R e t a i l M a r k e t M o n i t o r Tuesd ay, 21 July 2015...2015/07/23 · R e t a i l M a r k e...

R e t a i l M a r k e t M o n i t o r Tu esday , 21 J u l y 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 declined 2.60pt (-0.2%) to close at 1,724.13pt yesterday. Meanwhile,

Asian stocks outside of Japan dropped, with energy producers, miners and information

technology shares leading the decline. The MSCI Asia Pacific excluding Japan Index

slipped 0.3% to 463.22g. The FBMKLCI’s top losers were Astro Malaysia Holdings (-

3.0%), Hong Leong Financial Group (-2.3%) and MISC (-1.7%) while the top gainers

were Hong Leong Bank (+1.0%), Westports Holdings (+0.7%) and Petronas Gas

(+0.6%). In the broader market, gainers outpaced losers 452 to 319 with 321 counters

unchanged. Turnover was 1.52b shares valued at RM1.55b.

Despite opening higher in the earlier trading session, the FBMKLCI failed to remove the

immediate resistance of 1,737 and pulled back to close marginally lower yesterday.

While this effectively ends six consecutive days of positive close, we note that the

index’s positive near-term outlook is still intact given that it remains well above the BBI

line. This is further reaffirmed by the positive reading of the MACD indicator.

Meanwhile, the easing RSI index suggests that buying momentum is set to weaken

further, going forward. However, any profit-taking is expected to be relatively mild and

should not affect the index’s positively-biased near term outlook. Narrowing divergence

between the +DI and –DI (together with the easing ADX) suggests lower volatility and

thus implies lower opportunities for short-term swing trading ahead. We maintain our

support and resistance levels as follows:

Support: 1,688, 1,671

Resistance: 1,737, 1,751

US stocks edged higher, driven by positive corporate earnings. The S&P 500 closed

0.1% higher at 2,128.27, while the DJIA ended the session at 18,100.41, up 13.96pts.

Hasbro Inc shares jumped 6.3% after the toy giant delivered quarterly profit and

revenue that topped expectations. PayPal Holding Inc rallied 5.4% on its first day of

trading after being spun off from e-commerce giant eBay Inc. Halliburton Co gained

7.8% following its announcement of quarterly results that beat Wall Street’s forecasts.

WHAT’S IN THE PACK

Oil & Gas

According to a Platts conference, the

storage segment’s near-term outlook

remains bullish. We are MARKET

WEIGHT on the defensive storage space,

given that Dialog and MISC are trading at

sector premiums and in line with the

segment’s M&A multiples.

Hexza Corp Berhad

(HEX MK) Technical BUY on breakout with +22.7%

potential return

BUY with a target price of RM0.94 and

stop-loss at below RM0.815. Following

a breakout above the RM0.815 mark,

HEXZA extended its previous day’s

gain…

Kejuruteraan Samudra Timur

Berhad (KSTB MK) Technical BUY on breakout with +28.4%

potential return


stop-loss at below RM0.46. Yesterday’s

spike in share price saw SAMUDRA

stage a convincing move above the 7-

and 21-day EMA.

PBA Holdings Berhad (PBAH

MK) Technical BUY with +19.6 % potential return


stop-loss at below RM1.00. Having

declined over the last 3 months, PBA

has reversed its bearish trend with a

close above the EMA lines.

FBMKLC I CHART

Source: BursaStation

KEY IND ICES

Prev Close Chg (%)

YTD (%)

DJIA 18,100.41 0.08 1.56

S&P 500 2,128.28 0.08 3.37

FTSE 100 6,788.69 0.20 3.39 CSI 300 4,160.61 0.22 17.74 FSSTI 3,373.48 0.60 0.25 HSCEI 11,773.92 (0.64) (1.76) HSI 25,404.81 (0.04) 7.62 JCI 4,869.85 (0.65) (6.83) KLCI 1,724.13 (0.15) (2.11) KOSPI 2,073.31 (0.17) 8.23 Nikkei 225 20,650.92 0.25 18.34 SET 1,466.71 (0.85) (2.07) TWSE 8,975.00 (0.78) (3.57) BDI 1,067.00 1.81 36.45 CPO (RM/mt) 2,188.00 (0.14) (3.44) Nymex Crude (US$/bbl) 50.00 (0.30) (12.08)

TOP VOLUME

Stock Price (RM)

Chg (%)

Vol (‘000)

Perwaja Holdings Bhd 0.29 0.00 25,102 Frontken Corp Bhd 0.27 1.89 47,776 Kinsteel Bhd 0.18 2.94 11,196 Apft Bhd 0.21 5.00 32,775

Jaks Resources Bhd 0.91 1.11 24,065

TOP GA INERS

Stock Price (RM)

Chg (%)

Vol (‘000)

Cybertowers Bhd 0.07 (6.67)

9,998 Karambunai Corp Bhd

0.07 0.00 7,264 Inix Technologies Holdings Bhd

0.18 (2.78)

1,270 M3 Technologies Asia Bhd

0.13 (18.75)

39 Ykgi Holdings Bhd 0.20 (20.0

0) 153

TOP LOSERS

Stock Price (RM)

Chg (%)

Vol (‘000)

Asia Media Group Bhd

0.03 20.00 1,082 Kinsteel Bhd 0.18 2.94 11,196 Techfast Holdings Bhd

0.18 0.00 50 Versatile Creative Bhd

0.75 13.64 3 Globaltec Formation Bhd

0.06 0.00 422 Source: Bloomberg



M A L A Y S I A

TRADERS’ CORNER

Hexza Corp Berhad

(HEX MK) Technical BUY on breakout with +22.7%

potential return

Last price : RM0.87

Target price : RM0.94, RM1.00

Support : RM0.815

Stop loss : RM0.79


stop-loss at below RM0.815. Following a

breakout above the RM0.815 mark,

HEXZA extended its previous day’s gain

on the back of a higher trading volume.

Growing bullish divergence between the

DMI lines and the positive readings of

the MACD indicator suggest a positive

near-term outlook. Meanwhile, the rising

RSI indicator also suggests that buying

interest would continue to strengthen

further in the near term. A retest of the

all-time high of RM0.94 is expected in

the near term, with further upside

expected towards the psychological

target of RM1.00 if the buying

momentum sustains at current levels.

Expected Timeframe: 2 weeks to 2

months

Kejuruteraan Samudra

Timur Berhad (KSTB MK) Technical BUY on breakout with +28.4%

potential return

Last price : RM0.54


Support : RM0.49

Stop-loss : RM0.46

BUY with a target price of RM0.67 and stop-

loss at below RM0.46. Yesterday’s spike in

share price saw SAMUDRA stage a

convincing move above the 7- and 21-day

EMA. The high volume accompanying

yesterday’s upward movement suggests

renewed buying interest and the possibility of

the stock breaking out above its sideway

trading range. A breakout above the

immediate resistance of RM0.555 would lead

to a retest of its previous high of RM0.67. Any

further breakout above the RM0.67 mark

would lead to an extended rally towards our

target of RM0.775 over the medium term.


months



M A L A Y S I A

TRADERS’ CORNER

PBA Holdings Berhad

(PBAH MK) Technical BUY with +19.6 % potential

return

Last price : RM1.10


Support : RM1.00

Stop-loss : RM0.98


stop-loss at below RM1.00. Having

declined over the last 3 months, PBA

had reversed its bearish trend with a

close above the EMA lines. The golden

crosses of the EMA lines and the MACD

lines also reaffirm our view that the

stock is likely to trend higher in the near

term. Furthermore, the crossing of the

RSI above the 50-pt threshold also

suggests that buying momentum would

continue to pick up going forward. A

breakout above the RM1.11 mark would

drive the share price towards the

immediate resistance of RM1.30 in the

near term, with a retest of the previous

high of RM1.45 expected upon further

breakout.


months



M A L A Y S I A

CORPORATE NEWS

Atlan: Its subsidiary, Duty Free International to place out new shares. Atlan

Holdings Bhd’s subsidiary, Duty Free International Ltd will place out new shares to fulfill

the 25% public shareholding requirement for a proposed dual primary listing on the main

board of the Stock Exchange of Hong Kong Ltd. Duty Free International said its

controlling shareholder, Atlan, had informed the company that it does not intend to sell

any of its existing share in Duty Free International in order for the company to fulfill the

25% public float requirement pursuant to the Main Board listing rules of the SEHK.

(Source: The Star)

China Stationary: Gets extension from Bursa until Sept 7. China Stationary Litd

(CSL) has been granted an extension until Sept 7 to submit a regularization plan or

waiver application to the regulators. In a filing with the exchange CSL said the local

bourse had considered all the facts of the applications and decided to grant the

extension. To prevent being delisted CSL has to meet the Sept 7 deadline. It also has to

obtain the approval for the regulators to carry out the regularization which must be

carried out within the time frame. (Source: The Star)

Cityneon: SGX gives green light to Cityneon’s fund-raising exercise. Star Media

Group Bhd’s Singapore-based listed subsidiary, Cityneon Holdings Ltd, has received the

approval of the Singapore Exchange (SGX) to undertake a corporate exercise to finance

the acquisition of exhibition producer Victory Hill Exhibitions Pte Ltd. The company said

in a stock exchange filing that Cityneon would be proposing a rights issue and issuance

of consideration shares to acquire Victory Hill, which holds the rights to operate, market

and promote the Marvel exhibits for display in museums and science centres or other

similar venues. (Source: The Star)

Cocoaland: Buyout said to be aborted on management issues, shares down. Cocoaland Holdings Bhd’s shares tumbled 37 sen after the party that had sought to buy

out the company withdrew from the planned exercise, claiming that the target was no

longer a “strategic fit”. Hong Kong-listed First Pacific Company Ltd, controlled by

Indonesian tycoon Anthony Salim of the Salim Group, first announced its intention to buy

the business of the snack and candy manufacturer on June 2 at a price that had worked

out to RM2.70 per Cocoaland share. First Pacific had said that its buyout was subject to

a due diligence exercise. (Source: The Star)

Ire-Tex Corp: MD Yap no longer a substantial shareholder. Ire-Tex Corp Bhd group

MD and co-founder Datuk Dr Yap Tatt Keat has ceased to be a substantial shareholder

of the company, which manufactures a range of polymer-based protective packaging

products. In a filing with the exchange it is revealed that Yap last Tuesday disposed of

13.3m shares that represented 10.68% sstake in the company via an off-market disposal

at 31sen per share or RM4.12m in total to US incorporated firm, Ko Ltd Partnership. (Source: The Edge Financial Daily)

Kejuruteraan Samudra Timur: Exits PN17 status after upliftment. O&G service

provider Kejuruteraan Samudra Timur Bhd (KSTB) has exited Practice Note 17 (PN17)

status, after Bursa Securities has approved its upliftment and considered it a cash

company. In a filing with Bursa Malaysia yesterday KSTB said it is no longer considered

a PN17 company. (Source The Edge Financial Daily)

Kinsteel: To realise RM3.72m gain on disposal of Perwaja RCULS. Kinsteel Bhd

said yesterday it had on three separate occasions disposed of 13.29% of the total issued

seve-year 7% coupon redeemable convertible unsecured loan stocks (RCULS) of

Perwaja Holdings Bhd to non-related parties for RM9.3m cash. In a filing with the

exchange Kinsteel said it had disposed of a total of 37.2m units of Perwaja RCULS,

representing 13.29% of total issued RCULS, on July 8, 14 and 16 2015. (Source: The

Edge Financial Daily)



M A L A Y S I A

KKB Engineering: Wins purchase orders. KKB Engineering Bhd has secured

RM14.6m in purchase orders from JGC (M) Sdn Bhd and Petron Malaysia Refining &

Marketing Bhd. In a filing with Bursa Malaysia, KKB Engineering said the purchase order

from JGC was for the supply of fabricated steel structures for the Tank 7 new jetty-PAF

project for the Petronas LNG Train 9 project, and the order from Petron Malaysia was for

the supply of 14Kg LP gas cylinders. (Source: The Star)

Nexgram: Gets Development Order for Cyberjaya project. Nexgram Holdings Bhd

has obtained the development order from the Sepang Municipal Council for the RM1.15b

“Angkasa Icon City” project in Cyberjaya, according to a filing with Bursa Malaysia.

Nexgram’s subsidiaries – Nexgram Land Sdn Bhd and Nextnation Datacity Sdn Bhd –

had entered into an off-take-cum-sale and purchase agreement with MyAngkasa Bina

Sdn Bhd last December. The agreement would see Nexgram Land undertaking the

mixed commercial development project on freehold land held by Nextnation Datacity,

measuring 2.39ha. (Source: The Star)

Mulpha Strategic: Unit gains RM3m from Aussie firm stake sale. Mulpha Stake Ltd

(MSL) has sold its 19.9% stake in PBD Development Ltd (PDB) for A$19.39m

(RM55.06m) to Oasis Star Ltd. The stake disposal which was completed yesterday and

for which MSl received payment in HK$112.13m (RM55.06m) was expected to net MSL

a gain of S$1.85m (RM5.24m). (Source: The Edge Financial Daily)

OSK Holdings: Serves notice on takeover offers. OSK Holdings Bhd has served a

notice of unconditional mandatory takeover offer to OSK Property Holdings Bhd and a

conditional voluntary takeover offer to PJ Development Holdings Bhd (PJD) to acquire

the shares in both property firms that it does not own. In a filing with Bursa Malaysia,

OSK Holdings said the offer to OSK Property had turned unconditional yesterday. OSK

Holdings is offering RM1.95 per share for the remaining 67.45m OSK Property shares

not already held by it and parties acting in concert. This is 27.5% of the issued and paid-

up share capital of OSK Property as of July 16. OSK Holdings is also offering RM1 each

for all the remaining outstanding 18.96m, or 18.7%, OSK Property warrants C 2012/2017

it does not own. (Source: The Star)

Sunsuria: RM433.49m rights issue oversubscribed 14.05%. Sunsuria Bhd

announced an over-subsription of its rights issue, which targeted to raie RM433.49m, by

14.05%. The property developer offered a total of 475.08m new shares in Sunsuria at

80sen per rights share, on the basis of three new shares ofr every share held, together

with 158.36m free warrants on the basis of one warrant for every three ri9ghts shares

subscribed. (Source: The Edge Financial Daily)

SECTOR

Property: Bukit Bintang City Centre (BBBC) project to launch first phase in Dec

2015. The BBBC project which is spearheaded by a consortium of UDA Holdings Bhd,

Eco World Development Group Bhd and the EPF is gathering steam. UDA chairman

Datuk Johari Abdul Ghani told The Edge that the DBKL had granted the development

order (DO) for the master plan layout this month. (Source: The Edge Financial Daily)

ECONOMICS

General: Johor upbeat despite global uncertainties. Johor will review its investment

strategy from time to time in view of the uncertainties in the global economy caused by

the monetary crisis in Greece. Mentri Besar Datul Mohamed Khaled Nordin said Johor

was still upbeat it would onctinue to attract investments from around the world despite

the economic challenges. “Iskandar Malaysia is another factor that would help develop

and position Johor as an economic powerhouse in the coming years,” said Mohamed

Khaled. (Source: The Star)



M A L A Y S I A

FROM THE REGIONAL MORNING NOTES. . .

Oil & Gas: Towards A Burgeoning Storage Market

According to a Platts conference, the storage industry’s near-term outlook remains

bullish. Current capacity and planned additions are sufficient to meet future product

demand and storage terminals are fully utilised, given the crude supply surplus. Long-

term outlook remains uncertain if upcoming new capacity generates competition. We

believe Dialog and MISC are trading at sector premiums, partly due to their exposure to

storage terminals. Maintain MARKET WEIGHT on the sector.

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M A L A Y S I A

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