R e t a i l M a r k e t M o n i t o r Thursday, 27 November 2014

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Muriel Turner
6 years ago
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MARKET NEWS In tandem with the uptrend in regional markets, the FBMKLCI gained 3.61pt (+0.20%) to close at 1,842.17 yesterday.

1 MARKET NEWS In tandem with the uptrend in regional markets, the FBMKLCI gained 3.61pt (+0.20%) to close at 1, yesterday. Asian stocks rose, with the regional benchmark index heading for a four-day advance, after Chinese shares extended their rally as insurers led gains. The MSCI Asia Pacific Index (MXAP) added 0.4% to in Hong Kong after rising 1.1% in the past three trading days. The top gainers were BAT (+2.76%), GENM (+2.18%) and Genting (+1.21%) while the only two losers were TM (-3.47%) and Skpetro (-0.92%). In the broader market, losers outpaced gainers 452 to 321 with 314 counters unchanged. Turnover was 1.773b shares valued at RM1.469b. From a technical perspective, the FBMKLCI continued its impressive recovery after closing above the previous resistance of 1,837 yesterday to Strong gains on the back of a higher trading volume signify a genuine upward movement, and could potentially prolong the uptrend pattern. However, the remarkable gains in the last few days may attract conservative investors to lock in gains. We can see that our index tried to reach 1850 level which is at 200 SMA. The index needs to maintain at this level for quite sometime to keep the upward momentum. Support and resistance levels are revised as follows: Support: 1,805, 1,800 Resistance: 1,850, 1,860 Stocks ended higher Wednesday as the Dow and S&P 500 each hit new closing highs and the tech sector rallied. The DJIA rose 0.07% or pts to close at 17, and the S&P500 gained 0.23% to close 2, Market gains were initially kept in check as investors digested a mixed batch of economic reports on consumer spending, durable goods orders jobless claims and home sales. The US stock market will be closed on Thursday for the Thanksgiving holiday and will close early at 1:00 p.m.eastern time, on Friday. WHAT S IN THE PACK Malayan Banking (MAY MK/BUY/RM9.67/Target: RM10.30) 3Q14: Results were below expectations, dragged down by higher effective tax rate and lower insurance income. Maintain BUY with a lower target price of RM10.30 after trimming our earnings. Telekom Malaysia (T MK/SELL/RM7.24/Target: RM6.10) 3Q14: A weak quarter due to subscriber clean-up; 9M14 results below expectations. SYF Resources (SYF MK) Technical BUY with +14% potential upside BUY with a target price of RM1.41 with stop loss at below RM1.04. A breakout at RM1.18 level will lead it to reach the previous resistance at RM1.32 Ho Hup Construction Company (HOHUP MK) Technical BUY with +21% potential upside BUY with a target price of RM1.69 with stop loss at below RM1.29. The heat wave indicators (tenkan and kijun) just made a crossover to a positive signal. CAB Cakaran Comp (CAB MK) Technical BUY with +37% potential upside BUY with a target price of RM1.48 with stop loss at below RM The breakout above the upper symmetrical line will lead to the x to x target at RM1.48. FBMKLCI CHART Source: BursaStation KEY INDICES Prev Close Chg (%) YTD (%) DJIA 17, S&P 500 2, FTSE 100 6, (0.03) (0.30) CSI 300 3, FSSTI 24, HSCEI 2, HSI 17, (0.14) 6.70 JCI 1, (1.33) KLCI 17, KOSPI 2, Nikkei 225 6, (0.03) (0.30) SET 3, TWSE 24, BDI 2, CPO (RM/mt) 17, (0.14) 6.70 Nymex Crude 1, (1.33) (US$/bbl) 17, Source: Bloomberg TOP VOLUME Stock Price (RM) Chg (%) Vol ( 000) Minetech Resources 0.14 (6.9) 159,330 Malayan United ,120 Nova Msc Bhd ,459 Jag Bhd 0.20 (6.98) 58,534 Knm Group Bhd 0.59 (0.84) 52,093 TOP GAINERS Stock Price (RM) Chg (%) Vol ( 000) Asia Knight Bhd ,366 Oriented Media Ahb Holdings Bhd ,399 Kamdar Group M Minho Malaysia Bhd TOP LOSERS Stock Price (RM) Chg (%) Vol ( 000) Visdynamics 0.25 (19.35) 19,740. Tfp Solutions Bhd 0.19 (11.63) 30.0 Berjaya Media Bhd 0.46 (11.54) 0.1 R&A 0.04 (11.11) 1,275.8 G Neptune Bhd 0.05 (10.00) Source: Bloomberg w w w. u t r a d e. c o m. m y 1

TRADERS CORNER SYF Resouces (SYF MK) Technical BUY with +24% potential upside Last price : RM1.14 Target price : RM1.31, RM1.41 Support : RM1.05 Stop-loss : RM1.04 BUY with a target price of RM1.

18 level will lead it to reach the previous resistance at RM1.32. This is supported by a positive DMI movement and MACD to the upward side.

2 TRADERS CORNER SYF Resouces (SYF MK) Technical BUY with +24% potential upside Last price : RM1.14 Target price : RM1.31, RM1.41 Support : RM1.05 Stop-loss : RM1.04 BUY with a target price of RM1.41 with stop loss at below RM1.04. Currently SYF has formed an ascending triangle which is a bullish continuation pattern. A breakout at RM1.18 level will lead it to reach the previous resistance at RM1.32. This is supported by a positive DMI movement and MACD to the upward side. We set an x to x target based on an ascending triangle pattern breakout to RM1.41. Expected Timeframe: 2 weeks to 2 months Ho Hup Construction Company (HOHUP MK) Technical BUY with +21% potential upside Last price: RM1.40 Target price : RM1.55, RM1.69 Support : RM1.30 Stop-loss : RM1.29 BUY with a target price of RM1.69 with stop loss at below RM1.29. Yesterday s trading activity managed to penetrate ichimoku kumo which led to an uptrend pattern. The heat wave indicators (tenkan and kijun) just made a crossover to a positive signal. This also supported by DMI and MACD. We peg our target below the previous psychological high of RM1.69. Expected Timeframe: 2 weeks to 2 months w w w. u t r a d e. c o m. m y 2

TRADERS CORNER CAB Cakaran Corporation (CAB MK) Technical BUY with +37% potential upside Last price : RM1.08 Target price : RM1.16, RM1.48 Support : RM1.00 Stop-loss : RM0.

3 TRADERS CORNER CAB Cakaran Corporation (CAB MK) Technical BUY with +37% potential upside Last price : RM1.08 Target price : RM1.16, RM1.48 Support : RM1.00 Stop-loss : RM0.995 BUY with a target price of RM1.48 with stop loss at below RM Based on the chart, we can see that the symmetrical triangle pattern was spotted and it is at a bullish continuation pattern. Currently the MACD is on the verge of making a golden cross to a positive signal. The breakout above the upper symmetrical line will lead to x to x target at RM1.48. Expected Timeframe: 2 weeks to 2 month w w w. u t r a d e. c o m. m y 3

4 CORPORATE NEWS Brahim s buys BK franchise for whopping RM95m. Brahim s Holdings Bhd has acquired the Burger King franchise from Ekuiti Nasional Bhd (Ekuinas) for RM95 million. The investment was made via its wholly-owned unit, Brahim s Trading Sdn Bhd. Brahim s said it was acquiring the entire interest in Rancak Selera Sdn Bhd, a unit of Ekuinas, which in turn is a private equity fund management company. Rancak Selera owns Cosmo Restaurants Sdn Bhd and Burger King Singapore Pte Ltd, which are holders of the Burger King franchise rights in Malaysia and Singapore, respectively. Post-acquisition, a special purpose vehicle (SPV) will be set up in which Brahim s will hold an 80 per cent stake and Quantum Angel Sdn Bhd the rest. Quantum Angel is a private equity firm managed by Zulu Capital Sdn Bhd, a fund management company. (Source: Business Times) IHH: Deal for Fortis' Singapore unit needs further reviewregulator. Singapore's anti-trust regulator on Wednesday expressed concern about IHH Healthcare Bhd's proposed acquisition of a Singaporean unit of India's Fortis Healthcare Ltd. "The merger significantly reduces the number of providers of radiology and imaging services and the number of suppliers of radiopharmaceuticals in Singapore, and therefore requires further competition analysis," the Competition Commission of Singapore said in a statement. It said the proposed acquisition of Fortis' Singaporean diagnostic and molecular imaging unit would proceed to a second phase of review. In September, IHH Healthcare announced plans to buy the Fortis unit, Radlink-Asia Pte Ltd, for million ringgit ($ million). (Source: The Star) Kian Joo to sell business for RM1.46b. Kian Joo Can Factory Bhd is disposing of its entire business, including assets and liabilities, to Aspire Insight Sdn Bhd for RM1.46 billion. In a filing to Bursa Malaysia yesterday, it said the amount translated to about RM3.30 per ordinary share of 25 sen each in Kian Joo. The company said distribution of the proceeds to the shareholders would be in cash not less than RM3.30 apiece via proposed capital reduction and repayment exercise. (Source: Business Times) Protasco battle. Protasco Bhd s boardroom battle escalated when Tey Por Yee and Ooi Kock Aun blocked the construction firm s bid to remove them as directors at its extraordinary general meeting (EGM) yesterday. An injunction filed before the scheduled EGM prompted Protasco chairman Tan Sri Hadenan A. Jalil to adjourn the morning meeting to the afternoon, and later called for a vote to postpone it. Shareholders subsequently voted to postpone the meeting to 3pm today. Tey s lawyers had served the injunction against the company, executive vice-chairman and group managing director Datuk Seri Chong Ket Pen and director Tan Heng Kui. The injunction, filed at the Kuala Lumpur High Court, was to prevent Chong, who owns 22.4 per cent of Protasco, and Heng Kui, who owns 1.7 per cent, from voting on the resolution to remove the duo. (Source: Business Times) Only World Group: To raise RM50m via IPO. Only World Group Bhd (OWG), en route to listing on Bursa Malaysia, plans to raise RM50 million from its IPO. OWG managing director and chief executive officer Datuk Richard Koh Cheng Keong said of the RM50 million, RM30 million will be used to refurbish the Komtar building in Penang, RM13 million for business expansion, RM2 million for working expenses and the balance as listing cost. The IPO entails a public issue of million new shares of 50 sen each at an offer price of 88 sen a share. It includes 9.25 million new shares for the Malaysian public and four million new shares for eligible directors and employees. Another 18.5 million new shares will be placed out to approved Bumiputera investors while the remaining million new shares are for selected investors. OWG is scheduled to be listed on December 18. (Source: Business Times) w w w. u t r a d e. c o m. m y 4

5 YFG s RM255.9mil condo job in Sabah terminated. YFG Bhd s RM255.9mil contract for the commercial and 27-storey waterfront condominium property project in Sabah has been terminated by Palikota Sdn Bhd. The company said its unit YFG Trolka Sdn Bhd had received a notice from Palikota on Nov 19 informing it that the contract, awarded on Aug 1, 2013, had been terminated. The contract was for the construction of Jesselton Residences Waterfront along Jalan Haji Saman in Kota Kinabalu. YFG also said Palikota had on the same day served a separate notice to YFG Trolka's banker, United Overseas Bank (Malaysia) Bhd to call upon the performance bond of RM12.795mil. To recap, Palikota is a unit of Jesselton Waterfront Holdings Sdn Bhd. The project consists of four levels of premium mall, five levels of carpark and three blocks of 20-storey super condominium at the shore front of the central business district in Kota Kinabalu. (Source: The Star) w w w. u t r a d e. c o m. m y 5

6 FROM THE REGIONAL MORNING NOTES... Malayan Banking (MAY MK) (MAY MK/BUY/RM9.67/Target: RM10.30) Results were below expectations, dragged down by higher effective tax rate and lower insurance income. We are reducing our target price to RM10.30 (13.4% ROE, 1.7x 2015FPBV) following a downwards earnings adjustment. Despite our downward earnings revision, valuation remains undemanding at 12.3x 2015F PE, which is further underpinned by an attractive dividend yield of 5.9%. Maintain BUY. Telekom Malaysia (T MK) (T MK/SELL/RM7.24/Target: RM6.10) Normalised 3Q14 earnings fell 29% yoy and 11% qoq due to a clean-up in Streamyx s delinquent customer accounts and the removal of test lines. Streamyx s subscriber base shrunk by 65,000 to 1.5m in 3Q14. UniFi continued its growth trajectory, adding 27,000 subscribers as ARPU improved to RM189. 9M14 results were below expectations. Maintain SELL but raise our DCF-based target price to RM6.10. For more reports, please log in to or open an account now to gain access. Explore our trading tools designed to assist you in your trading ShareXplorer, ChartGenie, TechAnalyzer, Stock Alerts! Broaden your knowledge through our educational events. Contact us now at to find out more about our ongoing promotions (get FREE* live feed on foreign markets). *T&C apply. w w w. u t r a d e. c o m. m y 6

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R e t a i l M a r k e t M o n i t o r Tuesday, 10 March 2015

R e t a i l M a r k e t M o n i t o r Tuesday, 10 March 2015 MARKET NEWS FBMKLCI CHART The FBMKLCI lost 15.22pt (-0.8%) to close at 1,791.74 yesterday on a lack of fresh local leads and weak regional markets. Meanwhile, Asian stocks fell the most in more than a