Today s Highlights. Outside Malaysia. Sector Update Oil & Gas (UNDERWEIGHT, maintain) - Earnings risk posed by stronger MYR

Transcription

1 Today s Highlights Sector Update Oil & Gas (UNDERWEIGHT, maintain) - Earnings risk posed by stronger MYR Company Update RHB Capital (BUY, upgrade) - Internal reorganisation completed Company Update Bumi Armada (SELL, maintain) - And now stronger MYR is a problem Outside Malaysia US stocks retreat on energy slump as S&P 500 trims weekly gain G-20 says growth risks are stabilizing as shock of Brexit looms Manufacturing output in US falls by most since February 2015 Consumer sentiment falls on concerns over US wages, elections Singapore retail sales unexpectedly decline 3.2% in February China's economy stabilized in 1Q16 Oil falls most in two weeks before producers meet on cap in Doha Bursa M alaysia KLCI 52-wk range Mkt Cap (RM bn) 1, Vol (m shrs) 1, Value (RM m) 1, KLCI futures (spot) 1, KLCI futures (1-mth) 1, KLCI Index ( 12 - mt h) Feb 15 May 15 Aug 15 Nov 15 Feb 16 Top 5 Gainers Price (RM ) chg (RM ) % chg BAT GAB RHBCAP AIRPORT HLFG Top 5 Losers Price (RM ) chg (RM ) % chg NESTLE (0.40) (0.53) FAREAST 7.72 (0.25) (3.14) SCIENTX (0.20) (1.52) LAYHONG 9.16 (0.13) (1.40) BOXPAK 2.61 (0.11) (4.04) Top 5 Value Traded Price (RM ) chg (RM ) V al (RM m) TENAGA unch PBBANK unch CIM B IHH 6.68 unch MAYBANK Key Equity Indices Close % chg Ytd chg (%) KLCI Other Markets Key Indicators COMMODITIES CURRENCIES Latest chg (%) Latest Ytd chg (%) CPO (RM/Tonne) RM/US$ Spot (Jan) 2, RM per 100 Yen 3.60 (0.8) 3-mth futures (Mar) 2, RM/S$ Yen/US$ Brent Crude Oil (US$/brl) Eur/US$ 0.89 (3.8) Spot 40.4 (2.7) RM/AUD mth futures 41.7 (2.2) MALAYSIA INTEREST RATES Latest Ytd chg (bps) Gold (US$/oz) OPR (%) Spot mth Klibor (%) 3.70 (16.0) 1-mth futures Maybank BR (%) *as at 31 Dec 2014 Dow Jones (0.2) 2.7 Nasdaq (0.2) (1.4) FTSE (0.3) 1.6 East. Europe (0.1) (6.6) M exico Shenzen B (0.2) (14.3) Shanghai B (0.1) (13.0) Hong Kong (0.1) (2.7) Korea (0.1) 2.7 Singapore Indonesia Philippines (0.5) 5.3 Thailand NT NT 7.6 Viet nam India NT NT (1.9) Taiwan Page 1 of 6

2 Outside Malaysia US stocks retreat on energy slump as S&P 500 trims weekly gain US stocks fell, as technology shares joined energy producers in a decline. The S&P 500 dropped 0.1% to 2, The Dow Jones Industrial Average declined 29 points (0.2%) to 17, G-20 says growth risks are stabilizing as shock of Brexit looms Finance chiefs of the Group of 20 economies said risks to the global recovery have stabilized while threats to the outlook remain, including terrorism and the UK s potential exit from the European Union. Growth remains modest and uneven, and downside risks and uncertainties to the global outlook persist against the backdrop of continued financial volatility, challenges faced by commodity exporters and low inflation, according to the group s communique. Manufacturing output in US falls by most since February 2015 US manufacturing output unexpectedly declined in March by the most since February 2015, indicating factories remain scarred by global challenges that are slow to dissipate. The 0.3% drop at factories, which make up 75% of production, followed a revised 0.1% decrease the prior month, a Federal Reserve report showed. The median forecast in a Bloomberg survey called for a 0.1% advance. Consumer sentiment falls on concerns over US wages, elections Consumer confidence unexpectedly fell in April to the weakest level in seven months as Americans were rattled by unsatisfying wage growth and concern over how the upcoming presidential election would impact the economy. The University of Michigan s preliminary sentiment index for this month fell to 89.7, the lowest since September, from 91 in March. Singapore retail sales unexpectedly decline 3.2% in February Singapore retail sales dropped 3.2% yoy in February, defying economists predictions for an expansion in the industry and providing more evidence of a slowing economy. The contraction followed growth of a revised 7.6% in January, Statistics Singapore said in an ed statement. The median estimate of surveyed by Bloomberg was for a 3.4% increase in February. China's economy stabilized in 1Q16 China s economy stabilized last quarter and gathered pace in March as a surge in new credit spurred a property sector rebound while raising fresh questions over the sustainability of the debt-fueled expansion. Gross domestic product rose 6.7% yoy in 1Q16 (6.8% in 4Q15), meeting the median projection of economists surveyed by Bloomberg. China s new credit rebounds as PBOC keeps up monetary easing China s broadest measure of new credit rose far more than expected last month, signaling that central bank stimulus is stabilizing the world s second-largest economy. Aggregate financing was 2.34trn yuan (US$360.7bn) in March, the People s Bank of China said, far exceeding the median forecast of 1.4trn yuan in a Bloomberg survey. New yuan loans were 1.37trn yuan, compared with an estimate of 1.1trn yuan. Oil falls most in two weeks before producers meet on cap in Doha Oil dropped the most in two weeks before suppliers are scheduled to meet in Doha to discuss a production freeze. Brent for June settlement slipped US$0.74 (1.7%) to US$43.10 a barrel. Source: Bloomberg (Lim Yee Ping; ; yeeping.lim@affinhwang.com) Page 2 of 6

3 Market Summary Table 1: Off Market transactions Shares Price (RM) Vol (m) Val (RMm) Type* BJAUTO D Source: Bloomberg Table 2: Shares Buyback/ Resale Company* Date Units Treasury Transaction SEM 15-Apr 250,000 57,557,600 Share Buyback * Only FBM100 Component Stocks Source : Bursa Malaysia Table 3: ESOS Company* Date Units Transaction * Only FBM100 Component Stocks Source : Bursa Malaysia Table 4: Entitlements Company Entitlement Ex-Date Lodgement Payment Source : Bursa Malaysia Page 3 of 6

4 Fig 5: Shareholding change Substantial Shareholder Date Transaction Units Company EPF 12-Apr-16 Disposed 1,716,700 AFG EPF 12-Apr-16 Acquired 20,000 AMMB EPF 12-Apr-16 Acquired 35,500 BIMB EPF 12-Apr-16 Acquired 3,200,000 DIGI EPF 12-Apr-16 Disposed 312,000 GENP EPF 12-Apr-16 Acquired 14,600 HARTA EPF 12-Apr-16 Acquired 669,600 HLBANK EPF 12-Apr-16 Acquired 909,800 IHH EPF 12-Apr-16 Disposed 26,700 INARI EPF 12-Apr-16 Acquired 1,317,700 IOICORP EPF 12-Apr-16 Disposed 537,400 IOICORP EPF 12-Apr-16 Disposed 2,000,000 IOIPG EPF 12-Apr-16 Acquired 85,900 KLK EPF 7-12-Apr-2016 Acquired 1,244,800 KOSSAN EPF 7-11-Apr-2016 Disposed 2,760,000 KOSSAN EPF 12-Apr-16 Disposed 1,263,000 MAHSING Lembaga Tabung Haji 8-Apr-16 Acquired 563,700 MALAKOFF EPF 12-Apr-16 Disposed 2,000,000 MALAKOFF Lembaga Tabung Haji 8-Apr-16 Disposed 205,900 MALAKOFF Amanahraya Trustees Bhd 11-Apr-16 Acquired 5,994,100 MAYBANK Permodalan Nasional Bhd 8-12-Apr-2016 Acquired 4,700,000 MAYBANK EPF 11-Apr-16 Acquired 3,068,900 MAYBANK EPF 12-Apr-16 Disposed 1,388,800 MAYBANK EPF 12-Apr-16 Disposed 67,900 PBBANK EPF 12-Apr-16 Disposed 481,300 PETGAS EPF 12-Apr-16 Acquired 39,300 SKPETRO EPF 11-Apr-16 Acquired 3,500,000 SKPETRO EPF 12-Apr-16 Disposed 1,000,000 SPSETIA EPF 12-Apr-16 Acquired 500,000 TM EPF 12-Apr-16 Disposed 1,000,000 TM EPF 12-Apr-16 Disposed 1,000,000 UMWOG EPF 12-Apr-16 Acquired 285,000 WCT EPF 12-Apr-16 Acquired 500,000 WPRTS EPF 12-Apr-16 Disposed 161,100 WPRTS EPF 12-Apr-16 Disposed 24,200 YINSON Source: Bursa Malaysia Page 4 of 6

5 Fig 6: Dividend Entitlement Stocks Particulars DPS (sen) Announce Ex-Date Lodge Payment MAGNA Interim Dividend Apr Apr Apr-16 4-May-16 MISC Final Dividend Mar Apr Apr May-16 PENERGY Special Dividend Feb Apr Apr May-16 OSK Final Dividend Mar Apr Apr May-16 PJDEV Final Dividend Mar Apr Apr-16 9-May-16 SIME Interim Dividend Feb Apr Apr-16 6-May-16 MYEG Interim Dividend Feb Apr Apr May-16 DLADY Interim Dividend Feb Apr Apr May-16 KIMHIN Interim Dividend Mar Apr Apr May-16 YNHPROP 1 for 25 distribution of treasury shares - 13-Apr Apr Apr May-16 CCB Final Dividend Feb Apr Apr May-16 GCE First and Final Dividend Apr Apr Apr May-16 PRLEXUS Interim Dividend Apr Apr Apr May-16 UTDPLT Special Dividend Feb Apr Apr May-16 UTDPLT Final Dividend Feb Apr Apr May-16 VS Second Interim Dividend Mar Apr Apr May-16 CSCENIC Interim Dividend Feb Apr-16 3-May May-16 LCTH Final Dividend Apr Apr-16 3-May May-16 CARLSBEG Final Dividend Feb-16 3-May-16 5-May May-16 SAMCHEM Final Dividend Apr-16 3-May-16 5-May May-16 UNISEM Final Apr-16 3-May-16 5-May May-16 MALAKOF Final Dividend Mar-16 5-May-16 9-May May-16 CENTURY Final Dividend Mar-16 9-May May May-16 HIGHTEC Final Dividend Mar-16 9-May May May-16 ZHULIAN First Interim Dividend Apr-16 9-May May-16 3-Jun-16 POHUAT Final Dividend Mar May May May-16 BINTULU Final Dividend Feb May May May-16 CMSB Final Dividend Apr May May May-16 PPB Final Dividend Feb May May May-16 TSTORE First and Final Dividend of 3.75 sen Jan May May-16 9-Jun-16 TASEK Final dividend of 50% single tier Feb May May May-16 TASEK Preference dividend of 6% single tier Feb May May May-16 WILLOW Final Dividend Feb May May May-16 NESTLE Final Dividend Feb May May-16 2-Jun-16 AJIYA Final Dividend Mar May May-16 7-Jun-16 KKB First and Final Dividend Apr May May Jun-16 GASMSIA Final Dividend Apr May May Jun-16 MSM Final Dividend Apr May May Jun-16 AIRASIA First and Final Dividend Mar May May Jun-16 CCK First and Final Dividend Apr May May Jun-16 ECS Final Dividend Feb May-16 2-Jun Jun-16 LUXCHEM Final Dividend Mar May-16 2-Jun Jun-16 APEX Final Dividend Feb-16 1-Jun-16 3-Jun Jun-16 CYL Second Interim Dividend Mar-16 1-Jun-16 3-Jun Jun-16 KOSSAN Final Dividend Mar-16 1-Jun-16 3-Jun-16 5-Jul-16 MEDIA Final Dividend Mar-16 1-Jun-16 3-Jun Jun-16 SHANG Final Dividend Feb-16 2-Jun-16 4-Jun Jun-16 CCM Final Dividend Feb-16 6-Jun-16 8-Jun Jun-16 TIENWAH Final Dividend Feb-16 7-Jun-16 9-Jun Jun-16 KEN First and Final Dividend Mar-16 9-Jun Jun Jun-16 KSENG Final Dividend Apr-16 9-Jun Jun-16 1-Jul-16 KSENG First and Final Dividend Apr Jun Jun Jun-16 PRTASCO Final Dividend Mar Jun Jun Jun-16 GTRONIC Final Dividend Apr Jun Jun-16 4-Jul-16 GTRONIC Special Dividend Apr Jun Jun-16 4-Jul-16 KIANJOO First and Final Dividend Mar Jun Jun Jun-16 MMCCORP Final Dividend Apr Jun Jun-16 5-Jul-16 Source: Bursa Malaysia Page 5 of 6

6 Equity Rating Structure and Definitions BUY Total return is expected to exceed +10% over a 12-month period HOLD Total return is expected to be between -5% and +10% over a 12-month period SELL Total return is expected to be below -5% over a 12-month period NOT RATED Affin Hwang Investment Bank Berhad does not provide research coverage or rating for this company. Report is intended as information only and not as a recommendation The total expected return is defined as the percentage upside/downside to our target price plus the net dividend yield over the next 12 months. OVERWEIGHT Industry, as defined by the analyst s coverage universe, is expected to outperform the KLCI benchmark over the next 12 months NEUTRAL Industry, as defined by the analyst s coverage universe, is expected to perform inline with the KLCI benchmark over the next 12 months UNDERWEIGHT Industry, as defined by the analyst s coverage universe is expected to under-perform the KLCI benchmark over the next 12 months This report is intended for information purposes only and has been prepared by Affin Hwang Investment Bank Berhad (14389-U) (formerly known as HwangDBS Investment Bank Berhad) ( the Company ) based on sources believed to be reliable. However, such sources have not been independently verified by the Company, and as such the Company does not give any guarantee, representation or warranty (express or implied) as to the adequacy, accuracy, reliability or completeness of the information and/or opinion provided or rendered in this report. Facts, information, views and/or opinion presented in this report have not been reviewed by, may not reflect information known to, and may present a differing view expressed by other business units within the Company, including investment banking personnel. Reports issued by the Company, are prepared in accordance with the Company s policies for managing conflicts of interest arising as a result of publication and distribution of investment research reports. Under no circumstances shall the Company, its associates and/or any person related to it be liable in any manner whatsoever for any consequences (including but are not limited to any direct, indirect or consequential losses, loss of profit and damages) arising from the use of or reliance on the information and/or opinion provided or rendered in this report. Any opinions or estimates in this report are that of the Company, as of this date and subject to change without prior notice. Under no circumstances shall this report be construed as an offer to sell or a solicitation of an offer to buy any securities. The Company and/or any of its directors and/or employees may have an interest in the securities mentioned therein. The Company may also make investment decisions or take proprietary positions that are inconsistent with the recommendations or views in this report. Comments and recommendations stated here rely on the individual opinions of the ones providing these comments and recommendations. These opinions may not fit to your financial status, risk and return preferences and hence an independent evaluation is essential. Investors are advised to independently evaluate particular investments and strategies and to seek independent financial, legal and other advice on the information and/or opinion contained in this report before investing or participating in any of the securities or investment strategies or transactions discussed in this report. Third-party data providers make no warranties or representations of any kind relating to the accuracy, completeness, or timeliness of the data they provide and shall not have liability for any damages of any kind relating to such data. The Company s research, or any portion thereof may not be reprinted, sold or redistributed without the consent of the Company. The Company, is a participant of the Capital Market Development Fund-Bursa Research Scheme, and will receive compensation for the participation. This report is printed and published by: Affin Hwang Investment Bank Berhad (14389-U) (formerly known as HwangDBS Investment Bank Berhad) A Participating Organisation of Bursa Malaysia Securities Bhd Chulan Tower Branch, 3rd Floor, Chulan Tower, No 3, Jalan Conlay, Kuala Lumpur. research@affinhwang.com Tel : Fax : Page 6 of 6