Malaysia: Daily Market Commentary - 19 June

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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, 19 June 2017 TA Research e-mail : taresearch@ta.com.my For Internal Circulation Only Review & Outlook KLSE Market Statistics (16.06.2017) Volume (mil) +/-chg (RMmn) Main Market 1,188.9 -197.3 2,816.4 Warrants 215.2 -68.7 27.7 ACE Market 579.2 281.5 75.8 Bond 11.8 -9.1 5.7 ETF 0.1 0.06 0.1 Total 1,995.2 2,925.7 Off Market 98.6 58.8 80.6 Value +/-chg 670.3 -2.5 -5.2 -4.5 0.07 - Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP June 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 Value/ Volume 2.37 0.13 0.13 0.48 1.14 1.47 0.82 Up Down 268 342 44 122 45 53 1 5 1 3 359 525 % chg % YTD chg 1,791.31 12,751.84 17,474.68 1,798.00 1.30 -5.48 -12.37 6.00 0.07 -0.04 -0.07 0.33 9.11 11.21 18.75 9.94 21,384.28 6,151.76 7,463.54 19,943.26 2,361.83 25,626.49 3,231.44 1,576.58 5,723.64 3,123.17 1,866.05 5,774.03 24.38 -13.74 44.18 111.44 0.18 61.15 -0.65 3.05 -52.65 -9.32 -3.66 10.84 0.11 -0.22 0.60 0.56 0.01 0.24 -0.02 0.19 -0.91 -0.30 -0.20 0.19 8.21 14.28 4.49 4.34 16.55 16.48 12.17 2.18 8.06 0.63 -5.23 1.91 With the FBM KLCI's stubborn ascent to another fresh two-year high last Friday sustaining overbought readings on technical momentum indicators, a profit-taking correction is still due. Meantime, weaker buying momentum and market undertone should see investors staying sidelined and cautious for another week. Nonetheless, the relative upside resilience vis-à-vis global peers suggests that there are still interested buyers on dips cushioning downside, meaning that profit-taking corrections are likely to be shallow. Immediate uptrend supports for the index remains at the rising 10 and 30-day moving average levels at 1,787 and 1,775 respectively, followed by better support from the 50-day moving average at 1,765. Immediate upside hurdles are from the 1,800 psychological level and 18 May 2015 high of 1,823, with next key hurdle from the 27 April 2015 peak of 1,867. Sector-wise, blue chips are likely to extend profit-taking consolidation this week, but construction related lower liners such as Gadang, Kim Lun, KKB Engineering and WCT Holdings should encourage investors to bargain hunt on any share price weakness. News Bites • • • • • • Top 10 KLCI Movers Based on Mkt Cap. Off Market YINSON PMETAL EFORCE VOIR-WA TAWIN ANCOM (mn) 60.0 23.0 8.0 2.5 2.0 1.0 @ @ @ @ @ @ (RM) 3.20 2.70 1.00 0.50 1.21 0.80 Counter TENAGA PBBANK SIME PCHEM AXIATA MISC HLBANK IOICORP KLK TM Mkt Cap. (RM’mn) 81,716 78,774 65,424 57,680 44,780 33,032 31,950 28,780 26,944 24,990 Chg (RM) 0.02 0.02 0.01 0.05 0.02 0.05 0.22 0.11 0.56 0.10 Important Dates JHM - 1:1 Bonus Issue - BI of 123.7m shares. 1 bonus share for every 1 existing share. Entitlement Date: 19/06/2017. LISTING ON: 20/06/2017. SEG - 5:7 Bonus Issue - BI of 516.8m shares. 5 bonus shares for every 7 existing shares. Ex-Date: 22/06/2017. Entitlement Date: 28/06/2017. LISTING ON: 29/06/2017. Vol. (mn) 30.43 5.67 13.06 6.80 8.66 3.02 2.18 5.20 3.36 8.38 • • • • • • • Top Glove Corporation Berhad's 9MFY17 earnings of RM234.1mn (20.8% YoY) was within ours and consensus estimates. Felda Global Ventures Holdings Bhd said it has not held any discussion with the Federal Land Development Authority on the possibility of a plantation trust. Boustead Holdings Bhd's 51%-owned subsidiary MHS Aviation Bhd was given a 90-day notice by Petronas Carigali Sdn Bhd's over the latter's intention to terminate a contract originally signed in June 2011. IHH Healthcare Bhd is likely to buy a majority controlling stake in Fortis Healthcare Ltd and both are said to be in the advanced stage of negotiations and due diligence, according to news reports in India. Eastern & Oriental Bhd is divesting one of its subsidiaries, E&O Express Sdn Bhd, which owns and operates the Lone Pine Hotel in Batu Feringghi, Penang, for RM85mn. Fajarbaru Builder Group Bhd has bagged a RM12.8mn contract from Petronas Dagangan Bhd to build an underground pipeline foundation at KLIA2. Hengyuan Refining Co Bhd is investing USD160mn (RM700mn) in two projects at its refining complex in Port Dickson, Negri Sembilan. Barakah Offshore Petroleum Bhd said it is not expecting improvement in its bottom line this year compared to FY16, but foresees more jobs secured next year. Rev Asia Bhd asserted that its core business will remain in the technology sector following the sale of its 70%-owned digital media subsidiary to Media Prima Bhd. NetX Holdings Bhd has proposed to issue and allot up to 500mn new shares to Australian investment bank Macquarie Bank for about RM25.5mn, which it will use to fund the development of a mobile payment exchange system. Malaysia will raise its crude palm oil export tax to 6.5% in July from 6% this month. The Bank of Japan left interest rates and its commitment to buying government bonds unchanged, maintaining its aggressive monetary stimulus aimed at lifting inflation. The US housing starts dropped 5.5% in May from the prior month to a seasonally adjusted annual rate of 1.092mn. Exchange Rate USD/MYR 4.2755 0.0075 USD/JPY 111.27 1.5800 EUR/USD 1.118 0.0012 Commodities Futures Palm Oil (RM/mt) 2,482.00 31.00 Crude Oil ($/Barrel) 44.68 0.44 Gold ($/tr.oz.) 1,255.20 -0.30 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