Bursa Malaysia Daily Market Report - 20 July

Transcription

1. Thursday , 20 July, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED REPORTS’ News 1. Daily Market Commentary 2. Daily Brief Fundamental Reports 1. CapitaLand Malaysia Mall Trust: Slight Uptick in Rental Reversion 2. Malaysian Economy: CPI Moderates in June 2017, but to Rebound Later Technical Reports 1. Daily Technical Stock Picks 2. Daily Stock Screen 3. Foreign Technical Stock Watch (AUS, HK & FSSTI) 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 (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research
2. Daily Note Daily Market Commentary Thursday , 20 July 2017 (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 TA Research e-mail : taresearch@ta.com.my For Internal Circulation Only Review & Outlook KLSE Market Statistics (19.07.2017) Volume (mil) +/-chg (RMmn) Main Market 1,430.4 -77.2 2,134.8 Warrants 211.5 39.4 17.3 ACE Market 522.9 50.5 137.9 Bond 7.3 -4.1 1.4 ETF 0.1 -0.02 0.1 Total 2,172.2 2,291.4 Off Market 99.3 88.7 307.7 Value +/-chg 65.9 2.3 5.3 -0.6 -0.03 266.9 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP July 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 Up Down 324 275 82 66 49 45 4 2 1 3 460 391 % chg % YTD chg 1,757.27 12,534.47 17,280.56 1,759.00 2.35 16.93 -5.91 0.50 0.13 0.14 -0.03 0.03 7.04 9.31 17.43 7.55 21,640.75 6,385.04 7,430.91 20,020.86 2,429.94 26,672.16 3,325.07 1,575.85 5,806.69 3,230.98 1,839.06 5,732.13 66.02 40.74 40.69 20.95 3.90 147.22 18.99 4.33 -15.66 43.41 27.73 44.73 0.31 0.64 0.55 0.10 0.16 0.56 0.57 0.28 -0.27 1.36 1.53 0.79 9.50 18.61 4.03 4.74 19.91 21.23 15.42 2.13 9.63 4.10 -6.60 1.17 Top 10 KLCI Movers Based on Mkt Cap. Off Market (mn) DESTINI 22.7 MAYBANK 17.0 SIME 10.0 SEAL 9.6 OCR 9.0 CAMRES 8.0 NIHSIN 4.9 CARIMIN 4.6 WONG 3.0 TOMYPAK-WA 2.3 GUNUNG 2.0 EKOVEST 2.0 PENTA 1.3 IMASPRO 1.0 ENRA 1.0 Value/ Volume 1.49 0.08 0.26 0.19 1.36 1.05 3.10 @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ (RM) 0.70 9.63 9.55 0.52 0.57 0.15 0.23 0.30 0.68 0.30 0.35 1.10 3.70 1.90 3.00 Counter Mkt Cap. (RM’mn) MAYBANK 101,586 IHH 58,115 CIMB 55,520 PCHEM 49,022 MAXIS 42,111 PETGAS 37,319 DIGI 37,242 GENM 32,990 MISC 32,898 KLK 26,326 Chg (RM) 0.04 0.09 0.03 0.04 0.03 0.08 0.02 0.07 0.03 0.02 Vol. (mn) 27.59 12.90 4.78 2.04 2.90 0.76 4.43 5.17 1.01 1.24 Important Dates MIKROMB - 2:5 Bonus Issue - BI of 123.7m shares. 2 bonus shares for every 5 existing shares. Entitlement Date: 20/07/2017. LISTING ON: 21/07/2017. Blue chips staged mild rebound Wednesday on light bargain hunting from local funds, encouraged by China's strong economic growth and market reform agenda. The KLCI closed up 2.35 points at 1,757.27, off an opening low of 1,753.74 and high of 1,760.82, as gainers led losers 460 to 391 on total turnover of 2.17bn shares worth RM2.29bn. The local market should extend sideways trade pending more significant leads to lift blue chips from the present consolidation. Immediate support from the 100-day moving average at 1,755 must hold to prevent further slide on the index to 1,729, a key support level in April, while crucial uptrend support is from the 200-day moving average at 1,706. Immediate resistance stays at the 50-day moving average now at 1,772, next 1,782, followed by the recent peak of 1,796. Hook-up momentum indicators on Dialog support a re-test of the 7/6/17 high (RM1.99), with a convincing breakout to aim for RM2.08, the 123.6%FP (RM2.18) and the 138.2%FP (RM2.30) ahead, while key retracement support is at the 76.4%FR (RM1.80). Likewise, Gadang should challenge the 3/7/17 peak (RM1.37), while a breakout will target the 123.6%FP (RM1.50) and 138.2%FP (RM1.59) going forward. Key retracement support is from the 76.4%FR (RM1.24). News Bites • Malaysian consumer prices index in June 2017 rose 3.6% YoY, versus consensus forecast of 3.9% YoY, marking the second month of moderation. • CIMB Thai's 1HFY17net profit climbed to THB477.8mn from THB367.2mn a year earlier due to better net interest margin and lower operating expenses and provisions whilst operating income held relatively steady. • Prestariang Bhd aims to raise over RM1bn from the capital market, within 6 to 9 months, to realise its main transformation agenda for its technology platform and to implement the integrated National Immigration Control System. • CapitaLand Malaysia Mall Trust recorded a net property income of RM59.8mn for 2Q17, slightly down from RM60mn a year earlier due to lower contribution from all of its 3 Klang Valley shopping malls. • Ekovest Bhd plans to have the EkoCheras Mall completed for opening by middle of next year. • Bright Packaging Industry Bhd is planning to undertake a bonus issue on the basis of 1 bonus share for 4 existing shares held, to reward its shareholders and enhance the trading liquidity of its shares. • mTouche Technology Bhd has teamed up with a software firm to jointly develop and market a digital media and infotainment platform for IT and mobile channels. • Euro Holdings Bhd has proposed to raise up to RM4.5mn via a private placement exercise to pay its contractors, suppliers and consultants involved in its condominium project in Alam Damai, Cheras. • About RM5bn would be needed over the next 5 years for the expansion of Kuantan Port, Sapangar Bay Container Port and Port of Tanjung Pelepas, says RAM Ratings. • US housing starts rose 8.3% in June from the prior month to a seasonally adjusted annual rate of 1.215mn while permits were up 13.9% for buildings with multiple units and up 4.1% for single-family homes. Exchange Rate USD/MYR 4.2850 -0.0003 USD/JPY 112.03 -0.0900 EUR/USD 1.153 -0.0033 Commodities Futures Palm Oil (RM/mt) 2,523.00 11.00 Crude Oil ($/Barrel) 47.09 0.84 Gold ($/tr.oz.) 1,240.90 -1.00 VITROX - 1:1 Bonus Issue - BI of 236.3m shares. 1 bonus share for every 1 existing share. Entitlement Date: 21/07/2017. LISTING ON: 24/07/2017. 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
3. TA Securities Thursday , July 20, 2017 FBMKLCI: 1,757.27 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Daily Brief Market View, News In Brief: Corporate, Economy, and Share Buybacks THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TA Research Team Coverage Market View Tel: +603-2072 1277 taresearch@ta.com.my www.taonline.com.my Sideways Pending New Leads Blue chips staged mild rebound Wednesday on light bargain hunting from local funds, encouraged by China’s strong economic growth and market reform agenda. The KLCI closed up 2.35 points at 1,757.27, off an opening low of 1,753.74 and high of 1,760.82, as gainers led losers 460 to 391 on total turnover of 2.17bn shares worth RM2.29bn. Break Below 1,755 to Test 1,729 The local market should extend sideways trade pending more significant leads to lift blue chips from the present consolidation. Immediate support from the 100-day moving average at 1,755 must hold to prevent further slide on the index to 1,729, a key support level in April, while crucial uptrend support is from the 200-day moving average at 1,706. Immediate resistance stays at the 50-day moving average now at 1,772, next 1,782, followed by the recent peak of 1,796. Buy Dialog & Gadang Hook-up momentum indicators on Dialog support a re-test of the 7/6/17 high (RM1.99), with a convincing breakout to aim for RM2.08, the 123.6%FP (RM2.18) and the 138.2%FP (RM2.30) ahead, while key retracement support is at the 76.4%FR (RM1.80). Likewise, Gadang should challenge the 3/7/17 peak (RM1.37), while a breakout will target the 123.6%FP (RM1.50) and 138.2%FP (RM1.59) going forward. Key retracement support is from the 76.4%FR (RM1.24). Australia Stocks Leads Asian Markets Higher Asian stock markets traded higher on Wednesday with Australian stocks leading the way on strong gains among the country’s biggest banks. The Australian regulator lifted the capital requirements for banks, but set a deadline of 2020 to reach those targets, easing near-term fears of capital raising that could dilute current shareholders. The benchmark ASX200 ended higher by 0.79 percent to close at 5,732.10 as shares of the country’s “big four” banks rose more than 3 percent. Japan’s Nikkei rose 0.1 percent to close at 20,020.86 points ahead of the Bank of Japan’s policy statement on Thursday. Meanwhile, China's major share indexes rebounded, as investors piled into blue chips after robust economic growth data and on expectations that Beijing is stepping up efforts to reform lumbering and inefficient state companies. The blue-chip CSI300 index rose 1.71 percent to 3,729.75 points, while the Shanghai Composite Index gained 1.42 percent to 3,232.87 points. Wall Street at New Highs The three major U.S stock indexes closed at record highs on Wednesday helped partly by technology stocks. The S&P 500 tech sector broke its previous record closing high that had held since March 2000 in the midst of the dot-com and Y2K tech stocks bubble. The S&P 500 energy sector was the index’s best performer, gaining 1.4 percent. U.S crude for August delivery settled up 1.6 percent to USD47.12 a barrel, its highest level since June 6 after a U.S government report showed sharp drawdowns in oil and fuel stockpiles. Vertex Pharmaceuticals shares jumped 21 percent after it reported positive results for its cystic Page 1 of 6
4. TA Securities 20-Jul-17 A Member of the TA Group fibrosis treatment . Morgan Stanley rose 3.3 percent after the bank released second-quarter earnings that showed revenue beat analysts’ expectations. IBM reported mixed quarterly results, with earnings per share topping expectations and sales disappointing. The company also said its revenue declined for the 21st straight quarter, pushing the stock down by 4.2 percent and capping gains on the Dow. The Dow Jones Industrial Average rose 66.02 points, or 0.31 percent, to 21,640.75, the S&P 500 gained 13.22 points to 2,473.83 and the Nasdaq Composite rose 40.74 points, or 0.64 percent, to 6,385.04. Page 2 of 6
5. TA Securities 20-Jul-17 A Member of the TA Group News In Brief Corporate For 1HFY17 , CIMB Group Holdings Bhd said CIMB Thai's net profit climbed to THB477.8mn from THB367.2mn a year earlier. Total operating income was however lower at THB6.4bn versus THB6.5bn. Net profit improved due to better net interest margin and lower operating expenses and provisions whilst operating income held relatively steady. Gross loans contracted slightly due to general corporate loan repayment and portfolio recalibration. (Bursa Malaysia/ The Edge) Comments: The improvement in CIMB Thai’s earnings are as we have expected. Maintaining our view that the worst in terms of asset quality is behind them, we continue to foresee stronger earnings contribution from CIMB’s overseas operations - namely Thailand and Indonesia. Buy maintained on CIMB with a TP of RM8.00. About RM5bn would be needed over the next 5 years for the expansion of Kuantan Port, Sapangar Bay Container Port and Port of Tanjung Pelepas, says RAM Ratings. This estimate may swell to over RM250bn if large-scale projects such as the third Port Klang at Carey Island and the Melaka Gateway projects take off. (The Star) Prestariang Bhd aims to raise over RM1bn from the capital market, within 6 to 9 months, to realise its main transformation agenda for its technology platform and to implement the integrated National Immigration Control System (SKIN). (Bursa Malaysia/ The Star) CapitaLand Malaysia Mall Trust recorded a net property income of RM59.8mn for 2Q17, slightly down from RM60mn a year earlier. This was due to lower contribution from all of its 3 Klang Valley shopping malls - The Mines, Sungei Wang Plaza, and Tropicana City Property - which was offset by stronger performance from Gurney Plaza and East Coast Mall. (Bursa Malaysia/ The Star) Ekovest Bhd plans to have the EkoCheras Mall completed for opening by middle of next year. The mall, which will have some 625,000 sq ft of net lettable area, is part of EkoCheras, a 12-acre mixed-use development comprising serviced apartments, office suites, hotel suites and the retail component. (The Edge) Bright Packaging Industry Bhd is planning to undertake a bonus issue on the basis of 1 bonus share for 4 existing shares held, to reward its shareholders and enhance the trading liquidity of its shares. The exercise will involve up to 55.5mn new shares. (Bursa Malaysia/ The Edge) mTouche Technology Bhd has teamed up with a software firm to jointly develop and market a digital media and infotainment platform for IT and mobile channels. It has signed a master collaboration partnership with Advanced Platform Sdn Bhd to develop a range of Software-as-a-Service and Platform-as-a-Service offerings. (Bursa Malaysia/ The Edge) Euro Holdings Bhd has proposed to raise up to RM4.5mn via a private placement exercise to pay its contractors, suppliers and consultants involved in its condominium project in Alam Damai, Cheras. Estimated to have a GDV of RM215mn, the 322-unit Vista Damai project was launched in March 2016 with completion expected within 3 years. (Bursa Malaysia/ The Edge) BIG Industries Bhd plans to raise up to RM2.0mn by placing out new shares to third party investors to be identified later, mainly to raise additional funds and increase the liquidity of its shares. The private placement entails up to 4.8mn new shares or 10% of its issued share capital at an issue price to be determined later. (Bursa Malaysia/ The Edge) Page 3 of 6
6. TA Securities 20-Jul-17 A Member of the TA Group News In Brief Economy Asia Malaysia ’s CPI Up 3.6% in June Malaysian consumer prices index (CPI) in June 2017 rose 3.6% YoY, marking the second month of moderation. Economists surveyed by Bloomberg had expected a 3.9% rise in the CPI, which includes volatile food and fuel prices. Core inflation rose 2.5% in June 2017 compared to the same month of the previous year. In March, CPI rose 5.1%, the highest in eight years due to the low base last year and higher retail fuel prices compared to March 2016. According to the Statistics Department, the overall index for CPI rose at 3.6% on a YoY basis in June 2017 compared with 3.9% increase in May 2017. Among the major groups which recorded increases were the indices for transport, food and non-alcoholic beverages, recreation services and culture, health, restaurants and hotels and housing, water, electricity, gas and other fuels. The department said the index for food and nonalcoholic beverages which accounted 30.2% in the CPI weights, increased 4.3% in June 2017. On a monthly basis, the index for food and non-alcoholic beverages increased 0.4% in June 2017, after an increase of 0.5% in May 2017. Meanwhile, the index for non-food decreased 0.4% in June 2017 compared with the preceding month. Based on a seasonally adjusted term, the overall CPI for June 2017 decreased 0.2% as compared to May 2017. (The Star) Japan Retains Modestly Optimist View on Economy, Overall View Unchanged Japan's government left unchanged its overall view that the economy is recovering gradually due to a pickup in consumer spending and exports. The government's assessment comes one day before the conclusion of a Bank of Japan policy meeting, where the central bank is set to raise its economic growth forecasts but cut its rosy inflation outlook. "The economy is experiencing a moderate recovery," the Cabinet Office said in its monthly economic report for July. Last month, the Cabinet Office upgraded its overall assessment for the first time since December due partly to improvements in consumer spending. The government and the BOJ have been upgrading their economic assessments recently as private consumption, capital expenditure, a tight labour market, and growing exports point to solid economic growth. The Cabinet Office, which helps coordinate economic policy, left unchanged its view that capital spending is recovering, following an upgrade last month. It also kept its assessment of exports unchanged from last month, saying they are recovering. (Reuters) China Increases U.S. Treasury Holdings for Fourth Straight Month China raised its holdings of U.S. Treasuries for a fourth straight month, a sign the nation is rebuilding its foreign-currency reserves as the Yuan stabilizes. China, the second-largest holder of Treasuries, held $1.10tn in May, up $10bn from a month earlier, according to Treasury Department data released in Washington. Japan, the biggest holder, owned $1.11tn, up slightly from its total in April. The two countries account for more than onethird of all foreign ownership of Treasuries, which gained by $49.9bn in May to $6.12 tn, the figures showed. Of that total, $3.94tn were government holdings. China’s foreignexchange reserves rose for fifth straight month in June as the currency stabilized and investors were less eager to move money abroad. Stricter capital controls and a stabilizing yuan this year have eased outflow pressures as policy makers encourage foreign investors to channel more money into the country. (Bloomberg) United States U.S. Housing Starts Rose 8.3% in June U.S. housing starts rebounded last month, signaling positive momentum for home builders trying to meet solid buyer demand. Housing starts rose 8.3% in June from the prior month to a seasonally adjusted annual rate of 1.215 million, the Commerce Department said. Residential building permits, which can signal how much construction is in the pipeline, increased 7.4% to an annual pace of 1.254 million last month. That was the largest onemonth jump since November 2015. Economists surveyed by The Wall Street Journal had expected a 6.4% increase for starts and a 2.6% rise for permits in June. Overall starts had declined the prior three months, and permits were down in both April and May. Starts rose Page 4 of 6
7. TA Securities 20-Jul-17 A Member of the TA Group 6 .3% in June for single-family construction, and increased 13.3% from May for multifamily construction. Permits last month were up 13.9% for buildings with multiple units and up 4.1% for single-family homes. Housing-starts data are volatile from month to month and can be subject to large revisions. Looking beyond monthly volatility, starts in the first half of the year were up 3.9% from the same period in 2016. Permits during this period increased 6% from a year earlier. (The Wall Street Journal) The U.S. Falls in a Global Retirement Security Ranking Retirement security in the U.S. took a significant hit in a global ranking, falling three notches to No. 17 among 43 developed countries. The fifth annual Global Retirement Index ranking from Natixis Global Asset Management has Norway, Switzerland, and Iceland holding on to the top three slots from 2016. The ranking creates an overall retirement security score for each country from 18 performance indicators that address finances, healthcare, material well-being, and quality of life. Countries are also ranked by those four subindexes. Of the 25 countries with the highest overall scores, the U.S. and Austria saw the biggest annual declines this year. The U.S. score is 72 out of 100, which puts it right below Belgium and the Czech Republic and just above the United Kingdom and France. The U.S. had the sixth-lowest score for income equality, which is part of the score for material well-being. That measure, designed to show how well a country's population can provide for its material needs, combines an income per capita index, income inequality index, and unemployment index. (Bloomberg) Europe ECB Chief Mario Draghi Expected to Reinforce Tightening Signals When European Central Bank chief Mario Draghi faces the media on Thursday after the bank’s latest policy meeting, he is expected to let stand his hint three weeks ago on a possible reduction of the ECB’s giant bond-buying program. Mr. Draghi had rocked financial markets into buying euros and selling euro bonds by indicating in a June 27 speech in Sintra, Portugal, that the bank would start slowly winding down the program, known as quantitative easing, which has underpinned Eurozone financial markets since its launch in early 2015. Few investors think he will signal a change in that course on Thursday. Most argue that the ECB needs to adjust its policy mix soon anyway, in response to an accelerating Eurozone economy. Mr. Draghi’s speech late last month did part of the work in preparing financial markets for an imminent policy shift, they say. Any backtracking now “would only cause confusion and unwelcome volatility given that financial markets have already positioned themselves” for a policy change, said Marco Valli, an economist with UniCredit in Milan. Growth in the 19-nation bloc is expected to reach 3% in the second quarter on an annualized basis, the fastest pace in around a decade. Economic sentiment is close to a 10-year high, unemployment is falling rapidly, and bank lending is picking up strongly, according to ECB data published on Tuesday. ‘The floor is clear for Draghi to tiptoe slowly in the general direction of the exit on Thursday.’ Teunis Brosens, ING Bank. All that suggests the ECB can afford to take its foot off the gas. Its bond-buying program is currently due to run at €60 billion ($69 billion) a month at least through December. (The Wall Street Journal) Page 5 of 6
8. TA Securities 20-Jul-17 A Member of the TA Group Share Buy-Back : 19 July 2017 Company BJTOTO DAIBOCI FIAMMA GLBHD SUPERMX Bought Back Price (RM) Hi/Lo (RM) 972,300 36,500 1,510,000 62,000 283,100 2.32/2.31 2.20/2.19 0.55 0.60 1.95/1.94 2.332.30 2.20/2.19 0.545/0.53 0.60 1.96/1.93 Total Treasury Shares 4,030,072 86,500 19,820,000 7,801,800 14,200,000 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. liability for any direct or indirect loss arising from the use of this document. the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 6 of 6 We accept no We, our associates, directors, employees may have an interest in
9. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company AUTOMOBILE BAUTO MBMR UMW Share Price (RM) 19-Jul-17 1.96 2.20 5.70 Target Price BETA (RM) EPS (sen) PER (X) FY17 FY18 FY17 FY18 Div Yield (%) 52weeks 52weeks FY17 FY18 High Price % Chg Low Price % Chg % Chg YTD 2.37 2.28 5.04 0.94 0.61 1.26 10.3 24.1 19.8 15.8 25.3 30.6 19.0 9.1 28.8 12.4 8.7 18.6 6.0 4.1 2.3 8.1 4.1 3.5 2.44 2.70 6.47 -19.7 -18.5 -11.9 1.88 2.08 4.09 4.3 5.8 39.3 -8.0 2.8 35.0 4.80 3.70 5.70 8.00 17.50 11.00 23.60 5.80 10.00 1.28 0.96 1.32 1.38 0.67 0.96 0.79 1.32 0.70 33.6 29.4 43.9 49.6 105.2 73.4 137.2 50.7 40.3 30.5 33.6 48.4 55.2 115.5 82.9 142.4 54.5 39.0 11.5 9.0 11.4 12.9 14.9 13.1 14.8 10.0 24.8 12.6 7.9 10.3 11.6 13.6 11.6 14.3 9.3 25.6 4.2 3.0 3.5 3.2 2.6 5.2 2.8 2.4 3.4 4.2 3.0 3.6 3.5 2.6 5.2 2.8 2.4 3.4 4.49 3.00 5.70 6.87 16.30 9.68 20.66 5.59 11.14 -14.3 -12.0 -12.1 -6.6 -3.7 -0.4 -1.5 -9.3 -10.2 3.60 2.08 3.90 4.11 12.70 7.50 19.26 4.53 8.20 6.9 26.9 28.5 56.1 23.6 28.5 5.7 11.9 22.0 3.5 10.5 16.2 42.4 16.3 17.6 3.2 7.6 13.0 0.39 1.31 5.32 3.46 0.66 1.18 2.02 1.96 5.90 0.45 1.57 6.00 3.50 0.78 0.58 2.26 1.49 6.26 0.80 0.64 1.05 1.08 1.01 1.28 na 1.10 0.10 5.6 14.6 28.1 15.3 4.9 8.3 12.6 11.9 42.0 5.6 13.5 34.8 20.3 5.7 9.6 12.5 12.0 45.8 6.8 9.0 19.0 22.6 13.2 14.2 16.0 16.4 14.1 6.9 9.7 15.3 17.0 11.5 12.2 16.1 16.4 12.9 0.0 2.1 2.3 2.2 3.8 0.8 2.7 1.5 4.2 0.0 2.1 2.3 2.7 3.8 0.8 2.7 1.5 4.2 0.51 1.37 5.52 3.61 0.74 1.39 2.15 2.48 6.15 -24.5 -4.4 -3.6 -4.2 -10.9 -15.1 -6.0 -20.8 -4.1 0.38 0.89 4.65 3.07 0.37 0.41 1.56 1.50 5.57 2.7 48.0 14.4 12.7 79.5 191.4 29.5 30.6 5.9 -11.5 24.8 11.3 8.1 8.3 105.2 18.8 14.0 0.3 1.96 2.00 0.49 11.0 11.5 17.8 17.0 5.1 5.1 2.19 -10.5 1.93 1.6 -2.5 15.16 17.74 17.84 21.08 0.50 0.59 74.8 93.1 81.3 20.3 101.9 19.1 18.6 17.4 4.9 4.7 5.3 5.2 15.30 19.10 -0.9 -7.1 13.72 15.56 10.5 14.0 8.9 8.3 2.24 7.31 25.16 1.21 83.90 3.84 1.94 4.90 0.91 2.23 8.62 27.41 1.50 88.66 4.10 2.46 4.41 1.23 0.49 0.35 0.32 0.47 0.36 0.48 0.65 0.43 0.57 6.7 26.4 121.1 6.5 290.1 22.3 27.5 15.7 8.1 7.9 40.6 151.0 6.6 327.7 24.7 27.0 16.6 11.6 33.3 27.7 20.8 18.6 28.9 17.2 7.1 31.2 11.2 28.4 18.0 16.7 18.3 25.6 15.5 7.2 29.4 7.8 1.8 1.4 2.8 5.0 3.3 3.9 3.1 0.9 2.8 2.1 2.1 3.0 5.0 3.3 4.4 4.1 1.0 3.9 3.00 8.89 26.52 1.32 85.20 3.84 2.04 5.00 1.07 -25.3 -17.8 -5.1 -8.2 -1.5 0.0 -4.9 -2.0 -15.4 2.11 7.30 22.44 1.13 74.12 2.26 1.47 4.14 0.78 6.2 0.1 12.1 7.0 13.2 69.9 32.0 18.3 16.0 -12.8 -0.3 7.2 5.1 7.3 51.2 12.1 13.1 13.8 43.60 52.08 1.01 198.6 187.4 22.0 23.3 4.6 4.6 55.46 -21.4 40.61 7.4 -1.3 9.34 5.82 11.51 6.54 1.35 1.29 49.3 25.7 54.7 27.7 18.9 22.6 17.1 21.0 0.5 1.4 0.6 1.5 10.00 6.38 -6.6 -8.8 7.50 4.22 24.6 37.8 17.6 28.8 2.32 0.12 3.34 0.13 0.75 1.26 19.3 0.4 23.2 0.4 12.0 33.1 10.0 33.3 6.0 0.0 6.9 0.0 3.42 0.16 -32.2 -25.0 2.30 0.05 0.9 140.0 -21.6 140.0 5.95 4.22 6.39 4.70 0.77 0.51 9.5 13.3 15.0 16.5 62.4 31.7 39.8 25.6 0.6 1.5 0.6 1.8 6.73 4.37 -11.6 -3.4 5.54 3.85 7.4 9.6 -6.3 1.0 6.76 6.97 1.94 5.68 1.57 6.85 7.60 1.80 6.05 2.20 0.57 0.16 0.34 -0.19 0.30 19.5 35.8 12.3 26.4 3.7 24.6 40.0 15.1 29.8 5.5 34.7 19.5 15.7 21.5 42.1 27.5 17.4 12.9 19.0 28.6 1.2 2.6 1.9 2.3 0.6 1.6 2.9 2.3 2.6 0.9 7.40 7.15 2.38 5.94 2.64 -8.6 -2.5 -18.5 -4.4 -40.5 4.06 5.62 1.88 4.20 1.51 66.5 24.0 3.2 35.2 4.0 40.0 5.8 -8.1 6.2 -33.5 INDUSTRIAL SCIENTX SKPRES 8.73 1.32 9.71 1.75 0.52 0.50 54.5 8.6 66.3 10.6 16.0 15.4 13.2 12.4 2.1 3.2 2.3 3.9 8.99 1.44 -2.9 -8.3 6.01 1.15 45.3 14.8 30.3 2.3 MEDIA ASTRO MEDIA PRIMA STAR 2.56 0.91 2.35 3.45 0.60 1.40 1.05 0.65 0.64 13.2 1.7 7.1 14.5 2.8 6.5 19.3 53.3 33.1 17.7 32.2 36.2 4.9 1.5 7.7 5.1 2.5 7.7 3.01 1.49 2.67 -15.0 -38.9 -12.0 2.51 0.87 2.19 2.0 5.2 7.3 -1.5 -20.9 4.9 -14.5 -1.8 -34.9 -6.7 -4.5 -11.0 -23.3 -68.3 0.20 6.33 0.75 7.03 0.44 6.48 1.33 0.29 202.6 1.3 0.7 4.8 46.0 7.1 21.1 15.8 131.4 -1.4 -17.5 0.3 42.7 -0.6 -0.6 -62.3 -22.2 1.30 18.5 -9.4 BANKS & FINANCIAL SERVICES AFG 3.85 AFFIN 2.64 AMBANK 5.01 CIMB 6.42 HLBANK 15.70 MAYBANK 9.64 PBBANK 20.36 5.07 RHBBANK BURSA 10.00 CONSTRUCTION BPURI GADANG GAMUDA IJM PESONA SENDAI SUNCON WCT LITRAK Building Materials WTHORSE CONSUMER Brewery CARLSBG HEIM Retail AEON AMWAY F&N HUPSENG NESTLE PADINI POHUAT QL SIGN Tobacco BAT GAMING Casino GENTING GENM NFO BJTOTO LUSTER HEALTHCARE Hospitals IHH KPJ Rubber Gloves HARTA KOSSAN SUPERMX TOPGLOV KAREX OIL & GAS DNEX 0.59 0.76 1.03 3.7 4.6 16.1 12.9 1.7 1.7 0.69 LCTITAN 6.41 7.41 na 60.3 71.5 10.6 9.0 4.1 5.5 6.53 MHB 0.76 0.87 1.83 -1.2 1.3 na 57.6 0.0 0.0 1.16 MISC 7.37 6.85 0.79 56.4 48.9 13.1 15.1 4.1 4.1 7.90 PANTECH 0.64 0.69 1.27 4.1 4.9 15.3 12.9 2.8 3.1 0.67 PCHEM 6.94 7.74 1.06 39.2 40.5 17.7 17.2 3.0 3.2 7.80 SENERGY 1.61 1.71 2.49 6.6 4.0 24.4 40.6 0.6 0.6 2.10 UMWOG 0.33 0.80 2.09 -11.7 -3.5 na na 0.0 0.0 1.04 Note: UMWOG proposed rights issue of shares. Ex-Target price RM0.43. For more details please refer to 08.05.17 report. UZMA 1.54 1.55 1.48 12.0 12.6 12.9 12.2 0.0 0.0 1.98
10. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price (RM) PLANTATIONS FGV IJMPLNT IOICORP KLK SIME UMCCA 1.68 3.00 4.49 24.72 9.55 6.50 Target Price BETA (RM) 1.55 3.88 4.15 26.19 10.02 7.52 1.78 0.47 1.07 0.86 1.23 0.43 EPS (sen) PER (X) FY17 FY18 FY17 FY18 4.2 12.3 18.7 111.8 34.0 37.6 8.5 15.7 21.0 119.1 37.5 34.5 39.8 24.4 24.0 22.1 28.1 17.3 19.7 19.1 21.4 20.8 25.5 18.9 Div Yield (%) 52weeks 52weeks FY17 FY18 High Price % Chg Low Price % Chg 3.0 2.3 2.2 2.2 2.6 3.5 3.0 2.7 2.7 2.4 3.2 2.6 2.52 3.70 4.81 25.50 9.70 6.58 -33.3 -18.9 -6.7 -3.1 -1.5 -1.2 1.42 2.96 4.21 22.92 7.42 5.53 PROPERTY GLOMAC 0.63 0.70 0.56 1.6 6.3 39.2 9.9 4.8 4.8 0.83 -24.2 0.63 HUAYANG 0.93 0.96 0.67 17.3 10.2 5.4 9.0 4.3 2.2 1.43 -35.4 0.92 IBRACO 0.92 1.00 0.37 5.2 11.1 17.6 8.3 3.8 4.3 1.05 -12.4 0.76 IOIPG 2.20 2.25 0.86 17.4 17.4 12.6 12.6 3.2 3.4 2.46 -10.6 1.85 MAHSING 1.54 1.76 0.73 14.3 13.5 10.8 11.4 4.2 4.2 1.70 -9.4 1.34 SNTORIA 0.85 0.98 0.27 6.2 10.3 13.8 8.2 1.2 1.2 1.00 -15.0 0.69 SPB 4.95 5.98 0.59 25.6 22.8 12.7 14.3 2.4 2.4 5.19 -4.6 4.32 SPSETIA 3.25 4.10 0.68 27.1 29.5 15.4 14.2 4.3 4.3 4.50 -27.8 2.90 SUNWAY 4.18 4.15 0.48 18.3 18.4 13.3 13.2 2.9 2.9 4.19 -0.2 2.84 Note: SUNWAY proposed bonus issue of shares and warrants. Ex-Target price RM1.69. For more details please refer to 15.06.17 report. REIT SUNREIT 1.70 1.86 0.51 8.9 10.1 19.2 16.8 5.2 5.9 1.84 -7.6 1.63 CMMT 1.55 1.72 0.59 8.1 8.6 19.2 18.0 5.4 5.8 1.72 -9.9 1.45 % Chg YTD 18.3 1.4 6.7 7.9 28.7 17.5 8.4 -11.8 2.0 3.0 17.9 8.3 0.0 0.5 21.9 19.1 14.9 23.2 14.5 12.1 47.1 -10.1 -18.1 -8.0 12.8 7.7 6.2 12.0 3.8 39.3 4.3 6.9 -1.2 1.3 POWER & UTILITIES MALAKOF PETDAG PETGAS TENAGA YTLPOWR 1.05 23.70 18.86 14.12 1.41 1.13 21.47 19.60 17.37 1.90 0.76 0.76 0.77 1.02 0.53 7.1 98.4 88.2 131.9 8.2 6.4 102.3 101.3 130.8 10.7 14.8 24.1 21.4 10.7 17.1 16.4 23.2 18.6 10.8 13.2 6.7 3.1 3.3 3.1 7.1 5.7 3.2 3.8 3.2 7.1 1.80 25.70 22.50 14.90 1.64 -41.7 -7.8 -16.2 -5.2 -14.0 1.01 22.92 18.10 13.00 1.39 4.0 3.4 4.2 8.6 1.4 -23.4 -0.4 -11.5 1.6 -5.4 TELECOMMUNICATIONS AXIATA DIGI MAXIS TM 4.68 4.79 5.56 6.39 5.25 4.90 5.70 7.50 1.31 0.93 0.71 0.66 14.6 20.0 24.8 21.4 16.0 20.4 25.0 22.3 32.1 23.9 22.4 29.8 29.3 23.5 22.2 28.7 1.6 4.2 3.6 3.0 1.7 4.3 3.6 3.1 5.99 5.19 6.60 6.90 -21.9 -7.7 -15.8 -7.4 4.11 4.63 5.48 5.81 13.9 3.5 1.5 10.0 -0.8 -0.8 -7.0 7.4 TECHNOLOGY Semiconductor & Electronics IRIS 0.17 INARI 2.48 MPI 13.72 UNISEM 3.72 0.28 2.30 15.60 3.95 1.34 0.79 0.51 0.82 -2.6 10.3 94.2 26.9 -0.3 na 12.4 24.1 112.9 14.6 27.1 13.8 na 20.1 12.1 13.7 0.0 3.2 2.0 3.2 0.0 2.0 2.0 3.2 0.24 2.49 13.86 3.72 -29.2 -0.4 -1.0 0.0 0.10 1.50 7.20 2.27 70.0 65.7 90.6 63.9 54.5 49.4 85.2 57.6 3.25 8.80 3.34 8.10 1.12 1.44 37.6 17.2 37.1 17.5 8.6 51.1 8.8 50.3 1.2 1.1 1.5 1.1 3.59 9.45 -9.5 -6.9 2.16 5.76 50.5 52.8 41.9 45.2 1.73 3.67 2.05 4.05 0.75 0.67 14.3 17.1 22.7 15.1 12.1 21.4 7.6 24.3 2.5 3.5 4.0 3.1 1.87 4.59 -7.5 -20.0 1.47 3.61 17.7 1.7 8.8 -14.7 TRANSPORTATION Airlines AIRASIA AIRPORT Freight & Tankers TNLOGIS WPRTS SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price (S$) BANKS & FINANCIAL SERVICES DBS 21.86 OCBC 11.20 UOB 24.25 PLANTATIONS WILMAR IFAR 3.32 0.47 Target Price Beta (S$) EPS (cent) PER (X) FY17 FY18 FY17 FY18 Div Yield (%) 52week 52week FY17 FY18 High Price % Chg Low Price % Chg % Chg YTD 23.30 12.00 25.40 1.22 1.14 1.09 173.8 87.7 195.6 190.2 12.6 92.4 12.8 209.3 12.4 11.5 12.1 11.6 2.7 5.7 2.9 2.7 6.7 2.9 21.9 11.2 24.3 -0.3 0.0 0.0 14.72 8.84 17.51 48.5 35.4 38.5 26.1 25.6 18.9 3.72 0.53 0.91 1.12 28.9 4.9 31.1 5.2 10.7 9.1 2.4 2.5 2.7 2.7 4.0 0.6 -17.0 -21.0 2.96 0.44 12.2 6.8 -7.5 -10.5 11.5 9.7 BUY : Total return within the next 12 months exceeds required rate of return by 5%-point. HOLD : Total return within the next 12 months exceeds required rate of return by between 0-5%-point. SELL : Total return is lower than the required rate of return. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.
11. TA Securities RESULTS UPDATE Thursday , 20 July, 2017 FBMKLCI: 1,757.27 Sector: REIT A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 TP: RM 1.72 (+11.0%) CapitaLand Malaysia Mall Trust Last Traded: RM 1.55 Slight Uptick in Rental Reversion HOLD THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Thiam Chiann Wen Tel: +603-2167 9615 cwthiam@ta.com.my Review Excluding the fair value loss on investment properties of RM11.8mn, CapitaLand Malaysia Mall Trust (CMMT) reported 1H17 realised net profit of RM80.2mn. Results came in within expectations, accounting for 49% and 46% of ours and the street’s full-year estimates respectively. 1H17 distribution per unit (DPU) stood at 4.14sen (-1.4% YoY), translating to an annualised dividend yield of 5.3% based on last closing price. YoY, CMMT’s 1H17 net property income (NPI) decreased 0.9% to RM119.5mn as revenue dipped 0.8% YoY. The weaker performance was largely due to lower contribution from shopping malls in the Klang Valley, namely Sungei Wang Plaza, Tropicana City Mall and The Mines. www.taonline.com.my Share Information Bloomberg Code CMMT MK Stock Name CMMT Stock Code 5180 Listing Main Market Share cap (mn) 2034.6 Market Cap (RMmn) 3153.7 Par Value (RM) 1.00 52-wk Hi/Lo (RM) 1.72/1.45 12-mth Avg Daily Vol ('000 shrs) 2296.8 Estimated Free Float (%) 24.8 Beta (x) 0.6 Major Shareholders (%) CapitaMalls Asia Ltd (34.9) Skim Amanah Saham Bumiputera (12.3) Employees Provident Fund (9.3) Kumpulan Wang Persaraan (9.2) Forecast Revision CMMT’s 1H17 rental reversion improved to -4.5% (vs. 1Q17’s -12.4%). Sungei Wang Plaza continued to register negative rental reversion during the period under review. However, compared to 1Q17’s negative rental reversion of -39%, it has narrowed to -34% in 1H17. The Mines and Tropicana City Mall also saw negative rental reversions of -3.1% and 3.6% respectively, largely due to the change in trade mix in an effort to rebalance the Malls’ tenant portfolio. In terms of lease expiry, 35%, 30% and 24% of CMMT’s leases (retail) by gross rental income are due for renewal in 2017, 2018 and 2019 respectively. For 2017, bulk of the renewal will come from Gurney Plaza, with 8% of the NLA representing 12% of gross rental income up for renewal. According to management, the renewal negotiations are on track. Having said that, management expects the rental reversion of CMMT’s portfolio (excludes Sungai Wang Plaza) to breakeven by end 2017. Impact Maintained. Outlook Management foresees the retail industry to remain challenging as the consumers’ appetite for spending remains poor. The impending completion of new shopping malls in 2H17 are also expected to further intensify the competition for retail malls. To ensure the competitiveness of the malls, CMMT will further embark on various asset enhancement initiatives (AEIs) and actively rebalance the trade mix of its malls. For 2017, the group will spend RM30mn for maintenance capex and AEIs. This includes the proposed link bridge between Sungei Wang Plaza and the existing pedestrian bridge leading to Berjaya Times Square, costing RM4.25mn (CMMT’s 50% share of contribution). Targeted for completion by end 2018, we are positive on the proposed link bridge as the seamless connectivity would likely drive an increase in footfall to Sungei Wang Plaza. Page 1 of 3 Forecast Revision (%) Net profit (RMm) Consensus (RMm) TA's / Consensus (%) Previous Rating FY16 FY17 0.0 0.0 164.8 177.2 173.6 180.8 94.9 98.0 Hold (Maintained) Financial Indicators FY16 32.4 10.2 15.1 6.1 3.9 1.2 1.3 FY17 31.2 12.0 12.9 6.6 4.2 1.2 1.3 vs TA vs Consensus % of FY 49.0 46.0 Within Within Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth CMMT 1.3 0.0 (4.9) (3.1) FBM KLCI (1.3) 0.9 5.5 5.3 Gearing (%) FCPS (sen) Price / CFPS (x) ROE (%) ROA (%) NTA/Share (RM) Price/NTA (x) Scorecard (12-Mth) Share Price relative to the FBM KLCI Source: Bloomberg
12. TA Securities 20-Jul-17 A Member of the TA Group Valuation No change to our DDM derived target price at RM1 .72/unit, based on unchanged discount rate of 7.7%. Our target price implies forward yields of 5.2-5.3%, in line with peers’ average forward yields of 5.3-5.6%. Maintain Hold. Earnings Summary (RM mn) FYE Dec FY15 FY16 FY17F FY18F FY19F Gross Rental Income 344.8 372.6 379.9 397.6 405.5 Net Property Income 226.4 242.5 244.3 257.0 262.1 65.7 65.1 64.3 64.6 64.6 Pretax profit 155.1 163.7 164.8 177.2 183.6 Core Net Profit 155.1 163.7 164.8 177.2 183.6 Distributable income 162.8 171.1 176.7 189.4 195.8 8.2 8.1 8.1 8.6 8.9 Core EPU Growth (%) (2.6) (1.7) 0.3 6.7 3.3 PER (x) 18.9 19.2 19.2 18.0 17.4 DPU (sen) 8.6 8.4 8.4 8.9 9.2 Div Yield (%) 5.5 5.4 5.4 5.8 5.9 ROE (%) 6.3 6.1 6.1 6.6 6.9 NPI Margins (%) Core EPU (sen) 2Q17 Results Analysis (RM mn) FYE Dec 2Q16 1Q17 2Q17 QoQ (%) YoY (%) 1HFY16 1HFY17 YoY (%) Gross Revenue 92.0 92.4 91.8 (0.7) (0.2) 185.7 184.3 (0.8) Net property income 60.0 59.7 59.8 0.1 (0.4) 120.6 119.5 (0.9) Interest Income 1.4 1.4 1.3 (5.7) (7.3) 2.9 2.7 (5.5) Change in fair value of inv prop 2.6 0.0 (11.8) nm >100 2.6 (11.8) >100 Net investment Income 64.1 61.1 49.4 (19.3) (23.0) 126.1 110.5 (12.4) Finance Costs (14.8) (14.7) (14.9) 1.4 0.2 (29.6) (29.5) (0.1) Other trust expenses (0.5) (0.4) (0.4) 14.3 (21.8) (0.9) (0.8) (14.4) Income before taxation 42.8 40.2 28.1 (30.1) (34.2) 83.8 68.4 (18.4) Net profit 42.8 40.2 28.1 (30.1) (34.2) 83.8 68.4 (18.4) Realised Net Profit 40.2 40.2 39.9 (0.8) (0.7) 81.2 80.2 (1.4) Income available for distribution 42.3 42.3 41.9 (1.0) (0.8) 85.2 84.2 (1.1) EPU (sen) 2.0 2.0 2.0 (1.1) (1.3) 4.0 3.9 (1.9) DPU (sen) 2.1 2.1 2.1 (1.0) (1.0) 4.2 4.1 (1.4) NPI Margin (%) 65.3 64.6 65.1 0.5 (0.1) 65.0 64.9 (0.1) Core Net Margin (%) 43.7 43.5 43.5 (0.1) (0.2) 43.8 43.5 (0.3) Page 2 of 3
13. TA Securities 20-Jul-17 A Member of the TA Group Peers Comparison Call Sunway REIT Hold CMMT Hold KLCCP Stapled Group * NR IGB REIT* NR Pavilion REIT* NR Axis REIT* NR Al Salam* NR Average * Based on consensus number Price (RM) 1.70 1.55 7.74 1.72 1.75 1.62 1.01 Target price (RM) 1.86 1.72 NR NR NR NR NR Market Cap (RM bn) 5.0 3.1 14.0 6.0 5.3 1.8 0.6 PER (x) FY17 19.2 19.2 18.3 20.7 19.4 18.0 15.8 18.7 FY18 16.8 18.0 17.6 19.5 18.6 17.2 15.5 17.6 Div Yield (%) FY17 5.2 5.8 4.8 5.2 5.1 5.5 5.8 5.3 FY18 5.9 5.8 4.9 5.5 5.4 5.7 5.9 5.6 P/NAV FY17 1.1 1.3 1.1 1.6 1.4 1.3 1.0 1.3 FY18 1.1 1.3 1.1 1.7 1.4 1.3 1.0 1.3 Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. 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(14948-M) (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 3 of 3
14. TA Securities ECONOMIC REPORT Thursday , July 20, 2017 FBMKLCI: 1,757.27 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Malaysian Economy CPI Moderates in June 2017, but to Rebound Later THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Tel: +603-2167 9608 Tel: +603-2167 9220 TA Research Team Coverage shazma@ta.com.my farid@ta.com.my Review: • Lower-than expected result. The Consumer Price Index (CPI) for June 2017 eased to 3.6% YoY to 118.9 from 3.9% YoY gain in the previous month and after hitting 5.1% YoY in March 2017. 10 out of the 12 baskets posted a positive growth, with exception of Clothing & Footwear and Communication. However, most posted a moderate growth as compared to last year. Non-food prices also softened to 3.2% YoY from 3.7% YoY previously. • The gain was below consensus estimates of 3.9% YoY but above ours (TA forecast: 3.4% YoY). On a monthly comparison, CPI declined for four straight months by 0.2% MoM in June 2017. Figure 1: CPI Performance (January 2008 – June 2017) YoY % 10.0% June17: 3.6% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% Jul-16 Jan-17 Jul-15 Jan-16 Jul-14 Jan-15 Jul-13 Jan-14 Jul-12 Jan-13 Jan-12 Jul-11 Jan-11 Jul-10 Jan-10 Jul-09 Jan-09 Jul-08 Jan-08 -4.0% Sources: Department of Statistics, TA Securities • Food Prices Consistently High in the 1H17. The Food and Non-Alcoholic Beverages saw a 4.3% YoY (or +0.5% MoM) increase in June 2017. Despite moderating from the previous month, this segment consistently registered above 4.0% growth since the start of the year. Breaking up the increase in Food & Non-Alcoholic Beverages, it is noted that sub group of Oil & Fats (June: 39.4% YoY; May: 38.9% YoY) had drastically increased in price level since the rationalisation of the Cooking Oil Price Stabilisation Scheme (COSS). Other than that, the price level of Fruits and Vegetables rose by 3.7% YoY and 1.8% YoY, respectively. Other sub groups grew at moderate pace in June 2017 probably due to the seasonally factor of Ramadhan month. Namely, Fish and Seafood (June: 7.2% YoY; May: 7.7% YoY); Meats (June: 4.2% YoY; May: 5.1% YoY); and Sugar, Jam, Honey, Choc. & Confectionery (June: 1.5% YoY; May: 1.6% YoY). Festival price control scheme might also play some role although the impact might be small, in our view. • Transport Cost Moderates during the Month. So far, the Transport index saw a remarkable hike in tandem with the increase in fuel prices on top of low base effect last year. YTD, Transport costs registered an increase of 14.8% YoY in the first half of the year. However, this group has recorded a slowdown in June 2017, but remained on a double digit growth. The transport index grew by 10.5% YoY slower than 13.1% YoY in May (the highest was 23% YoY in March 2017). Page 1 of 3 www.taonline.com.my d o m e s
15. TA Securities 20-Jul-17 A Member of the TA Group • In June 2017, the government has announced lower retail pump price across categories. Cumulatively, the average pump price from 1 June 2017 to 28 June 2017 was RM2.07 a litre, putting a price difference of 31 sen higher than June last year, but 11 sen lower than the average retail pump price in May 2017, resulting a decline in sub-component of Fuels & Lubricants for Personal Transport Equipment by 4.2% MoM. The average price in July (up until 26 July 2017) is RM2.04 a litre, thus pointing to a further slowdown in transport cost this month. Figure 2: Retail Pump Price in Malaysia (RM per Litre) Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 30 Mar - 5 Apr 2017 6 Apr - 12 Apr 17 13 Apr - 19 Apr 17 20 Apr - 26 Apr 17 27 Apr - 3 May 17 4 May - 10 May 17 11 May - 17 May 17 18 May 2017 - 24 May 17 25 May - 31 May 2017 1 June - 7 June 2017 8 June - 14 June 2017 15 June - 21 June 2017 22 June - 28 June 2017 29 June - 5 July 2017 6 July - 12 July 2017 13 July - 19 July 2017 20 July - 26 July 2017 Source: TA Securities Ron97 Ron95 Diesel Average Pump Price 2.25 2.05 1.95 2.05 2.05 2.05 2.10 2.10 1.85 1.75 1.60 1.70 1.70 1.70 1.75 1.75 1.60 1.35 1.35 1.55 1.55 1.55 1.60 1.70 1.90 1.72 1.63 1.77 1.77 1.77 1.82 1.85 2.05 2.15 2.30 2.25 2.40 2.60 2.60 2.41 2.43 2.52 2.54 2.49 2.39 2.29 2.36 2.40 2.38 2.31 2.24 2.17 2.15 2.19 2.22 2.22 1.70 1.80 1.95 1.90 2.10 2.30 2.30 2.13 2.16 2.24 2.27 2.21 2.11 2.01 2.08 2.12 2.10 2.05 1.98 1.91 1.89 1.93 1.97 1.97 1.70 1.75 1.90 1.85 2.05 2.15 2.20 2.11 2.08 2.16 2.21 2.14 2.08 1.95 1.99 2.03 2.02 1.94 1.88 1.88 1.84 1.91 1.96 1.96 1.82 1.90 2.05 2.00 2.18 2.35 2.37 2.22 2.22 2.31 2.34 2.28 2.19 2.08 2.14 2.18 2.17 2.10 2.03 1.99 1.96 2.01 2.05 2.05 • Minimal Impact on Hike in Natural Gas Tariff. Other heavy CPI weights of Housing, Water, Electricity, Gas & Other Fuels rose minimally to a 2.2% YoY. Meanwhile, the government has approved for Gas Malaysia Berhad to effect the revision of the natural gas tariff for the nonpower sector in Peninsular Malaysia. The average gas base tariff will be adjusted to RM28.05/MMBtu for the period 1 July 2017 to 31 December 2017. Additionally, under the gas cost pass through mechanism, a rebate of RM1.59/MMBtu will apply to all tariff categories and hence, this translates into an average effective tariff of RM26.46/MMBtu - an increase of 0.6% from the previous average effective tariff of RM26.31/MMBtu. We, however believe the impact to overall CPI will be minimal given the Gas contribution to overall CPI is only 0.5%. • Inflation to moderate in 2H? YTD, inflation rose by 4.1% YoY as compared with 4.3% YoY gain in the first five month of the year. Prices of goods are seen leveling after reaching an eight-year high in March 2017. Nevertheless, we are slightly concerned over the upside risk Page 2 of 3
16. TA Securities 20-Jul-17 A Member of the TA Group for prices of goods and services moving into 2H17 . Gain in price levels are attributes of the potential increase in transportation due to the highly uncertainties of global oil price. For 2017 as a whole, we maintain our projection at 3.9% at this juncture. Trend wise, we expect inflation to rebound in September 2017 onwards due to low base factor last year. • OPR to increase? Now, the probing question as to whether or not the Overnight Policy Rate (OPR) for Malaysia will be raised. As we mentioned previously, there is room for Bank Negara Malaysia (BNM) to increase the Overnight Policy Rate (OPR) amid rising inflationary pressure as compared to last year. With robust economic performance continuing following better performance in domestic activities and trade, there is potential for BNM to hike interest rate this year. Also, we are now in the six month of negative real rate of return. A negative real interest rate environment could induce speculative investments. To recap, at July’s Monetary Policy Committee (MPC) meeting, BNM decided to maintain interest rate at 3.00%. There is also no change in the Statutory Reserve Requirement (SRR), which was kept at 3.50%. Figure 3: CPI Sub-components for 6 Months (January - June 2017) YoY % Sub Components Wt. Consumer Price Index (CPI) 100.0 Food & Non-Alcoholic Beverages 30.2 Alcoholic Beverages & Tobacco 2.9 Clothing and Footwear 3.3 Housing, Water, Electricity, Gas & Other Fuels 23.8 Furnishings, Household Equip. & Routine Household 3.8 Maintenance Health 1.7 Transport 13.7 Communication 5.2 Recreation Services & Culture 4.9 Education 1.1 Restaurants and Hotels 2.9 Miscellaneous Goods & Services 6.5 2016 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 1H17 2.1% 3.9% 17.2% -0.4% 2.4% 3.2% 4.0% 0.2% -0.7% 1.9% 4.5% 4.3% 0.2% -0.2% 2.2% 5.1% 4.1% 0.2% -0.2% 2.1% 4.4% 4.1% 0.2% -0.1% 2.2% 3.9% 4.4% 0.2% -0.2% 2.2% 3.6% 4.3% 0.1% -0.4% 2.2% 4.1% 4.2% 0.2% -0.3% 2.2% 2.4% 1.5% 1.5% 1.5% 1.9% 2.1% 2.1% 1.8% 2.7% -4.6% -1.6% 2.5% 2.2% 2.8% 2.9% 2.5% 8.3% -0.2% 3.2% 2.0% 2.1% 1.4% 2.4% 17.9% -0.3% 3.1% 1.7% 2.3% 1.4% 2.6% 23.0% -0.2% 3.0% 1.7% 2.3% 1.3% 2.8% 16.7% -0.3% 3.0% 1.7% 2.4% 1.5% 2.9% 13.1% -0.3% 2.9% 1.7% 2.3% 1.3% 2.6% 10.5% -0.3% 3.0% 1.7% 2.3% 1.2% 2.6% 14.8% -0.3% 3.0% 1.7% 2.3% 1.3% Sources: Department of Statistics, TA Securities 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(14948-M) (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 3 of 3
17. Thursday , 20 July, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED LOCAL TECHNICAL REPORTS’ Local Technical Reports 1. Daily Technical Stock Picks 2. Daily Stock Screen 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 (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research
18. T e c h n i c a l TA Securities V i e w Thursday , July 20, 2017 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 PDaily Technical Stock Picks Malaysia FBM KLCI: 1,757.27 (+2.35, +0.13%) THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Name FBMKLCI AFFIN AFG AMBANK AXIATA CIMB DIGI GAMUDA GENTING GENM IHH IOICORP MALAKOFF MAXIS MAYBANK MBSB RHBBANK SIME TENAGA TM WPRTS AIRASIA AIRASIA X ARMADA BINAPURI CMSB DIALOG ECO WORLD EKOVEST GADANG HSL ISKANDAR KIMLUN KKBE MUDAJAYA MRCB NAIM SAPURA ENERGY SUNCON UEMS WASEONG WCT Close 19/7/2017 1757.27 2.64 3.85 5.01 4.68 6.42 4.79 5.32 9.34 5.82 5.95 4.49 1.05 5.56 9.64 1.27 5.07 9.55 14.12 6.39 3.67 3.25 0.41 0.73 0.39 3.98 1.95 1.62 1.13 1.31 1.58 1.46 2.23 1.19 1.30 1.39 1.26 1.61 2.02 1.22 0.90 1.96 Change 2.35 0.01 -0.03 -0.09 0.03 0.09 0.02 -0.04 -0.11 0.07 0.04 0.00 -0.01 -0.01 0.04 -0.01 0.03 0.00 -0.04 -0.06 -0.03 -0.03 0.01 -0.02 0.01 0.00 0.04 0.01 -0.04 0.02 0.00 -0.08 -0.02 -0.03 -0.05 0.02 0.00 0.02 0.00 -0.01 0.00 0.06 Tel: +603-2167-9607 High Low 1,760.82 1,753.74 2.66 3.96 5.10 4.69 6.50 4.80 5.36 9.58 5.82 5.95 4.50 1.07 5.59 9.64 1.29 5.08 9.58 14.18 6.45 3.70 3.28 0.42 0.74 0.39 4.00 1.95 1.64 1.24 1.31 1.59 1.73 2.23 1.23 1.34 1.44 1.31 1.61 2.03 1.24 0.93 1.98 2.64 3.85 5.01 4.63 6.35 4.76 5.30 9.33 5.75 5.90 4.46 1.03 5.56 9.60 1.26 5.04 9.50 14.06 6.38 3.66 3.22 0.39 0.73 0.38 3.90 1.91 1.60 1.13 1.28 1.57 1.45 2.23 1.19 1.30 1.37 1.26 1.59 2.01 1.22 0.90 1.91 Bollinger Bands Lower Mid Upper 1,746.86 1,764.72 1,782.58 2.60 3.78 4.87 4.53 6.24 4.70 5.34 9.01 5.47 5.81 4.42 1.01 5.45 9.58 1.23 5.02 9.48 14.06 6.37 3.63 3.06 0.39 0.70 0.38 3.97 1.89 1.56 1.05 1.27 1.57 1.24 2.21 1.21 1.32 1.30 1.24 1.56 1.98 1.19 0.90 1.87 2.65 3.88 5.02 4.79 6.51 4.93 5.43 9.41 5.66 5.93 4.49 1.05 5.55 9.62 1.31 5.07 9.55 14.15 6.55 3.68 3.17 0.40 0.74 0.40 4.03 1.92 1.62 1.16 1.30 1.62 1.50 2.24 1.26 1.38 1.39 1.26 1.62 2.01 1.22 0.93 2.02 2.70 3.97 5.17 5.04 6.77 5.16 5.52 9.80 5.85 6.04 4.55 1.09 5.64 9.67 1.38 5.12 9.62 14.25 6.73 3.73 3.29 0.42 0.78 0.43 4.10 1.95 1.68 1.27 1.34 1.66 1.75 2.28 1.30 1.45 1.48 1.29 1.68 2.04 1.24 0.96 2.17 stsoo@ta.com.my www.taonline.com.my RSI Moving Averages 14d 10d 30d 50d 41.38 1,757.60 1,772.69 1,771.86 DMI DI + DI - ADX 17.73 20.31 19.41 Diff (2.57) 43.14 42.49 46.31 40.87 48.20 36.56 35.69 44.82 56.66 50.64 48.51 41.34 31.70 60.36 44.40 44.19 55.54 48.40 34.95 43.10 54.84 47.71 41.64 35.45 37.27 58.61 52.80 46.02 54.17 38.26 45.21 45.49 26.88 36.69 46.91 42.82 42.02 51.66 48.02 39.20 42.21 16.46 16.54 22.08 15.66 26.55 9.93 11.45 19.80 28.55 17.95 22.76 14.55 21.12 15.98 10.97 11.57 22.53 16.06 9.69 15.34 25.04 18.04 15.83 14.08 17.79 13.69 21.74 25.93 18.70 16.05 34.35 40.57 20.86 25.43 27.81 25.81 11.55 16.78 16.47 26.69 18.46 (3.04) 0.01 1.82 (5.09) 2.43 (24.09) (18.18) (6.00) 11.45 0.62 7.13 (9.76) (11.52) (2.48) (10.39) (8.64) 9.99 (1.27) (10.35) 2.66 3.85 2.54 (16.94) (6.44) (7.96) (7.96) 0.03 1.89 2.93 (7.46) 9.72 13.51 (34.02) (5.33) 2.73 8.30 (13.71) 0.00 (4.20) 4.00 (11.57) 2.63 3.85 5.04 4.69 6.41 4.86 5.40 9.29 5.71 5.94 4.50 1.04 5.52 9.62 1.27 5.06 9.54 14.15 6.48 3.68 3.16 0.40 0.74 0.40 4.01 1.91 1.60 1.12 1.30 1.60 1.40 2.23 1.24 1.38 1.40 1.26 1.62 2.01 1.22 0.92 1.98 2.67 3.92 5.01 4.86 6.57 4.95 5.41 9.54 5.68 5.96 4.50 1.08 5.74 9.61 1.31 5.09 9.57 14.20 6.55 3.72 3.22 0.41 0.75 0.41 4.05 1.93 1.62 1.17 1.30 1.62 1.54 2.25 1.26 1.43 1.40 1.28 1.70 2.02 1.23 0.94 2.06 2.74 4.07 5.16 4.99 6.38 4.98 5.39 9.67 5.74 5.96 4.53 1.13 6.03 9.52 1.31 5.22 9.47 14.06 6.52 3.78 3.25 0.43 0.76 0.42 4.14 1.92 1.59 1.20 1.29 1.65 1.66 2.26 1.29 1.41 1.46 1.34 1.78 2.04 1.25 0.92 2.12 19.49 16.53 20.27 20.75 24.12 34.02 29.63 25.80 17.10 17.33 15.63 24.31 32.64 18.45 21.36 20.22 12.54 17.33 20.04 12.67 21.19 15.51 23.65 31.03 24.23 21.65 21.71 24.05 15.76 23.51 24.64 27.06 54.88 30.76 25.09 17.51 25.26 16.78 20.66 22.70 30.03 17.18 26.98 10.52 28.22 25.40 40.38 18.95 33.92 14.51 13.15 23.51 55.20 51.25 14.56 26.45 27.56 27.83 21.79 21.42 7.85 18.28 26.33 16.50 20.45 28.88 21.10 28.71 24.33 14.30 12.81 23.27 17.96 14.28 17.15 16.72 21.24 26.54 11.49 23.27 18.99 22.51 Line (5.46) -0.03 -0.05 -0.01 -0.09 -0.03 -0.06 -0.01 -0.09 0.01 0.00 -0.01 0.00 -0.14 0.03 -0.02 -0.04 0.01 0.02 -0.03 -0.03 -0.01 -0.01 -0.01 -0.01 -0.04 0.00 0.00 -0.03 0.00 -0.02 -0.10 -0.01 -0.02 -0.02 -0.02 -0.02 -0.05 0.00 -0.01 -0.01 -0.05 MACD Signal Diff (4.40) (1.061) -0.03 -0.06 -0.02 -0.09 0.01 -0.04 0.01 -0.12 -0.01 -0.01 -0.01 0.00 -0.17 0.04 -0.01 -0.05 0.02 0.03 -0.01 -0.04 -0.02 -0.01 -0.01 -0.01 -0.04 0.00 0.00 -0.03 0.00 -0.01 -0.11 -0.01 -0.01 -0.01 -0.02 -0.03 -0.05 0.00 -0.01 0.00 -0.04 0.003 0.011 0.014 (0.004) (0.037) (0.024) (0.017) 0.026 0.023 0.004 0.003 (0.005) 0.034 (0.011) (0.005) 0.009 (0.006) (0.010) (0.025) 0.009 0.010 0.001 (0.001) (0.002) 0.004 (0.000) (0.005) (0.002) (0.002) (0.003) 0.009 0.001 (0.004) (0.010) 0.001 0.005 0.006 0.001 0.003 (0.005) (0.013) DMI MACD Recent Signal SELL SELL DMI MACD Signal Change - SELL BUY BUY SELL BUY SELL SELL SELL BUY BUY BUY SELL SELL SELL SELL SELL BUY SELL SELL BUY BUY BUY SELL SELL SELL SELL BUY BUY BUY SELL BUY BUY SELL SELL BUY BUY SELL BUY SELL BUY SELL BUY BUY BUY BUY BUY BUY BUY BUY BUY BUY - BUY BUY BUY SELL SELL SELL SELL BUY BUY BUY BUY SELL BUY SELL SELL BUY SELL SELL SELL BUY BUY BUY SELL SELL BUY SELL SELL SELL SELL SELL BUY BUY SELL SELL BUY BUY BUY BUY BUY SELL SELL BUY - The table above is a compilation of actively traded stocks with some popular technical indicators. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. INTERPRETATION OF TECHNICAL INDICATORS: Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average, and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Page 1 of 4
19. Technical Comments : Buy Dialog & Gadang Hook-up momentum indicators on Dialog support a re-test of the 7/6/17 high (RM1.99), with a convincing breakout to aim for RM2.08, the 123.6%FP (RM2.18) and the 138.2%FP (RM2.30) ahead, while key retracement support is at the 76.4%FR (RM1.80). Likewise, Gadang should challenge the 3/7/17 peak (RM1.37), while a breakout will target the 123.6%FP (RM1.50) and 138.2%FP (RM1.59) going forward. Key retracement support is from the 76.4%FR (RM1.24). DIALOG Upper Middle RM1.95 (+0.04) BOLLINGER BANDS RM RM 1.95 1.92 10-day 30-day RM 1.89 50-day Lower DMI Recent Signal SELL Recent Signal 1.92 SELL Signal Change GADANG Recent Signal Signal Change RM DAILY MACD Signal Change Upper Middle Lower SIMPLE MOVING AVERAGES RM 1.91 RM 1.93 BOLLINGER BANDS RM RM RM DMI RM1.31 (+0.02) 1.34 1.30 1.27 BUY SIMPLE MOVING AVERAGES RM 1.30 RM 1.30 RM 1.29 DAILY MACD Recent Signal SELL Signal Change 10-day 30-day 50-day Page 2 of 4
20. T e c h n i c a l TA Securities V i e w Thursday , July 20, 2017 FBMKLCI: 1,757.27 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Daily Stock Screen s Malaysia End Day Census of 19.07.2017 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my www.taonline.com.my Report Description: The Daily Stock Screen is a retail product which can be a very useful guide for momentum trading and trading ideas .The following list is derived from the screening of more than 1000 stocks currently listed on Bursa Malaysia to identify: the top 20 breakout, 20 breakdown, and 30 ‘potential’ breakout stocks which just climbed above the middle Bollinger band, with potential to appreciate toward the upper Bollinger band. [MIDDLE BOLLINGER RANGEBOUND] List of 30 Potential Breakout Stocks (Short-term BUY for upside toward Upper Bollinger Band or higher to TAKE PROFIT/SELL) No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Stock Name Price MLABS SYSTEMS AIRASIA X BHD MALAYAN BANKING VIVOCOM INTERNAT DATAPREP HLDGS EA HOLDINGS MY EG SERVICES MPAY CAREPLUS GROUP YGL CONVERGENCE JAG BHD EFFICIENT E-SOLU DBE GURNEY RESOU CUSCAPI BHD D&O GREEN TECH K-ONE TECHNOLOGY BENALEC ENGTEX GROUP BHD ABLEGROUP BHD SUPERCOMNET TECH LION INDUSTRIES PALETTE MULTIMED XINGHE HOLDINGS XIDELANG HOLDING BIOALPHA HOLDING BCM ALLIANCE B HIAP HUAT HOLDIN GADANG HLDGS BHD DUFU TECHNOLOGY KUB MALAYSIA BHD 0.21 0.41 9.64 0.14 0.44 0.10 2.16 0.24 0.42 0.20 0.14 0.36 0.03 0.30 0.64 0.22 0.43 1.33 0.14 0.19 1.18 0.07 0.04 0.27 0.24 0.20 0.13 1.31 1.40 0.52 RSI Bollinger Band Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 0.01 0.39 9.58 0.11 0.38 0.08 2.12 0.20 0.38 0.11 0.12 0.31 0.03 0.25 0.60 0.19 0.41 1.28 0.11 0.15 1.10 0.06 0.03 0.25 0.23 0.19 0.10 1.27 1.29 0.48 0.20 0.40 9.62 0.13 0.42 0.09 2.15 0.23 0.41 0.19 0.13 0.34 0.03 0.28 0.62 0.21 0.43 1.33 0.13 0.17 1.17 0.06 0.04 0.26 0.24 0.20 0.11 1.30 1.38 0.50 0.40 0.42 9.67 0.15 0.47 0.10 2.19 0.26 0.43 0.26 0.14 0.37 0.03 0.32 0.64 0.22 0.44 1.37 0.14 0.20 1.24 0.07 0.04 0.27 0.24 0.21 0.13 1.34 1.47 0.52 50.38 47.71 60.36 55.36 50.97 50.26 51.15 55.89 56.37 52.82 64.94 55.46 49.44 58.62 55.39 55.52 45.17 50.32 57.99 61.08 54.68 57.22 52.81 60.26 52.26 49.19 65.33 54.17 51.83 51.35 0.28 0.40 9.62 0.13 0.43 0.09 2.15 0.24 0.41 0.22 0.13 0.35 0.03 0.29 0.62 0.21 0.42 1.32 0.13 0.18 1.15 0.07 0.04 0.26 0.24 0.20 0.12 1.30 1.34 0.50 0.17 0.41 9.61 0.12 0.43 0.10 2.16 0.23 0.41 0.18 0.13 0.34 0.03 0.28 0.62 0.21 0.44 1.33 0.13 0.17 1.19 0.06 0.04 0.26 0.24 0.20 0.11 1.30 1.42 0.51 0.15 0.43 9.52 0.13 0.45 0.10 2.18 0.23 0.37 0.17 0.13 0.36 0.03 0.28 0.63 0.22 0.46 1.35 0.15 0.17 1.14 0.07 0.04 0.26 0.24 0.21 0.11 1.29 1.44 0.54 Vol 129,221,400 53,275,000 27,586,100 22,774,400 16,756,700 9,104,300 7,175,300 6,936,800 6,136,800 5,503,700 5,359,400 5,001,100 4,696,000 4,410,300 4,194,900 3,944,400 3,933,600 3,820,600 3,746,900 3,527,700 3,512,000 3,486,400 3,220,600 3,176,200 3,170,900 3,162,300 3,060,400 3,032,800 2,802,900 2,800,000 20-day avg vol 25,877,070 13,968,900 12,734,830 20,333,440 7,765,025 5,408,740 5,871,595 9,074,015 7,757,175 3,781,535 5,991,965 2,686,325 5,151,720 4,049,515 1,291,325 1,067,975 1,320,760 1,242,930 670,170 2,954,535 2,617,395 539,795 4,207,320 1,823,400 2,428,140 2,537,520 1,214,135 2,892,505 1,066,445 2,057,390 Raw data sourced from Bloomberg *Note: To qualify in this list above, the first sorting criteria is stock price must have just climbed or stayed ABOVE the middle Bollinger Band, followed by a second criteria that trading volume for the day must be significantly strong. This is a good watch list for momentum traders looking for short-term BUY ideas, as they are laggards with good upside potential towards the upper Bollinger band or higher to TAKE PROFIT/SELL. Caveat: Some stocks may continue to stay range bound and trade sideways, hence traders should refer to their respective charts to spot accumulation (volume growth) or breakout patterns. INTERPRETATION OF TECHNICAL INDICATORS: Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The mediumterm trend is positive if share price stays above the 30-day, and negative if it remains below this average. 14-day RSI: A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-day SMA should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day SMA is bearish and imply further near-term downside risk. Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders will buy on price breaks above the upper band, and sell when price breaks below the lower band. Alternatively, a sharp move that originates at one band tends to go all the way to the other band, a useful observation when projecting price targets. Page 1 of 2