UOBKHKL Retail Market Monitor 20200312edited

MALAYSIA

Retail Market Monitor

Thursday, 12 March 2020

MARKET NEWS

The FBMKLCI extended its gains yesterday, closing 13.36pt higher at 1,443.83. Meanwhile, US equity futures and Asian stocks retreated with Treasury yields as investors awaited details from the Trump administration on planned stimulus measures to counter the coronavirus impact. The FBMKLCI's top gainers were Petronas Chemical Group (+8.5%), MISC (+6.8%) and Dialog Group (+5.5%) while the top losers were Hong Leong Financial Group (-2.4%), AMMB Holdings (-1.4%) and Axiata Group (-0.8%). In the broader market, gainers outpaced losers 510 to 397 with 353 counters unchanged. Turnover was 4.47b shares valued at RM2.86b.

The FBMKLCI continued to surprise with its resilience against uncertainty in the global market as the index consistently recorded gains, particularly last week when the benchmark index reversed its previous week's losses. However, the bullish bias has not been fully established with the index still trading below the BBI line. Nevertheless, shortterm momentum may drive the FBMKLCI to test the immediate resistance of 1,480 although the medium-term outlook remains vulnerable to a pullback given that the psychological level of 1,500 had earlier been breached. Support and resistance levels are maintained as follows:

Support: 1,414, 1,400

Resistance: 1,480, 1,500

US stocks were lower after the close on Wednesday, as losses in the Industrials, Financials and Oil & Gas sectors led shares lower. At the close in NYSE, the DJIA declined 5.86% to hit a new 52-week low, while the S&P 500 index lost 4.89%, and the NASDAQ Composite index fell 4.70%. Falling stocks outnumbered advancing ones on the NYSE by 2,757 to 152 and 22 ended unchanged; on the NASDAQ Stock Exchange, 2,417 fell and 295 advanced, while 26 ended unchanged. (Sources: )

WHAT'S IN THE PACK

Scientex

(SCI MK/BUY/RM8.92/Target: RM10.67)

2QFY20: Strong earnings growth within expectations; we expect earnings momentum to sustain amid the challenging global economy.

SKP Resources (SKP MK)

Technical BUY on breakout with +14.5% potential return

BUY on breakout with a target price of RM1.42 and stop-loss at RM1.14. The stock consolidated around the immediate support of RM1.15 before yesterday's positive closing above the BBI looks to set a new tone for the short-term outlook.

Muhibbah Engineering (M) (MUHI MK)

Technical BUY with +16.8% potential return

BUY with a target price of RM1.39 and stop-loss at RM1.04. Yesterday's gain can be considered a significant breakthrough as the breakout places share price in new territory.

ATA IMS (AIB MK)

Technical BUY with 12.5% potential return

BUY with a target price of RM1.44 and stop-loss at RM1.19. Yesterday, share price penetrated above the BBI line and closed higher at RM1.28 to maintain the bullish momentum towards the previous resistance.

FBMKLCI CHART

Source: BursaStation

KEY INDICES

Prev Close

DJIA S&P 500 FTSE 100 CSI 300 FSSTI HSCEI HSI JCI KLCI KOSPI Nikkei 225 SET TWSE BDI CPO (RM/mt) Nymex Crude (US$/bbl)

23,553.22 2,741.38 5,876.52 4,028.43 2,783.72 10,070.47 25,231.61 5,154.11 1,443.83 1,908.27 19,416.06 1,249.89 10,893.75

631.00 2,359.00

33.29

TOP VOLUME

Chg (%) (5.86) (4.89) (1.40) (1.33) (1.72) (0.82) (0.63) (1.28) 0.93 (2.78) (2.27) (1.68) (1.00) 0.64 0.73

YTD (%)

(17.47) (15.15) (22.09) (1.66) (13.62) (9.83) (10.49) (18.18) (9.12) (13.17) (17.93) (20.89) (9.20) (42.11) (22.71)

0.94 (44.89)

Stock Sapura Energy Bhd Vortex Consolidated Velesto Energy Bhd Bumi Armada Bhd Hibiscus Petroleum

TOP GAINERS

Stock Sin Heng Chan Tiger Synergy Bhd Dgb Asia Bhd Yong Tai Bhd Vsolar Group Bhd

TOP LOSERS

Price (RM) 0.12

0.06

0.19

0.18 0.44

Chg (%) 4.55

(21.43)

8.82

2.86 0.00

Vol (`000) 328,187

281,401

216,624

192,105 158,714

Price (RM) 0.29

0.04

0.06

0.06

0.03

Chg (%) 34.88

33.33

22.22

20.00

20.00

Vol (`000)

4

43,107

80,298

14,748

365

Stock Trive Property Group Crg Inc Bhd Lambo Group Bhd Orion Ixl Bhd Scomi Energy

Source: Bloomberg

Price (RM) 0.01

0.03

0.01

0.04

0.06

Chg (%) (50.00)

(40.00)

(33.33)

(27.27)

(25.00)

Vol (`000)

194

10

43,119

13,135

2,897

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Retail Market Monitor

TRADERS' CORNER

Source: BursaStation Professional

Source: BursaStation Professional

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MALAYSIA

Thursday, 12 March 2020

SKP Resources (SKP MK)

Technical BUY on breakout with +14.5% potential return Last price: RM1.22 Target price: RM1.34, RM1.42 Support: RM1.15 Stop-loss: RM1.14 BUY on breakout with a target price of RM1.42 and stop-loss at RM1.14. The stock consolidated around the immediate support of RM1.15 before yesterday's positive closing above the BBI looks to set a new tone for the short-term outlook. We expect SKP to continue making higher highs and higher lows if it penetrates the breakout level of RM1.24. The bullish bias has been established following an uptick in the RSI and a bullish crossover in the MACD. Expected Timeframe: 2 weeks to 1 month Note: Not available for CFD Trading

Muhibbah Engineering (M) (MUHI MK)

Technical BUY with +16.8% potential return Last price: RM1.19 Target price: RM1.33, RM1.39 Support: RM1.06 Stop-loss: RM1.04 BUY with a target price of RM1.39 and stop-loss at RM1.04. Yesterday's gain can be considered a significant breakthrough as the breakout places share price in new territory. Backed by surging trading volumes and positive momentum, there should be an upward follow-through from here. This is also supported by an uptick in the RSI and a bullish crossover in the MACD. We peg our targets at RM1.33 and RM1.39 in the near term. Expected Timeframe: 2 weeks to 1 month. Note: Not available for CFD Trading

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Retail Market Monitor

TRADERS' CORNER

Source: BursaStation Professional

MALAYSIA

Thursday, 12 March 2020

ATA IMS (AIB MK)

Technical BUY with +12.5% potential return Last price: RM1.28 Target price: RM1.39, RM1.44 Support: RM1.20 Stop-loss: RM1.19 BUY with a target price of RM1.44 and stop-loss at RM1.19. Yesterday, share price penetrated above the BBI line and closed higher at RM1.28 to maintain the bullish momentum towards the previous resistance. This was supported by the Stochastic's bullish crossover and an uptick in the RSI, which suggests stronger buying momentum ahead. Expected Timeframe: 2 weeks to 1 month. Note: Not available for CFD Trading

ANALYST Mohd Fakhrul Asyraq, MSTA, CFTe +603 2147 1994 mohdfakhrulasyraq@

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MALAYSIA

Retail Market Monitor

Thursday, 12 March 2020

CORPORATE NEWS

Eversendai: Secures projects worth RM490.1m. Eversendai has secured RM490.1 million worth of projects in the

Middle East including a 55-storey luxurious commercial tower in Morocco and two commercial towers in Qatar. The group said it also won a facility control centre and an administrative building project for a well-known metro station in Saudi Arabia. Eversendai's outstanding construction order book now stands at a near all-time high of RM2.69b. (Source: The Edge)

IHH Healthcare: Offers on-demand coronavirus test. IHH

Healthcare is offering on-demand tests for the new coronavirus in Malaysia, while helping Singapore's authorities diagnose cases, even as other countries struggle with a shortage of kits. IHH's Gleneagles and Pantai hospitals around KL and Melaka are endorsed to perform the tests by Malaysia's health authority. (Source: The Edge)

Kejuruteraan Asastera: Gets RM28.6m electrical job. KAB

has secured a contract worth RM28.6 million from China Construction Development (Malaysia) Sdn Bhd as a subcontractor for design, supply, delivery, installation, testing and commissioning, and maintenance of electrical and extra low voltage services works on three blocks of serviced apartments in Kuala Lumpur.The contract is from March 11 until Jan 9, 2024. (Source: The Edge)

MAHB: February passenger traffic depressed by Covid-19 outbreak. Malaysia Airports Holdings Bhd (MAHB) saw a 23.4% yoy decline in the

number of passengers that travelled through its airports in Malaysia as the Covid-19 outbreak weighed on passenger traffic. (Source: The Edge)

Petronas: To maintain capex despite oil price slump.

Petronas says it plans to continue with its domestic capex programme of RM26b ? RM28b this year despite the recent oil price slump. This is 10% more than the payout for last year. Petronas also intends to maintain its dividend payout of RM24b for FY19. However, the company said it is still reassessing its plans and budget in light of the price plunge. (Source: The Edge)

Sime Darby Plantation: Reviewing its Indonesia's business operation. Sime Darby Plantation may undertake corporate

exercises, including request for proposals to seek consultancy and financial advice, in relation to its business operations in Indonesia. The company said it is in the ordinary course of reviewing its assets and such a corporate exercise would be taken to help the company make decisions later. (Source: The Edge)

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MALAYSIA

Retail Market Monitor

Thursday, 12 March 2020

SECTOR

Construction: MRT SSP line over 70% complete. Construction

of the MRT Sungai Buloh-Serdang-Putrajaya (SSP) Line has achieved more than 70% project completion following the success of underpass tunnel breakthrough below the KLSeremban Expressway. (Source: The Edge)

Plantation: Malaysia aims to resolve palm oil spat with India within a month. Malaysia has set itself a target of a month within which

to resolve its trade dispute with India over palm oil, said the new commodity minister ? Datuk Mohd Khairuddin. He said he wants to send a delegation to India as soon as possible to improve ties. (Source: The Edge)

Tech/Telco: Study finds 5G investment set to soar. A recent

study undertaken by EY on enterprises showed that investment in 5G is set to soar, but over half lack the confidence to implement it. A survey of enterprises globally found that 15%of enterprises are currently investing in 5G, and EY said the number will rise to 69% within 3 years. According to the study, 74% of the enterprises believed 5G will enter the fabric of their business over the next 5years. (Source: The Edge)

ECONOMY

Economy: Govt sets up economic action council to address economic woes. The government has decided to set up an

Economic Action Council (EAC) as an immediate step to address the economic woes including COVID-19 and recent oil price plunge. Prime Minister Muhyddin Yassin said the economic stimulus package announced by the previous government would be reexamined, including the possibility of increasing the allocation. (Source: The Edge)

Politics: No snap polls - Muhyiddin. Prime Minister Muhyiddin Yassin

yesterday ruled out the possibility of holding snap polls, stressing that his Perikatan Nasional Government would serve the people until the next General Election. (Source: The Edge)

Politics: Vote of no confidence may not be possible as PH support dwindles - Tun Mahathir. Former Prime Minister Tun Dr

Mahathir said Muhyiddin Yassin is believed to have enough support from MPs to enable him to govern the country until the 15th general election. He said the number of seats supporting PH has been decreasing, hence vote of no confidence may not be successful. (Source: The Edge)

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