FBM KLCI - Daily Malacca Securities Sdn Bhd (A Participating Organisation of Bursa Malaysia Securities Berhad) Hotline: 1300 22 1233 Email: support@mplusonline.com.my Website: www.mplusonline.com.my Market Scorecard Close Change 18-Aug-17 % FBM KLCI 1,776.22-0.01 52-W High 1,796.75 52-W Low 1,614.11 FBM EMAS 12,626.22 0.00 FBM 100 12,284.26 0.02 FBM Fledgling 18,892.32 0.14 FBM Small Cap 17,028.97-0.26 FBM ACE 6,512.63-0.97 FBM Shariah 12,770.88 0.04 Volume (mln) 1,454.17-19.42 Value (RM mln) 1,576.44-16.07 Indifferent Sentiments To Reign Market Participation % Net (RM mln) Institution 55.2 137.0 Retail 25.4-26.6 Foreign 19.4-110.4 Futures FKLI Spot 1,771.00-0.11 FKLI Forward 1,769.00-0.17 The FBM KLCI (-0.01%) closed marginally lower last Friday as most of its intraday losses were trimmed by the strongerthan-expected 2Q2017 GDP data that expanded 5.8% Y.o.Y. Subsequently, the key index rose 0.5% W.o.W. The lower liners, however, ended mostly lower as the FBM Small Cap and FBM ACE fell 0.3% and 1.0% respectively, while the broader market ended mixed. Market breadth turned negative with 472 decliners outnumbering 357 gainers. Traded volumes, meanwhile, slipped 19.4% to 1.45 bln shares amid the negative market sentiment. Key losers on the FBM KLCI include Petronas Chemicals (-10.0 sen), Hong Leong Financial Group (-8.0 sen), Genting (-5.0 sen), Maybank (-4.0 sen) and Genting Malaysia (-4.0 sen). Notable decliners on the broader market were Tasek Corporation (-50.0 sen), SAM Engineering & equipment (-47.0 sen) and MPI (-20.0 sen). Hong Leong Industries and Malayan Flour Mills sank 19.0 sen and 18.0 sen respectively after reporting a weak set of quarterly earnings. Amongst the biggest gainers on the broader market were Ipmuda (+15.5 sen), Carlsberg (+14.0 sen), Advanced Packaging (+12.0 sen) and Genting Plantations (+12.0 sen). Econpile added 11.0 sen to close a a fresh all-time high level. Meanwhike, Petronas Gas (+14.0 sen), Westports (+13.0 sen), IOI Corporation (+14.0 sen), Hong Leong Bank (+8.0 sen) and Astro (+4.0 sen) topped the big board advancers list. Japanese equities slumped as the Nikkei tanked 1.2% to close lower for the fifth consecutive week, taking cue from the weakness on Wall Street overnight. Foreign Dow Jones 21,674.51-0.35 S&P 500 2,425.55-0.18 NASDAQ 6,216.53-0.09 FTSE 100 7,323.98-0.86 DAX 12,165.19-0.31 CAC 40 5,114.15-0.64 FTSE STI 3,251.99-0.52 Shanghai Composite 3,268.72 0.01 Hang Seng Index 27,047.57-1.08 Nikkei 225 19,470.41-1.18 Commodities WTI Crude Oil (USD) 48.61 0.21 Brent Spot (USD) 52.83 0.21 Gold (USD) 1,281.65-0.19 CPO (RM) 2,681.00 0.87 Currency USD 4.2900 0.13 GBP 5.5361 0.03 EURO 5.0384-0.01 SGD 3.1454 0.05 YEN 25.4130 0.82
2 Similarly, the Hang Seng Index sank 1.1% with all ten sectors in the red, but the Shanghai Composite added 0.01% after recouping all its intraday losses. ASEAN stockmarkets, meanwhile, ended mostly negative. U.S. benchmark stockmarkets extended their losses as the Dow declined another 0.4% after the White House announced that President Donald Trump had abandoned plans to form an advisory council on infrastructure development. On the broader market the S&P 500 fell 0.2% with eight of the ten major sectors in the red, while the Nasdaq closed 0.1% lower. Key European stockmarkets the FTSE (- 0.9%), CAC (-0.6%) and DAX (-0.3%), all ended lower last Friday after the Barcelona terror attack renewed terrorism fears in the region. Notable decliners were airline companies like IAG (-2.0%) and Air France- KLM (-1.6%), while tourism related companies like InterContinental Hotels Group shed 1.6%. 1,770 level. The lower liners and broader market shares are also likely to see further weakness as retail participants continue to lock in their near term profits. MACRO BRIEF Malaysia's 2Q2017 GDP grew 5.8% Y.o.Y the strongest since 1Q2015 and exceeding economists' forecast of a 5.4% Y.o.Y expansion. Growth were underpinned by the services and manufacturing sectors. The services sector, which accounts for more than half of the country s GDP, expanded 6.3% Y.o.Y - boosted by the wholesale & retail trade (+7.7% Y.o.Y). The manufacturing sector which accounts for nearly one-quarter of the country's GDP expanded 6.0% Y.o.Y. For 1H2017, Malaysia s economy expanded 5.7% Y.o.Y. (The Star Online) THE DAY AHEAD Although the FBM KLCI managed to recoup most of its intraday losses last Friday, the market s mood was mostly subdued and we expect it to carry over to the start of the week as sentiments are still indifferent with few positive developments for market players to follow. We see the positivity from the above expectation economic performance to be short-lived as we believe the positivity is already largely reflected in the current market valautions. Therefore, we see the market retreating over the near term in the absence of fresh leads. However, we also think that the downside risk will be checked by the institutional support on selected index heavyweights that will ensure that the key index stays above the COMPANY BRIEFS Malaysia Building Society Bhd (MBSB) has secured approval from the Finance Minister to acquire a 100.0% stake in Asian Finance Bank Bhd (AFB). The group said that relevant announcements will be made when it signs the definitive agreement. The proposed merger will result in Malaysia s second largest standalone Islamic bank, after Bank Islam Malaysia Bhd. (The Star Online) Chin Well Holdings Bhd has issued a profit warning that it could report a lower pretax profit for FY17, but will not be slipping into the red, mainly due to the rising price of wire rod and other raw materials, the imposition of safeguard duty by the government on wire rod
3 imported from China and shortages of direct labour in the manufacturing industries. (The Edge Daily) IGB REIT is planning to raise up to RM5.0 bln via a Medium Term Note to fund its investment activities, refinance borrowings and finance its working capital requirements. (The Star Online) Oriental Interest Bhd s 4QFY17 net profit jumped 74.5% Y.o.Y to RM19.4 mln, from RM11.1 mln last year due to higher contribution from its property division. Revenue for the quarter also surged 58.0% Y.o.Y to RM94.1 mln, from RM59.5 mln in the previous corresponding year. For FY17, however, net profit dipped 4.1% Y.o.Y to RM38.5 mln vs. RM40.2 mln a year ago, despite a 6.4% Y.o.Y increase in revenue to RM247.9 mln, from RM233.1 mln in FY16. The weaker earnings were partly due higher selling and distribution expenses, other expenses and finance costs. Moving forward, the group expects the property market in Malaysia to be strong, on the back of a growing number of urbanised youths and stable employment. (The Edge Daily) Ideal Jacobs Malaysia Corp Bhd is proposing to acquire Widad Business Group Sdn Bhd for RM520.0 mln in cash and shares, marking its first foray into the construction and integrated facilities management. The group also plans to sell its manufacturing, fabrication and trading businesses to Oriental Dragon Incorporation Ltd, a Hong Kong incorporated firm, for RM28.0 mln. Separately, the group has also proposed to raise a minimum of RM122.7 mln via a private placement exercise by issuing up to 534.0 mln new shares at a minimum price of 23.0 sen apiece. The cash call will come together with free warrants that will be issued on the basis of one warrant for every five existing shares. (The Edge Daily) Konsortium Transnasional Bhd and six bus companies affiliated to the group have filed for an injunction to stop Tan Chong Motor Holdings Bhd's subsidiary from repossessing vehicles leased to them and from making any deals in relation to a plot of land that was initially promised to the unit in a debt settlement deal. The seven parties are also suing Tan Chong s 100.0%-owned unit, Tan Chong Industrial Equipment Sdn Bhd (TCIE), to recover an unspecified compensation sum for TCIE's part acquisition of the land, and for the repayment of RM22.7 mln. Additionally, the plaintiffs also want an injunction to prevent TCIE from entering any deals over the land as well as another injunction to prevent TCIE from taking any enforcement action under the settlement agreement and a declaration that the land's value is RM55.6 mln. Tan Chong said TCIE s solicitors are of the opinion that the action is without any legal basis and that TCIE had instructed the solicitors to file an application to strike out the action. (The Edge Daily) Genting Plantations Bhd is acquiring Knowledge One Investment Pte Ltd, a wholly-owned unit of Lee Rubber Co (Pte) Ltd, which owns oil palm plantations in south Kalimantan, Indonesia, for US$95.0 mln (or RM407.4 mln) in cash. The acquisition will expand its plantation landbank across Malaysia and Indonesia to 242,597 ha., including 84,833 ha. of land in Indonesia. (The Edge Daily) Tune Protect Group Bhd s 2Q2017 net profit fell 50.9% Y.o.Y to RM13.0 mln,
4 from RM26.5 mln last year, attributed to a larger-than-expected increase in motorrelated claims, although revenue gained 6.6% Y.o.Y to RM133.9 mln, from RM125.5 mln in the same period last year. Cumulative 1H2017 net profit also dropped 49.2% Y.o.Y to RM24.9 mln, from RM49.1 mln a year ago, despite a 3.5% Y.o.Y increase in cumulative revenue to RM264.0 mln, from RM255.1 mln last year. surged 77.7% Y.o.Y to RM59.1 mln, from RM33.2 mln in 2Q2016. Cumulative 1H2017 net profit also declined 27.7% Y.o.Y to RM2.3 mln, from RM3.2 mln recorded a year ago, albeit a 45.4% Y.o.Y jump in revenue to RM93.4 mln, compared to RM64.3 mln in the previous corresponding year. (The Edge Daily) Going forward, the group is planning to introduce new products and partnerships, including Home Easy online and its fourth airline partnership with Cambodia Angkor Air in the coming quarters. The newly rolled out products are only expected to contribute positively to Tune s performance from 4Q2017 onwards. (The Star Online) Mlabs Systems Bhd is partnering XOX Bhd in a bid to enhance the functions of XOX's Voopee mobile application. The collaboration will also explore the potential market arising from XOX's collaboration with PT Inovasi Telematika Nusantara and Pengurus Besar Nahdlatul Ulama. (The Edge Daily) Enra Group Bhd s 1QFY18 net profit fell 19.9% Y.o.Y to RM1.7 mln, from RM2.1 mln a year ago due to lower property sales and higher staff cost, while revenue for the quarter lost 39.6% Y.o.Y to RM24.0 mln, from RM39.7 mln in 1QFY17. Despite the lower earnings, the group expects full year results to remain satisfactory and positive. (The Edge Daily) PRG Holdings Bhd posted a 12.4% Y.o.Y decrease in 2Q2017 net profit to RM1.4 mln, compared to RM1.6 mln a year ago, dragged down by corporate exercise expenses related to the proposed listing of its wholly-owned subsidiary, Furniweb Holdings Ltd on the Growth Enterprise Market of the Hong Kong Stock Exchange (HKEX). Revenue for the quarter, however,
5 Stock Entitlement Subjects Description Ex-Date BORNEO AQUA HARVEST BHD Bonus-Options 1:2 14/8/2017 BREM HOLDING BHD Interim RM0.02 14/8/2017 IGB REAL ESTATE INVESTMENT T Regular Cash RM0.04 14/8/2017 REV ASIA BHD Special Cash RM0.44 14/8/2017 FEDERAL FURNITURE HLDGS (M) Interim RM0.01 15/8/2017 ELK-DESA RESOURCES Final RM0.04 16/8/2017 IKHMAS JAYA GROUP BHD Final RM0.01 16/8/2017 MESINIAGA BHD 1st Interim RM0.05 17/8/2017 HEITECH PADU BHD Final RM0.05 17/8/2017 TASEK CORP BHD Interim RM0.20 17/8/2017 TOWER REAL ESTATE INVESTMENT Interim RM0.03 18/8/2017 AMANAH HARTA TANAH PNB Distribution RM0.03 18/8/2017 SLP RESOURCES BHD Bonus 1:5 18/8/2017 ORIENTAL INTEREST BHD Interim RM0.07 18/8/2017 UNISEM (M) BERHAD Interim RM0.04 21/8/2017 MISC BHD 2nd Interim RM0.07 21/8/2017 ALUMINIUM CO OF MALAYSIA BHD Return of Capital RM0.32 22/8/2017 TRIVE PROPERTY BHD Bonus-Options 1:2 23/8/2017 OPCOM HOLDINGS BHD Interim RM0.02 23/8/2017 PANSAR BHD Regular Cash RM0.01 23/8/2017 HEKTAR REAL ESTATE INVESTMEN 2nd Interim RM0.04 23/8/2017 PETRONAS CHEMICALS GROUP BHD Interim RM0.12 23/8/2017 IOI CORP BHD 2nd Interim RM0.05 24/8/2017 MRCB-QUILL REIT Distribution RM0.04 24/8/2017 SUNWAY REAL ESTATE INVESTMEN Distribution RM0.02 24/8/2017 BOILERMECH HOLDINGS BERHAD Final RM0.02 24/8/2017 PERAK TRANSIT BHD 2nd Interim RM0.00 24/8/2017 LCTH CORP BHD Interim RM0.05 24/8/2017 DAIBOCHI PLASTIC & PACKAGING Interim RM0.01 25/8/2017 HOMERITZ CORP BHD 2nd Interim RM0.01 28/8/2017 SERBA DINAMIK HOLDINGS BHD 2nd Interim RM0.02 28/8/2017 MAXIS BHD Interim RM0.05 28/8/2017