R e t a i l M a r k e t M o n i t o r Friday, 16 October 2015€¦ · R e t a i l M a r k e t M o n...

R e t a i l M a r k e t M o n i t o r F r i day , 1 6 Oc tob e r 2 01 5

w w w . u t r a d e . c o m . m y 1

M A L A Y S I A

MARKET NEWS

The FBMKLCI rose 2.11pt (+0.1%) to close at 1,713.25 yesterday. Meanwhile, Asian

stocks climbed, with the regional benchmark index heading for its first advance in three

days, as bets that the US would keep interest rates lower for longer spurred demand for

riskier assets. The MSCI Asia Pacific Index advanced 2.1% to 134.21. The FBMKLCI’s

top gainers were RHB Capital (+1.8%), KLCC Property & REITS (+1.4%) and Hong

Leong Bank (+1.3%) while the top losers were Astro Malaysia Holdings (-1.3%), YTL

Corporation (-1.3%) and Sime Darby (-1.3%). In the broader market, gainers outpaced

losers 476 to 376 with 323 counters unchanged. Turnover was 2.40b shares valued at

RM2.54b.

The FBMKLCI continued to form a new high and closed at 1,713.25 on yesterday’s

trading activity. This was supported by the uptick in the RSI which indicates persistent

buying interest, although we note that the overbought signal could lead to a temporary

consolidation below the psychological resistance of 1,732. Beyond that, as profit-taking

subsides and momentum rebuilds gradually (as indicated by the uptick in the DMI and

MACD), the upward continuation would likely resume over the medium term. We

maintain our support and resistance levels as follows.

Support: 1,595, 1,560

Resistance: 1,732, 1,745

US markets rebounded, driven by positive economic data. The S&P 500 rose 1.5% to

close at 2,023.86, while the DJIA advanced 1.3% to finish at 17,141.75. The number of

people who applied for first-time jobless benefits fell by 7,000 to 255,000 in the week

ended 10 October, matching the lowest level since 1973 and coming in below

expectations for claims of 270,000. Goldman Sachs Group Inc. reported a weak third-

quarter profit as trading volumes dipped, but shares closed up 3%. Citigroup Inc. rallied

4.4% after it said its third-quarter profit rose.

WHAT’S IN THE PACK

Politics Latest socio-political survey findings by

Merdeka Center For Opinion Research

suggest Malaysia’s uncertain political

landscape could persist for an extended

period.

Top Glove (TOPG MK/BUY/RM8.44/Target:

RM10.50)

4QFY15: Record high net profit of

RM103m on the back of an 8% qoq

increase in sales volume.

Bintai Kinden Corporation

(BKC MK) Technical BUY on breakout with +30.6%

potential return

BUY on breakout with a target price of

RM0.445 and stop-loss below RM0.225.

BKC has just exited the consolidation

phase and is trying to penetrate the

sideway trend to break higher.

Naim Holdings

(NHB MK) Technical BUY with +10.9% potential return

BUY with a target price of RM2.70 and

stop loss at below RM2.10. Based on the

daily chart, NHB’s share price has formed

a higher high and higher low indicative of

an uptrend.

Coastal Contracts

(COCO MK) Technical BUY on breakout with +10.6%

potential return

BUY on breakout with a target price of

RM2.57 and stop loss at RM1.83.

Yesterday, the share price closed above

the BBI line to keep up the bullish

momentum…

FBMKLC I CHART

Source: BursaStation

KEY IND ICES

Prev Close Chg (%) YTD (%)

DJIA 17,141.75 1.28 (3.82) S&P 500 2,023.86 1.49 (1.70) FTSE 100 6,338.67 1.10 (3.46) CSI 300 3,486.82 2.37 (1.33)

FSSTI 3,015.14 1.05 (10.40) HSCEI 10,552.93 2.11 (11.95) HSI 22,888.17 2.00 (3.04) JCI 4,507.20 0.54 (13.77)

KLCI 1,713.25 0.12 (2.73) KOSPI 2,033.27 1.18 6.14 Nikkei 225 18,096.90 1.15 3.70 SET 1,425.32 1.44 (4.83) TWSE 8,601.52 0.93 (7.58) BDI 766.00 (2.67) (2.05) CPO (RM/mt) 2,318.00 (1.28) 2.29

Nymex Crude (US$/bbl) 46.90 1.12 (20.22)

TOP VOLUME

Stock Price (RM)

Chg (%)

Vol (‘000)

Xox Bhd 0.19 18.75 99,406

Frontken Corp Bhd 0.23 6.98 85,958

Airasia Bhd 1.46 0.69 61,482Ecofirst Consolidated Bhd

0.28 0.00 55,300

Iris Corp Bhd 0.26 0.00 49,709

TOP GA INERS

Stock Price(RM)

Chg (%)

Vol (‘000)

R&A Telecommunication

0.01 100.00 163

Komarkcorp Bhd 0.55 32.93 2,100Malaysia Pacific Corp Bhd

0.21 27.27 5Asia Media Group Bhd 0.03 25.00 1,410

Xox Bhd 0.19 18.75 99,406

TOP LOSERS

Stock Price (RM)

Chg (%)

Vol (‘000)

Hubline Bhd 0.01 (33.33) 986

Skb Shutters Corp Bhd 0.53 (19.23) 1

Hb Global Ltd 0.07 (17.65) 219 Melewar Industrial Group Bhd

0.21 (16.00) 10 Asdion Bhd 0.53 (11.76) 535 Source: Bloomberg



M A L A Y S I A

TRADERS’ CORNER

Bintai Kinden Corporation

(BKC MK) Technical BUY on breakout with +30.6%

potential return

Last price : RM0.275

Target price : RM0.40, RM0.445

Support : RM0.23

Stop loss : RM0.225

BUY on breakout with a target price of RM0.445 and stop-loss below RM0.225. BKC has just exited the consolidation phase and is testing for a breakout above the RM0.31 mark. The uptick in the RSI, together with the increase in trading volume, suggests that buying momentum is set to continue in the near term. We expect the stock to penetrate the breakout level of RM0.31. Thereafter, it should continue to trend higher towards our target prices of RM0.40 and RM0.445 in the medium term.

Expected Timeframe: 2 weeks to 2 months

Naim Holdings (NHB MK) Technical BUY with +10.9% potential return

Last price : RM2.20


Support : RM2.10

Stop loss : RM2.10

BUY with a target price of RM2.70 and stop loss at below RM2.10. Based on the daily chart, NHB’s share price has formed a higher high and higher low indicative of an uptrend. Additionally, the positive MACD and DMI readings suggest a stronger momentum which should lift the stock toward our medium-term target prices of RM2.44 and RM2.70. Expected Timeframe: 2 weeks to 2 months



M A L A Y S I A

TRADERS’ CORNER

Coastal Contracts

(COCO MK) Technical BUY on breakout with +10.6%

potential return

Last price : RM2.12


Support : RM1.83

Stop loss : RM1.83

BUY on breakout with a target price of RM2.57 and stop loss at RM1.83. Yesterday, the share price closed above the BBI line to propel the bullish momentum towards the previous resistance. This was supported by MACD’s bullish crossover and is consistent with the uptick in the RSI which suggests stronger buying momentum ahead. We peg our target prices at RM2.30 and RM2.57 respectively.

Expected Timeframe: 2 weeks to 3 months



M A L A Y S I A

CORPORATE NEWS

1MDB: Wahid: issues will be resolved in two months. The issues related to

1Malaysia Development Bhd (1MDB) will be resolved by year end, Minister in the Prime

Minister’s Department Datuk Seri Abdul Wahid Omar said. “Prime Minister [Datuk Seri

Najib Razak] issued a statement before this saying, that the issues related to 1mDB will

be resolved in six months, meaning by the end of the year,’ he said. “This process will be

carried out in a market-friendly and transparent manner,’ he said when interviewed on

TV’s Question-Answer programme on National Economy on Wednesday. 1MDB

announced recently that its debt level was set to fall to approximately RM16b. (Source:

The Edge Financial Daily)

BHIC: Wins RM 153.16m extended contract from government. Boustaed

Heavy Industries Corp Bhd (BHIC) said its 60% - owned unit Boustead DCNS Naval

Corp Sdn Bhd (BDNC) has bagged a RM 153.16m extended contract from the

government to provide in-service support (ISS) for two units of Prime Minster’s Class

Submarines for the Royal Malaysian Navy. The Extended contract will have a material

effect on the earnings of BHIC group for the financial year ending Dec 31,2015, and will

contribute positively to its future earnings. (Source: The Edge Financial Daily)

Ford: Malaysia sales fall 28.7% in September. Ford Malaysia Sdn Bhd sold 844

vehicles in September 2015, driven by its Ranger and Fiesta models. However, the

figure was 28.7% lower compared with 1,183 units sold in the same month a year ago,

which was its best-ever September performance in Malaysia. In a statement yesterday,

Ford Malaysia said the September result helped drive its third-quarter sales up 34% to

2,691 units from the previous quarter. The 3Q15 sales, however, were 27.2% lower than

the 3,697 units achieved in 3Q14 – its all time record quarter in Malaysia. (Source: The

Edge Financial Daily)

IHH: Healthcare plans tertiary unit in China. IHH Healthcare Bhd is expected to

open its first tertiary medical facility in Chengdu, China, in the second half of 2017. In a

statement yesterday, IHH Healthcare said the group, through its indirect wholly-owned

subsidiary M&P Investments Pte Ltd and its partner Shanghai Broad Ocean Investments

Co Ltd (Broad Ocean), have entered into lease agreement with Perennial Real Estate

Holdings Ltd to operate a 350-bed tertiary hospital at Perennial International Health and

Medical Hub in Chengdu. Under the agreement, M&P and Broad Ocean will, through

their joint-venture (JV) company, lease a space of at least 48,000 sq m at the Chinese

Hospital. The lease is subject to M&P and Broad Ocean obtaining the government and

regulatory approvals to establish a JV company to operate the hospital, the statement

read. (Source: The Edge Financial Daily)

Puncak Niaga: Gets RM1.55b final payment. The conclusion fo the long drawn-

out Selangor water-restructuring deal went right down to the wire. Puncak Niaga said

yesterday it had received the final payment of RM1.55b from Pengurusan Air Selangor

Sdn Bhd (Air Selangor) on the Oct 15 deadline. As such, the proposed disposal have

been completed on even date. (Source: StarBiz)

TNB: Pulls out of power project Track 4A. TNB has withdrawn from Track 4A as

the national utility company was unable to agree on certain financial terms with its

partner SIPP Energy Sdn Bhd, sources said. Both companies were supposed to submit a

financing plan for the power plant project before yesterday’s deadline. (Source: The

Malaysian Reserve)



M A L A Y S I A

SECTOR

Capital Markets: Qualitas to wait for market recovery before rethinking

IPO. Qualitas Healthcare Corp Bhd will wait for market sentiment to improve before

going ahead with its planned listing, said its chairman and managing director Datuk Dr

Noorul |Ameen. He said currently, Qualitas does not have a timeline on when the initial

public off ering (IPO) would be held. All it takes for the plan to proceed is to have the

market sentiment to become more sanguine. (Source: The Edge Financial Daily)

Property: DIBS proposed for first-timers. Mah Sing Group Bhd is proposing to

the Government to bring back the developer interest bearing scheme (DIBS) for first-time

home buyers. The developer is also suggesting a review of the real property gains tax

(RPGT) as among several measures to boost the sector. (Source: StarBiz)

Toll: Selangor to exercise shareholder power to reject toll hike. Selangor

Menteri Besar (MB) Mohamed Azmin Ali said the state government would exercise its

shareholder power in two highway concessionaires to block the toll hike — a move to

protest against the federal government for allowing the increment. In a statement

yesterday, Mohamed Azmin said the state government has utilised its minority powers to

call for a special board meeting to reject the toll increase proposal. According to the MB,

the decision to raise toll rates for the Shah Alam Expressway (Kesas) and Sprint

Expressway, in which the Selangor government holds minority stakes, was never

brought for discussion at board meetings. (Source: The Edge Financial Daily)



M A L A Y S I A

FROM THE REGIONAL MORNING NOTES. . .

Top Glove: 4QFY15: Ending FY15 On A High Note (TOPG MK/BUY/RM8.44/Target: RM10.50)

Top Glove reported a record high quarterly net profit of RM103m in 4QFY15, well above

expectations, on the back of a steep 6% qoq depreciation of the ringgit against the US

dollar and an 8% qoq increase in sales volume. Going forward, margins could sustain at

current levels on improving production mix and productivity gains from its automation

drive. Current valuation continues to lag behind peers. Maintain BUY with a higher target

price of RM10.50.

Politics: Low on Happiness The latest socio-political survey findings by Merdeka Center For Opinion Research

suggest that the country’s uncertain political landscape could persist for an extended

period. Although public perception on the government’s handling of the economy has

improved since Jul 15, sentiment remains downbeat due to various economic issues.

Nevertheless, there is political will to maintain a business-friendly environment that

supports market valuation.

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M A L A Y S I A

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