing 37% stake in Thailand's Symphony Communication Public Co Ltd for THB73.4mn through its wholly-owned unit Time dotCom International Sdn Bhd. Nissan dealer Tan Chong Motor Bhd wants to run 15 dealerships in Myanmar by 2022 from three currently. Vizione Holdings Berhad's wholly owned subsidiary has received a letter of award from Permata Rebana Sdn Bhd to undertake subcontract works for a total contract value of approximately RM63.7mn. AIA Bhd expects its family takaful business to continue driving its earnings in 2017, following a strong performance last year. K-One Technology Berhad entered into a Share Sale Agreement to acquire 30% equity interest of AHM Consultancy & Security Services Sdn. Bhd. for cash consideration of RM8.7mn. Koon Yew Yin is now the single largest shareholder in Jaks Resources Bhd, as he has built his interest in the company to 18.2%, making him the single largest shareholder. On top of that, his wife Tan Kit Pheng has 7.7% in Jaks Resources. Felda Global Ventures Holdings Bhd has targeted to achieve an oil extraction rate of up to 22% by 2020, compared to the 20.7% average rate last year. Gabungan AQRS Berhad 52%-owned subsidiary has entered into a Sale and Purchase Agreement with Ara Indah Development Sdn Bhd for the disposal of a piece of leasehold land for a total consideration of RM34.7mn. Finance ministers from the world's biggest economies were battling Saturday to halt a bid by US President Donald Trump's administration to roll back hard-fought pledges on trade and climate. DISCLAIMER The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD Kaladher Govindan, Head of Research