Malaysia: Daily Market Commentary - 10 July

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1. Daily Note Daily Market Commentary (A Participating Organisation of Bursa Malaysia Securities Bhd) Menara TA One, 22 Jalan P Ramlee, 50250 Kuala Lumpur Tel : 603 - 2072 1277. Fax : 603 - 2032 5048 Monday, 10 July 2017 TA Research e-mail : taresearch@ta.com.my For Internal Circulation Only Review & Outlook KLSE Market Statistics (07.07.2017) (mil) Main Market 903.1 Warrants 114.4 ACE Market 260.5 Bond 29.9 ETF 0.0 Total 1,307.9 Off Market 58.5 Volume +/-chg (RMmn) -149.3 1,466.5 -56.5 12.6 -39.2 60.3 -0.9 7.5 0.00 0.0 1,547.0 16.7 193.4 Value +/-chg -166.8 -9.4 -19.9 -2.4 0.01 9.0 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 (mn) 20.0 18.7 10.0 5.0 1.6 Up Down 145 453 31 125 31 61 1 5 1 0 209 644 % chg % YTD chg 1,759.93 12,550.77 17,378.13 1,759.00 -10.60 -80.98 -103.41 -9.00 -0.60 -0.64 -0.59 -0.51 7.20 9.46 18.09 7.55 21,414.34 6,153.08 7,350.92 19,929.09 2,379.87 25,340.85 3,229.01 1,569.44 5,814.79 3,217.96 1,918.13 5,703.57 94.30 63.61 13.64 -64.97 -7.94 -124.37 2.67 -0.20 -34.78 5.51 3.55 -55.20 0.44 1.04 0.19 -0.32 -0.33 -0.49 0.08 -0.01 -0.59 0.17 0.19 -0.96 8.36 14.30 2.91 4.26 17.44 15.18 12.09 1.72 9.78 3.68 -2.59 0.67 Top 10 KLCI Movers Based on Mkt Cap. Off Market PTRANS BIMB SIME WZSATU MEDAINC Value/ Volume 1.62 0.11 0.23 0.25 1.29 1.18 3.31 @ @ @ @ @ (RM) 0.30 4.50 9.52 1.15 0.32 Counter Mkt Cap. (RM’mn) MAYBANK 101,447 TENAGA 79,905 PBBANK 78,311 IHH 59,291 CIMB 56,720 PCHEM 48,693 AXIATA 42,880 MAXIS 42,178 DIGI 38,875 PETGAS 36,567 Chg Vol. (RM) (mn) -0.02 10.66 -0.02 6.44 -0.04 2.63 -0.05 13.06 -0.06 5.06 -0.03 7.03 -0.01 2.62 -0.09 4.26 -0.01 3.20 -0.12 0.49 Important Dates TDM - 1:10 Bonus Issue - BI of 150.5m shares. 1 bonus share for every 10 existing shares. Entitlement Date: 03/07/2017. LISTING ON: 04/07/2017. SCC - 1:10 Bonus Issue - BI of 4.3m shares. 1 bonus share for every 10 existing shares. Ex-Date: 06/07/2017. Entitlement Date: 10/07/2017. LISTING ON: 11/07/2017. The weak technical picture on the FBM KLCI after the recent three-week correction suggests that further correction is likely before base building can resume. The bearish sell signals on weekly MACD and 14-day DMI indicators, and weak technical momentum confirms more correction is needed to neutralize or lessen the bearish momentum, before oversold recovery can follow. Immediate resistance for the index stays at the 50-day moving average (1,773), next 1,782, followed by the recent peak of 1,796, and then the 1,800 psychological level. Immediate support will be from the 100-day moving average at 1,751, with stronger support seen at 1,729, a prior support level in April, while crucial uptrend support is from the 200-day moving average at 1,703. Sector-wise, while most blue chips are expected to stay in correction mode given the weak technical condition of the benchmark index, budget aviation counters AirAsia and AirAsia X should attract bargain hunters looking for rebound upside. The same can be said for construction and oil & gas related counters such as Ekovest, MRCB, UEM Sunrise, WCT Holdings, Sapura Energy and Wah Seong. News Bites • • • • • • • • • • • • • Malaysia's exports saw stronger growth of 32.5% to RM79.4 billion, while imports grew by 30.4% to RM73.91 billion in May 2017, the first time export growth has outpaced imports since May 2016. Genting Malaysia Bhd announced that it is working to recover its investment of US$347.4mn in an integrated gaming resort in Taunton, Massachusetts, US, which has been put on hold pending the resolution of a legal case. TSH Resources Bhd has proposed to raise approximately RM43.3mn from the issuance of 1.8% of its issued share capital where nearly all of the proceeds would be utilised for working capital. Star Media Group Bhd has received shareholders' approval to dispose of its 52.5% stake in Singapore-listed Cityneon Holdings Ltd. Media Prima Bhd's Datuk Seri Amri Bin Awaluddin will be stepping down from the group managing director position and Datuk Kamal Bin Khalid will be taking over the top post. DiGi.Com Bhd announced that it has appointed current Telenor Hungary's chief financial officer Nakul Sehgal as the company's CFO effective 1 August 2017. SCGM Bhd is slated to set up its first manufacturing facility in the Klang Valley to capture more market share in the Central Peninsular. Only World Group Holdings Group Bhd has proposed to undertake a private placement of up to 10% of its issued share capital at an issue price to be determined and announced later. Sunzen Biotech Bhd plans to diversify into the manufacturing and trading of traditional Chinese medicine and herbal health food and beverages business via the proposed acquisition of a 70% stake in Ecolite Biotech Manufacturing Sdn Bhd for RM12.1mn. Alam Maritim Resources Bhd and its related companies are currently in active discussions and negotiations with their respective financiers and sukuk holders to restructure the repayment terms and conditions of the existing loans/financing facilities and sukuk programme. PUC Founder (MSC) Bhd will be traded and quoted under its new name of PUC Bhd with effect from Wednesday, 12 July 2017. Sime Darby Bhd announced the incorporation of an indirect 65%owned subsidiary Kunming Bow Chuang Motor Sales and Services Co Ltd in the People's Republic of China on 4 July 2017. U.S. employers added a seasonally adjusted 222,000 jobs in June and the unemployment rate rose slightly to 4.4% with more people actively looking for work. Exchange Rate USD/MYR 4.2983 -0.0018 USD/JPY 113.70 0.4400 EUR/USD 1.141 0.0045 Commodities Futures Palm Oil (RM/mt) 2,529.00 -4.00 Crude Oil ($/Barrel) 44.33 -1.00 Gold ($/tr.oz.) 1,211.90 -12.80 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