R e t a i l M a r k e t M o n i t o r Monday, 9 March 2015

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1 MARKET NEWS FBMKLCI CHART The FBMKLCI closed marginally higher by 0.87pt to 1, last Friday in tandem with that of most Asian regional benchmark indices. Meanwhile, the MSCI Asia Pacific Index dropped 0.3% to close at The FBMKLCI s top gainers were CIMB (+1.8%), IHH (+1.3%) and HLFG (+1.2%) while the top losers were YTL (-3.0%), Pchem (-2.0%) and Skpetro (-1.6%). In the broader market, gainers outpaced losers 454 to 361 with 311 counters unchanged. Turnover was 2.01b shares valued at RM1.93b. From a technical perspective, the FBMKLCI is expected to continue consolidating in the near term amid the formation of a spinning top pattern last Friday which indicates the indecisiveness ahead. The index tried to penetrate the support level at 1,800 last Friday and managed to close above that level. This is further reinforced by the downtick in the RSI, which suggests that buying momentum would continue to ease over the next few days. As such, we expect the index to resume its uptrend once the current consolidation ends. Support and resistance levels are maintained as follows: Support: 1,800, 1,770 Resistance: 1,830, 1,845 US markets slumped on Friday despite stronger employment data. The S&P 500 fell 1.4% to 2, while the DJIA retreated1.5% to 18, The US economy added 295,000 jobs last months while the unemployment rate fell to 5.5%. Wage growth, however, was sluggish, rising 2%, two-thirds as fast as during a strong economic expansion. Staples fell 2.7% after the office-supplies retailer said it swung to a loss in the fourth quarter. Footwear retailer Foot Locker rose 4% after its fourth-quarter earnings beat expectations. WHAT S IN THE PACK Telecommunications 4Q14 results in line with expectations, but Axiata disappoints. Sector revenue contracts 3% yoy in 2014 but uptick seen in 4Q14. Maintain MARKET WEIGHT. Malaysia Airports Holdings (MAHB MK/BUY/RM6.94/Target: RM8.00) ISG to insulate MAHB from domestic slowdown. Cam Resources (CAM MK) Technical BUY with +20.0% potential return BUY with a target price of RM0.445 and stop loss at below RM Based on the chart, CAM has formed a higher high and higher low and penetrated the breakout level of RM0.37 last Friday. YTL E-Solution (YTLE MK) Technical BUY with +23.0% potential return BUY with a target price of RM0.695 and stop loss at below RM Based on the daily chart, the stock is currently making higher highs and higher lows, a key characteristic of an uptrend pattern. Jobstreet Corporation (JOBS MK) Technical BUY with +22.9% potential return BUY on breakout with a target price of RM0.595 and stop loss at below RM A buying signal is given as the stock is currently trading above the cloud. The Heat Wave indicators - Tenkan-sen line, Kinjun-sen line and the Chikao span line are showing bullish signals. Source: BursaStation KEY INDICES Prev Close Chg (%) YTD (%) DJIA 17, (1.54) 0.19 S&P 500 2, (1.42) 0.60 FTSE 100 6, (0.71) 5.27 CSI 300 3, (0.51) (1.56) FSSTI 3, HSCEI 11, (3.15) HSI 24, (0.12) 2.37 JCI 5, KLCI 1, KOSPI 2, Nikkei , SET 1, TWSE 9, BDI (27.75) CPO (RM/mt) 2, (1.55) 0.97 Nymex Crude (US$/bbl) (0.44) (8.98) Source: Bloomberg TOP VOLUME Stock Price (RM) Chg (%) Vol ( 000) Eti Tech Corp Bhd ,034 Ingenuity 0.08 (6.25) 101,816 Privasia Technology ,656 Asia Bioenergy ,541 Cybertowers Bhd ,394 TOP GAINERS Stock Price (RM) Chg (%) Vol ( 000) Cybertowers Bhd ,394 Kumpulan H&L High Karambunai Corp ,677 Privasia Technology ,656 Asia Knight Bhd TOP LOSERS Stock Price (RM) Chg (%) Vol ( 000) Pccs Group Bhd 0.45 (14.29) 0.2 Mtouche 0.18 (12.20) Utopia Bhd 0.05 (10.00) 4,276.1 D&O Green 0.24 (9.62) Grand Central 0.76 (8.43) 1.3 Source: Bloomberg w w w. u t r a d e. c o m. m y 1

2 TRADERS CORNER Cam Resources (CAM MK) Technical BUY with +20.0% potential return Last price : RM0.375 Target price : RM0.395, RM0.445 Support : RM0.34 Stop loss : RM0.335 BUY with a target price of RM0.445 and stop loss at below RM Based on the chart, CAM has formed a higher high and higher low and managed to penetrate the breakout level of RM0.37 last Friday. The higher trading volumes in a breakout show genuine buyers are starting to enter into this counter. We expect CAM to continue to move up towards our targets at RM0.395 and RM Besides, all indicators are showing positive momentum. Expected Timeframe: 2 weeks to 2 months YTL E-Solution (YTLE MK) Technical BUY with +23.0% potential return Last price : RM0.565 Target price : RM0.64, RM0.695 Support : RM0.53 Stop loss : RM0.525 BUY with a target price of RM0.695 and stop loss at below RM Based on the daily chart, the stock is currently making higher highs and higher lows, a key characteristic of an uptrend pattern. The stock managed to penetrate the breakout level of RM0.565 last Friday on rising volumes. The buying signal is intact as the stock is currently trading above the cloud. The Heat Wave indicators - Tenkansenline, Kinjun-sen line and the Chikao span line - are showing bullish signals. This bullish pattern is also confirmed by the MACD and ADX. 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 Jobstreet Corporation (JOBS MK) Technical BUY on breakout with +22.9% potential return Last price : RM0.45 Target price : RM0.515, RM0.59 Support : RM0.44 Stop loss : RM0.435 BUY on breakout with a target price of RM0.595 and stop loss at below RM A buying signal is given as the stock is trading above the cloud. The Heat Wave indicators - Tenkan-sen line, Kinjun-sen line and the Chikao span line - are showing the bullish signals. The uptick in the DMI suggests buying momentum is set to continue in the near term. We expect the stock to continue trending up towards the breakout level of RM0.48 along with the current upleg. A breakout above this level would extend the uptrend towards our targets of RM0.515 and RM0.59. Expected Timeframe: 2 weeks to 3 months w w w. u t r a d e. c o m. m y 3

4 CORPORATE NEWS Brahim's Holdings: To Buy The chicken rice shop? Brahim's Holdings is about to jump into another food and beverage (F&B) venture in a bid to reduce its dependency on the catering business. Sources say Brahim's is in talks to acquire a local F&B business, TCRS Restaurant Sdn Bhd - the owner and operator of The Chicken Rice Shop, Sweet Chat and Dubu-Dubu in Malaysia. TCRS is also the coowner of Pancake House International. Details of the plan remained sketchy as the two parties have yet to reach a deal. (Source: The Edge Weekly) Boustead Holdings: Boustead and LTAT taking over AES operations. Conglomerate Boustead Holdings Bhd and Lembaga Tabung Angkatan Tentera (LTAT) are taking over the controversial automated traffic enforcement system (AES) operations in Malaysia by acquiring a 50% stake in Irat Properties Sdn Bhd. In a filing with Bursa Malaysia, Boustead said the RM127.8m deal would see it subscribing 60m new shares at the issue price of RM2.13 in Irat Properties, joining its parent LTAT and Irat Holdings Sdn Bhd. Boustead said LTAT was also subscribing 550,000 redeemable convertible preference shares (RCPS) of 1 sen par value each in Irat at the issue price of RM100 per RCPS for RM55.5m. With the subscription, Boustead will have a 50% stake, followed by LTAT 49.17% and Irat Holdings 0.83%, respectively. (Source: The Star) Genting Plantations: In RM300m palm oil refinery with Muslim Mas Group. Genting Plantations Bhd and Musim Mas Group are teaming up to set up a palm oil refinery in the Palm Oil Industrial Cluster (POIC) in Lahad Datu, Sabah. Musim Mas Group will take a 28% interest in the joint venture company Alfa Raya Development Sdn Bhd and Genting Plantations the remaining 72%. The refinery, which entails an investment of about RM300mil, will have the capacity of 600,000 tonnes per annum or 1,800 tonnes per day. It is targeted for completion in the second half of (Source: The Star) Hibiscus: Plans to drill five wells. Hibiscus Petroleum Bhd has earmarked a total capital expenditure (capex) of about US$40m (RM145m) for drilling of five exploratory wells this year. Of the total capex, the company says US$10m will be allocated to drill four oil wells in Norway, while the remainder will be spent on drilling a unit in Australia. The expenditures are payable on a staggered basis over the year. According to Pereira, Hibiscus will part-finance its capex requirement with funds raised from a proposed private placement. The exercise, which involves an issuance of up to 89.2m new shares or 10% of its share capital, is expected to raise about US$25m (RM90m), Pereira says. The company is set to embark on a fresh capital-raising exercise this year to finance its capex requirement and expansion programme. It will be seeking its shareholders approval for an additional 10% for private placement at its upcoming AGM that will be held in the second quarter of this year. (Source: The Star) IOI Properties: Taipei 101 stake sale off. IOI Properties Group Bhd s planned stake acquisition in the Taipei 101 skyscraper is now off following the three-month lapse on March 5 to obtain the foreign investment approval from the Investment Commission (FIA) of Taiwan. The plan was supposed to see IOI Properties purchase a 37.17% stake in Taipei Financial Center Corp for NT$25.14b (or RM2.74b). The company has decided not to extend the three months period as stated in the Clause 10.1(c) of the share sale agreements and hence, the agreement is terminated. The company will now proceed to obtain the refund of the deposits paid by IOI Properties, it said in a Bursa Malaysia announcement yesterday. (Source: The Star) w w w. u t r a d e. c o m. m y 4

5 Mudajaya Group: buys 46% in PT Harmoni. Mudajaya Group Bhd s wholly-owned unit Mudajaya Power International Sdn Bhd has acquired a 46% stake in PT Harmoni Energy Indonesia. On July 24, last year, Mudajaya Power had entered into a conditional sale and purchase of shares agreement with PT Indomuda Satria Internusa to acquire up to 70% equity in PT Harmoni, Mudajaya said in a filing with Bursa Malaysia yesterday. (Source: The Star) Mulpha Land: gets takeover offer of 49.7 sen per share from Teladan Kuasa. Mulpha Land Bhd (MLB) has received a take-over offer from Teladan Kuasa Sdn Bhd, to acquire all the remaining shares the latter does not own for a cash consideration of 49.7 sen per share. The offer was triggered after Mulpha International Bhd entered into a call option agreement with Teladan Kuasa that gave the latter the right to acquire up to 75m shares of 10 sen each in MLB. This represents up to 32.85% of MLB with cash consideration or call option cost of RM2m. (Source: The Star) Sunsuria: Major shareholder likely to inject RM350m into Sunsuria. Sunsuria Bhd s major shareholder Datuk Ter Leong Yap is likely to inject assets in the Klang Valley and Iskandar Malaysia measuring some 350 acres into the company to further strengthen the quality of its land bank. The land worth RM350m and with a potential gross development value of RM10b was supposed to be injected into Sunsuria last year but the agreement lapsed. A whiff of this taking place was the announcement by Sunsuria at market close last Friday, when it requested for the suspension of its stock pending a material announcement. The property assets likely to be injected into SunSuria include Sunsuria Development Sdn Bhd s developments in Salak Tinggi, Selangor, the Medini development in Iskandar Malaysia and a mixed development in Setia Alam, Selangor. (Source: The Star) Sunway: Sunway construction submits IPO application. Sunway Construction Group Bhd (SCG), a wholly-owned subsidiary of Sunway Bhd, has submitted an application to be listed on the main market of Bursa Securities, Sunway said in a filing with Bursa Malaysia. The initial public offering (IPO) will involve the distribution of at least m shares, as well as, offer for sale of up to m shares. The sale is expected to rise up to RM712.32m in proceeds for the parent company. (Source: The Star) ECONOMICS Reserves: International reserves at RM386b. Bank Negara s international reserves amounted to RM386b (US$110.5b) as at Feb 27. The central bank said the reserves position was sufficient to finance 7.9 months of retained imports and was 1.1 times the short-term external debt. The main components of the international reserves were foreign currency reserves (US$101b), International Monetary Fund position (US$0.9b), Special Drawing Rights (SDRs)(US$1.9b), gold (US$1.4b) and other reserve assets (US$5.3b). (Source: The Star) w w w. u t r a d e. c o m. m y 5

6 FROM THE REGIONAL MORNING NOTES... Telecommunications : 2014 Revenue Contracts 3% yoy; To Resume Growth In 2015 Sector earnings in 4Q14 were broadly in line with expectations as revenue fell 3% yoy in 2014, dragged down by Celcom s system woes and Maxis internal restructuring. Digi marched ahead and grew top-line by 4% yoy in We reduce 2015 and 2016 sector net profit forecasts by 11% each as the GST may not lead to higher minute of usage. Maintain MARKET WEIGHT. Digi remains our top pick as it is best positioned to monetise data growth from the prepaid segment. Malaysia Airports Holdings : ISG To Insulate MAHB From Domestic Slowdown (MAHB MK/BUY/RM6.94/Target: RM8.00) We consolidate Istanbul Sabiha Gokcen s (ISG) earnings into MAHB s following the full ownership of ISG at end-14. We expect ISG s pax traffic to cushion the slowdown in throughput at Malaysia and for the unit to be cash flow positive by end-15. More importantly, MAHB will now have full control over a fast-growing airport where passenger service charges are almost double that of KLIA2. Maintain BUY. Target price: RM8.00. 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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