Malaysia Market Review - 17 August

Transcription

1. Morning News 17 August 2016 SJ Securities Sdn Bhd Strictly for internal reference only Market Review U .S. stocks eased from record highs on Tuesday after comments from Federal Reserve officials fueled speculation of an interest rate hike this year. The Dow Jones industrial average was down 84.03 points, or 0.45 percent, to 18,552.02, the S&P 500 lost 12 points, or 0.55 percent, to 2,178.15 and the Nasdaq Composite dropped 34.90 points, or 0.66 percent, to 5,227.11. About 5.9 billion shares changed hands on U.S. exchanges, compared with the 6.4 billion daily average for the past 20 trading days. The KLCI rose 9.56 points or 0.6% on Tuesday as crude oil prices gained on speculation of a production cut by Organization of Petroleum Exporting Countries (OPEC) members. At 5pm, the KLCI closed at 1,699.89 points after rising to its intraday high of 1,700.71. Bursa Malaysia saw 2.83 billion shares worth RM2.45 billion traded. Gainers outnumbered decliners at 512 against 382 respectively. Leading gainer was British American Tobacco (Malaysia) Bhd while Nestle (Malaysia) Bhd headed decliners. Top-active stocks included oil and gas-related counters like Sumatec Resources Bhd and TH SJ Securities Sdn Bhd A Participating Organization of Bursa Malaysia Securities Bhd http://www.sjenie.com Tel: 603-5192 0202 ext. 254 Fax: 603-5192 8630 Heavy Engineering Bhd.
2. SJ SECURITIES SDN BHD Other Market News European Market : European Stocks Post Biggest Drop in Two Weeks as Carmakers Fall European stocks retreated in thin trading, after briefly paring losses, as a stronger euro weighed on exporters. Carmakers were among the biggest losers in industry groups as subduedprospects for a Federal Reserve rate increase this year weakened the dollar, sending the euro higher. The Stoxx Europe 600 Index dropped 0.8 percent at the close, its biggest fall since Aug. 2. Germany’s DAX Index fell 0.6 percent, after nearly erasing its annual drop on Tuesday. The U.K.’s FTSE 100 Index lost 0.7 percent. The pound strengthened after a report showed inflation accelerated in July. (Bloomberg) Asian Market: Asian Stocks Climb as Yen Steadies Amid U.S. Fed Rate Comments Asian stocks rose as the yen steadied after breaking through 100 against the dollar and investors weighed the prospects for higher rates this year. The MSCI Asia Pacific Index rose 0.1 percent to 139.69 as of 9:10 a.m. in Tokyo. Japan’s Topix index climbed 0.3 percent as the yen retreated against the dollar after briefly touching 99.54 on Tuesday. New York Fed President William Dudley said the central bank could potentially raise interest rates as soon as next month, warning investors that they are underestimating the likelihood of increases in borrowing costs. South Korea’s Kospi index was little changed. Australia’s S&P/ASX 200 Index fell 0.2 percent. New Zealand’s S&P/NZX 50 Index climbed 0.6 percent. Futures on the FTSE China A50 Index added 0.3 percent in most recent trading, while those on the Hang Seng Index rose 0.1 percent. The Shanghai Composite Index slipped 0.5 percent on Tuesday. (Bloomberg) Commodity Market: Gold Posts Biggest Gain in Two Weeks as Equities, Dollar Decline Gold posted the biggest gain in two weeks as equities and the dollar declined, drawing demand from investors who looked past speculation U.S. interest rates will rise this year. U.S. stocks retreated from a record high, while the Bloomberg Dollar Spot Index fell for a third straight session, helping push crude oil to a one-month high. Gold futures for December delivery rose 0.7 percent to settle at $1,356.90 an ounce at 1:40 p.m. on the Comex in New York, the biggest gain since Aug. 2. (Bloomberg) Currency Market: Dollar Snaps Three-Day Slide on Higher Rate-Increase Probability A gauge of the dollar snapped a three-day slide after two Federal Reserve officials suggested markets were underestimating the likelihood of increases in U.S. interest rates. The Bloomberg Dollar Spot Index, which measures the U.S. currency against 10 peers, was little changed as of 9:12 a.m. in Tokyo, following a three-day 1 percent slide. The measure reached its lowest level since May 3 on Tuesday. The dollar gained 0.1 percent to 100.45 yen and was steady at $1.1277 per euro. (Bloomberg) Energy Market: Oil Halts Gain as Industry Data Signals Sustained U.S. Fuel Glut Oil declined after the biggest four-day gain since April as weekly industry data showed U.S. gasoline stockpiles expanded, keeping supplies at the highest seasonal level in more than two decades. Futures slid as much as 1 percent in New York after climbing 11.7 percent the previous four sessions. Inventories of the motor fuel increased by 2.18 million barrels last week, the American Petroleum Institute was said to report. West Texas Intermediate for September delivery slid as much as 47 cents to $46.11 a barrel on the New York Mercantile Exchange and was at $46.32 at 8:03 a.m. Hong Kong time. The contract gained 1.8 percent to $46.58 on Tuesday, closing at the highest level since July 12. Brent for October settlement lost as much as 37 cents, or 0.8 percent, to $48.86 a barrel on the London-based ICE Futures Europe exchange. The contract climbed 88 cents, or 1.8 percent, to close at $49.23 a barrel on Tuesday, capping an 11.8 percent gain over four sessions. The global benchmark crude traded at a premium of $1.95 to WTI for October. (Bloomberg) Economic News Fed’s Lockhart Says At Least One Rate Hike May Be Needed in 2016 Federal Reserve Bank of Atlanta President Dennis Lockhart said he’s confident that U.S. economic growth is accelerating, setting the stage for at least one increase in interest rates this year. “I’m not locked in to any policy position at this stage, but if my confidence in the economy proves to be justified, I think at least one increase of the policy rate could be appropriate later this year,” Lockhart said in the text of remarks on Tuesday to the Rotary Club of Knoxville, Tennessee. (Bloomberg)
3. SJ SECURITIES SDN BHD Dudley Says September Hike Possible , Markets Too Complacent The Federal Reserve could potentially raise interest rates as soon as next month, New York Fed President William Dudley said, warning investors that they are underestimating the likelihood of increases in borrowing costs. “We’re edging closer towards the point in time where it will be appropriate, I think, to raise interest rates further,” Dudley, who serves as vice chairman of the rate-setting Federal Open Market Committee, said Tuesday on Fox Business Network. Asked whether the FOMC could vote to raise the benchmark rate at its next meeting Sept. 20-21, Dudley said, “I think it’s possible.” (Bloomberg) U.K. Inflation Accelerates as Pound Drop Boosts Import Costs U.K. inflation accelerated in July and there were signs the weak pound will fuel further price pressures with import costs jumping the most in more than four years. Consumer-price growth picked up to 0.6 percent from 0.5 percent in June, the Office of National Statistics said in London on Tuesday. Input costs surged an annual 4.3 percent last month, ending 32 consecutive declines, while import prices jumped the most since 2011. Transport costs were the main boost to the inflation rate in July, with gasoline and second-hand cars having the largest impact, according to the ONS. But the most noticeable early impact of sterling’s weakness was seen at the producer level. The cost of imported materials as a whole -- which includes metals, parts and chemicals -- rose an annual 6.5 percent in July, while imported food materials jumped 10.2 percent. Factory-gate prices rose 0.3 percent in July from June and were up 0.3 percent year-on-year, the ONS said. (Bloomberg) U.S. consumer prices unchanged; underlying inflation slowing U.S. consumer prices were unchanged in July as the cost of gasoline fell for the first time in five months and underlying inflation moderated, which could further diminish the prospect of a Federal Reserve interest rate increase this year. Last month's flat reading in the Consumer Price Index was the weakest since February and followed two straight monthly increases of 0.2%. The so-called core CPI, which strips out food and energy costs, edged up 0.1% in July. It had risen by 0.2% in each of the previous three consecutive months. Low interest rates are boosting the housing market. In a separate report, the Commerce Department said housing starts increased 2.1% to a seasonally adjusted annual pace of 1.2 million units, the highest level since February. Last month's increase in groundbreaking activity supports the view that investment in residential construction will rebound, after slumping in the second quarter for the first time in more than two years. (Reuters) China approves Shenzhen-Hong Kong stock connect scheme China's Premier Li Keqiang said the Cabinet had approved the launch of the Shenzhen-Hong Kong Stock Connect programme, putting in motion the final link of an ambitious plan to connect the gigantic stock markets of Hong Kong and the mainland. The actual launch of the scheme is unlikely to trigger a rush of funds into China's A-share markets, given the slowing economy and last year's boom and bust, though onshore punters will cheer another option to diversify away from onshore stocks. (Reuters) Local News No plans to increase GST rate The Government will not increase the goods and services tax (GST) rate although a revenue shortfall of RM30bil is expected this year from the oil and gas industry, said Second Finance Minister Datuk Johari Abdul Ghani. He said the Government was committed to assist the lower and middle-income group and manage the fiscal deficit efficiently which would than translate into steady economic growth. “Although the Government is facing a difficult time due to revenue loss from the oil and gas industry, the Government will not increase the GST rate,” he said. (Bernama) Malaysia’s textile, apparel exports jump to RM6.99bil in H1 Malaysia’s textile and apparel exports rose 10% to RM6.99bil in the first half (H1) of 2016 from RM6.33bil a year ago, Deputy International Trade and Industry Minister Datuk Ahmad Maslan said. He said the surge was driven by increasing global demand for high quality textile and clothing from Malaysia, as well as rising purchasing power in major importing countries, namely the US, European Union (EU) countries, and Canada. The demand for textile and apparels is expected to increase to US$160bil (RM638.3bil) at the end of 2018. In terms of volume, the global demand is expected to reach 30 million tonnes by 2018, with Asia being a major source of imports from the US and EU nations. (Bernama)
4. SJ SECURITIES SDN BHD Corporate News Box-Pak 2Q net profit down 81 % on higher costs, forex losses Box-Pak (Malaysia) Bhd's net profit plunged 81% to RM769,000 in its second quarter ended June 30, 2016 (2QFY16), compared with RM4.06 million a year ago, on higher material and operating costs and foreign currency translation losses. The weaker fiancials were also due to higher finance costs and initial pre-operating expenses incurred in Myanmar in the current quarter. Revenue, however, rose 26% to RM123.09 million in 2QFY16, from RM97.8 million last year, due to contributions from its Vietnam operations. (The Edge) Press Metal 2Q net profit jumps six-fold, pays 3 sen dividend Press Metal Bhd, whose shares price hit all time high on Tuesday, saw its net profit jump nearly six times to RM146.08 million or 11.24 sen per share for the second quarter ended June 30, 2016 (2QFY16), from RM24.73 million or 1.91 sen per share a year ago, on higher production output and a RM45 million insurance claim. This was the highest quarterly earnings that the group recorded since 4QFY07. Quarterly revenue was up 67.9% to RM1.59 billion, versus RM947.26 million in 2QFY15, due to the additional capacity contributed by its new second phase facility and full production from Phase 1 smelter. It declared a second interim dividend of three sen per share, amounting to RM39.27 million, payable on Sept 20. This brings its dividend for the year to six sen per share. (The Edge) PMB Tech 2Q profit grows 49.7% on lower expenses, costs PMB Technology Bhd's net profit rose 49.7% to RM2.42 million in its second quarter ended June 30, 2016 (2QFY16) compared to RM1.62 million a year ago, on lower operating expenses and finance costs. Its revenue, however, fell 15.7% to RM94.6 million from RM112.1 million as a result of lower contribution from its construction and fabrication segment. The group declared a second interim single tier dividend of one sen or 2% per share for the financial year ending Dec 31, 2016, which will be paid on Sept 20. In its six-month period ended June 30, 2016 (1HFY16), net profit grew 43.2% to RM4.81 million from RM3.36 million in the corresponding period last year. (The Edge) DNex Sees 23-fold rise in 2Q profit on inclusion of associate’s results Dagang NeXchange Bhd (DNex) said second quarter net profit rose nearly 23-fold to RM89.5 million, from RM3.91 million a year ago, thanks to the inclusion of the RM85.3 million share of profit from its 30% associate company, Ping Petroleum Ltd. Revenue for the quarter ended June 30, 2016 (2QFY16) more than doubled to RM47.4 million, from RM22.6 million in 2QFY15, helped by progressive billing to the transport ministry on the Vehicle Entry Permit and Road Charges (VEP & RC) system project. For the first half of financial year 2016 (1HFY16), net profit jumped by more than 20 times to RM94.9 million, from RM4.38 million in 1HFY15, while revenue rose 66.7% to RM74.3 million, from RM44.6 million. (The Edge) TAHPS 1Q net profit falls 13.7% despite higher revenue TAHPS Group Bhd's first quarter net profit fell 13.7% to RM1.9 million or 2.54 sen per share from RM2.2 million or 2.94 sen per share a year ago, due mainly to higher development costs in its property division. Revenue for the first quarter ended June 30, 2016 (1QFY17), however, rose 39.5% to RM15.94 million from RM11.42 million in 1QFY16. Revenue for the group's property development segment rose 45.6% to RM13.6 million during the quarter, thanks mainly to an increase in construction progress billing of its ongoing projects. However, the pre-tax profit for the segment was down 42.3% at RM1.9 million. (The Edge) MMS Ventures 2Q earnings up near 60%, declares one sen dividend MMS Ventures Bhd's net profit for the second quarter ended June 30, 2016 (2QFY16) jumped 59.9% to RM5.71 million from RM3.57 million in the same quarter last year, thanks to a 75.5% rise in revenue. Quarterly revenue stood at RM20.07 million compared to RM11.43 million in 2QFY15. MMS Ventures's board of directors declared a dividend of one sen for the period, payable on Oct 17. MMS Ventures said the improvement in revenue was mainly due to higher
5. SJ SECURITIES SDN BHD sales of machines to light-emitting diode (LED) manufacturers, especially those from the smart devices and automotive industry. (The Edge) White Horse Higher costs, weaker ringgit erode 2Q profit Higher production and operating costs, together with weaker ringgit, dragged down White Horse Bhd's net profit for the second quarter ended June 30, 2016 (2QFY16) by 75.3%. It posted 2QFY16 net profit of RM3.98 million or 1.73 sen per share, as compared to RM16.09 million or 7.02 sen per share in the same quarter a year earlier. This was despite a marginal 0.5% improvement in revenue to RM185.77 million from RM184.87 million previously. For the first half ended June 30, 2016 (1HFY16), its net profit fell 35.9% to RM21.25 million or 9.26 sen per share from RM33.16 million or 14.46 sen per share in the previous corresponding period. (The Edge) Marco Weaker margins trim 2Q earnings Intense competition and higher cost of doing business resulted in weaker margins for Marco Holdings Bhd, a Casio brand timepiece and calculator distributor. As a result, its net profit fell 23.3% to RM3.88 million in the second quarter ended June 30, 2016 (2QFY16), from RM5.06 million in the same period last year, though it managed to grow its revenue by 27.5% to RM45.49 million from RM35.68 million, thanks to the group's regional business. From a cumulative perspective, Marco's net profit for the first half of FY16 (1HFY16) fell by 25.4% to RM7.64 million from RM10.24 million in 1HFY15, while revenue grew 15.4% to RM94.19 million from RM81.6 million. (The Edge) VS Industry Bags RM326mil deal to make coffee brewers Electronics manufacturing services (EMS) giant VS Industry Bhd has secured a three-year contract worth at least US$82mil (RM326.3mil) to design and make a new model of coffee brewers. The company said in a statement to Bursa Malaysia that the new coffee brewer was the first fully designed model by its unit VS Plus Sdn Bhd for the existing customer, which was not named, and thus VS Plus had the exclusive manufacturing rights for the first 18 months. Production for the customer is scheduled to begin from January 2017. (Star Business) MMHE In JV with Terengganu govt to provide marine vessel repair Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) has formed a joint venture (JV) with Terengganu state-owned Eastern Pacific Industrial Corp Bhd (Epic) to undertake repair services of marine vessels. Its unit Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) had set up a 70% owned subsidiary, MMHE Epic Marine & Services Sdn Bhd, by subscribing to RM7mil worth of shares. EPIC, which owns and manages the Kemaman Supply Base, holds the remaining shares. (Star Business) MyEG Sub subsidiary prepares to launch foreign worker hostel biz My EG Services Bhd (MyEG), through recently-incorporated sub subsidiary MY EG Lodging Sdn Bhd (MyEL), is preparing to launch the business of operating hostels for foreign workers by signing on Tuesday a three-year tenancy agreement to rent 512 accommodation units from the Malacca State Development Corp. The signing of the tenancy will enable the company (MyEL) to commence operations and the ccmpany will use these sites as pilot sites for future expansion to set up more sites nationwide. The monthly rental for all the units totalled RM195,000. The deposit payable amounts to RM1.36mil. (Star Business) Ekovest To issue RM3.64b Sukuk for expressway Ekovest Bhd is set to issue the largest ringgit-denominated Sukuk wakalah of RM3.64bil to fund its Setiawangsa-Pantai Expressway (SPE) project. The toll road project,formerly known as the DUKE phase 3, will cost RM3.9bil with a 53 year concession period with the government. The issuance of Sukuk wakalah for the SPE will be among the largest issuance for a new highway construction project as well as among the highest rates AA-sukuk so far in 2016. Part of the funding of the SPE project would come from a RM560mil interest free government RIA and RM850mil equity by Ekovest. (Star Business)
6. SJ SECURITIES SDN BHD Bursa Malaysia Trade Statistics (16/08/2016) Market Participants Bought (RM Mn) Sold (RM Mn) Net Buy / (Sell) (RM Mn) Local Institutional 1504.7 1583.7 (79.0) Retail 397.7 416.0 (18.3) Foreign 549.9 452.6 97.3 Total 2452.3 2452.3 0.0 Foreign Funds Net Buy / (Sell) RM Mn 2000.0 1,483.20 1,365.90 1500.0 1,036.00 1,040.20 764.20 1000.0 500.0 0.0 -500.0 -1000.0 439.70 364.40 107.00 728.10 301.80 105.50 93.50 31.20 (1.40) (169.90)(134.30) (430.80) (622.70) (709.40) (1,004.00) (1,012.20) (1,158.20) (1,196.00) -1500.0 Off Market Trades on 16/08/2016 (>500,000 units) Counter Volume (units) ARMADA 17,000,000 UMWOG Value (RM) Unit Price (RM) Last Price (RM) 13,430,000 0.790 0.805 13,000,000 12,870,000 0.990 0.985 BIMB 9,870,000 39,973,500 4.050 4.120 TM 7,000,000 47,530,000 6.790 6.790 NAKA 3,900,000 234,000 0.060 0.075 SHH 2,400,000 4,800,000 F&N 2,000,000 49,000,000 MAHSING 1,600,000 2.000 2.130 24.500 24.520 2,576,000 1.610 1.650 IGB 1,296,000 3,369,486 2.600 2.660 SCGM 1,000,000 3,200,000 3.200 3.360 MILUX 900,000 990,000 1.100 Not Traded TOMYPAK 600,000 1,020,000 1.700 1.700 VIVOCOM-WB 550,000 104,500 0.190 0.185 THHEAVY 550,000 121,000 0.220 0.195
7. SJ SECURITIES SDN BHD Dividend Entitlement (August 2016) Company Sen Ex-Date Company Sen Ex-Date TASEK 30.00 18/8/2016 RCECAP 3.50 26/8/2016 TASEK-PA 30.00 18/8/2016 TNLOGIS 5.00 26/8/2016 AHP 3.00 18/8/2016 SYSTECH 0.20 29/8/2016 BOILERM 1.50 22/8/2016 HOMERIZ 2.00 29/8/2016 FITTERS 0.60 23/8/2016 DIGI 5.40 29/8/2016 AMBANK 10.50 24/8/2016 PENSONI 1.00 29/8/2016 PANSAR 2.00 24/8/2016 MAHSING 6.50 30/8/2016 KNUSFOR 2.00 26/8/2016 QL 4.25 30/8/2016 MAXIS 5.00 26/8/2016 SDRED 2.50 30/8/2016 ASIAFLE 9.00 26/8/2016
8. SJ SECURITIES SDN BHD
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