Malaysia: Daily Market Commentary - 18 May

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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 Thursday, 18 May 2017 For Internal Circulation Only KLSE Market Statistics (17.05.2017) (mil) Main Market 2,280.3 Warrants 411.4 ACE Market 755.7 Bond 4.3 ETF 0.0 Total 3,451.7 Off Market 186.9 Volume +/-chg (RMmn) -159.7 2,708.3 74.1 59.0 20.0 112.5 1.8 1.2 0.03 0.0 2,881.0 159.6 89.5 Value +/-chg -969.1 16.2 -6.0 -0.3 0.04 22.0 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP May 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 1,775.65 12,728.69 17,730.47 1,770.50 (mn) 62.0 62.0 21.4 9.6 7.5 7.0 6.0 5.0 2.8 1.8 Up Down 311 317 62 97 41 56 2 3 1 0 417 473 % chg % YTD chg -0.14 -0.07 -0.17 -0.08 8.16 11.01 20.49 8.25 Review & Outlook Blue chips on Bursa Malaysia extended profit-taking consolidation on Wednesday, as investors locked in profits after last week's strong run-up and in line with lackluster regional markets amid political and legal turmoil surrounding the US President. The KLCI ended 2.5 points down to 1,775.65, off an early high of 1,779.94 and low of 1,770.22, as losers beat gainers 473 to 417 on total turnover of 3.45bn shares worth RM2.88bn. Following the overnight US correction, blue chips will be in correction mode amid reduced risk appetite following renewed political uncertainty in the US, as concerns intensify the US President might have committed an impeachable offense in relation to the recent firing of the FBI Director. Immediate uptrend supports for the index remain at the rising 30 and 50day moving average levels, now at 1,756 and 1,749, with better support from the lower Bollinger band at 1,740. Immediate upside hurdle for the benchmark stays at Tuesday's new two-year high of 1,787, followed by the 1,800 psychological level and 18 May 2015 high of 1,823. Affin Holdings could fall on profit-taking correction due to hook down momentum indicators, with better chart supports from the 100-day ma (RM2.66) and 50%FR (RM2.54). Key resistance level is at the peak of 28/ 04/15 (RM3.00), matching the upper Bollinger band. Further rise on Alliance Financials Group should meet stronger profit-taking resistance towards the peak of 11/05/17 (RM4.49) and upper Bollinger band (RM4.57), while support rests at the mid Bollinger band (RM4.22), reinforced by the 100-day ma (RM3.96). • 20,606.93 6,011.24 7,503.47 19,814.88 2,293.08 25,293.63 3,224.10 1,548.29 5,615.49 3,104.44 1,867.68 5,786.03 Off Market NETX NETX-WB HUBLINE SGB SAMCHEM PTRANS KLCC ECONBHD VERSATL STERPRO -2.50 -9.35 -29.64 -1.50 Value/ Volume 1.19 0.14 0.15 0.29 1.33 0.83 0.48 TA Research e-mail : taresearch@ta.com.my @ @ @ @ @ @ @ @ @ @ (RM) 0.08 0.04 0.06 0.73 0.85 0.28 7.81 2.35 1.30 0.21 Exchange Rate USD/MYR 4.3238 0.0016 USD/JPY 112.43 -1.2100 EUR/USD 1.111 0.0056 -372.82 -158.63 -18.56 -104.94 -2.25 -42.31 -3.61 1.94 -31.51 -8.52 2.42 -64.49 -1.78 -2.57 -0.25 -0.53 -0.10 -0.17 -0.11 0.13 -0.56 -0.27 0.13 -1.10 4.27 11.67 5.05 3.66 13.16 14.97 11.92 0.35 6.02 0.03 -5.15 2.12 • • • • • Top 10 KLCI Movers Based on Mkt Cap. • Counter • Mkt Cap. (RM’mn) MAYBANK 95,725 PBBANK 77,384 SIME 63,384 CIMB 53,860 MAXIS 48,968 PETGAS 37,675 IOICORP 28,906 RHBBANK 21,895 PPB 20,225 YTLCORP 16,014 Chg Vol. (RM) (mn) -0.01 10.56 -0.12 3.66 -0.01 15.00 -0.02 7.46 -0.03 4.12 -0.66 1.15 -0.04 0.84 -0.02 1.92 -0.04 0.40 -0.01 4.80 Commodities Futures Palm Oil (RM/mt) 2,641.00 31.00 Crude Oil ($/Barrel) 48.96 0.73 Gold ($/tr.oz.) 1,261.20 24.40 • • • • • • • Important Dates L&G - 8:5 Rights Issue - RI of up to 1,914.1m shares. 8 rights shares for every 5 existing share held, at an issue price of RM0.21 per rights share. LISTING ON: 18/05/2017. 3A - 1:4 Bonus Issue - BI of 98.4m shares. Ex-Date: 23/05/2017. Entitlement Date: 25/05/2017. LISTING ON: 26/05/2017. • • • News Bites The consumer price index climbed 4.4% YoY in April 2017, slower than the 5.1% YoY rise in the previous month, which was the strongest inflation since November 2008. TRX City Sdn Bhd will be conducting a request for proposal process to seek interested parties to be the role of master developer of Bandar Malaysia. Treasury secretary-general Tan Sri Dr Mohd Irwan Serigar Abdullah has been appointed chairman of both TRX City and Bandar Malaysia. UEM Sunrise Bhd's 1QFY17 revenue doubled to RM541.8mn and PBT surged twenty times to RM61.3mndue to progress made by Residensi 22, Aurora, Conservatory and completion of Teega. Carlsberg Brewery Malaysia Bhd's 1QFY17 net profit grew by 7.0% YoY to RM68.5mn. It was above ours but within consensus expectations. Amway (Malaysia) Holdings Bhd's 1QFY17's revenue and net profit respectively declined by 22.5% YoY to RM237.2mn and 47.6% YoY to RM9.5mn. It was below expectations. Hua Yang Bhd's FY17 revenue and net profit declined by 33.1% YoY to RM385.4mn and 44.8% YoY to RM60.7mn respectively. It was below expectations. UEM Sunrise Bhd has appointed Tan Sri Zamzamzairani Mohd Isa as its new chairman to replace Tan Sri Dr Ahmad Tajuddin Ali who has retired. MyEG Services Bhd confirmed that negotiation with the existing shareholders of Eat Drink KL is currently on-going and has not been finalized. Datuk Jamaludin Osman, the former group managing director of Island & Peninsular Bhd, has been appointed as a non-independent and nonexecutive director of MMC Corp Bhd. BIMB Holdings Bhd is contemplating a group-wide restructuring in a bid to maximise value for shareholders and fulfil regulatory compliance. Petra Energy Bhd returned to the black in 1QFY17 with a net profit of RM5.3mn compared to a net loss of RM7.1mn in 1QFY16. Scientex Bhd has raised RM156mn through a private placement, involving the issuance of 20mn new shares at issue price of RM7.80 per share. Malaysian Resources Corp Bhd has proposed a one-for-one renounceable rights issue to pare down its borrowings and to finance the refurbishment of the national sports complex in Bukit Jalil. Mah Sing Group Bhd is acquiring 5 pieces of adjoining freehold land in Kuala Lumpur that has an estimated GDV of up to RM650mn for a total purchase consideration of up to RM60mn. Seacera Group Bhd is acquiring a warehouse in Melaka from QM Sports Sdn Bhd for RM16.9mn, which is to be satisfied via RM12.4mn worth of shares and RM4.5mn cash. Priceworth International Bhd's plan to undertake logging operations within Sabah's Forest Management Unit 5 compartments 57 and 58 in Trus Madi has been approved by the Sabah Forestry Department. Core machine orders in Japan climbed a seasonally adjusted 1.4% on month in March, which missed expectations for an increase of 2.5% following the 1.5% gain in February. 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