R e t a i l M a r k e t M o n i t o r Friday, 12 Aug ust 2016

Transcription

1 MARKET NEWS FBMKLCI CHART The FBMKLCI added 5.77pt (0.34%) to close at 1, yesterday as the FBMKLCI recouped early losses amid late buying of index counters. Meanwhile, Asian stocks outside Japan retreated from the highest level in a year, following declines in US equities, as crude oil s decline drove energy and raw-materials producers lower. The MSCI Asia Pacific Excluding Japan Index fell 0.3% to The FBMKLCI s top gainers were CIMB Group Holdings (+2.45%), Hong Leong Financial Group (+1.51%) and MISC (+1.05%) while the top losers were Maxis (-1.42%), AMMB Holdings (-0.68%) and Genting Bhd (-0.603%). In the broader market, gainers outpaced losers 414 to 381 with 411 counters unchanged. Turnover was 1.85b shares valued at RM1.66b. From a technical perspective, the FBMKLCI continued its impressive recovery after closing above the previous immediate resistance of 1,674 yesterday. Strong gains on the back of a higher trading volume signify a genuine breakout, potentially prolonging the upward movement. However, the remarkable gains in the last few days may attract conservative investors to lock in gains. Support and resistance levels are revised as follows: Support: 1,645, 1,630 Resistance: 1,688, 1,695 US stocks added to gains on Thursday after a series of positive earnings from retail companies and another increase in crude prices. The DJIA gained pt, or 0.6%, to settle at 18, while the S&P500 added 10.30pt, or 0.5%, to 2, Crude oil jumped as much as 5% on comments from the Saudi oil minister about potential action to stabilise prices and the International Energy Agency's forecast that crude oil markets would rebalance in the next few months. Robust US economic data also helped, with a report showing the number of Americans applying for unemployment benefits fell to 266,000 from 269,000 in the previous week. Advancing issues outnumbered declining ones on the NYSE by a 1.63-to-1 ratio. WHAT S IN THE PACK Sunway REIT (SREIT MK/HOLD/RM1.68/Target: RM1.85) FY16: Core net profit grew 5.6% yoy, thanks to resilient retail assets as well as improved performance in the hotel segment, which partially offset the weakness in the office segment. Bright Packaging Industry (BPKG MK) Technical BUY on breakout with 24.6% potential return BUY on breakout with a target price of RM0.43 and stop-loss at RM A buying signal is seen as the stock just penetrated the Ichimoku cloud. Comfort Gloves (CG MK) Technical BUY with +17.9% potential return BUY with a target price of RM0.825 and stop-loss at RM0.64. CG had just passed the consolidation phase and managed to penetrate the breakout level of RM0.68 yesterday. Resintech (RESI MK) Technical BUY on breakout with +32.4% potential return BUY on breakout with a target price of RM0.695 and stop-loss at RM RESI s chart shows that the upside movement will remain intact if the price can penetrate the RM0.525 level. Source: Bursa Station KEY INDICES Prev Close Chg (%) YTD (%) DJIA 18, S&P 500 2, FTSE 100 6, CSI 300 3, (0.31) (13.34) FSSTI 2, (0.20) (0.45) HSCEI 9, (2.46) HSI 22, JCI 5, (0.09) KLCI 1, (0.81) KOSPI 2, Nikkei , (0.18) (12.08) SET 1, TWSE 9, (0.75) 9.52 BDI CPO (RM/mt) 2, (0.64) (0.04) Nymex Crude (US$/bbl) TOP VOLUME Stock Price (RM) Chg (%) Vol ( 000) Th Heavy ,650 Malaysia Building ,362 Ho Wah Genting Bhd ,980 Hss Engineers Bhd ,955 Pdz Holdings Bhd 0.10 (4.76) 42,261 TOP GAINERS Stock Price (RM) Chg (%) Vol ( 000) Rce Capital Bhd ,845 Key Alliance Group ,090 Diversified Gateway ,034 Amtek Holdings Bhd Yfg Bhd TOP LOSERS Stock Price (RM) Chg (%) Vol ( 000) Hubline Bhd 0.01 (50.00) 15,657 Lion Corp Bhd 0.02 (25.00) 900 Advance Information 0.20 (25.00) 5 Apft Bhd 0.06 (15.38) 27,884 K-Star Sports Ltd 0.07 (12.50) 970 Source: Bloomberg w w w. u t r a d e. c o m. m y 1

2 TRADERS CORNER Bright Packaging Industry (BPKG MK) Technical BUY on breakout with 24.6% potential return Last price : RM0.335 Target price: RM0.405, RM0.43 Support : RM0.29 Stop-loss : RM0.285 BUY on breakout with a target price of RM0.43 and stop-loss at RM A buying signal is seen as the stock just penetrated the Ichimoku cloud. This is supported by the Heat Wave indicators, the Tenkan-sen line, Kinjun-sen line and Chikao span line, which suggest a bullish signal. An uptick in the RSI suggests buying momentum is set to continue in the near term. Currently, the DMI and MACD are showing a bullish crossover to support the upward momentum. We peg our upside targets at RM0.405 and RM0.43 in the near term. Expected Timeframe: 2 weeks to 2 months. Comfort Gloves (CG MK) Technical BUY with +17.9% potential return Last price : RM0.70 Target price : RM0.78, RM0.825 Support : RM0.645 Stop-loss : RM0.64 BUY with a target price of RM0.825 and stop-loss at RM0.64. CG has just passed the consolidation phase and managed to penetrate the breakout level of RM0.68 yesterday. The uptick in the DMI together with the increase in trading volumes suggests buying momentum is set to continue in the near term. This is supported by positive readings in both the RSI and the DMI. We expect the stock to continue trending upwards towards our targets at RM0.78 and RM0.825 in the current upleg. Expected Timeframe: 2 weeks to 2 months. w w w. u t r a d e. c o m. m y 2

3 TRADERS CORNER Resintech (RESI MK) Technical BUY on breakout with +32.4% potential return Last price : RM0.485 Target price : RM0.63, RM0.695 Support : RM0.42 Stop-loss : RM0.415 BUY on breakout with a target price of RM0.695 and stop-loss at RM RESI s chart shows that the upside movement will remain intact if the price can penetrate the RM0.525 level. Currently, both the MACD and DMI indicators show a positive signal to support the upward momentum. This is also supported by an uptick in the RSI. We expect the stock will continue the upward movement to our targets at RM0.63 and RM0.695 in the near term. Expected Timeframe: 2 weeks to 2 months. w w w. u t r a d e. c o m. m y 3

4 CORPORATE NEWS Bioalpha: Eyes 30 pharmacy outlets in a year. Bioalpha Holdings Bhd aims to have 30 pharmacy outlets from the current 14 in the next 12 months, managing director William Hon said. The integrated health supplements company intends to grow its pharmacy chain Constant Pharmacy on a franchise basis outside the Klang Valley, where price competition is less stiff, he said. We have identified Kelantan and Johor as our two immediate target markets, he said in a statement. Each outlet is estimated to cost around RM750,000, depending on size and location. Bioalpha plans to set up six pharmacies in Kelantan, Hon said, adding that it is in discussions with a prospective master franchisee in Johor. We hope to conclude the negotiations soon, he said. Bioalpha opened its first Constant Pharmacy outside the Klang Valley in Tanah Merah, Kelantan last month, marking its 14th pharmacy nationwide. (Source: The Star) Century Bond: KPS plans to take over Century Bond. Kumpulan Perangsang Selangor Bhd (KPS) has proposed to acquire a 71.44% stake in Century Bond Bhd, a company that specialises in industrial packaging such as cement bags. The deal valued at RM150mil or RM1.75 per share will result in KPS extending a mandatory general offer (MGO) to mop up the remaining shares in the company if the transaction materialises. The offer by KPS, which exited the Selangor water concession business last year, is close to Century Bond s last traded price of RM1.68. It is conditional upon KPS obtaining the agreement of its shareholders within the next three months. KPS is buying the stake with a combination of cash and shares from two groups of vendors. The cash portion is RM40mil, while the company will take on debt of up to RM170mil. (Source: The Star) Iris: Inks RM170m e-passport supply deal. Iris Corp Bhd will supply 2.5 million 32-page Nigerian electronic passports under a US$42.49mil (RM170mil) supply agreement with Abuja, Nigeria-based Iris Smart Technologies Ltd (ISTL). In a filing with Bursa Malaysia yesterday, Iris said the agreement signed yesterday was for a term of three years. Iris Corp shall from time to time supply and deliver such quantities of the e-passport in accordance with the letters of credit issued by the ISTL as specified in the agreement, it said. ISTL is a system integrator and solution provider for the establishment and management of citizen database and identity management. (Source: The Star) w w w. u t r a d e. c o m. m y 4

5 SECTOR Banking: MUFG sets up RM20b Islamic securitisation programme in Malaysia. Mitsubishi UFJ Financial Group (MUFG) has set up a RM20b Islamic securitisation programme in Malaysia, a bank official told Reuters, as Japan s largest lender strives to become a key player in Islamic finance. As the first deal under the programme, MUFG said it was arranging the issuance of RM900mil in Islamic bonds, or sukuk, backed by auto loans held by Malaysia s CIMB Islamic Bank, a unit of Malaysia s second-largest bank CIMB Group Holdings Bhd. It is Malaysia s first syariahcompliant auto loan securitisation, Masumi Hamahira, adviser at MUFG s Malaysian unit, said in an interview. We expect strong demand for Islamic securitisation from both originators and investors, Hamahira said. He said it offered a means of fund-raising for Islamic auto loan providers, who are expanding their businesses in response to the rise in car ownership in Malaysia. (Source: The Star) Construction: SPAD to issue RFP to develop Klang-KL BRT Line. The Land Public Transport Commission (SPAD) is expected to issue a Request for Proposal to construct a bus rapid transit (BRT) line along the Federal Highway latest, by early next year. Chief executive officer Mohd Azharuddin Mat Sah said the BRT line would be built from Klang to Kuala Lumpur. To improve bus services, we would either invest in enforcement (on normal vehicles taking advantage of bus lanes), or build a dedicated infrastructure, so that we don t need enforcement. Furthermore, BRT buses are cheaper than the LRT, he told reporters after presenting a paper titled The Transformation of Malaysia s Public Transportation at the one-day Affin Hwang Capital Conference Series 2016 here yesterday. Mohd Azharuddin said the current bus lanes around the city centre were not very effective as buses had to move alongside the traffic. (Source: The Star) Plantation: Malaysian palm oil producers could be forced to find new customers in places like Africa as rival exporter Indonesia increases its dominance of major markets such as China and India due to cheaper prices and a more-favourable tax system. Malaysia has long-trailed Indonesia as the world's No. 2 producer and exporter of the edible oil, used in everything from chocolate to soap, mainly because of lower land and labour costs in its larger South-East Asian neighbour. But the introduction of more competitive levies on palm exports from Indonesia in July last year has further entrenched that country's dominance of export markets, according to analysts and industry officials. (Source: The Star) w w w. u t r a d e. c o m. m y 5

6 ECONOMICS IPI: June IPI advances 5.3%. Malaysia s industrial production index (IPI) in June grew a stronger-than-expected 5.3% year-on-year, exceeding a survey of 2.5% growth. According to the Statistics Department, the higher growth was driven by the manufacturing sector which grew 4.7%, mining sector up 6.3% and electricity sector rose 8.7%. The manufacturing sector continued to expand at 4.7% in June 2016 after registering a growth of 3.7% in May It said the growth in June 2016 was supported by three major sub sectors electrical and electronics products (9.1%), petroleum, chemical, rubber and plastic products (5.0%) and wood products, furniture, paper products, printing (10.1%).(Source: The Star) Investments: RM30b in investments to be approved. Some RM30bil worth of investments into Malaysia s manufacturing sector will be approved by the end of this year, said International Trade and Industry Minister Datuk Seri Mustapa Mohamed. We are targeting to achieve this throughout the second half of this year. We are still seeing a steady flow of foreign direct investment (FDI) into the sector, which should be finalised and approved by the end of the year, he told reporters on the sidelines of the Affin Hwang Capital Conference Series 2016, which was held here on Thursday. In his keynote speech, Mustapa noted that FDI into the country had steadily grown over the years, underscoring the robustness of the country s economy. Between 2011 and 2015, net FDI averaged RM35.8bil. Last year, the country recorded an all-time high FDI of RM43.44bil as more corporations began setting up regional hubs in the country. (Source: The Star) w w w. u t r a d e. c o m. m y 6

7 FROM THE REGIONAL MORNING NOTES... Sunway REIT: FY16: Decent Set Of Results (SREIT MK/HOLD/RM1.68/Target: RM1.85) Although the outlook continues to remain challenging, Sunway REIT was able to record 5.6% yoy growth in core net profit, thanks to its resilient retail assets as well as improved performance of its hotel segment, which partially offset the weakness in office segment. NPI margin remained stable at 73%. A 2.1 sen dividend was declared during the quarter, bringing FY16 dividend to 9.2 sen, accounting for 98.7% of our full-year dividend forecasts. Maintain BUY. Target price: RM1.85. 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 7

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