Malaysia: Daily Market Commentary - 3 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, 03 July 2017 TA Research e-mail : taresearch@ta.com.my For Internal Circulation Only KLSE Market Statistics (30.06.2017) Volume (mil) +/-chg (RMmn) Main Market 1,131.9 221.9 2,236.0 Warrants 111.1 0.3 16.1 ACE Market 256.6 -114.3 59.4 Bond 7.8 3.3 2.7 ETF 0.1 0.03 0.1 Total 1,507.5 2,314.2 Off Market 33.6 -44.9 5.4 Value +/-chg 782.8 3.9 -29.0 0.8 0.04 -199.0 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 Review & Outlook Value/ Volume 1.98 0.14 0.23 0.35 1.22 1.54 0.16 Up Down 256 342 45 97 28 64 6 1 1 3 336 507 % chg % YTD chg 1,763.67 12,598.94 17,443.96 1,767.50 -7.69 -32.98 -26.56 -8.50 -0.43 -0.26 -0.15 -0.48 7.43 9.88 18.54 8.07 21,349.63 6,140.42 7,312.72 20,033.43 2,391.79 25,764.58 3,226.48 1,574.74 5,829.71 3,192.43 1,897.69 5,721.49 62.60 -3.93 -37.60 -186.87 -3.87 -200.84 -32.17 -3.38 0.00 4.36 5.42 -96.61 0.29 -0.06 -0.51 -0.92 -0.16 -0.77 -0.99 -0.21 0.00 0.14 0.29 -1.66 8.03 14.07 2.38 4.81 18.03 17.11 12.00 2.06 10.06 2.86 -3.63 0.98 Save for the grossly oversold daily stochastics indicator for the FBM KLCI following last week's correction, most other trend and momentum indicators, specifically fresh sell signals on weekly MACD and 14-day DMI indicators, suggest that further correction is possible this week. On the other hand, while a low-volume technical rebound can still happen, expect it to be brief and unsustainable. Given the decisive break below the 50-day moving average level at 1,771 and lower Bollinger band at 1,762 in intra-day trade last Friday, more downside to next support from the 100-day moving average at 1,747 will be at risk for the index. Stronger support is seen at 1,729, a prior support level in April. On the flipside, immediate resistance is downgraded to 1,771, then 1,782, followed by the recent peak of 1,796, and ultimately the 1,800 psychological level. Sector-wise, blue chips such as Genting Berhad, Genting Malaysia, Tenaga and TM are likely to stay under profit-taking pressures, while aviation stocks AirAsia and AirAsia X and property and oil & gas related counters like EcoWorld and Sapura Energy should attract buyers on further dips as good buying interest on these four stocks should cushion downside risk. News Bites • • • • • Top 10 KLCI Movers Based on Mkt Cap. Off Market HUBLINE BIMB ECOFIRS SEAL MEDAINC MEXTER PPB (mn) 14.0 10.8 2.5 2.3 1.9 1.0 1.0 @ @ @ @ @ @ @ (RM) 0.06 0.05 0.30 0.42 0.32 0.23 0.17 Counter SIME IHH CIMB PCHEM MAXIS AXIATA DIGI PETGAS GENTING IOICORP Mkt Cap. (RM’mn) 64,608 59,563 56,800 47,374 43,345 41,683 38,875 36,686 35,659 32,032 Chg (RM) -0.07 -0.06 -0.02 -0.18 -0.05 -0.06 -0.01 -0.16 -0.08 -0.04 Vol. (mn) 12.29 15.45 10.67 6.48 8.13 10.80 4.65 1.33 5.50 1.88 • • • • • • • 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. Malaysia's loan growth eased in May, rising 5.5% YoY from growth of 6.1% April. Malaysia's Lotte Chemical Titan Holding Sdn Bhd will relaunch its initial public offering (IPO) today at a lower price of RM6.50/share than initially targeted range of RM7.60-8.00/share due to weak investor appetite. The Government will bear RM1.3bn from imbalance cost passthrough subsidy of 2.54 sen per Kwh to consumers from July 1 until Dec 31, 2017. Bumi Armada Bhd's chief executive officer Leon Harland says the group is expecting to record a stronger financial performance this year due to new projects that will come online in 2017. Public Mutual, a wholly owned subsidiary of Public Bank Berhad has declared distributions totalling RM147.0mn for 13 of its funds for the financial year ended June 30, 2017. Goldis Bhd is revising the options for its takeover offer for IGB Corp Bhd to allow all scheme shareholders to have the same election rights and the proportion of cash to new RCCPS has been revised from 20% in cash and 80% New RCCPS to 12% in cash and 88% new RCCPS. Pelikan International Corp Bhd are disposing of their businesses in Germany, France, Czech Republic and China for RM30.0mn. The managing director and two other executive directors of Ajinomoto (Malaysia) Bhd have been reassigned to other posts by Ajinomoto Co Inc Japan. Kumpulan Wang Persaraan (Diperbadanankan) or KWAP has disposed more than 9.3mn Malakoff Corp Bhd shares this month. The public tranche of earthworks and civil engineering services firm Advancecon Holdings Bhd's initial public offering has been oversubscribed by 10.28 times. Non-resident inflows into the Government bond market amounted to RM9bil in May, which was the second consecutive month of inflows, says Bank Negara Malaysia. China's official manufacturing purchasing managers' index published by the National Bureau of Statistics came in at 51.7 for June, up from May's level of 51.2. Exchange Rate USD/MYR 4.2918 -0.0015 USD/JPY 112.01 -0.5400 EUR/USD 1.140 -0.0003 Commodities Futures Palm Oil (RM/mt) 2,455.00 -9.00 Crude Oil ($/Barrel) 46.33 1.46 Gold ($/tr.oz.) 1,241.40 -4.20 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