Malaysia: Daily Market Commentary - 13 July

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1. Daily Note Daily Market Commentary Thursday , 13 July 2017 For Internal Circulation Only Value +/-chg -320.4 -0.9 21.9 -0.7 -0.01 23.1 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 1,757.24 12,514.76 17,197.20 1,759.50 21,532.14 6,261.17 7,416.93 20,098.38 2,391.77 26,043.64 3,208.91 1,574.93 5,819.13 3,197.54 1,889.45 5,673.83 Off Market (mn) PTRANS 20.0 SIME 7.0 TOMYPAK-WA 6.3 ZECON 3.0 BIMB 2.0 GUNUNG 2.0 KYM 2.0 SMRT-WA 1.2 MEXTER 1.0 BJASSET 1.0 @ @ @ @ @ @ @ @ @ @ (RM) 0.29 9.54 0.28 0.50 4.50 0.55 0.70 0.01 0.25 1.30 Exchange Rate USD/MYR 4.2955 -0.0020 USD/JPY 113.50 -0.8300 EUR/USD 1.145 0.0057 2.21 25.82 55.37 3.00 Value/ Volume 1.50 0.10 0.23 0.21 1.12 0.99 1.97 Up Down 344 243 48 86 64 30 3 2 1 1 460 362 % chg % YTD chg 0.13 0.21 0.32 0.17 7.04 9.14 16.86 7.58 123.07 0.57 67.87 1.10 87.17 1.19 -97.10 -0.48 -4.23 -0.18 166.00 0.64 -9.89 -0.31 5.69 0.36 45.81 0.79 -5.49 -0.17 -2.15 -0.11 -55.10 -0.96 Top 10 KLCI Movers Mkt Cap. Counter Mkt Cap. (RM’mn) TENAGA 80,132 PBBANK 78,543 SIME 64,880 IHH 49,352 AXIATA 43,821 MAXIS 43,036 GENTING 34,560 GENM 32,140 IOICORP 28,215 HAPSENG 23,054 TA Research e-mail : taresearch@ta.com.my Review & Outlook KLSE Market Statistics (12.07.2017) Volume (mil) +/-chg (RMmn) Main Market 1,091.1 -2.2 1,633.5 Warrants 160.4 -12.0 16.2 ACE Market 503.2 78.3 114.0 Bond 31.7 -8.8 6.8 ETF 0.0 -0.01 0.0 Total 1,786.4 1,770.4 Off Market 48.1 26.7 94.5 (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 8.95 16.31 3.84 5.15 18.03 18.38 11.39 2.07 9.86 3.03 -4.05 0.14 Based on Chg (RM) 0.06 0.02 0.02 0.01 0.23 0.01 0.04 0.02 0.01 0.26 Vol. (mn) 7.47 3.70 4.05 2.74 3.77 2.65 5.52 2.02 2.50 0.26 Commodities Futures Palm Oil (RM/mt) 2,565.00 0.00 Crude Oil ($/Barrel) 45.46 -0.30 Gold ($/tr.oz.) 1,219.70 2.70 Important Dates ORION - 7:2 Rights Issue - RI of up to 465.9m shares together with up to 232.9m free detachable warrants. 7 rights shares together every 2 existing shares held, at an issue price of RM0.17 per rights share, with 1 free warrants for every 2 rights shares subscribed. Application Closed: 19/07/2017. LISTING ON: 02/08/2017. Listless sideways trade persisted on local stocks Wednesday despite a late bounce, with investors mostly sidelined on the lack of positive domestic market leads. The KLCI ended up 2.21 points at the day's high of 1,757.24, off an intra-day low of 1,751.59, as gainers edged losers 460 to 362 on total turnover of 1.78bn shares worth RM1.77bn. While yesterday's late bounce looks positive, weak buying momentum and caution ahead of the Fed chief's testimony on US monetary policy should keep stock prices in check. Immediate support stays at the 100day moving average at 1,752, with stronger support at 1,729, a key support level in April, while crucial uptrend support is from the 200-day moving average at 1,704. 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. Affin shares should slide further due to weak momentum and profit-taking interest towards the 50%FR (RM2.54), matching the 200-day ma level, with better support from the 38.2%FR (RM2.43) and overhead resistance at the 76.4%FR (RM2.78) reinforced by the 100-day ma. Axiata should meet strong profit-taking resistance on any further rise towards the 50day ma (RM5.04), upper Bollinger band (RM5.11), and the 38.2%FR (RM5.15), while better support is seen near RM4.50. News Bites • Malaysia's Industrial Production Index rose by 4.6% YoY to 131.6 points in May 2017, as compared with consensus estimate of 4.1% YoY and April's 4.2% YoY gain. • According to sources, Edra Power Holdings Sdn Bhd, the electricity generator formerly owned by state investment fund 1Malaysia Development Bhd is said to have selected arrangers for its RM4.3bn initial public offering. • Axiata Group Bhd clarified that it has not received any official communication or direction from Nepal's Central Bank or relevant Nepali authorities on barring it from repatriating its dividends. • Digi.Com Bhd's reported a net profit of RM732mn (-3.8% QoQ, -10.7% YoY) in 1HFY17, which was within ours and consensus forecasts of 45.2% and 45.3%, albeit at the lower end. • Felda Global Ventures Holdings Bhd has appointed three new directors, all of whom hold office with parent Federal Land Development Authority. • Alliance Financial Group Bhd, which has dismissed speculation that it is the subject of a merger, has received shareholder approval for its listing status to be assumed by its wholly-owned core subsidiary, Alliance Bank Malaysia Bhd. • WCT Holdings Bhd believes it has good ground to oppose the 181.6mn riyals (RM214.1mn) claim recently filed by three companies over a sub-contract in Qatar. • Star Media Group Bhd announced that its wholly-owned subsidiary, Li TV Holdings Limited will cease business operations with effect from 7 October 2017. • Reach Energy Bhd has inked a MoU with Akimat, the regional government of Mangystau, southwestern region of Kazakhstan. • Prestar Resources Bhd is considering the pursuit of listing its 51%owned subsidiary, Tashin Steel Sdn Bhd on the ACE Market of Bursa Malaysia Securities Bhd. • Ivory Properties Group Bhd has entered into a MoU with Taman Segar Management Corporation and Upper Label Sdn Bhd for the establishment of a strategic alliance to jointly re-develop/develop a piece of land in Kuala Lumpur. • The Federal Reserve will need to keep gradually raising its benchmark interest rate over the next few years, but that rate won't need to rise to levels seen in previous cycles, Fed Chairwoman Janet Yellen said in congressional testimony. 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
2. Technical Comments : Take Profit on AFFIN & AXIATA Affin shares should slide further due to weak momentum and profit-taking interest towards the 50%FR (RM2.54), matching the 200day ma level, with better support from the 38.2%FR (RM2.43) and overhead resistance at the 76.4%FR (RM2.78) reinforced by the 100-day ma. Axiata should meet strong profit-taking resistance on any further rise towards the 50-day ma (RM5.04), upper Bollinger band (RM5.11), and the 38.2%FR (RM5.15), while better support is seen near RM4.50. AFFIN Upper Middle RM2.61 (-0.04) BOLLINGER BANDS RM RM 2.72 2.67 10-day 30-day RM 2.62 50-day Lower DMI Recent Signal SELL 2.77 Recent Signal BUY Signal Change AXIATA Recent Signal Signal Change RM DAILY MACD Signal Change Upper Middle Lower SIMPLE MOVING AVERAGES RM 2.66 RM 2.68 BOLLINGER BANDS RM RM RM DMI RM4.87 (+0.23) 5.11 4.88 4.64 SELL SIMPLE MOVING AVERAGES RM 4.77 RM 4.92 RM 5.04 DAILY MACD Recent Signal SELL Signal Change 10-day 30-day 50-day Page 2 of 2