M A L A Y S I A. R e t a i l M a r k e t M o n i t o r Tu esday, 29 Nov em be r

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1 MARKET NEWS F B M K L C I C H A R T The FBMKLCI rose 1.40pt to close at 1, yesterday. Meanwhile, Asian equities climbed as metal surged on President-elect Donald Trump s promise to boost infrastructure spending. The MSCI Asia Pacific Index rose 0.8%, with the sub-gauge of utilities gaining 1.3%. The FBMKLCI s top gainers were Maxis (+3.3%), Genting Malaysia (+2.1%) and PPB Group (+1.1%) while the top losers were Axiata Group (-1.2%), RHB Bank (-1.1%) and MISC (-0.96%). In the broader market, losers outpaced gainers 594 to 224 with 318 counters unchanged. Turnover was 1.32b shares valued at RM1.44b. From a technical perspective, the benchmark index tried to breach the BBI line yesterday while RSI lines continued pointing upward, suggesting the presence of buying momentum which may continue to rise higher in the near term. This is supported by the MACD that is currently on the verge of making a golden cross to the positive signal. Nevertheless, given the current volatility, we advise investors to be extra careful with their open positions. Support and resistance levels are maintained as follows: Support: 1,612,1,600 Resistance: 1,665, 1,680 US stocks closed lower on Monday after setting record highs throughout last week. The DJIA lost 54.24pt, or 0.28%, to close at 19, while the S&P500 edged lower by 11.63pt, or 0.53%, to 2, The price of benchmark US oil surged 2.3% to above US$47/bbl. Major oil producers from OPEC will meet Wednesday to discuss output cuts to shore up prices. Meanwhile, the yield on the 10-year US Treasury note fell to 2.33% from 2.36%. On the economic front, Chicago PMI for November is set to be released on Wednesday, while Markit releases its manufacturing PMI gauge and the Institute of Supply Management releases its November manufacturing figures on Thursday. Friday s jobs report will come before the widely-expected Fed rate hike in December. Falling stocks outnumbered advancing ones on the NYSE by 2,055 to 1,096 and 91 ended unchanged. WHAT S IN THE PACK Carlsberg Brewery Malaysia (CAB MK/HOLD/RM14.00/Target: RM14.00) 3Q16: Missed expectations. The underperformance came from a weak top-line in Malaysia and higher A&P expenses from both Malaysia and Singapore arms. 4Q16 outlook subdued. IJM Corporation (IJM MK/BUY/RM3.30/Target: RM3.95) 2QFY17: Broadly in line, with the construction division being the key growth driver. Muar Ban Lee Group (MBL MK) Technical BUY with +26.8% potential return BUY with a target price of RM1.26 and stop-loss at RM1.04. Based on the daily Ichimoku chart, a buying signal was seen as the stock has been trading above the Ichimoku cloud. Public Packages Holdings(PP MK) Technical BUY with +19.6% potential return BUY with a target price of RM1.16 and stop-loss at RM0.91. A successful closing above the BBI line on the back of higher trading volumes points to improving sentiment as PP looks set to resume the upward move. Sedania Innovator (SDNA MK) Technical BUY on breakout with +43.6% potential return BUY on breakout with a target price of RM0.395 and stop-loss at RM0.22. Having sustained above the BBI line over the past few days, SDNA surged on renewed buying interest to retest the breakout level of RM0.275 yesterday. Source: Bursa Station K E Y I N D I C E S Prev Close Chg (%) YTD (%) DJIA 19, (0.28) 9.60 S&P 500 2, (0.53) 7.72 FTSE 100 6, (0.60) 8.93 CSI 300 3, (5.25) FSSTI 2, (0.28) HSCEI 9, HSI 22, JCI 5, (0.15) KLCI 1, (3.77) KOSPI 1, Nikkei , (0.13) (3.56) SET 1, TWSE 9, BDI 1, CPO (RM/mt) 3, Nymex Crude (US$/bbl) (0.72) 5.72 T O P V O L U M E Stock Price (RM) Chg (%) Vol ( 000) Airasia X Bhd 0.37 (3.90) 46,079 Hibiscus Petroleum 0.28 (6.67) 38,918 Felda Global 1.44 (7.69) 33,986 Bumi Armada Bhd 0.51 (7.27) 30,072 Gadang Holdings Bhd 0.94 (6.93) 19,980 T O P G A I N E R S Stock Price (RM) Chg (%) Vol ( 000) Kim Hin Industry Bhd ,127 Dbe Gurney ,338 Idimension Perwaja Holdings Bhd ,877 Nwp Holdings Bhd ,984 T O P L O S E R S Stock Price (RM) Chg (%) Vol ( 000) Maxwell International 0.02 (25.00) 3 China Automobile 0.02 (20.00) 671 Lion Diversified 0.03 (16.67) 19 Mq Technology Bhd 0.08 (15.79) 13,096 Dgb Asia Bhd 0.04 (12.50) 392 Source: Bloomberg w w w. u t r a d e. c o m. m y 1

2 TRADERS CORNER Muar Ban Lee Group (MBL MK) Technical BUY with +13.5% potential return Last price : RM1.12 Target price : RM1.19, RM1.26 Support : RM1.05 Stop-loss : RM1.04 BUY with a target price of RM1.26 and stop-loss at RM1.04. Based on the daily Ichimoku chart, a buying signal was seen as the stock has been trading above the Ichimoku cloud. This is supported by the Heat Wave indicators as the Tenkan-sen, Kinjun-sen and Chikao span lines are intercrossing, which suggest a bullish signal. On yesterday s movement, MBL managed to penetrate above the breakout level RM1.11. An uptick in the DMI suggests buying momentum is set to continue in the near term. Currently, the MACD is showing a bullish crossover to support the upward momentum. We peg our targets at RM1.19 and RM1.26 in the near term. Expected time frame: 2 weeks to 2 months Public Packages Holdings (PP MK) Technical BUY with +19.6% potential return Last price : RM0.97 Target price : RM1.09, RM1.16 Support : RM0.915 Stop-loss : RM0.91 BUY with a target price of RM1.16 and stop-loss at RM0.91. A successful closing above the BBI line on the back of higher trading volumes points to improving sentiment as PP looks set to resume the upward move. An uptick in the DMI suggests a strong momentum to push the share price higher in the near term. Additionally, the MACD is currently on a bullish crossover, indicating a stronger uptrend ahead. We peg our upside targets at RM1.09 and RM1.16. Expected time frame: 2 weeks to 2 months. w w w. u t r a d e. c o m. m y 2

3 TRADERS CORNER Sedania Innovator (SDNA MK) Technical BUY on breakout with +43.6% potential return Last price : RM0.265 Target price : RM0.345, RM0.395 Support : RM0.225 Stop-loss : RM0.22 BUY on breakout with a target price of RM0.395 and stop-loss at RM0.22. Having sustained above the BBI line over the past few days, SDNA surged on renewed buying interest to retest the breakout level of RM0.275 yesterday. Growing bullish divergence in the MACD suggests that the bullish trend will continue in the near term while the steep upward movement of the RSI suggests that buying momentum would continue to pick up going forward. We peg our targets at RM0.345 and RM0.395 once it manages to penetrate above the breakout level of RM 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 Matang: Inks underwriting deal with M&A Securities. Matang Bhd has signed an underwriting agreement with M&A Securities Sdn Bhd as the plantation company seeks a listing on the ACE Market of Bursa Malaysia Securities Bhd. The IPO will involve the issuance of 130m new shares of 10 sen each in Matang, or 7.18% of the enlarged issued and paid-up share capital after listing. Under the agreement, M&A Securities will underwrite the entire 130m new Matang shares to be offered to the Malaysian public via public balloting. Matang chairman Datuk Teh Kean Ming signed on behalf of the company while M&A Securities was represented by its managing director of corporate finance, Datuk Bill Tan Choon Peow. (Source: The Star) Mulpha International: In talks to acquire Novotel Brisbane Hotel. Mulpha International Bhd said it is in discussions to acquire the Novotel Brisbane Hotel but has not inked any legally-binding contract for the purchase. The announcement was made in response to a local news publication's report that said the group intended to acquire the hotel from CDL Hospitality Trusts for A$85m (RM275.8m). Mulpha continues to actively pursue hotel acquisitions in the Australian market. Mulpha will ensure that an announcement is made in accordance with the Main Market Listing Requirements of Bursa Malaysia Securities Bhd, should any binding agreement be reached to acquire assets that are material to the group, it said. Mulpha closed down 0.5 sen or 2.44% at 20 sen today, giving it a market capitalisation of RM639.57m. (Source: The Edge Financial Daily) Multi-Usage Holdings: Suspends two directors as part of probe. Multi-Usage Holdings Bhd s (MUH) board has decided to suspend two directors, Gerald Mak Mun Keong and Tan Chew Hua, for two months as part of an investigation. The property developer and building material manufacturer said Mak, an independent, nonexecutive director, was suspended to investigate his independence. Whilst Tan, a nonindependent and non-executive director, was suspended to investigate into the matters highlighted in the qualified auditors report and the special audit report, MUH said in a filing with the bourse. The board authorised the Nomination Committee to lead the investigation into the above matters, the company said. (Source: The Star) The Store Corp: Group MD launches MGO for The Store, plans to take it private. The Store Corp Bhd (TSCB) group MD Tan Sri Tang Yeam Soon and his wife, executive director Puan Sri Khor Guik Lee, are making a mandatory general offer (MGO) to acquire the remaining shares they do not own in the retailer for RM3.52 each in cash. In a filing with Bursa Malaysia, the country's oldest existing supermarket and departmental store chain said TYS Consolidated Sdn Bhd, whose controlling and/or substantial shareholders are Tang and Khor, acquired a 13.88% stake in TSCB on Monday. The stake, believed to be acquired from Nirvana Asia founder Tan Sri Kong Hon Kong, boosted the collective shareholdings of the ultimate offerors (Tang and Khor), TYS Consolidated and persons acting in concert (PACs) in TSCB from 28.16% to 42.05%. The PACs are Equatorial Century Sdn Bhd, TSCB s single biggest shareholder in which the ultimate offerors are the directors and the owners of its entire paid-up capital, and the ultimate offeror s son Tang Chee Weng. The offer price represents a 21.38% premium to the lazt transacted price and volume weighted average market share price of TSCB shares up to Nov 25, being the last full trading day prior to the takeover notice. (Source: The Star) w w w. u t r a d e. c o m. m y 4

5 TPC Plus: No longer PN17 firm from tomorrow. Egg producer TPC Plus Bhd will be uplifted from being classified as a Practice Note 17 (PN17) company from tomorrow. "TPC has regularised its financial condition and level of operations and no longer triggers any of the criteria under Paragraph 2.1 of PN17 of the Main Market listing requirements," Bursa Securities said in a statement today. The regulator said it will continue to monitor the progress of PN17 companies, in respect of their compliance with the listing requirements. TPC became a PN17 company on 28 Mar 14, after its auditors expressed concern over the company, which posted a net loss of RM4.1m in financial year ended 31 Dec 13. TPC's shareholders' equity as at 31 Dec 13 was also less than 50% of its issued capital. Excluding TPC, there now remains 17 companies under PN17 which represent 1.88% of the total number of 904 companies listed on Bursa Malaysia. TPC shares closed down 0.5 sen or 0.9% at 55 sen today, bringing it to a market capitalisation of RM108m. (Source: The Edge Financial Daily) TRC Synergy: MRT contract terminated due to 'national interest'. One of the two contracts secured by TRC Synergy Bhd s unit, Trans Resources Corp Sdn Bhd, from Mass Rapid Transit Corp Sdn Bhd (MRT Corp) in March has been terminated. The RM74.4m contract was cancelled in accordance with Clause 62 of the conditions of contract (termination on national interest), said the construction and property development group. In a filing with Bursa Malaysia on Monday, TRC Synergy said it had on 20 May (received the notice of termination of works from MRT Corp s project delivery partner, MMC Gamuda KVMRT (PDP SSP) Sdn Bhd, for the contract that involved renovating two blocks in Sultan Abdul Samad Building in Kuala Lumpur. (Source: The Star) SECTOR Banking: Bank Negara appoints new members to its Financial Stability Executive Committee. Bank Negara has announced the appointments of deputy governor Abdul Rasheed Ghaffour, Datuk Johan Idris and Yoong Sin Min as members of its Financial Stability Executive Committee. Johan and Yoong would serve as external experts for a three-year term with effect from 3 Nov 16, following the resignation and expiry of membership of the previous external experts. These appointments are in accordance with Section 37(2) of the Central Bank of Malaysia Act 2009 (CBA). (Source: The Star) Banking: Bank Negara wants rules of NDF market to be changed. Bank Negara Malaysia (BNM) wants a change in the rules for the offshore ringgit non-deliverable forward (NDF) market following the recent weeks of speculative position taking. Saying that perhaps it is time to change the rules of the game, central bank governor, Datuk Muhammad Ibrahim said on Monday that the financial market players, especially those in the NDF market, need to be as transparent as the demands they expect of others. Similarly, jurisdictions that govern them ought to make this opaque market more transparent and accountable, he added in his keynote address at the Global Banking Leaders programme here. StarBiz reported there has been a substantial selldown in government bonds, led by foreign selling, since the aftermath of the US presidential election. The rout in the country s bond market saw the Malaysian Government Securities (MGS) yields rising at its fastest pace ever to around 15-month high in a matter of two weeks. The ringgit is now hovering at its lowest levels in 19 years as a result of continued capital outflow. (Source: The Star) w w w. u t r a d e. c o m. m y 5

6 FROM THE REGIONAL MORNING NOTES... Carlsberg Brewery Malaysia: 3Q16: Time To Sober Up (CAB MK/HOLD/RM14.00/Target: RM14.00) CAB s 3Q16 results missed expectations. The underperformance came from: a) a weak top-line from Malaysia on weak consumer sentiment, and b) higher A&P expenses in both Malaysia and Singapore arms to spur sales. Its associate, Lion Brewery, was back in the red due to a massive flood. 4Q16 outlook remains subdued due to still-weak consumer sentiment. We cut our earnings forecasts by 6-9.5%. Maintain HOLD with a lower target price RM14.00, implying 17.5x 2017F PE. Entry price: RM IJM Corporation: 2QFY17: Growth Driven By Construction Division (IJM MK/BUY/RM3.30/Target: RM3.95) IJM reported a 2QFY17 core net profit of RM167.3m on revenue of RM1.5b. 1HFY17 results accounted for 47% of our and consensus full-year estimates each. We deem the results in line as we expect the construction division to continue to record robust growth momentum as billings accelerate. Key catalysts for the stock would be potential job wins that may come in 2HFY17 as well as improving port operations throughput. Maintain BUY. Target price: RM3.95. 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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