Market Pulse

Monday, 15 Aug, 2016

Ma la c ca S ecu rit i es S dn Bh d

(A Participating Organisation of Bursa Malaysia Securities Berhad)

Hotline: 1300 22 1233

Email: support@mplusonline.com.my
Website: www.mplusonline.com.my

FBM KLCI - Daily

Market Scorecard
Close

Change

12-Aug-16

FBM KLCI

1,684.15

0.32

52-W High

1,729.13

52-W Low

1,503.68

FBM EMAS

11,834.76

0.33

FBM 100

11,529.52

0.33

Volume (mln)

2,022.30

9.16

Value (RM mln)

1,896.97

14.06

FKLI Spot Futures

FKLI Forward
Futures

1,681.50

0.15

1,677.50

0.18

Dow Jones

A Mild Consolidation To Start The Week

Tracking the positive developments on
Wall Street overnight coupled with the
strong gains in crude oil prices, the FBM
KLCI inched higher last Friday to mark its
winning streak to three days as the key
index rose 1.2% W.o.W. The lower liners
were also closed in the positive territory
while the Consumer Products (-0.1%) and
Construction
(-0.6%)
sectors
underperformed the positive broader
market.
Market breadth stayed positive as
gainers outnumbered losers on a ratio of
487-to-314 stocks. Traded volumes
climbed 9.1% to 2.02 bln shares amid the
positive market sentiment.
More than two-thirds of the key index
constituents advanced, led by BAT (+32.0
sen), followed by Maxis (+12.0 sen), Hap
Seng (+10.0 sen), Westports (+8.0 sen)
and Genting (+6.0 sen). Amongst the
broader markets biggest gainers of the
Disclaimer

day include Panasonic (+42.0 sen), KESM

(+27.0 sen), Apex Healthcare (+13.0 sen)
and Ann Joo Resources (+12.0 sen). Gas
Malaysia added 13.0 sen after reporting a
strong set of quarterly earnings.
In
contrast,
consumer
products
bellwethers like Nestle (-40.0 sen),
Frasers & Neave (-30.0 sen) and Dutch
Lady (-24.0 sen) topped the broader
market decliners list, while other notable
losers of the day were Chin Teck
Plantations (-28.0 sen) and Lay Hong (19.0 sen). Tenaga (-6.0 sen), PPB (-4.0
sen) and YTL (- 1.0 sen) were the only
decliners on the big board.
Asian stockmarkets ended the week on a
high note as dovish policies from global
policy makers such Japan and U.K.
fuelled risk appetite for emerging market
equities. The Nikkei notched 1.1% as the
Yen weakened and defensive counters
from the utilities, healthcare and

18,576.47

-0.20

S&P 500

2,184.05

-0.08

NASDAQ

5,232.90

0.09

FTSE 100

6,916.02

0.02

10,713.43

-0.27

CAC 40

4,500.19

-0.08

FTSE STI
Shanghai
Composite

2,867.40

-0.08

3,050.67

DAX

Hang Seng Index

22,766.91

1.60
0.83

Nikkei 225

16,919.92

1.10

WTI Crude Oil (USD)

44.59

0.22

Brent Spot (USD)

47.08

0.23

Gold (USD)

1,338.80

0.21

CPO (RM)

2,525.00

1.65

USD

4.0275

-0.571

GBP

5.2154

-0.502

EURO

4.4896

-0.568

SGD

2.9892

-0.268

YEN

25.353

-0.256

Market Participation

Net (RM mln)

Institution

58.9

-127.1

Retail

18.5

-19.4

Foreign

22.6

146.5

This report is prepared exclusively for Malacca Securities Sdn Bhds (MSSB) clients and is not intended to be distributed to any other party in any form or manner. All information, assumptions,
estimates and opinions contained in this report is based on available data and the information is believed to be reliable at the time of writing. MSSB and/or its associated persons does not
warrant, represent and/or guarantee the accuracy of any opinions and information herein in any manner whatsoever and no reliance upon the report and/or any parts thereof by anyone shall give
rise to any claim whatsoever against MSSB. This report is for information purposes only and shall not be construed as an offer, invitation or solicitation to buy or sell the securities or any related
investment or financial instruments mentioned in this report. MSSB and/or its associated persons may from time to time have an interest in the securities mentioned herein.

Market Pulse
Monday, 15 Aug, 2016

consumer staples-related sectors rallied.

The Shanghai Composite Index shrugged
off
slower-than-expected
Chinese
economic data to close up 1.6% after
corporate earnings beat analysts
estimates, while the Hang Seng rose 0.8%
to hit 9-month highs as gains in the
commerce and industry sectors offset the
fall in the properties sector. ASEAN
indices ended mixed to end the week.
US stockmarkets retreated from the alltime high levels on last Friday as the Dow
fell 0.2%, dampened by the soft retail
sales data in July which stood unchanged
vs. economists estimates of 0.4% M.o.M
increase. On the broader market, the S&P
500 (-0.1%) was dragged down by the
basic materials sector (-0.5%), but the
Nasdaq (+0.1%) recovered all its intraday
losses in the eleventh trading hour.
Following the weaker-than-expected
Eurozones Industrial Production data
which only grew 0.4% Y.o.Y vs.
economists estimates of a 0.7% Y.o.Y
rise, European benchmark indices ended
mostly lower as the CAC and DAX fell
0.1% and 0.3% respectively. The FTSE,
meanwhile, closed flat, lifted by gains in
oil & gas stocks such as Tullow Oil
(+4.2%) and BP PLC (+0.4%) after crude
oil prices staged a sharp recovery over the
past week.

THE DAY AHEAD

The FBM KLCI has done well last week to
attained a breakthrough of the 1,680 level
which has been a formidable hurdle for
the key index to clear over the past few
months. Much of the positivity has been
due to sustained low global interest rate
environment and increased Central Bank
stimulus measures to boost the still slow
global economic environment. As a result,
risk appetite for equities were heightened
Disclaimer

to include Emerging Market shares.

After last weeks decent gains, coupled
with the weak Friday closing in many key
global stocks indices, we think the
upsides could also pause on Bursa
Malaysia to allow the recent gains to be
digested. Hence, we think the FBM KLCI is
likely to consolidate to around the 1,680
level over the near term.
The lower liners and broader market
shares, however, will continue to draw
retail participation as they take advantage
of the calmer market conditions to
continue their trading activities.

COMPANY BRIEFS
PDZ Holdings Bhd and Pelaburan Mara
Bhd have been served a counterclaim in
the High Court by the Managing Director
cum Chief Executive Officer of Efogen Sdn
Bhd Johany Jaafar, for RM166.5 mln in
damages, based on a valuation of the
enterprise value of Efogen of RM251.1
mln given by Grant Thornton.
PDZ was named as a second defendant on
the basis that PDZ had wrongfully
terminated a share sale agreement (SSA)
on 25th September 2014. PDZ has
claimed that the charges against the
company were not sustainable as Johany
Jaafar was never a party to a contract
entered between PDZ and Pelaburan
Mara.
However, PDZ noted that the amount
stated in Johanys counter claim against
PDZ could significantly and adversely
impact PDZs earnings for FY17 should
the court rule the case in favour of the
former. (The Edge Daily)
UEM Edgenta Bhd has clinched a RM87.0
mln contract for the relocation of

This report is prepared exclusively for Malacca Securities Sdn Bhds (MSSB) clients and is not intended to be distributed to any other party in any form or manner. All information, assumptions,
estimates and opinions contained in this report is based on available data and the information is believed to be reliable at the time of writing. MSSB and/or its associated persons does not
warrant, represent and/or guarantee the accuracy of any opinions and information herein in any manner whatsoever and no reliance upon the report and/or any parts thereof by anyone shall give
rise to any claim whatsoever against MSSB. This report is for information purposes only and shall not be construed as an offer, invitation or solicitation to buy or sell the securities or any related
investment or financial instruments mentioned in this report. MSSB and/or its associated persons may from time to time have an interest in the securities mentioned herein.

Market Pulse
Monday, 15 Aug, 2016

telecommunication works package V202

of the Sungai Buloh-Serdang-Putrajaya
Line (KV MRT2) project from Ahmad Zaki
Sdn Bhd. The relocation works includes
the construction and completion of
viaduct guideway and other associated
works from Persiaran Dagang to Jinjang.
(The Edge Daily)
APM Automotive Holdings Bhd has
entered into a joint-venture (JV)
agreement with TACHI-S Co Ltd to
manufacture,
assemble
and
sell
automotive seats in Vietnam for original
equipment manufacturers (OEM).
The new JV company will be incorporated
in Vietnam under the proposed name APM
TACHI-S Seating Systems Vietnam Co Ltd,
with an investment capital and charter
capital of US$2.5 mln on a basis of 49:51
between APM Automotive and Tachi. (The
Star Online)
SMTrack Bhd is proposing to acquire
Wellspring Worldwide Ltd - the global
master licensor of Tutti Fruitti Frozen
Yogurt, O'My Buns! and YoFlavor, for an
undisclosed amount.
The purchase consideration is expected to
be satisfied v the issuance of new
SMTrack shares and will be subject to a
profit guarantee on the minimum profit
after tax of the Wellspring Group for two
financial years following the completion
of the proposed acquisition. (The Star
Online)
Petronas Gas Bhd has inked a 51:49 JV
agreement with Linde (M) Sdn Bhd to
develop an air separation unit (ASU) plant
in Pengerang, Johor to meet its demand
for gaseous oxygen and gaseous nitrogen.
The revenue stream from the plant is
expected to cover capital and operational
expenditure for the construction and
operations of facilities and will be funded
Disclaimer

via a combination of equity and debt from

the respective parties. (The Star Online)
Tek Seng Holdings Bhd's 2Q2016 net
profit rose by more than four-fold to
RM16.2 mln, from RM3.7 mln last year on
the back of higher contribution from its
solar segment, while revenue doubled to
RM159.5 mln, from RM78.9 mln in the
previous corresponding period. The
company has also proposed a one sen
interim dividend, payable on 9th
September 2016.
Its cumulative 1H2016 net profit stood at
RM31.3 mln, from RM5.8 mln a year
earlier, mainly due to stronger revenue
contribution which rose slightly more than
two-fold to RM290.8 mln from RM137.8
mln in 1H2015. (The Edge Daily)
A stronger Ringgit boosted Guan Chong
Bhd's 2Q2016 net profit as it jumped by
more than five times to RM10.7 mln,
compared to RM2.0 mln recorded in the
same period last year, fueled by a higher
net gain on forex, despite only a 1.2%
Y.o.Y increase in revenue to RM583.4 mln,
from RM576.6 mln a year ago.
Cumulative 1H2016 stood at RM24.4 mln
from RM108,000 from 1H2015 - propped
by forex gains, while revenue expanded
14.7% Y.o.Y to RM1.17 bln in comparison
to RM1.02 bln in the same corresponding
period last year. (The Edge Daily)
Federal Furniture Holdings (M) Bhd is
planning to acquire 60.0% of equity stake
in Pembinaan Masteron Sdn Bhd (PMSB)
for RM33.0 mln to diversify its core
business.
The purchase will be funded via a
combination of RM6.0 mln cash and an
issuance of 270.0 mln new Redeemable
Convertible Preference Shares of 10.0 sen
each in the furniture company. (The Star
Online)

This report is prepared exclusively for Malacca Securities Sdn Bhds (MSSB) clients and is not intended to be distributed to any other party in any form or manner. All information, assumptions,
estimates and opinions contained in this report is based on available data and the information is believed to be reliable at the time of writing. MSSB and/or its associated persons does not
warrant, represent and/or guarantee the accuracy of any opinions and information herein in any manner whatsoever and no reliance upon the report and/or any parts thereof by anyone shall give
rise to any claim whatsoever against MSSB. This report is for information purposes only and shall not be construed as an offer, invitation or solicitation to buy or sell the securities or any related
investment or financial instruments mentioned in this report. MSSB and/or its associated persons may from time to time have an interest in the securities mentioned herein.

Market Pulse
Monday, 15 Aug, 2016

ENTITLEMENTS
Counter

Entitlement
Subjects

Description

M3Tech
AJIYA
CIMB#
SCIENTX
PARKSON
BREM#
AJIYA

Rights Issue
Share Split
Share Dividend
Bonus Issue
Share Dividend
Share Dividend
Bonus Warrants

4 + 3WA : 2 @ RM0.10
1 INTO 4
1 PT Bank CIMB Niaga Tbk Indonesia : 6.39
1:1
1 : 20
1 : 25
1W : 2

Ex-Date
11 Jul 2016
04 Aug 2016
05 Aug 2016
10 Aug 2016
16 Aug 2016
28 Sep 2016
22 Aug 2016

Commencement
Date
14 Jul 2016
-

Cessation
Date
21 Jul 2016
-

Tentative
Listing Date
Of New
Securities
11 Aug 2016
09 Aug 2016
TBA
15 Aug 2016
TBA
TBA
TBA

Remarks
CIMB
The dividend shares are allocated on the basis of 1 PT Bank CIMB Niaga Tbk Indonesia share for
approximately every 6.39 CIMB shares held as at 5.00PM on the entitlement date.
For avoidance of doubt, entitled shareholders who are entitled to less than 1 PT Bank CIMB Niaga Tbk
Indonesia will not receive any share dividend of PT Bank CIMB Niaga Tbk Indonesia or cash.
BREM
Distribution on the basis of one 1 treasury shares for every 25 existing ordinary shares & fractions of
treasury shares to be disregarded.

Disclaimer

This report is prepared exclusively for Malacca Securities Sdn Bhds (MSSB) clients and is not intended to be distributed to any other party in any form or manner. All information, assumptions,
estimates and opinions contained in this report is based on available data and the information is believed to be reliable at the time of writing. MSSB and/or its associated persons does not
warrant, represent and/or guarantee the accuracy of any opinions and information herein in any manner whatsoever and no reliance upon the report and/or any parts thereof by anyone shall give
rise to any claim whatsoever against MSSB. This report is for information purposes only and shall not be construed as an offer, invitation or solicitation to buy or sell the securities or any related
investment or financial instruments mentioned in this report. MSSB and/or its associated persons may from time to time have an interest in the securities mentioned herein.