Market Insight. Thursday, 30 June, 2016

Transcription

1 Thursday, 30 June, /03/2013(031743) Major Highlights Gas tariffs to go up BCorp's loss widens, goodwill value dips by RM473.2m AirAsia to invest RM20m to promote klia2 Maxis to issue up to RM10bn Islamic notes Margma: Glove prices to rise following gas price hike Govt to give RM758.03m rebate to TNB consumers MARC affirms AAA rating on TNB Northern Energy s RM1.6bn sukuk Bursa Malaysia Bursa Malaysia Close Change +/- Change % FBMKLCI 1, FBMEMAS 11, FBM100 11, FBMEMAS Shariah 12, FBM Hijrah Shariah 13, Volume (mn) 1, Value (RMmn) 1, FBMKLCI YTD Chg Scoreboard Close Change +/- Change % Gainers Losers Unchanged Regional Indices Close Change +/- Change % YTD Change DJIA 17, NASDAQ 4, S&P 500 2, FTSE 100 6, Nikkei , HSI 20, SHCOMP 2, KOSPI 1, TWSE 8, STI 2, JCI 4, SET 1, PSEi 7, Market Valuation (PER) FY16 FY17 5Y Average FBMKLCI SHCOMP HSI JCI SET STI PSEi The Research Team bimbresearch@bimbsec.com.my Local & Global Economic News Ringgit Closes Higher Against US Dollar Malaysian palm price falls to 7-month low on weak fundamentals, stronger ringgit European healthcare first sector to recover Brexit losses Global stock, oil prices gain as Brexit jitters abate US consumer spending rises, Brexit casts shadow on outlook KLCI Performance KLCI Year-End Target: 1,780 points Sector Indices Close Change +/- Change % Industrial 3, Consumer Industrial Products Construction Finance 14, Property 1, Plantation 7, Technology KLCI Futures Contracts Jun-16 Jul-16 High 1, , Low 1, , Last 1, , Volume 8, , Commodities (Most Recent Close) Close Change +/- (+/- %) % Brent Crude (USD/bbl) WTI Crude (USD/bbl) Gold (USD/ounce) 1, CPO (RM/MT) 2, SMR 20 (sen/kg) Latex (sen/kg) Soybean Oil Forex (per USD1) Close Change +/- Change % MYR JPY EUR SGD BIMB Securities 1

2 Major Rates KLIBOR 3-mth 3.65% KLIBOR 6-mth 3.78% KLIBOR 12-mth 3.87% 5-yr MGS 3.39% 10-yr MGS 3.73% Active Stock Close Change+/- (+/- %) Vivocom International Sapurakencana Trive Property Bumi Armada KNM Group Daily Participation Participation (%) Bought (RMm) Sold (RMm) Net (RMm) Local Institution Local Retail Foreign Total , , Top Gainers Close Change+/- (+/- %) Scientex British American Tobacco Malaysian Pacific Time Dotcom Hong Leong Financial Top Losers Close Change+/- (+/- %) Malaysia Airports MSM Malaysia SCGM Dutch Lady Milk Inds Hong Leong Industries

3 LOCAL CORPORATE NEWS Gas tariffs to go up Gas Malaysia will raise natural gas tariffs for the non-power sector in Peninsular Malaysia by 5.95% from July 15. The gas supply company said yesterday that the average gas tariff will be revised upwards by RM1.52 per one million British thermal units (MMBtu) or 5.95% from an average price of RM25.53/MMBtu to RM27.05/MMBtu. Gas Malaysia said there would be no change to the selling price for residential customers, that is classified under category A, at RM19.52/MMBtu. (Source: Starbiz) BCorp's loss widens, goodwill value dips by RM473.2m Berjaya Corp (BCorp) widened its loss to RM368.91m for the fourth quarter to April 30, 2016 from RM274.97m previously, mainly due to non-cash impairment losses in goodwill value of RM473.2m. Its revenue, however, was up 6.94% to RM2.48bn for the period. For the quarter, the diversified group has declared a dividend of 2.16 sen from one sen previously. Nonetheless, due to these huge impairment losses, BCorp was in the red for the full financial year ended April 30, 2016, with losses of RM174.7m. This was a contrast from the previous net profit of RM831.67m. (Source: StarBiz) AirAsia to invest RM20m to promote klia2 AirAsia will continue to promote klia2 as the Low-Cost Carrier Terminal (LCCT) with a whopping US$5m (RM20.08m) to be spent on its marketing campaign, said group chief executive officer Tan Sri Tony Fernandes. (Source: StarBiz) Maxis to issue up to RM10bn Islamic notes Maxi s unit Maxis Broadband SB (MBSB) plans to issue Islamic medium-term notes with a nominal value of up to RM10bn which will be partly used to finance the group's internal reorganisation exercise. The telecommunications service provider said MBSB made a lodgement on Wednesday with the SC for the unrated sukuk murabahah programme. The unrated sukuk murabahah programme will have a tenure of more than one year and up to 30 years. (Source: StarBiz) Margma: Glove prices to rise following gas price hike Glove prices must be adjusted by US$0.40 to US$0.60 higher per 1,000 pieces considering higher gas tariff and minimum wage factors, said the Malaysian Rubber Glove Manufacturers Association (Margma). President Denis Low Jau Foo said the natural gas price hike of 5.95%, effective July 15, would translate into additional cost of US$0.20 to US$0.30 per 1,000 pieces for nitrile gloves and US$0.20 to US$0.50 for latex gloves. (Source: StarBiz) Govt to give RM758.03m rebate to TNB consumers TNB has announced a RM758.03m rebate to consumers with monthly consumption of more than 300 kwh. The utility giant said this Imbalance Cost Pass-Through (ICPT) rebate was made possible due to lower LNG and coal prices, higher performance of coal power plants and a reduction in the use of LNG for electricity generation. The Government had announced an ICPT rebate of 1.52 sen/kwh effective from July 1, 2016 until Dec 31, The rebate also took into account additional gas cost following the Government s subsidy rationalisation plan and decision to further increase the piped gas price from the current RM18.20/mmBTU to RM19.70/mmBTU. The new gas price will be effective from July 1, (Source: StarBiz) MARC affirms AAA rating on TNB Northern Energy s RM1.6bn sukuk MARC has affirmed its AAA rating on TNB Northern Energy Bhd s sukuk of RM1.625bn with a stable outlook. The rating and outlook were equalised with those of TNB Northern Energy s ultimate parent Tenaga Nasional Bhd (TNB), on which MARC has a senior unsecured rating of AAA/Stable. The rating equalisation was based on TNB s commitment in the form of an unconditional and irrevocable project completion support guarantee and post-completion rolling guarantee in favour of sukukholders. (Source: StarBiz) 3

4 LOCAL AND GLOBAL ECONOMIC NEWS Ringgit Closes Higher Against US Dollar The ringgit closed higher against the US dollar with the currency market continuing to stabilise after the UK shock vote to leave the EU last week. At 5 pm, the ringgit was higher at /0440 against the greenback from Tuesday's closing of /0785. (Source: Bernama) Malaysian palm price falls to 7-month low on weak fundamentals, stronger ringgit Malaysian palm oil futures fell to a seven-month low on Wednesday, dragged down by poor fundamentals and a stronger ringgit. Palm oil has been on a downward trend since the beginning of June, posting three straight weekly falls and losing 9.2% so far this month. The tropical oil has been recording losses, as traders forecast higher seasonal output in the coming months, while exports for June have fallen after they peaked in May ahead of Ramadan, contributing to rising stockpiles. Benchmark palm oil futures for September delivery on the Bursa Malaysia Derivatives Exchange closed 2.3% lower at 2,323 ringgit ($575) per tonne. They had earlier fallen to 2,317 ringgit, a level last seen on Dec. 2, (Source: Starbiz) European healthcare first sector to recover Brexit losses The rush to large-cap, high quality, dividend-paying pharmaceutical stocks in the aftermath of Brexit has helped Europe's healthcare index erase all its losses since last week's vote. The healthcare index, up 1.4% on Wednesday, is the only regional sector index to trade above last Thursday's close. Gains were led by British pharma stocks such as AstraZeneca and GlaxoSmithKline, both up 10.5% and 7.5%, in the past three sessions. A weaker sterling further adds to the UK large-cap healthcare sector's appeal given that a significant share of their revenues comes from outside Britain. (Source: Reuters) Global stock, oil prices gain as Brexit jitters abate Stock markets around the world rebounded for the second straight day on Wednesday as fears about last week's Brexit vote eased and investors wagered central banks would ultimately ride to the rescue with more stimulus. Fading concerns over Britain's vote to exit the EU bolstered oil prices and helped boost energy shares both in Europe and in the United States. (Source: Reuters) US consumer spending rises, Brexit casts shadow on outlook US consumer spending rose for a second straight month in May on increased demand for automobiles and other goods, but there are fears Britain's vote to leave the EU could hurt confidence and prompt households to cut back on consumption. Wednesday's fairly strong report released by the Commerce Department pointed to an acceleration in economic growth in the second quarter. Still, economists worry that financial turbulence, following last Thursday's so-called "Brexit" referendum, could hurt consumer confidence and cause households to bulk up their savings rather than increase spending because of an uncertain economic outlook. (Source: Reuters) 4

5 ECONOMIC CALENDAR Date Time Country Event Survey Actual Prior Revised 06/30/ :50 JN Loans & Discounts Corp YoY May % 3.05% -- 06/30/ :50 JN Industrial Production MoM May P -0.20% -2.30% 0.50% -- 06/30/ :50 JN Industrial Production YoY May P 1.90% -0.10% -3.30% -- 06/30/ :50 JN Japan Buying Foreign Bonds 24-Jun b b b 06/30/ :50 JN Japan Buying Foreign Stocks 24-Jun b 72.4b -- 06/30/ :50 JN Foreign Buying Japan Bonds 24-Jun b b b 06/30/ :50 JN Foreign Buying Japan Stocks 24-Jun b b b 06/30/ :00 JN Vehicle Production YoY May % -- 06/30/ :00 JN Housing Starts YoY May 4.80% % -- 06/30/ :00 JN Annualized Housing Starts May 0.973m m -- 06/30/ :00 JN Construction Orders YoY May % -- 06/30/ :00 GE Retail Sales MoM May 0.60% % -0.30% 06/30/ :00 GE Retail Sales YoY May 2.50% % -- 06/30/ :45 FR PPI MoM May % -- 06/30/ :45 FR PPI YoY May % -- 06/30/ :45 FR CPI EU Harmonized MoM Jun P 0.20% % -- 06/30/ :45 FR CPI EU Harmonized YoY Jun P 0.30% % -- 06/30/ :45 FR CPI MoM Jun P 0.20% % -- 06/30/ :45 FR CPI YoY Jun P 0.20% % -- 06/30/ :45 FR Consumer Spending MoM May 0.00% % -- 06/30/ :45 FR Consumer Spending YoY May 2.50% % -- 06/30/ :55 GE Unemployment Change (000's) Jun -5k k -- 06/30/ :55 GE Unemployment Claims Rate SA Jun 6.10% % -- 06/30/ :00 IT Deficit to GDP YTD 1Q % -- 06/30/ :30 UK GDP QoQ 1Q F 0.40% % -- 06/30/ :30 UK GDP YoY 1Q F 2.00% % -- 06/30/ :30 UK Current Account Balance 1Q -28.0b b -- 06/30/ :30 UK Index of Services MoM Apr 0.20% % -- 06/30/ :30 UK Index of Services 3M/3M Apr 0.40% % -- 06/30/ :30 UK Total Business Investment QoQ 1Q F % -- 06/30/ :30 UK Total Business Investment YoY 1Q F % -- 06/30/ :00 EC CPI Estimate YoY Jun 0.00% % -- 06/30/ :00 EC CPI Core YoY Jun A 0.80% % -- 06/30/ :00 IT CPI NIC incl. tobacco MoM Jun P 0.20% % -- 06/30/ :00 IT CPI NIC incl. tobacco YoY Jun P -0.30% % -- 06/30/ :00 IT CPI EU Harmonized MoM Jun P 0.20% % -- 06/30/ :00 IT CPI EU Harmonized YoY Jun P -0.20% % -- 06/30/ :00 IT PPI MoM May % -- 06/30/ :00 IT PPI YoY May % -- 06/30/ :30 US Initial Jobless Claims 25-Jun 267k k -- 06/30/ :30 CA GDP MoM Apr 0.10% % -- 06/30/ :30 US Continuing Claims 18-Jun 2151k k -- 06/30/ :30 CA GDP YoY Apr 1.40% % -- 06/30/ :30 CA Industrial Product Price MoM May 0.30% % -- 06/30/ :30 CA Raw Materials Price Index MoM May 5.00% % -- 06/30/ :00 RU Gold and Forex Reserve 24-Jun b -- 06/30/ :45 US Chicago Purchasing Manager Jun /30/ :45 US Bloomberg Consumer Comfort 26-Jun /30/ /01 CA CFIB Business Barometer Jun /01/ :30 JN Jobless Rate May 3.20% % -- 07/01/ :30 JN Job-To-Applicant Ratio May /01/ :30 JN Overall Household Spending YoY May -1.10% % -- 07/01/ :30 JN Natl CPI YoY May -0.50% % -- Source: Bloomberg, BIMB Securities 5

6 Stocks Closing Price PIVOT POINT ANALYSIS Pivot S3 S2 S1 Point R1 R2 R3 Est. Weighting. FBMKLCI Index n.a. FBM Hijrah Shariah n.a. Autos APM Automotive % Delloyd Ventures N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % MBM Resources % Tan Chong % UMW % Building Materials Ann Joo Resource % Alum Co of Malay % Choo Bee Metal N.A. N.A. N.A. N.A. N.A. N.A. N.A % CSC Steel % Eksons Corp % Engtex Group % Goh Ban Huat % Hiap Teck % Jaks Resources % Java N.A. N.A. N.A. N.A. N.A. N.A. N.A % Kim Hin Ind % Kinsteel % Lafarge M Cement % Lion Corp % Lion Industries % Malaysia Smelting % Masteel % Melewar Ind % MTD ACPI % Pantech % Perwaja N.A. N.A. N.A. N.A. N.A. N.A. N.A % Press Metal % Southern Steel N.A. N.A. N.A. N.A. N.A. N.A. N.A % Tasek % Tong Herr % Conglomerates Cahya Mata Sarawak % Lion Diversified % Hap Seng Cons % MMC % Sime Darby % YTL Corp % Construction AZRB % Ekovest % Fajar Baru % Favelle Favco % Gamuda % Hock Seng Lee % IJM Corp % Kimlun % KKB Engineer % MRCB % 6

7 Stocks Closing Price S3 S2 S1 Pivot Point R1 R2 R3 Est. Weighting Mudajaya % Muhibbah % Naim Hold % Sunway Hldgs % TRC Synergy % TSR Capital Bhd N.A. N.A. N.A. N.A. N.A. N.A. N.A % Zelan % Consumer/Retail Aeon Co (M) % Ajinomoto % Apollo Food % Bonia % CI Holdings % Cocoaland % Dutch Lady % Guan Chong % Hai-O Ent % Hovid % Hup seng Inds % K-Star Sports % Multi Sports N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % Padini % Parkson Holdings % Pelikan International % Poh Kong % QL Resources % Silver Bird N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % Three-A Resource % Xingquan Int l % Yee Lee Corp % Zhulian % Education HELP Int l N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % Masterskill N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % SEG Int l % Finance BIMB Hold % Syarikat Takaful % Healthcare Apex Healthcare % CCM Duopharma N.A. N.A. N.A. N.A. N.A. N.A. N.A % KPJ Healthcare % Faber Group N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % Manufacturing CBIP % Chin Well % Daibochi Plastic N.A. N.A. N.A. N.A. N.A. N.A. N.A % Evergreen Fibre % George Kent % Guh Holdings % Hil Industries % Hong Leong Ind % 7

8 Stocks Closing Price S3 S2 S1 Pivot Point R1 R2 R3 Est. Weighting KYM Hldgs Bhd N.A. N.A. N.A. N.A. N.A. N.A. N.A % MWE Hold % Muda Hold % NTPM Hold % Nylex Malaysia % Perstima % Scientex % Sino Hua-an % SLP Resources % Wellcall % Media Media Chinese % Star Publication % Utusan Melayu N.A. N.A. N.A. N.A. N.A. N.A. N.A % Oil & Gas Alam Maritim % Daya Materials % Dayang Ent % Deleum % Dialog group % ESSO Malaysia % KNM Group % MMHE % Perisai Petroleum % Petra Energy % Pet Chem % Pet Dag % Pet Gas % Ramunia Hold % SAAG Cons. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % Sapurakencana % Scomi Eng % Scomi Group % Shell Refining % Tanjung Offshore % Wah Seong % Petra Perdana N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % Plantation Batu Kawan % BLD Plantation N.A. N.A. N.A. N.A. N.A. N.A. N.A % Cepat Wawasan % Genting Plant % Golden Land % Gopeng % Hap Seng Plant % IJM Plant % Inch Ken Kajang % IOI % Keck Seng Malay % Kim Loong % Kretam Holdings % KLK % Kulim Malaysia N.A. N.A. N.A. N.A. N.A. N.A. N.A % Rimbunan Sawit % 8

9 Stocks Closing Price S3 S2 S1 Pivot Point R1 R2 R3 Est. Weighting Riverview Rubber N.A. N.A. N.A. N.A. N.A. N.A. N.A % Sarawak Plant % TDM % TH Plant % Tradewinds Plant N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % United Plant % Power TNB % YTL Power % Property A & M Realty % Am Corp Prop % Symphony Life Bh % Crescendo Corp % Daiman Develop % Damansara Realty % Dijaya N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % Dutaland % E&O % Global Oriental % Glomac % Hunza Properties N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % IJM Land N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % Ivory Properties % KLCC Property N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % KSL Hold % Kump Hartanah N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % Kump Perangsang % LBS Bina Group % Magna Prima % Mah Sing % Malton % MK Land % Nadayu N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % Plenitude % Selangor Prop N.A. N.A. N.A. N.A. N.A. N.A. N.A % Selangor Dredging % SP Setia % Sunway Bhd % Suria Capital % Talam Corp N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % Tebrau Teguh N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % UEM Land N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % WCT N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % Wing Tai % YNH Property % YTL Land & Dev % Rubber Glove Adventa % Hartalega % Kossan % Latexx Partners N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % Rubberex % Supermax Corp % 9

10 Stocks Closing Price S3 S2 S1 Pivot Point R1 R2 R3 Est. Weighting Top Glove % Technology Compugates % D&O Green Tech % ETI Tech N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % Formis Resources N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % Formosa Prosonic % Frontken % Globetronics % JCY Int l % Key Asic % MPI % Notion V-Tec % Panasonic Man % Supportive N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % Symphony House N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % Uchi Tech Bhd % Unisem % VS Industry % Telcos Axiata Group % DiGi.Com % Green Packet % Maxis % Telekom Malaysia % Time Dotcom % Timber Jaya Tiasa % Subur Tiasa % WTK % Transport/Logistics Bintulu Port % Airasia % Century Logistic % Cycle & Carriage % Hubline % Integrated Log % Integrax N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % Konsortium N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % Maybulk % MISC % NCB Hold N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % Scomi Energy Ser % Water & Infrastructure PBA Hold % Puncak Niaga % Salcon % Taliworks Corp N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % Lingkaran Trans % Protasco % 10

11 Stocks Closing Price S3 S2 S1 Pivot Point R1 R2 R3 Est. Weighting Others Ancom % Asia File bhd % Boustead Heavy N.A. N.A. N.A. N.A. N.A. N.A. N.A % Eden Inc % Fima Corp % Kumpulan FIMA % KUB Malaysia % Pie Industrial % Southern Acids % Mega First % Coastal Contract % Time Engineering N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % Sealink Int'l % Shin Yang N.A. N.A. N.A. N.A. N.A. N.A. N.A % Jobstreet Corp N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A % Myeg Services % Pos Malaysia % Picorp % Lion Forest % Note: R S Est. Weight = Resistance = Support = Based on FBMah Mkt. Cap 11

12 DEFINITION OF RATINGS BIMB Securities uses the following rating system: STOCK RECOMMENDATION BUY Total return (price appreciation plus dividend yield) is expected to exceed 10% in the next 12 months. TRADING BUY Share price may exceed 15% over the next 3 months, however longer-term outlook remains uncertain. HOLD Share price may fall within the range of +/- 10% over the next 12 months TAKE PROFIT Target price has been attained. Fundamentals remain intact. Look to accumulate at lower levels. TRADING SELL Share price may fall by more than 15% in the next 3 months. SELL Share price may fall by more than 10% over the next 12 months. NOT RATED Stock is not within regular research coverage. SECTOR RECOMMENDATION OVERWEIGHT The Industry as defined by the analyst s coverage universe, is expected to outperform the relevant primary market index over the next 12 months NEUTRAL The Industry as defined by the analyst s coverage universe, is expected to perform in line with the relevant primary market index over the next 12 months UNDERWEIGHT The Industry as defined by the analyst s coverage universe, is expected to underperform the relevant primary market index over the next 12 months Applicability of ratings The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investment ratings are only applicable to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not carry investment ratings as we do not actively follow developments in these companies. Disclaimer The investments discussed or recommended in this report may not be suitable for all investors. This report has been prepared for information purposes only and is not an offer to sell or a solicitation to buy any securities. The directors and employees of BIMB Securities Sdn Bhd may from time to time have a position in or either the securities mentioned herein. Members of the BIMB Group and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein. The information herein was obtained or derived from sources that we believe are reliable, but while all reasonable care has been taken to ensure that stated facts are accurate and opinions fair and reasonable, we do not represent that it is accurate or complete and it should not be relied upon as such. No liability can be accepted for any loss that may arise from the use of this report. All opinions and estimates included in this report constitute our judgements as of this date and are subject to change without notice. BIMB Securities Sdn Bhd accepts no liability for any direct, indirect or consequential loss arising from use of this report. Published by BIMB SECURITIES SB ( X) A Participating Organisation of Bursa Malaysia Securities Berhad Level 32, Menara Multi Purpose, Capital Square, No. 8 Jalan Munshi Abdullah, Kuala Lumpur Tel: Fax: Thong Pak Leng 12