Bursa Malaysia Daily Market Report - 29 December

Transcription

1. Friday , 29 December, 2017 TA RESEARCH’S ‘DAILY COMPILED REPORTS’ For Internal Circulation Only N ew s 1. D ai l y M arke t C om men t a ry 2. D ai l y B ri ef Fu nd a me n tal Rep o r ts 1 . L u s t e r In d u s t r ie s Be rh a d : T a k e Pro f i t Te ch n ic al R ep o rt s 1. D ai l y Te ch n ic a l St o ck Pi cks (L o ca l) 2. D ai l y St o ck S cr een 3. D ai l y For ei gn T ech n i c al St o ck P i cks (H K ) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ 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. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my
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Daily Market Commentary Friday , 29 December 2017 For Internal Circulation Only TA Research, e-mail : taresearch@ta.com.my Review & Outlook KLSE Market Statistics (28.12.2017) (mil) Main Market 1,298.2 Warrants 274.7 ACE Market 1,052.9 Bond 15.8 ETF 0.7 LEAP 0.0 Total 2,642.4 Off Market 47.2 Volume +/-chg (RMmn) -141.7 1,810.5 30.4 67.1 433.6 219.8 6.9 0.40 3.6 0.00 1.0 2,101.9 21.8 146.3 Value Value/ +/-chg Volume -4.4 1.39 18.8 0.24 94.0 0.21 -1.8 0.00 3.56 4.83 0.99 0.00 0.80 70.9 3.10 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP December 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 272 312 141 75 46 54 2 3 6 0 0 0 467 444 % chg % YTD chg 1,779.10 12,791.41 16,965.46 1,782.50 7.34 47.31 8.43 1.00 0.41 0.37 0.05 0.06 8.37 11.55 15.29 8.99 24,837.51 6,950.16 7,622.88 22,783.98 2,467.49 29,863.71 3,399.10 1,743.29 6,314.05 3,296.39 1,887.34 6,088.14 63.21 10.82 2.20 -127.23 30.82 266.05 7.43 -9.60 36.88 20.60 8.54 18.27 0.26 0.16 0.03 -0.56 1.26 0.90 0.22 -0.55 0.59 0.63 0.45 0.30 25.68 29.11 6.72 19.20 21.76 35.74 17.99 12.98 19.21 6.21 -4.15 7.45 Sustained strength in oil & gas, consumer and utility heavyweights shored up the blue-chip benchmark to the highest in more than three months on Thursday, and encouraged rotational plays on lower liners.The KLCI added 7.34 points to close at 1,779.10, off an early low of 1,769.60 and high of 1,781.84, as gainers edged losers 467 to 444 on improved turnover of 2.64bn shares worth RM2.1bn. While we anticipate late window-dressing activity to prop up the index to re-test the year high ahead of the New Year weekend break, profit-taking and selling could increase considerably to check gains. Hence, a break above 1,782 would enable a challenge of the double-top peak resistance of 1,793 and 1,796, prior to profit-taking pause. Immediate uptrend supports stays at 1,756 and 1,753, the 200 and 100-day moving average levels, with better supports from 1,736 and 1,733, the respective 50 and 30-day moving averages. A daily stochastics buy signal on Gadang enhances near-term upside momentum, with a decisive breakout above the 50%FR (RM1.13) to aim for the 61.8%FR (RM1.18) and 76.4%FR (RM1.25) ahead. Important chart supports are from the lower Bollinger band (RM1.04) and 23.6%FR (RM1.00). As for Sunway Construction, sustained strength above the 20/ 11/17 high (RM2.44) should extend uptrend towards the 123.6%FP (RM2.60), 138.2%FP (RM2.70) and 150%FP (RM2.80) going forward, while key uptrend support is from the 100-day ma (RM2.31). News Bites • • • • • Top 10 KLCI Movers Based on Mkt Cap. Off Market (mn) MAYBANK DESTINI STERPRO MEXTER CHEETAH G3 MLCLOBAL PESTECH OPCOM 13.0 10.0 6.9 4.3 3.5 3.0 3.0 1.9 1.0 (RM) @ @ @ @ @ @ @ @ @ 9.57 0.50 0.19 0.53 0.50 0.85 1.63 1.67 0.39 Counter Mkt Cap. Chg (RM’mn) (RM) MAYBANK 102,942 TENAGA 87,370 PBBANK 80,396 CIMB 60,335 AXIATA 48,859 DIGI 37,631 SIMEPLT 37,269 GENTING 35,386 HLBANK 34,775 PETGAS 34,390 0.01 0.30 0.12 0.04 0.02 0.03 0.01 0.10 0.30 0.20 Vol. (mn) 5.09 9.13 2.44 8.80 5.03 1.24 5.53 2.88 1.34 0.42 • • • • • • Important Dates HSS Engineers Bhd's associate company won RM82.5mn worth of contract to provide supervising consultancy services for infrastructure works for the East Coast Rail Link Package 1. Acoustech Bhd plans to develop a five-storey luxury hotel and a block of affordable serviced apartment worth a combined GDV of RM80.5mn on 2 pieces of land in Melaka. Kimlun Corp Bhd is buying 2 freehold tracts in Johor from Mah Sing Group Bhd for RM36.08mn with the plan to build commercial properties on the tracts. Suria Capital Holdings Bhd said it will go ahead to acquire 11.7ha of land located within the Kota Kinabalu port in Sabah from the state government. V.S. Industry Bhd had entered into a subscription agreement with Seeing Machines Limited (SML) to subscribe for 70.2mn new SML shares for a total cash consideration of £3.51mn. Karyon Industries Bhd is spending RM6.7mn to acquire a 3,842 sq m land in Plentong, Johor, along with buildings erected on it to set up additional manufacturing line in future and increase storage capacity. MyEG Services Bhd's appeal against Malaysia Competition Commission's fine of RM2.27mn for abusing its dominant position in the online foreign workers permit renewals has been dismissed by the Competition Appeal Tribunal. Ranhill Holdings Bhd is confident that its subsidiary SAJ Ranhill Sdn Bhd will continue to deliver strong performance in the years to come. Binasat Communications Bhd, en route to list on the ACE Market of Bursa Malaysia on Jan 8, 2018, saw the public portion of its initial public offering oversubscribed by 34.23 times. Only World Group Holdings Bhd is set to reverse 4 years of profit declines in FY18 as it races to open new food and beverage outlets in Genting Highlands and Penang by Chinese New Year. Nexgram Holdings Bhd is on the lookout for a new partner to undertake the development of Angkasa Icon City in Cyberjaya, and appears to be leaning towards companies from China that already have a presence in Malaysia. Berjaya Corporation Bhd made a net loss of RM145.99mn in 2QFY18 compared with a net profit of RM176.51mn a year ago due to provision for an impairment. The number of Americans filing new applications for unemployment benefits held steady at 245,000 last week, remaining near historically low levels as 2017 draws to a close. ECONBHD - 1:4 Bonus Issue - BI of up to 267.5m new split shares. 1 bonus share for every 4 split shares held. ECONBHD - 1:4 Bonus Issue - BI of up to 267.5m free warrants. 1 warrant for every 4 split shares held, on the same entitlement as the bonus issue of shares. LISTING ON: 29/12/2017. • MENANG - 4:5 Bonus Issue - BI of up to 320.5m shares. 4 bonus shares for every 5 existing shares held. Ex-Date: 05/01/2018. Entitlement Date: 09/01/2018. LISTING ON: 10/01/2018. Exchange Rate USD/MYR 4.0652 -0.0010 USD/JPY 112.89 -0.3700 EUR/USD 1.194 0.0045 • Commodities Futures Palm Oil (RM/mt) 2,520.00 -20.00 Crude Oil ($/Barrel) 59.89 0.31 Gold ($/tr.oz.) 1,297.20 5.40 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. Kaladher Govindan, Head of Research MENARA TA ONE, 22 JALAN for TA SECURITIES HOLDINGS BERHAD (14948-M) A PARTICIPATING ORGANISATION OF BURSA MALAYSIA SECURITIES BHD P RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL : 603 - 2072 1277. FAX : 603 - 2032 5048 www.ta.com.my
3. 29-Dec-17 Technical Comments : Bargain Gadang & SunCon A daily stochastics buy signal on Gadang enhances near-term upside momentum, with a decisive breakout above the 50%FR (RM1.13) to aim for the 61.8%FR (RM1.18) and 76.4%FR (RM1.25) ahead. Important chart supports are from the lower Bollinger band (RM1.04) and 23.6%FR (RM1.00). As for Sunway Construction, sustained strength above the 20/11/17 high (RM2.44) should extend uptrend towards the 123.6%FP (RM2.60), 138.2%FP (RM2.70) and 150%FP (RM2.80) going forward, while key uptrend support is from the 100-day ma (RM2.31). GADANG RM1.12 (+0.05) BOLLINGER BANDS Upper Middle Lower RM RM RM SIMPLE MOVING AVERAGES 1.10 1.07 1.04 10-day 30-day 50-day RM RM RM DAILY MACD DMI Recent Signal Signal Change SELL Recent Signal Signal Change SUNCON RM RM RM SIMPLE MOVING AVERAGES 2.44 2.39 2.34 10-day 30-day 50-day BUY Recent Signal Signal Change DMI Recent Signal Signal Change BUY RM2.44 (+0.03) BOLLINGER BANDS Upper Middle Lower 1.07 1.08 1.14 RM RM RM DAILY MACD 2.40 2.39 2.36 BUY Page 2 of 3
4. Friday , December 29, 2017 FBMKLCI: 1,779.10 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Brief Market View, News In Brief: Corporate, Economy, and Share Buybacks Chartist: Stephen Soo Tel: +603-2167-9607 stsoo@ta.com.my www.taonline.com.my M a r k e t V i e w Profit-Taking May Check Window Dressing Upside Sustained strength in oil & gas, consumer and utility heavyweights shored up the blue-chip benchmark to the highest in more than three months on Thursday, and encouraged rotational plays on lower liners. The KLCI added 7.34 points to close at 1,779.10, off an early low of 1,769.60 and high of 1,781.84, as gainers edged losers 467 to 444 on improved turnover of 2.64bn shares worth RM2.1bn. Break Above 1,782 to Test 1,793/1,796 While we anticipate late window-dressing activity to prop up the index to re-test the year high ahead of the New Year weekend break, profit-taking and selling could increase considerably to check gains. Hence, a break above 1,782 would enable a challenge of the double-top peak resistance of 1,793 and 1,796, prior to profit-taking pause. Immediate uptrend supports stays at 1,756 and 1,753, the 200 and 100-day moving average levels, with better supports from 1,736 and 1,733, the respective 50 and 30-day moving averages. Bargain Gadang & SunCon A daily stochastics buy signal on Gadang enhances near-term upside momentum, with a decisive breakout above the 50%FR (RM1.13) to aim for the 61.8%FR (RM1.18) and 76.4%FR (RM1.25) ahead. Important chart supports are from the lower Bollinger band (RM1.04) and 23.6%FR (RM1.00). As for Sunway Construction, sustained strength above the 20/11/17 high (RM2.44) should extend uptrend towards the 123.6%FP (RM2.60), 138.2%FP (RM2.70) and 150%FP (RM2.80) going forward, while key uptrend support is from the 100-day ma (RM2.31). South Korea’s Kospi Led Asia Higher Asian markets gains broadened Thursday in muted trading after a listless U.S. session overnight offered little direction ahead of the New Year holidays. Stateside, Wall Street closed slightly higher on Wednesday amid thin trade as gains in real estate and utilities offset losses among energy and telecommunications names. Copper remained a standout trade, soaring for a ninth straight session on Wednesday to a level not seen since early 2014 on expectations of strong demand from top consumer China. Prices of the metal, considered a barometer for global growth and used widely in power and construction, are up 30 percent in the calendar year so far. Trade was light across the board with many market participants on holiday. Across the Korean Strait, the Kospi stood out from its peers, closing up 30.82 points, or 1.26 percent, at 2,467.49, as Samsung Electronics and smaller chip maker SK Hynix each rose more than 1 percent. China stocks also rallied on Thursday, underpinned by robust gains in consumer and materials firms. The Shanghai Composite index was up 21.42 points or 0.65 percent at 3,297.21. In Sydney, the S&P/ASX 200 rose 0.30 percent, as gains in the resources space were offset by losses in utilities and real estate investment trusts. Meanwhile, Japan’s Nikkei share average erased its earlier gains, as the yen gained and banking shares extended their losses. The Nikkei finished down 0.6 percent at 22,783.98, while the broader Topix slipped 0.6 percent to 1,819.03. Page 1 of 7
5. 29-Dec-17 st Dow Logged 71 Record Close Ahead of Year ’s Final Trading Day The Dow Jones Industrial Average on Thursday logged its 71st record close in 2017, buoyed by gains in financial stocks and as technology stocks continued to slowly recover from a losing skid. Tech stocks notched their second straight gain on the heels of a five-session losing skid. The index has struggled somewhat to close out the year but remains the best-performing sector in 2017, up more than 37 percent. Shares of financial firms were also among the strongest performers for the day as the yield on the benchmark 10-year U.S. Treasury bill edge up to 2.43 percent from 2.41 percent Wednesday. In economic front, the advance trade deficit in goods increased to USD69.7 billion in November from USD68.1 billion in October. Weekly jobless claims came in at 245,000 versus expectations of 240,000. Volumes remained thin due to the holiday week between Christmas and New Year’s Day. The prior two sessions showed the lowest full-day trading volumes of the year. The Dow Jones Industrial Average rose 63.21 points, or 0.26 percent, to 24,837.51, the S&P 500 gained 4.92 points, or 0.18 percent, to 2,687.54 and the Nasdaq Composite added 10.82 points, or 0.16 percent, to 6,950.16. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ 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. As of Friday, December 29, 2017, the chartist, Stephen Soo, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 2 of 7
6. 29-Dec-17 N e w s I n B r i e f Corporate HSS Engineers Bhd ’s associate company, HSS Integrated Sdn. Bhd., has received a letter of appointment with an estimated value of up to RM82.5mn to provide supervising consultancy services for infrastructure works for the East Coast Rail Link Package 1 from KM0 to KM231.5. The contract will commence in 1Q2018 and it is expected to be completed in 2Q2024. (Bursa Malaysia/Bernama) Acoustech Bhd plans to develop a five-storey luxury hotel and a block of affordable serviced apartment worth a combined GDV of RM80.5mn on 2 pieces of land in Melaka. The hotel will be built on 1.2 acres of leasehold land which is located by the riverbank of Sungai Melaka whereas the affordable serviced apartment will be developed on 3.9 acres of leasehold land in Krubong, Melaka. (Bursa Malaysia/The Edge) Kimlun Corp Bhd is buying 2 freehold tracts in Johor from Mah Sing Group Bhd for RM36.08mn with the plan to build commercial properties on the tracts. The acquisition will be satisfied wholly in cash from internally generated funds and/or external borrowings and it is expected to be completed at the end of 4Q2020. (Bursa Malaysia/The Edge) Suria Capital Holdings Bhd said it will go ahead to acquire 11.7ha of land located within the Kota Kinabalu port in Sabah from the state government. The Sabah government is seeking a land premium amounting to RM48.48mn, with a lease period from Jan 1, 2018 to Dec 31, 2116. The group further said the terms of the offer letter include an annual rent of RM1k from Jan 1, 2018, increasing to RM520.30k from Jan 1, 2026 and RM692.50k from Jan 1, 2029. (Bursa Malaysia/The Edge) Pos Aviation Sdn. Bhd. a wholly-owned subsidiary of Pos Malaysia Bhd, has awarded a contract to PST Ventures Sdn. Bhd. as the vendor to provide security and technology services as well as warranty services for the redevelopment and refurbishment of the former LowCost Carrier Terminal by Pos Aviation for development period of 6 months and provision of warranty services of up to 5 years, at a total contract value of RM8.05mn. (Bursa Malaysia) V.S. Industry Bhd had entered into a subscription agreement with Seeing Machines Limited (SML) to subscribe for 70.2mn new SML shares for a total cash consideration of £3.51mn (RM19.31mn) in order to broadly maintain its current shareholding of 11.7% in SML. The subscription will be funded entirely by internally generated funds and it is expected to be completed by 31 January 2018. (Bursa Malaysia) Karyon Industries Bhd is spending RM6.7mn to acquire a 3,842 sq m land in Plentong, Johor, along with buildings erected on it to set up additional manufacturing line in future and increase storage capacity. The acquisition will be financed through a combination of internally generated fund and bank borrowings and it is expected to be completed by 2Q2018. (Bursa Malaysia/The Edge) MyEG Services Bhd said its appeal against Malaysia Competition Commission's (MyCC) fine of RM2.27mn for abusing its dominant position in the online foreign workers permit renewals has been dismissed by the Competition Appeal Tribunal. The Tribunal had upheld the MyCC’s decision with a consequential amendment by imposing additional daily penalty amounting to RM7.5k computed from June 25, 2016 to Dec 28, 2017. The group intends to seek for a judicial review and also apply for a stay against the Tribunal’s decision. (Bursa Malaysia/The Sun/The Edge) Page 3 of 7
7. 29-Dec-17 Ranhill Holdings Bhd is confident that its subsidiary SAJ Ranhill Sdn Bhd (SAJ) will continue to deliver strong performance in the years to come, said its president and chief executive Tan Sri Hamdan Mohamad. Ranhill recently announced that SAJ had renewed its license as the exclusive water services operator for the state of Johor for 3 years period commencing Jan 1, 2018 till Dec 31, 2020. (Bursa Malaysia/The Edge) Binasat Communications Bhd, en route to list on the ACE Market of Bursa Malaysia on Jan 8, 2018, saw the public portion of its initial public offering oversubscribed by 34.23 times. (The Edge) Vivocom International Holdings Bhd has appointed UOB Kay Hian Securities (M) Sdn. Bhd. as the new adviser and placement agent for its proposed private placement, which seeks to raise between RM35.58mn and RM47.87mn. The role was previously undertaken by RHB Investment Bank Bhd. (Bursa Malaysia/The Edge) Only World Group Holdings Bhd is set to reverse 4 years of profit declines in FY18 as it races to open new food and beverage outlets in Genting Highlands and Penang by Chinese New Year as the group expects to see significant revenue contribution from these new outlets in 4QFY18, according to its chief operating officer and executive director Puan Sri Chew Lean Hong. (The Edge) Nexgram Holdings Bhd is on the lookout for a new partner to undertake the development of Angkasa Icon City in Cyberjaya, and appears to be leaning towards companies from China that already have a presence in Malaysia, according to its newly appointed executive chairman Datuk Donald Lim Siang Chai. (The Sun) Berjaya Corporation Bhd made a net loss of RM145.99mn in 2QFY18 compared with a net profit of RM176.51mn a year ago due to provision for the impairment of a portion of the balance sales proceeds from the sale of the Great Mall of China project in China and the loss arising from the partial disposal of an associated company. Meanwhile, quarterly revenue fell 11.1% YoY to RM2.19bn from RM2.46bn. For 1HFY18, the group posted a net loss of RM189.38mn from a net profit of RM113.83mn a year ago while the revenue dropped 6.4% YoY to RM4.38bn from RM4.68bn. (Bursa Malaysia/The Edge) Page 4 of 7
8. 29-Dec-17 N e w s I n B r i e f Economy Asia Japan Industrial Production , Retail Sales Rise in November Industrial production in Japan rose in November, fueled by strong growth in exports. Retail sales rebounded to top expectations. Industrial production rose 0.6% in November from October (forecast +0.5%). Year-on-year production climbed 3.7% (forecast +3.6%). Production is forecast to increase 3.4% this month compared to November, and fall 4.5% in January. The main contributors to November production were semiconductor equipment and electronic parts. November retail sales rose 1.9% from October (forecast +0.7%). Sales increased 2.2% from a year earlier (forecast +1%). Sales at department stores and supermarkets rose 1.4% from a year earlier (forecast +1%). A yearlong recovery in exports has bolstered industrial output, supporting Japan’s longest economic expansion since the mid-1990s. Yet increasing domestic consumption remains key to the recovery becoming self-sustaining. Retailers are seeing more favorable conditions after bad weather kept Japanese shoppers at home through much of the third quarter, with household spending beating expectations last month. (Bloomberg) Bank of Korea to Maintain Accommodative Policy Stance in 2018 The Bank of Korea said that it will maintain the accommodative policy stance next year so as to ensure that the recovery of economic growth continues and consumer price inflation stabilize at the target level. The economy is forecast to retain its solid trend of growth, at a rate around 3% per year. According to BoK, exports will continue their improvement trend, due to the ongoing recovery of the global economy. At the same time, private consumption is expected to pick up moderately driven in part by an increase in government fiscal spending. Nonetheless, the bank cautioned that there remain some uncertainties concerning the future growth path. Inflation is expected to rise to approach its target level under the mixed effects of factors pushing it up, such as increased demand-side inflationary pressures and factors pulling it down including the weakening the base effects related to petroleum product prices, the bank said. (RTT News) United States U.S. Jobless Claims Unchanged at 245,000 Last Week The number of Americans filing new applications for unemployment benefits held steady last week, remaining near historically low levels as 2017 draws to a close. Initial jobless claims, a proxy for layoffs across the U.S., were a seasonally adjusted 245,000 in the week ended Dec. 23, unchanged from the prior week, the Labor Department said. Economists surveyed by The Wall Street Journal had expected 240,000 new claims last week. Data on jobless claims can be volatile from week to week, and seasonal adjustments tend to be especially tricky around holidays; Monday was Christmas Day. The four-week moving average for claims rose 1,750 to 237,750 last week. After spiking in the wake of several powerful late-summer hurricanes, jobless claims have settled down to low levels consistent with broad health in the U.S. labor market. Weekly initial unemployment applications have remained below 300,000 for 147 straight weeks—the longest such streak since 1970, when the U.S. population and workforce were far smaller than they are today. The effects of Hurricanes Irma and Maria are still being felt in some U.S. territories. The Labor Department warned that “claims taking procedures continue to be disrupted in the Virgin Islands” and that the process in Puerto Rico “has still not returned to normal.” (The Wall Street Journal) Page 5 of 7
9. 29-Dec-17 Two of Fed ’s Newest Faces to Join Rate-Setting Panel in 2018 Two of the newest Federal Reserve officials will step into the spotlight in 2018 when they assume voting seats for the first time on the central bank’s interest-rate-setting committee, weighing how to keep a buoyant economy on an even keel in the new year. One of them, McKinsey & Co. executive Thomas Barkin, starts his new job as Richmond Fed president Jan. 1. The other, former Obama administration housing official Raphael Bostic, became Atlanta Fed president in June. Not much is known publicly about their monetary policy leanings, so market participants will be parsing their words intensely for clues. Mr. Barkin doesn’t have a public record of speeches or articles on economic matters such as labor markets, inflation dynamics and interest rates. Mr. Bostic’s public remarks in recent months suggest he likely supported the Fed’s decision to raise short-term interest rates earlier this month, but revealed no strong inclination to lift borrowing costs more or less aggressively in the future. (The Wall Street Journal) Oil Prices Stay Near High on Strong U.S. Refinery Runs, China Data Oil prices dipped on Thursday but stayed close to their highest in 2-1/2 years, as data showed strong demand for crude imports in China and on increased refining activity in the United States that drew more crude from inventories. Trading was typically thin at year end, with many traders on vacation. The U.S. Energy Department said crude stocks fell 4.6 million barrels in the latest week. Inventories excluding the nation’s strategic reserve have declined more than 11% in the last year. U.S. refining runs increased, pushing overall capacity use among the nation’s refiners to 95.7%, highest in December dating to 1998, according to the U.S. Energy Department. Refiners have profited in recent months as the spread widened between U.S. crude and Brent futures prices. U.S. West Texas Intermediate (WTI) crude futures CLc1 slipped 13 cents to $59.51 a barrel as of 11:35 a.m. EST (1635 GMT), a day after briefly touching $60 a barrel. Brent crude futures LCOc1 fell 11 cents to $66.33 a barrel. (Reuters) Chicago Business Barometer Unexpectedly Indicates Faster Growth in December Chicago-area business activity unexpectedly expanded at a faster rate in the month of December, MNI Indicators revealed in a report. MNI Indicators said its Chicago business barometer climbed to 67.6 in December from 63.9 in November, with a reading above 50 indicating growth. The increase surprised economists, who had expected the business barometer to drop to 62.0. The unexpected advance lifted the index to its highest level since March of 2011. Stronger growth in both output and demand contributed to the unexpected increase by the business barometer, with the production index and the new orders index each rising to multi-year highs. The production index rose to its highest level in thirty-four years, while the new orders index reached a three-and-a-half year high. MNI Indicators said the order backlogs index also increased, while the employment index and the supplier deliveries index fell on the month. (RTT News) Europe and Uni ted Kingdom ECB Bulletin: Robust Growth Expected to Continue in 2018 Eurozone's economic expansion remains solid and broad-based, and is expected to sustain its strong momentum into next year, the European Central Bank said in its regular bulletin. "Overall, incoming data are generally pointing to unabated upside growth momentum in the fourth quarter of 2017 and around the turn of the year, with robust growth expected to continue in 2018," the ECB said. That said, the 19-nation economy still need the support from abundant monetary stimulus to see a return of inflation to near 2%, despite a strong and broad-based expansion in output, the bank said. The ECB Staff raised the growth projections for euro area in its latest round of forecasts. They now see 2.4% growth for this year, 2.3% for 2018, 1.9% for 2019 and 1.7% in 2020. The ongoing recovery is led by domestic demand, supported by growth in private consumption, investment and exports, the report noted. Labor markets continue to exhibit strong dynamics and the improvements are likely to continue, the ECB said. The report also mentioned increasing signs of labor shortages in some countries and sectors. Further, the ECB expects the housing market recovery to Page 6 of 7
10. 29-Dec-17 continue to drive growth , thanks to favorable financing conditions, portfolio shifts and rising income due to robust job creation. (RTT News) UK Private Sector Growth Accelerates in Q4: CBI The UK private sector growth picked up in the fourth quarter, the Confederation of British Industry said. According to the latest growth indicator, the balance of firms reporting a rise in output was +19%, compared with +6% in the three months to November. Looking ahead, the CBI said private sector growth is set to return to a more moribund pace of +4% over the next three months. "Private sector firms are enjoying healthy activity levels as we approach the year end, but mediocre expectations for growth underline the ongoing challenges facing companies," Anna Leach, CBI head of economic intelligence, said. "Persistent cost pressures will ensure that inflation remains at a high level, perpetuating the squeeze on household spending, particularly impacting consumer-facing firms and retailers," she said. Separately, UK mortgage approvals declined to a 15-month low in November, data from UK Finance showed. The number of mortgages approved in November fell to 39,507 from 40,417 in October. This was the lowest since August 2016, when approvals totaled 38,308. Gross mortgage borrowing was GBP 13.9 billion, which was 13% higher than in November 2016. Annual growth in net mortgage borrowing came in at 2.8%. Credit card borrowing grew 5.3% versus 5.0% in October. Meanwhile, personal loans and overdrafts dropped 3.1% following a 2.8% drop in October. At the same time, overall consumer credit growth remained at 0.9%. (RTT News) Share Buy-Back: 28 December 2017 Company AJIYA FITTERS GLOMAC GRANFLO KPJ MALAKOF SCGM UNIMECH Bought Back Price (RM) 934,100 100,000 5,000 20,000 50,000 200,000 16,500 87,400 0.60 0.40 0.60 0.24/0.235 0.995/0.98 0.89 2.60/2.59 1.03/1.01 Total Treasury Shares 0.62/0.60 3,554,100 0.40/0.395 28,513,000 0.60 5,097,400 0.24/0.23 7,990,000 0.995/0.975 16,687,000 0.905/0.89 1,824,400 2.64/2.57 334,900 1.03/1.01 6,360,410 Source: Bursa Malaysia Hi/Lo (RM) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ 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. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 7 of 7
11. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) Recom Market Cap. (RMm) BETA EPS (sen) PER (X) Div Yield (%) FY17 FY18 FY17 FY18 FY17 FY18 52weeks 52weeks % Chg High Price % Chg Low Price % Chg YTD 28-Dec-17 AUTOMOBILE BAUTO 2.13 2.50 Buy 2,459 0.77 10.2 14.3 20.9 14.9 5.5 5.4 2.24 -4.9 1.84 15.8 MBMR 2.19 2.32 Hold 856 0.93 20.7 23.2 10.6 9.4 1.9 2.1 2.60 -15.8 2.01 9.0 0.0 2.3 PECCA 1.50 1.69 Buy 277 na 7.7 11.1 19.4 13.5 3.3 3.7 1.70 -11.8 1.28 17.2 -5.7 SIME 2.23 1.97 Hold 15,166 1.37 11.8 12.0 19.0 18.6 10.3 1.3 2.55 -12.5 1.84 21.2 20.6 UMW 5.00 4.37 Sell 5,841 1.32 -0.4 19.2 na 26.0 0.0 2.0 6.08 -17.8 4.09 22.2 18.4 BANKS & FINANCIAL SERVICES ABMB 4.06 4.20 Buy 6,285 1.43 33.1 30.6 12.3 13.3 3.9 3.9 4.49 -9.6 3.62 12.2 9.1 AFFIN 2.31 2.50 Hold 4,488 0.87 23.5 24.2 9.8 9.5 3.5 3.5 2.98 -22.3 2.22 4.0 -2.5 AMBANK 4.37 5.10 Buy 13,172 1.24 43.9 48.6 9.9 9.0 4.0 4.1 5.70 -23.3 4.06 7.6 1.4 CIMB 6.54 7.00 Buy 60,335 1.62 48.7 50.9 13.4 12.8 3.8 3.9 7.08 -7.6 4.49 45.7 45.0 HLBANK 17.00 17.50 Buy 34,775 0.69 104.9 114.2 16.2 14.9 2.6 2.6 17.10 -0.6 13.04 30.4 25.9 MAYBANK 9.56 9.70 Hold 102,942 1.00 68.4 70.9 14.0 13.5 5.2 5.2 9.86 -3.0 7.88 21.3 16.6 PBBANK 20.82 23.60 Buy 80,396 0.64 137.2 142.4 15.2 14.6 2.7 2.8 21.08 -1.2 19.60 6.2 5.6 RHBBANK 4.95 5.20 Hold 19,850 1.66 50.6 52.2 9.8 9.5 3.0 3.0 5.59 -11.4 4.64 6.7 5.1 BURSA 9.99 11.10 Buy 5,370 0.85 40.2 39.0 24.8 25.6 3.4 3.4 10.98 -9.0 8.08 23.6 14.5 Note: BURSA proposed bonus issue of shares on the basis of 1 for 2. Ex-Target price RM7.04 CONSTRUCTION GADANG 1.12 1.73 Buy 738 0.67 15.2 14.3 7.4 7.9 2.7 2.7 1.37 -18.2 1.01 10.9 6.7 GAMUDA 4.95 6.00 Buy 12,155 0.91 28.5 34.5 17.3 14.3 2.4 2.4 5.52 -10.3 4.58 8.1 3.6 IJM 3.02 2.89 Sell 10,958 0.79 15.3 13.7 19.8 22.0 2.5 3.1 3.61 -16.3 2.71 11.4 -5.6 PESONA 0.47 0.55 Buy 327 1.00 3.5 5.8 13.4 8.1 3.2 3.2 0.74 -36.1 0.44 8.0 -22.3 SENDAI 0.85 0.58 Sell 664 1.32 8.2 9.6 10.3 8.9 1.2 1.2 1.39 -38.8 0.51 68.3 47.8 SUNCON 2.44 2.65 Buy 3,153 0.51 11.3 14.7 21.5 16.6 2.3 2.3 2.44 0.0 1.67 46.1 43.5 WCT 1.64 1.64 Hold 2,307 1.01 11.5 12.6 14.3 13.0 1.8 1.8 2.48 -33.7 1.46 12.3 -4.6 LITRAK 5.55 6.26 Hold 2,929 0.32 41.9 45.6 13.2 12.2 4.5 4.5 6.15 -9.8 5.55 0.0 -5.6 ANNJOO 3.86 4.40 Buy 1,987 1.35 41.2 45.3 9.4 8.5 4.1 5.7 3.98 -3.0 2.14 80.4 77.9 CHINHIN 1.21 1.49 Buy 673 1.21 5.7 12.4 21.2 9.7 2.5 4.1 1.49 -18.8 0.86 41.5 39.1 ENGTEX 1.11 1.38 Buy 472 0.62 12.9 14.2 8.6 7.8 1.1 3.7 1.52 -27.0 1.07 3.7 -8.3 CARLSBG 15.20 18.06 Buy 4,676 0.77 79.3 86.2 19.2 17.6 5.2 5.7 16.00 -5.0 13.90 9.4 9.2 HEIM 18.92 19.14 Buy 5,716 0.46 79.6 84.0 23.8 22.5 3.8 4.0 19.58 -3.4 15.78 19.9 15.5 AEON 1.69 1.97 Sell 2,373 0.39 4.7 6.7 35.8 25.3 2.1 2.4 2.70 -37.4 1.64 3.0 -34.2 AMWAY 7.33 8.18 Buy 1,205 0.37 35.7 43.9 20.5 16.7 4.1 5.2 8.18 -10.4 7.04 4.1 0.0 F&N 26.54 27.41 Hold 9,728 0.18 102.6 155.7 25.9 17.0 2.2 2.3 26.70 -0.6 22.64 17.2 13.0 Building Materials CONSUMER Brewery Retail HUPSENG 1.08 1.25 Hold 864 0.42 5.2 5.4 21.0 19.9 4.2 4.2 1.28 -15.6 1.08 0.0 -6.2 JOHOTIN 1.21 1.48 Buy 376 0.68 9.7 12.5 12.4 9.7 3.7 4.1 1.76 -31.3 1.16 4.3 -2.4 NESTLE 102.00 120.50 Buy 23,919 0.40 292.7 330.1 34.8 30.9 2.7 2.9 102.90 -0.9 74.12 37.6 30.4 PADINI 5.28 4.67 Sell 3,474 0.78 23.5 27.0 22.5 19.6 2.2 2.4 5.50 -4.0 2.26 133.6 107.9 POHUAT 1.81 2.35 Buy 398 0.72 26.2 25.3 6.9 7.2 4.4 4.4 2.07 -12.5 1.65 9.6 5.2 QL 4.30 3.26 Sell 6,976 0.28 12.1 12.8 35.6 33.5 1.0 1.0 4.39 -2.1 3.26 32.1 29.1 SIGN 0.70 0.92 Buy 159 1.06 6.7 6.9 10.3 10.0 3.6 3.6 1.07 -35.0 0.69 0.7 -12.6 38.00 52.08 Buy 10,850 1.28 198.6 187.4 19.1 20.3 5.3 5.3 51.04 -25.6 34.06 11.6 -14.0 GENTING 9.25 11.53 Buy 35,386 1.51 48.7 54.4 19.0 17.0 1.5 1.7 10.00 -7.5 7.82 18.3 16.4 GENM 5.58 6.51 Buy 31,630 1.61 18.7 27.0 29.8 20.6 1.4 1.6 6.38 -12.5 4.47 24.9 23.5 BJTOTO 2.24 3.34 Buy 3,017 0.79 18.3 21.5 12.2 10.4 6.3 7.1 3.00 -25.3 2.23 0.4 -24.3 LUSTER 0.11 0.11 Sell 207 1.98 0.4 0.4 28.9 29.1 0.0 0.0 0.16 -34.4 0.05 110.0 110.0 CCMDBIO 2.43 2.70 Buy 678 0.67 14.0 15.0 17.3 16.2 3.9 4.1 2.46 -1.2 1.90 27.9 22.7 IHH 5.90 6.40 Buy 48,611 0.73 6.7 11.9 87.6 49.7 0.5 0.5 6.45 -8.5 5.42 8.9 -7.1 KPJ 0.98 1.12 Buy 4,179 0.43 3.6 3.8 27.6 25.9 2.0 2.1 1.14 -14.0 0.90 8.9 -6.2 HARTA 10.82 7.30 Sell 17,876 0.89 19.4 25.8 55.8 41.9 0.8 1.1 11.40 -5.1 4.53 138.9 124.0 KOSSAN 8.16 8.80 Buy 5,218 0.20 29.1 38.3 28.1 21.3 1.8 2.3 8.50 -4.0 5.62 45.2 23.8 SUPERMX 2.00 1.80 Sell 1,311 0.34 10.2 15.3 19.5 13.1 1.6 2.6 2.18 -8.3 1.69 18.3 -5.2 TOPGLOV 7.88 7.00 Sell 9,891 -0.02 26.2 33.7 30.1 23.4 1.8 2.1 8.19 -3.8 4.56 72.8 47.3 KAREX 1.30 1.00 Sell 1,303 0.41 2.8 2.8 46.6 47.0 1.5 0.5 2.52 -48.4 1.20 8.3 -44.9 SCIENTX 8.70 9.84 Buy 4,208 0.40 52.3 68.2 16.6 12.8 1.8 2.4 9.85 -11.7 6.68 30.2 29.9 SKPRES 2.25 2.20 Hold 2,813 0.50 8.3 10.4 27.2 21.7 1.8 2.3 2.32 -3.0 1.24 81.5 74.4 ASTRO 2.65 3.10 Buy 13,817 1.15 13.2 14.0 20.0 19.0 4.7 4.9 2.94 -9.9 2.45 8.2 1.9 MEDIA PRIMA 0.71 0.45 Sell 788 0.54 -7.6 -3.8 na na 0.0 0.0 1.28 -44.5 0.58 22.4 -38.3 STAR 1.44 1.25 Sell 1,063 0.84 5.6 6.7 25.5 21.4 29.2 8.3 2.22 -35.1 1.31 9.9 -26.1 Tobacco BAT GAMING Casino NFO HEALTHCARE Hospitals/ Pharmaceutical Rubber Gloves INDUSTRIAL MEDIA
12. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) Recom Market Cap. (RMm) BETA EPS (sen) FY17 PER (X) Div Yield (%) FY18 FY17 FY18 FY17 FY18 52weeks 52weeks % Chg High Price % Chg Low Price % Chg YTD OIL & GAS DNEX 0.48 0.72 Buy 843 1.32 3.5 4.2 13.9 11.4 2.1 2.1 0.69 -30.4 0.25 92.0 88.2 LCTITAN 4.81 6.66 Buy 10,933 na 42.8 63.4 11.2 7.6 4.8 5.2 6.53 -26.3 4.14 16.2 -26.0 MHB 0.76 0.78 Sell 1,208 1.66 -2.0 -0.5 na na 0.0 0.0 1.16 -34.9 0.63 20.8 -17.5 MISC 7.29 6.56 Sell 32,541 1.07 57.2 46.8 12.7 15.6 4.1 4.1 7.90 -7.7 6.89 5.8 -0.8 PANTECH 0.62 0.69 Sell 461 1.21 4.0 6.1 15.6 10.1 2.9 4.4 0.74 -16.2 0.45 39.3 39.3 PCHEM 7.80 8.05 Hold 62,400 0.98 52.7 49.8 14.8 15.7 2.9 2.8 7.85 -0.6 6.80 14.7 11.7 SAPNRG 0.71 1.25 Buy 4,254 2.49 6.6 -6.5 10.7 na 0.0 0.0 2.10 -66.2 0.70 1.4 -56.2 SERBADK 3.12 3.40 Hold 4,165 na 22.9 25.7 13.7 12.1 2.2 2.5 3.29 -5.2 1.51 106.6 108.0 UMWOG 0.31 0.51 Buy 2,506 1.65 -1.7 0.4 na 75.5 0.0 0.0 0.92 -66.9 0.27 13.0 -64.3 UZMA 1.30 1.56 Hold 416 1.05 11.6 13.2 11.2 9.8 0.0 0.0 1.98 -34.3 1.27 2.4 -23.5 FGV 1.74 2.01 Hold 6,348 1.75 2.1 3.7 83.2 47.0 2.9 2.9 2.18 -20.2 1.50 16.0 12.3 IJMPLNT 2.74 2.69 Sell 2,413 0.24 12.3 9.1 22.3 30.0 2.6 2.9 3.60 -23.9 2.70 1.5 -19.4 IOICORP 4.50 4.12 Sell 28,277 1.17 17.3 21.0 25.9 21.4 2.1 3.6 4.81 -6.4 4.31 4.4 2.3 KFIMA 1.57 1.89 Buy 443 0.52 19.9 13.3 7.9 11.8 5.7 5.7 1.96 -19.9 1.56 0.6 -7.6 KLK 24.66 26.18 Hold 26,262 0.78 100.5 120.7 24.5 20.4 2.0 2.4 25.50 -3.3 23.00 7.2 2.8 SIMEPLT 5.48 6.25 Buy 37,269 na 17.6 21.0 31.2 26.0 2.6 2.6 5.65 -3.0 4.58 19.7 -2.0 TSH 1.65 2.10 Buy 2,278 0.66 8.5 9.3 19.4 17.7 1.3 1.4 1.94 -14.9 1.56 5.8 -11.3 UMCCA 6.52 6.73 Sell 1,367 0.40 37.5 22.8 17.4 28.6 3.5 2.6 7.08 -7.9 5.76 13.1 9.2 GLOMAC 0.60 0.50 Sell 434 0.63 1.4 3.0 41.5 20.3 4.5 3.3 0.75 -19.5 0.58 3.4 -13.7 HUAYANG 0.61 0.59 Sell 213 0.78 17.3 1.8 3.5 33.1 6.6 0.8 1.21 -50.0 0.60 1.7 -46.5 IBRACO 0.87 0.92 Hold 432 na 3.3 9.1 26.7 9.5 2.3 4.6 1.02 -14.7 0.76 15.2 -13.0 IOIPG 1.83 2.02 Hold 10,076 0.67 18.9 16.5 9.7 11.1 3.3 3.3 2.22 -17.6 1.79 2.2 -6.1 MAHSING 1.47 1.69 Buy 3,566 1.04 13.8 13.0 10.6 11.3 4.4 4.4 1.64 -10.4 1.38 6.5 2.8 SIMEPROP 1.45 1.54 Buy 9,861 na 7.0 9.2 20.6 15.8 0.0 1.4 1.52 -4.6 1.04 39.4 0.0 SNTORIA 0.68 0.85 Buy 385 0.34 6.8 8.3 10.0 8.2 0.0 1.5 0.91 -25.2 0.60 13.3 -6.5 PLANTATIONS PROPERTY Note: SNTORIA proposed bonus issue of warrants & right issue of shares. For more details please refer to 25.09.17 report. SPB 4.82 5.28 Hold 1,656 0.74 17.1 21.2 28.2 22.8 2.5 2.5 5.50 -12.4 4.32 11.5 9.0 SPSETIA 3.36 3.77 Buy 10,162 0.81 21.3 21.3 15.8 15.8 3.6 3.6 4.38 -23.3 3.03 10.9 10.2 SUNWAY 1.68 1.74 Hold 8,226 0.79 11.5 11.9 14.6 14.1 3.0 3.0 1.96 -14.2 1.27 32.4 30.7 SUNREIT 1.71 1.87 Hold 5,036 0.73 9.2 10.0 18.5 17.0 5.4 5.9 1.81 -5.5 1.64 4.3 -0.6 CMMT 1.42 1.72 Buy 2,894 0.40 8.1 8.6 17.6 16.5 5.9 6.3 1.72 -17.4 1.39 2.2 -7.2 -35.0 REIT POWER & UTILITIES MALAKOF 0.89 1.16 Buy 4,449 0.66 6.3 6.0 14.2 14.9 7.9 7.9 1.42 -37.3 0.88 1.7 PETDAG 24.30 22.08 Sell 24,141 0.50 102.8 105.1 23.6 23.1 3.2 3.2 25.70 -5.4 21.00 15.7 2.1 PETGAS 17.38 19.10 Buy 34,390 0.95 89.1 98.8 19.5 17.6 3.9 4.0 21.76 -20.1 15.82 9.9 -18.4 TENAGA 15.42 17.38 Buy 87,370 0.69 131.6 129.9 11.7 11.9 3.0 3.0 15.68 -1.7 13.00 18.6 10.9 YTLPOWR 1.28 1.17 Sell 10,147 0.81 8.2 9.7 15.6 13.3 3.9 3.9 1.50 -14.7 1.11 15.3 -12.4 TELECOMMUNICATIONS AXIATA 5.40 5.75 Hold 48,859 1.33 14.3 16.0 37.7 33.7 1.3 1.5 5.47 -1.3 4.24 27.4 14.4 DIGI 4.84 5.20 Buy 37,631 0.78 19.5 20.0 24.8 24.2 4.0 4.1 5.19 -6.7 4.36 11.0 0.2 MAXIS 5.99 6.10 Hold 46,785 0.74 26.0 26.2 23.1 22.8 3.3 3.3 6.60 -9.2 5.48 9.3 0.2 TM 6.14 7.20 Buy 23,074 0.62 22.6 23.2 27.2 26.5 3.3 3.4 6.69 -8.2 5.81 5.7 3.2 ELSOFT 2.69 2.70 Hold 740 0.62 11.3 15.0 23.8 18.0 2.9 3.9 2.95 -8.8 1.36 97.2 91.6 IRIS 0.18 0.25 Buy 445 1.84 -1.3 0.6 na 32.5 0.0 0.0 0.22 -18.2 0.11 71.4 63.6 INARI 3.44 3.05 Hold 7,058 0.97 11.2 14.2 30.7 24.2 2.8 2.9 3.48 -1.1 1.61 113.4 107.7 MPI 12.62 15.40 Hold 2,510 0.50 89.5 105.5 14.1 12.0 2.1 2.5 14.52 -13.1 7.38 71.0 70.3 UNISEM 3.55 3.85 Sell 2,605 1.10 23.5 27.1 15.1 13.1 3.4 3.4 4.25 -16.5 2.32 53.0 50.4 TECHNOLOGY Semiconductor & Electronics TRANSPORTATION Airlines AIRASIA 3.33 3.83 Buy 11,128 1.09 53.1 38.3 6.3 8.7 1.2 1.5 3.59 -7.2 2.16 54.2 45.4 AIRPORT 8.83 8.47 Sell 14,651 1.31 19.6 19.7 45.1 44.7 1.1 1.1 9.45 -6.6 5.93 48.9 45.7 Freight & Tankers PTRANS 0.29 0.44 Buy 358 na 2.1 2.3 13.9 12.5 2.5 2.5 0.38 -25.4 0.14 102.3 95.9 TNLOGIS 1.31 1.80 Buy 598 1.18 12.0 13.6 10.9 9.6 3.3 3.8 1.83 -28.5 1.29 1.6 -16.0 WPRTS 3.65 4.06 Buy 12,447 0.88 17.1 16.8 21.3 21.7 3.5 3.5 4.36 -16.3 3.34 9.3 -15.1 SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price Target Price (S$) (S$) Recom Market Cap. (S$m) Beta EPS (cent) PER (X) Div Yield (%) FY17 FY18 FY17 FY18 FY17 FY18 52week 52week % Chg High Price % Chg Low Price % Chg YTD BANKS & FINANCIAL SERVICES DBS 24.90 23.30 Sell 63,685 1.25 172.7 189.1 14.4 13.2 2.4 2.4 25.4 -1.8 17.15 45.2 43.6 OCBC 12.45 13.50 Buy 43,372 1.20 95.5 104.0 13.0 12.0 5.7 6.7 12.6 -1.1 8.85 40.7 39.6 UOB 26.08 26.90 Hold 43,372 1.07 200.8 215.4 13.0 12.1 2.7 2.7 26.9 -2.9 20.05 30.1 27.8 PLANTATIONS WILMAR 3.08 3.63 Hold 19,707 0.85 25.6 29.9 12.0 10.3 2.3 2.6 4.0 -23.0 3.06 0.7 -14.2 IFAR 0.39 0.53 Hold 552 0.98 4.9 5.2 7.9 7.4 3.1 3.3 0.6 -33.6 0.37 5.5 -26.7 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.
13. COMPANY UPDATE Friday , December 29, 2017 FBMKLCI: 1,779.10 Sector: Gaming THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TP: RM0.105 (0.0%) Luster Industries Berhad Last Traded: RM0.105 Take Profit SELL Tan Kam Meng, CFA Tel: +603-2167 9605 kmtan@ta.com.my Share price performance YTD, Luster Industries (Luster) share has had a good run and outperformed the FBMKLCI. The share has advanced by 110% and we attribute the decent performance to the success in turning around the company, after a series of losses for the past 3 consecutive years. Recall, Luster’s manufacturing division was hit by the implementation of minimum wage policy in FY15. It had trimmed its workforce and incurred some one-off retrenchment costs in FY16. This has resulted in the manufacturing segment recorded a PBT of RM4.0mn for 9M17 versus a loss before tax of RM2.6mn in FY16. Also, we attribute to profit turnaround to its 60%-owned subsidiary, Pan Cambodian Lottery, which managed to record a PBT of RM0.4mn for 9M17 from a loss of RM1.9mn in FY16. Besides, the company registered its maiden profit from the property and construction unit after securing a few of low and medium-cost and affordable housing projects. Figure 1 – Luster’s share price performance for 2017 sen 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Dec-17 Nov-17 Oct-17 Sep-17 Aug-17 Jul-17 Jun-17 May-17 Apr-17 Mar-17 Feb-17 Jan-17 000 shares 160000 140000 120000 100000 80000 60000 40000 20000 0 www.taonline.com.my Share Information Bloomberg Code Stock Code Listing Share Cap (mn) Market Cap (RMmn) Par Value 52-wk Hi/Lo (RM) 12-mth Avg Daily Vol ('000 shrs) Estimated Free Float (%) Beta Major Shareholders (%) LSTI MK LUSTER (5068) Main Market 1,976.0 207.5 0.10 0.16/0.05 13,560 82.7 1.98 Wee Song He (6.8%) Suncity Entertainment (5.4%) Phuah Cheng Peng (5.1) Forecast Revision Forecast Revision (%) Net profit (RMmn) Consensus TA's / Consensus (%) Previous Rating FY17 FY18 0.0 0.0 6.9 6.9 Buy (Downgraded) Financial Indicators Net Gearing (%) FCF/share (sen) P/CFPS (x) ROE (%) NTA/Share (sen) Price/NTA (x) FY17 Net cash 0.5 19.7 5.0 7.5 1.4 FY18 Net cash 0.6 17.9 4.5 7.8 1.3 Share Performance Price Change (%) 1 mth 3 mth 6 mth 12 mth LUSTER (8.7) (16.0) (12.5) 110.0 FBM KLCI 3.8 1.2 0.4 9.1 (12-Mth) Share Price relative to the FBMKLCI Source: TA Research However, beyond the profit and price action, curiosity about longevity and profit sustainability remains. Clearly after June-17 (see Figure 1), Luster share price has headed nowhere and the trading volume has dwindled precipitously. We believe the market is puzzled about the company’s plan with its casino licence in Cambodia. Note that in 2015, Luster acquired 60% stake in PCL for US$4.2mn, a company that is involved in lottery business and possesses a casino licence in Cambodia. Given that the lottery business is so small, it is always our belief that the main rationale behind the acquisition is to capitalise on PCL’s casino licence and kick-start its casino project in the border of Cambodia. However, nothing has Source: Bloomberg Page 1 of 3
14. 29-Dec-17 been announced by the company so far and we suspect project funding could be the main hurdle here for the casino project . Nevertheless, the company announced several property development (see Figure 2) in Malaysia to enhance the group’s earnings. Having said that, these projects, which are mainly joint ventures with land owners, have short durations and expected to have low margins that would likely create another issue about future earnings sustainability. Figure 2 – Luster’s property projects Property Taman Tasik 1Malaysia Alwaqf Bertam Cheras Location Perak Kelantan Penang Klang Valley est. GDV (RM'mn) 16 45 200 200 Project completion 2018 2017 2020 2020 Source: TA Research Forecast No change to our earnings estimates. Valuation As we are in doubt over the future earnings sustainability and the casino project, we change our multi-stage growth discounted free cash flow (DCF) valuation model to stable growth DCF model. Specifically, we revise our growth assumptions for stage-2 (2021-2025) and stage-3 (2026-2030) to 4% from 10% and 5% respectively and maintain the terminal growth at 4%. Correspondingly, our target price for the stock is reduced to 10.5sen/share (from 14.5sen/share previously), based on an unchanged discount rate of 12%. We downgrade Luster to Sell (from Buy previously) and cease coverage on the stock, following the discontinuation of Bursa CBRS scheme. Page 2 of 3
15. 29-Dec-17 Table 1 : Earnings Summary (RMmn) Profit and Loss (RM'mn) Balance Sheet (RM'mn) FYE Dec 2015 2016 2017F 2018F 2019F FYE Dec 2015 2016 2017F 2018F 2019F Revenue COGS 117.6 (103.9) 113.7 (100.8) 180.7 (107.8) 164.3 (111.7) 225.1 (115.7) PPE Goodwill 64.0 25.3 60.6 8.6 58.7 8.6 56.7 8.6 54.7 8.6 Gross profit 13.7 12.8 14.3 12.6 13.2 LT Assets 89.3 69.2 67.3 65.3 63.3 EBITDA Depr. & Amor. 4.8 (6.0) 2.5 (5.0) 12.9 (4.9) 11.7 (5.0) 12.3 (5.0) Inventories Trade & other receivables 13.7 39.2 12.5 37.7 27.2 23.0 24.8 22.1 34.5 25.0 Operating expenses (28.6) (37.1) (5.6) (6.0) (6.2) Cash & Cash equivalent 25.9 21.0 50.5 61.7 67.1 EI (13.4) (21.5) 0.0 0.0 0.0 Others 1.0 1.3 1.3 1.3 1.3 PBT Adj PBT (14.8) (1.5) (24.3) (2.8) 8.5 8.5 8.6 8.6 11.9 11.9 ST Assets 86.7 84.2 113.7 121.5 139.5 Tax (2.5) (1.2) (1.4) (1.4) (1.5) Total Assets 176.0 153.4 181.0 186.8 202.8 MI (0.7) 0.8 (0.2) (0.3) (0.4) Net profit Core profit (18.0) (4.7) (24.7) (3.2) 6.9 6.9 6.9 6.9 10.0 10.0 18.0 3.2 21.4 2.9 22.6 2.9 21.3 2.9 26.9 2.9 EPS (sen) (0.3) (0.2) 0.4 0.4 0.5 Others 0.4 0.4 0.4 0.4 0.4 DPS (sen) 0.0 0.0 0.0 0.0 0.0 ST Liabilities 21.6 24.7 25.9 24.6 30.2 LT Borrowings 1.1 1.7 1.7 1.7 1.7 FYE Dec 2015 2016 2017F 2018F 2019F Others 2.1 1.4 1.4 1.4 1.4 PBT (14.8) (24.3) 8.5 8.6 11.9 LT Liabilities 3.2 3.0 3.0 3.0 3.0 Non- cash item Chg in working capital 6.0 (2.8) 5.0 2.0 4.9 1.2 5.0 2.1 5.0 (7.0) Share Cap 173.2 173.2 191.0 191.0 191.0 Tax (1.9) (2.2) (1.4) (1.4) (1.5) Reserves (23.7) (48.4) (40.0) (33.1) (23.1) Others 12.9 11.4 0.0 0.0 0.0 Shareholder's Funds 149.5 124.8 151.0 157.9 167.9 CFO (0.7) (8.1) 13.2 14.2 8.4 MI 1.6 0.9 1.1 1.3 1.7 Capex (1.9) (2.0) (3.0) (3.0) (3.0) Liabilities + Equities 176.0 153.4 181.0 186.8 202.8 Others (16.2) 6.7 0.0 0.0 0.0 CFI (18.1) 4.7 (3.0) (3.0) (3.0) Ratios EPS Growth (%) 2015 >100 2016 >100 2017F (293.6) 2018F (0.7) 2019F 45.4 Net Borrowing/Rpmt (0.9) (1.4) 0.0 0.0 0.0 PER (x) nm (56.0) 28.9 29.1 20.0 Issue of share 15.7 0.0 18.9 0.0 0.0 Div Yield (%) 0.0 0.0 0.0 0.0 0.0 Others CFF 0.0 14.8 0.0 (1.4) 0.4 19.3 0.0 0.0 0.0 0.0 Net cash (RMm) Net gearing (x) Key Assumptions 2015 2016 2017F 2018F 2019F no. of draw no. of agent 169.0 400.0 156 530 156 400 156 400 50 18 18 22 Cash Flow (RM'mn) Sales per agent per draw (US$) Trade and other payables ST Borrowings 21.6 16.4 45.9 57.1 62.4 Net cash Net cash Net cash Net cash Net cash ROE (%) (3.1) (2.4) 5.0 4.5 6.1 ROA (%) (2.7) (2.0) 4.1 3.7 5.1 156 400 NA per share (sen) NTA/share (sen) 8.6 7.2 7.2 6.7 7.9 7.5 8.3 7.8 8.8 8.3 26 P/NTA (x) EV/EBITDA (x) 1.5 33.7 1.6 67.4 1.4 12.0 1.3 12.2 1.3 11.2 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 and/ 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. As of Friday, December 29, 2017, the analyst, Tan Kam Meng, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 3 of 3
16. Friday , 29 December, 2017 TA RESEARCH’S ‘DAILY COMPILED REPORTS’ For Internal Circulation Only L oc al Te ch n ic al R ep o r ts 1. D ai l y Te ch n ic a l St o ck s P ic ks 2. D ai l y St o ck S cr een Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ 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. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my
17. Technical View Friday , December 29, 2017 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Technical Stock Picks Malaysia FBM KLCI: 1,779.10 (+7.34, +0.41%) Chartist: Stephen Soo Close Name 28/Dec FBMKLCI 1779.10 Change 7.34 Tel: +603-2167-9607 High Low 1,781.84 1,769.60 Bollinger Bands Lower Mid RSI Upper 1,699.80 1,736.32 1,772.85 14d stsoo@ta.com.my Moving Averages 10d 68.04 1,752.82 www.taonline.com.my DMI 30d 50d 1,731.46 1,736.35 DI + DI - MACD DMI ADX Diff Line Signal Diff 34.38 13.67 29.75 20.71 8.22 3.83 4.385 BUY MACD DMI MACD Recent Signal Signal Change BUY - - AFFIN 2.31 0.01 2.32 2.29 2.25 2.32 2.40 41.20 2.32 2.35 2.42 18.28 22.72 32.01 -4.44 -0.03 -0.03 0.004 SELL BUY - - ABMB 4.06 -0.02 4.09 4.05 3.63 3.92 4.22 65.31 4.03 3.84 3.80 30.23 11.91 33.00 18.31 0.08 0.07 0.011 BUY BUY - - AMBANK 4.37 0.02 4.38 4.31 4.00 4.23 4.46 55.75 4.33 4.24 4.29 24.84 15.79 31.60 9.05 0.02 0.00 0.016 BUY BUY - - AXIATA 5.40 0.02 5.42 5.38 5.31 5.35 5.40 57.19 5.36 5.33 5.33 8.90 14.43 30.35 -5.54 0.02 0.01 0.002 SELL BUY - - CIMB 6.54 0.04 6.57 6.47 5.74 6.19 6.64 67.79 6.39 6.12 6.14 33.75 11.09 36.27 22.65 0.11 0.07 0.046 BUY BUY - - DIGI 4.84 0.03 4.84 4.80 4.57 4.74 4.90 54.33 4.80 4.71 4.79 16.79 21.56 23.81 -4.78 0.02 0.00 0.013 SELL BUY - - GAMUDA 4.95 0.00 4.97 4.91 4.59 4.80 5.01 57.23 4.86 4.77 4.89 25.26 18.33 22.15 6.93 0.03 -0.01 0.034 BUY BUY - - GENTING 9.25 0.10 9.27 9.13 8.65 8.94 9.23 53.89 9.03 9.00 9.11 23.47 16.19 17.17 7.28 -0.02 -0.05 0.034 BUY BUY - - GENM 5.58 -0.05 5.64 5.58 4.94 5.38 5.81 63.32 5.57 5.25 5.20 28.76 18.52 21.91 10.25 0.12 0.10 0.018 BUY BUY - - IHH 5.90 -0.02 5.93 5.86 5.51 5.72 5.94 67.49 5.82 5.70 5.69 20.01 18.13 18.86 1.88 0.06 0.03 0.021 BUY BUY BUY - IOICORP 4.50 -0.03 4.54 4.47 4.36 4.46 4.56 56.74 4.46 4.46 4.47 20.64 20.42 12.73 0.22 0.01 0.00 0.012 BUY BUY - - MALAKOFF 0.89 -0.02 0.91 0.89 0.88 0.91 0.94 41.07 0.91 0.94 0.97 14.94 20.82 25.88 -5.88 -0.03 -0.02 (0.009) SELL SELL - - MAXIS 5.99 0.00 6.00 5.97 5.85 5.93 6.01 59.98 5.95 5.93 5.91 10.47 26.91 42.06 -16.45 0.02 0.01 0.007 SELL BUY - - MAYBANK 9.56 0.01 9.63 9.51 9.11 9.37 9.62 67.70 9.48 9.32 9.29 33.71 10.85 41.77 22.86 0.07 0.05 0.019 BUY BUY - - MBSB 1.04 -0.01 1.07 1.04 1.00 1.05 1.11 44.02 1.04 1.07 1.09 21.13 15.14 15.13 6.00 -0.02 -0.02 0.003 BUY BUY - - RHBBANK 4.95 -0.05 5.00 4.95 4.70 4.91 5.11 55.02 4.98 4.88 4.93 22.16 20.58 17.57 1.58 0.02 0.01 0.011 BUY BUY BUY - SIME 2.23 -0.02 2.27 2.23 1.97 2.15 2.32 64.54 2.12 2.12 2.10 32.13 12.85 20.05 19.28 0.01 0.01 0.007 BUY BUY - BUY 15.42 0.30 15.42 15.08 14.78 15.31 15.84 49.59 15.15 15.16 14.96 27.86 22.15 31.92 5.71 0.01 0.08 (0.071) BUY SELL BUY - 6.14 -0.05 6.20 6.10 5.85 6.10 6.35 52.83 6.16 6.07 6.11 29.36 7.79 26.94 21.57 0.03 0.01 0.024 BUY BUY - - WPRTS 3.65 -0.08 3.72 3.64 3.34 3.54 3.74 57.96 3.60 3.56 3.63 24.81 14.15 17.08 10.66 0.02 -0.01 0.032 BUY BUY - - AIRASIA 3.33 0.03 3.35 3.30 3.09 3.24 3.39 54.25 3.31 3.22 3.26 19.34 11.53 22.89 7.81 0.02 0.01 0.010 BUY BUY - - AIRASIA X 0.33 -0.01 0.33 0.33 0.32 0.34 0.35 39.01 0.33 0.35 0.36 5.64 23.56 51.25 -17.93 -0.01 -0.01 0.000 SELL BUY - - ARMADA 0.76 -0.01 0.76 0.75 0.73 0.74 0.76 56.92 0.74 0.75 0.75 28.07 16.12 16.11 -9.65 0.00 0.00 0.002 SELL BUY - - BINAPURI 0.34 0.00 0.34 0.34 0.34 0.34 0.35 42.99 0.34 0.35 0.36 13.38 23.03 19.62 0.80 0.00 0.00 0.000 BUY BUY BUY - CMSB 3.75 0.07 3.76 3.70 3.52 3.73 3.93 48.72 3.70 3.65 3.68 27.13 26.33 19.93 12.53 0.00 0.01 (0.009) BUY SELL - - DIALOG 2.53 0.02 2.53 2.48 2.39 2.45 2.51 65.47 2.47 2.43 2.35 25.97 13.44 27.97 12.53 0.04 0.04 (0.003) BUY SELL - - ECO WORLD 1.38 0.00 1.38 1.37 1.36 1.45 1.54 35.24 1.43 1.46 1.49 14.13 30.16 23.11 -16.03 -0.03 -0.02 (0.009) SELL SELL - - EKOVEST 0.93 0.00 0.94 0.93 0.90 0.93 0.96 43.44 0.93 0.94 0.99 24.72 23.08 31.92 1.64 -0.02 -0.02 0.006 BUY BUY - - GADANG 1.12 0.05 1.13 1.06 1.05 1.07 1.10 44.05 1.07 1.09 1.14 10.34 15.89 30.70 -5.55 -0.02 -0.02 0.004 SELL BUY - - HSL 1.43 -0.02 1.43 1.41 1.41 1.45 1.50 47.89 1.44 1.46 1.49 24.23 17.16 13.29 7.07 -0.02 -0.02 (0.001) BUY SELL - - ISKANDAR 1.42 0.02 1.43 1.40 1.19 1.31 1.42 65.73 1.35 1.29 1.31 31.53 6.36 35.17 25.17 0.03 0.01 0.015 BUY BUY - - KIMLUN 2.30 0.00 2.30 2.29 2.22 2.29 2.35 52.74 2.27 2.31 2.31 35.72 30.87 16.05 4.85 -0.02 -0.01 (0.004) BUY SELL BUY - KKBE 0.97 -0.02 0.99 0.97 0.94 1.00 1.06 53.65 1.00 0.96 0.91 39.98 26.27 37.54 13.71 0.02 0.03 (0.008) BUY SELL - - MUDAJAYA 0.95 0.04 0.97 0.95 0.85 0.94 1.02 34.74 0.91 0.98 1.06 14.08 34.65 45.63 -20.57 -0.04 -0.05 0.007 SELL BUY - - MRCB 1.12 -0.01 1.14 1.12 1.01 1.07 1.13 66.01 1.09 1.05 1.03 29.55 9.00 27.15 20.55 0.02 0.02 0.006 BUY BUY - - NAIM 1.25 0.13 1.25 1.10 1.00 1.05 1.10 60.31 1.05 1.08 1.12 32.84 14.12 27.85 18.72 -0.01 -0.03 0.011 BUY BUY - - SAPURA ENERGY 0.71 -0.02 0.74 0.71 0.47 0.92 1.37 17.88 0.75 1.07 1.24 6.50 47.98 67.95 -41.48 -0.17 -0.16 (0.002) SELL SELL - - SUNCON 2.44 0.03 2.44 2.40 2.34 2.39 2.43 56.30 2.39 2.39 2.36 13.10 10.54 13.00 2.55 0.01 0.01 0.001 BUY BUY - - UEMS 1.05 -0.01 1.06 1.04 0.99 1.04 1.09 51.60 1.06 1.05 1.07 18.72 13.91 17.81 4.81 0.00 -0.01 0.003 BUY BUY - - WASEONG 1.14 -0.01 1.19 1.13 1.13 1.16 1.20 54.85 1.15 1.14 1.07 24.50 11.05 53.89 13.45 0.02 0.03 (0.009) BUY SELL - - WCT 1.64 0.00 1.69 1.61 1.44 1.53 1.62 58.91 1.54 1.57 1.59 31.08 12.38 21.07 18.70 -0.01 -0.03 0.019 BUY BUY - - TENAGA TM 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 30day 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 3
18. 29-Dec-17 Technical Comments : Bargain Gadang & SunCon A daily stochastics buy signal on Gadang enhances near-term upside momentum, with a decisive breakout above the 50%FR (RM1.13) to aim for the 61.8%FR (RM1.18) and 76.4%FR (RM1.25) ahead. Important chart supports are from the lower Bollinger band (RM1.04) and 23.6%FR (RM1.00). As for Sunway Construction, sustained strength above the 20/11/17 high (RM2.44) should extend uptrend towards the 123.6%FP (RM2.60), 138.2%FP (RM2.70) and 150%FP (RM2.80) going forward, while key uptrend support is from the 100-day ma (RM2.31). GADANG RM1.12 (+0.05) BOLLINGER BANDS Upper Middle Lower RM RM RM SIMPLE MOVING AVERAGES 1.10 1.07 1.04 10-day 30-day 50-day RM RM RM DAILY MACD DMI Recent Signal Signal Change SELL Recent Signal Signal Change SUNCON RM RM RM SIMPLE MOVING AVERAGES 2.44 2.39 2.34 10-day 30-day 50-day BUY Recent Signal Signal Change DMI Recent Signal Signal Change BUY RM2.44 (+0.03) BOLLINGER BANDS Upper Middle Lower 1.07 1.08 1.14 RM RM RM DAILY MACD 2.40 2.39 2.36 BUY Page 2 of 3
19. 29-Dec-17 Daily Money Flow of FBMKLCI Malaysia Chartist : Stephen Soo 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 Name FBMKLCI AMBANK ASTRO AXIATA BAT CIMB DIGI WPRTS GENTING GENM HLBANK HLFG IHH IOICORP KLK MAYBANK MAXIS MISC PCHEM PETDAG PETGAS PPB PBBANK RHBBANK IJ M SIME TM TENAGA KLCC HAP YTLCORP (RM'mn) INF LOW OUTF LOW NET FLOW 20-Dec 17.4 (0.4) 0.0 0.7 (1.6) 2.5 (0.5) 0.0 0.2 (0.1) (1.0) 0.8 (0.1) 5.4 (0.5) (7.2) (0.6) (0.2) 1.0 (12.3) (0.1) (0.1) 20.7 0.0 0.3 (0.4) (0.0) 6.1 0.1 (0.0) 0.1 Tel: +603-2167-9607 Total Money Flow (RM'mn) 21-Dec 22-Dec 26-Dec (10.6) 8.2 15.8 (0.2) 0.3 0.2 (0.0) (0.1) 0.2 3.6 0.3 2.9 (1.5) 0.4 0.0 1.0 2.6 0.5 (0.7) (0.1) 2.2 0.1 2.3 (0.0) 1.2 (0.0) 0.1 (0.5) 1.1 0.1 (3.9) (7.9) (0.8) 0.0 (1.8) (0.1) 0.1 (2.7) (0.5) 2.1 0.0 0.5 (0.4) 0.7 0.4 0.1 0.2 (3.7) 0.0 (0.0) 0.0 (0.1) (0.2) 3.5 0.2 (0.3) (0.5) 8.6 (0.1) (1.0) 0.0 (0.9) 0.6 (0.0) (5.2) 0.0 0.0 0.2 0.6 0.1 0.2 0.3 (0.6) 0.1 0.5 0.1 0.0 (3.0) 1.0 0.4 2.0 (0.1) 0.5 0.1 3.1 0.0 0.1 1.8 0.3 (0.8) 0.0 0.1 0.1 27-Dec (31.0) (0.6) (0.0) (0.3) (0.2) 0.4 (0.6) 0.1 (0.0) (0.8) 0.9 0.0 1.5 (0.1) 0.2 (0.3) 0.4 0.3 (0.4) (24.2) (1.8) 0.0 0.1 (0.1) (0.1) 1.6 0.2 (9.0) 0.0 (0.3) 0.6 Total 5D MF (0.3) (0.8) 0.1 7.2 (2.9) 7.0 (0.5) 0.4 2.7 (0.4) (2.1) 0.9 3.0 5.4 (0.2) (11.2) 5.3 0.7 (1.5) (44.9) 6.3 (0.0) 21.1 (0.1) (0.5) 0.9 (0.1) (6.7) 0.2 0.3 0.6 stsoo@ta.com.my (A) (B) Prv. Chg Cur. Chg 7.6 (46.8) (0.1) (0.8) 0.2 (0.2) 2.6 (3.2) (0.4) (0.2) (2.1) (0.2) (0.1) (1.1) (0.3) (0.0) 0.1 (0.2) 0.0 (1.1) 3.1 1.5 0.1 (0.1) 0.5 1.1 0.1 (0.3) 0.1 0.1 (2.8) 2.6 (2.5) (0.6) 0.2 (0.1) 2.4 (2.4) 0.4 (24.1) (8.1) (2.3) 0.2 (0.1) 4.0 (3.0) 0.0 (0.1) 1.0 (0.2) 1.2 (0.2) 0.4 (0.2) 4.5 (8.2) 0.0 (0.0) 0.1 (0.4) (0.1) 0.5 20-Dec 1,747 4.34 2.59 5.37 35.10 6.48 21-Dec 1,751 4.25 2.59 5.37 35.26 6.55 4.75 3.57 8.89 5.51 16.72 17.52 5.87 4.41 24.52 9.50 5.93 7.07 7.48 24.38 16.38 16.98 20.72 4.95 3.05 2.06 6.06 14.86 7.79 9.53 1.29 4.80 3.50 8.97 5.55 16.64 17.04 5.79 4.46 24.60 9.48 5.93 7.06 7.60 24.26 16.96 16.94 20.68 4.88 2.97 2.09 6.00 14.96 7.77 9.55 1.30 OUTFLOW CLOSING PRICE 22-Dec 26-Dec 1,760 1,760 4.33 4.30 2.61 2.64 5.39 5.38 36.44 36.08 6.49 6.48 4.80 3.74 9.10 5.59 16.64 17.60 5.81 4.55 24.68 9.48 6.00 7.13 7.60 24.24 17.10 16.90 20.70 4.93 2.93 2.10 6.50 14.98 7.84 9.60 1.31 4.82 3.72 9.00 5.55 16.62 17.58 5.83 4.55 24.84 9.47 6.00 7.27 7.60 24.26 17.00 17.58 20.70 4.96 3.00 2.20 6.25 14.98 7.79 9.62 1.30 27-Dec 1,772 4.35 2.65 5.38 36.30 6.50 4.81 3.73 9.15 5.63 16.70 17.60 5.92 4.53 24.98 9.55 5.99 7.39 7.80 24.28 17.18 17.36 20.70 5.00 3.05 2.25 6.19 15.12 7.81 9.61 1.31 Chg 11.77 0.05 0.01 0.00 0.22 0.02 (0.01) 0.01 0.15 0.08 0.08 0.02 0.09 (0.02) 0.14 0.08 (0.01) 0.12 0.20 0.02 0.18 (0.22) 0.00 0.04 0.05 0.05 (0.06) 0.14 0.02 (0.01) 0.01 37.8 14.3 18.1 15.2 6.2 9.4 (25.1) 12.7 (20.9) (6.6) (12.1) 6.0 (4.4) 10.8 (38.7) (32.6) (29.1) (19.8) Date Retail Ins titution Foreign Total 20-Dec 22.5% 62.4% 15.1% 100% 12 (18) 21-Dec 22-Dec 26-Dec 27-Dec 16.9% 21.5% 26.7% 27.4% 61.1% 63.3% 62.3% 60.4% 22.1% 15.2% 11.0% 12.2% 100% 100% 100% 100% 12 (18) 12 (18) 18 (12) 26 (4) 13 (17) (A+B) DMF OUT OUT IN OUT OUT OUT OUT OUT OUT OUT IN OUT IN OUT IN OUT OUT IN OUT OUT OUT IN IN OUT IN IN IN OUT OUT OUT IN Daily Trading Participation COMPANIES INFLOW www.taonline.com.my Sources: Bloomberg, TA Securities Daily Money Flow (DMF) Formulation If previous change (A) + current change (B) > 0, then DMF = “IN”; AND if (A) + (B) < 0, then DMF = “OUT”. Money Flow (MF) Calculation The value of money flow is set to zero at the start of the trading day. When a trade is performed, its price is compared to the price of the previous trade (the first trade of the day is compared to the previous day's close). If the prices differ, the money associated with the trade (price times number of shares) is added to or subtracted from the money flow. Additions (inflows, buys) are done on upticks; subtractions (outflows, sells) are done on downticks. Daily Money Flow (DMF) Interpretation In general, money flow trends confirm price trends. As prices rise, money flows are usually positive. As prices fall, money flows are usually negative. A divergence, however, between money flow and price trend can be a signal of a future price trend change. For example, a falling stock price with a positive money flow (IN) can indicate a future rally in the price of the stock. Conversely, a rising stock price with a negative money flow (OUT) implies potential correction in the stock price. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ 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. As of Friday, December 29, 2017, the chartist, Stephen Soo, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 3 of 3
20. Technical View Friday , December 29, 2017 FBMKLCI: 1,779.10 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Stock Screen Malaysia End Day Census of 28.12.2017 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 pguide 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 Bollinger Band Lower NETX HOLDINGS BHD 0.05 0.04 HUBLINE BHD 0.11 0.10 UMW OIL & GAS CORP BHD0.31 0.28 SUMATEC RESOURCES BHD0.05 0.04 TH HEAVY ENGINEERING BHD 0.11 0.09 MALAYAN UNITED INDUSTRIES 0.23 BH 0.19 VIZIONE HOLDINGS BHD 0.16 0.14 MMAG HOLDINGS BHD 0.20 0.19 BUMI ARMADA BERHAD 0.76 0.73 ADVANCE SYNERGY BHD 0.15 0.13 M3 TECHNOLOGIES ASIA BHD 0.14 0.11 FELDA GLOBAL VENTURES 1.74 1.65 VSOLAR GROUP BHD 0.13 0.12 MLABS SYSTEMS BHD 0.09 0.06 RGB INTERNATIONAL BHD 0.28 0.26 HO WAH GENTING BHD 0.07 0.05 PA RESOURCES BHD 0.06 0.04 REACH ENERGY BHD 0.41 0.37 MANAGEPAY SYSTEMS BHD0.22 0.19 EA HOLDINGS BHD 0.05 0.04 MQ TECHNOLOGY BHD 0.07 0.05 PRICEWORTH INTERNATIONAL 0.25 BHD 0.23 ANZO HOLDINGS BHD 0.09 0.08 JOHORE TIN BHD 1.21 1.14 MNC WIRELESS BHD 0.09 0.07 MTOUCHE TECHNOLOGY BHD 0.15 0.12 PERAK TRANSIT BHD 0.29 0.27 SCOMI ENERGY SERVICES BHD 0.12 0.10 YONG TAI BHD 1.46 1.39 COMPUGATES HOLDINGS BHD 0.03 0.02 RSI Moving Average Middle Upper 14-day 10-day 30-day 50-day 0.04 0.11 0.30 0.05 0.10 0.23 0.15 0.19 0.74 0.14 0.13 1.74 0.13 0.08 0.28 0.06 0.06 0.39 0.22 0.04 0.06 0.24 0.08 1.20 0.08 0.14 0.28 0.12 1.45 0.03 0.05 0.12 0.33 0.05 0.11 0.27 0.16 0.20 0.76 0.15 0.15 1.82 0.13 0.09 0.30 0.07 0.07 0.42 0.24 0.05 0.07 0.26 0.09 1.27 0.09 0.16 0.29 0.14 1.52 0.03 50.31 46.34 52.44 53.02 52.66 51.45 55.31 48.77 53.98 63.42 55.80 49.24 55.46 53.84 49.07 57.34 54.42 50.34 47.43 57.47 52.64 50.37 43.84 45.16 50.39 50.92 48.70 47.97 46.19 59.69 0.04 0.10 0.29 0.05 0.10 0.24 0.15 0.19 0.74 0.14 0.14 1.71 0.13 0.08 0.28 0.06 0.06 0.39 0.22 0.04 0.06 0.25 0.09 1.19 0.09 0.15 0.28 0.11 1.44 0.03 0.05 0.11 0.30 0.05 0.11 0.22 0.15 0.20 0.75 0.14 0.13 1.75 0.13 0.08 0.28 0.06 0.05 0.41 0.22 0.04 0.06 0.24 0.09 1.25 0.08 0.14 0.29 0.13 1.48 0.03 0.05 0.13 0.31 0.05 0.10 0.21 0.15 0.22 0.75 0.14 0.13 1.80 0.13 0.09 0.29 0.06 0.06 0.42 0.23 0.04 0.06 0.25 0.10 1.30 0.09 0.16 0.30 0.13 1.52 0.03 Vol 206,912,800 28,426,300 22,523,900 14,530,400 10,222,100 9,274,100 7,092,000 6,989,400 6,465,700 6,313,800 6,040,800 5,485,700 5,402,100 5,178,900 5,107,100 4,418,600 4,227,200 3,670,500 3,377,600 3,117,600 2,962,900 2,845,900 2,480,000 2,394,400 2,213,700 2,121,900 1,924,800 1,837,200 1,814,900 1,676,000 20-day avg vol 51,558,370 14,959,840 28,315,550 8,183,245 5,131,320 12,111,580 5,929,775 3,327,530 7,500,705 833,095 6,268,000 3,897,855 1,961,590 8,625,185 6,887,260 8,292,620 8,247,400 3,502,780 3,391,370 9,069,160 7,496,545 6,073,795 5,825,560 725,580 3,491,950 2,810,890 4,616,785 1,310,595 2,003,670 1,403,005 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 medium-term 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