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Chin Well Holdings Bhd – 1Mar21

With the recovery still remain at infant stage, we reckon that outlook remains challenging as global economic recovery remains at an uneven patch with temporary shutdown in manufacturing activities and tepid demand. While the North America segment remains upbeat, the softer demand from other regions of the world continues to bog down the overall performance.

OCK Group Bhd – 1Mar21

We attended the post quarter results analyst briefing and came away feeling re-assured on OCK Group Bhd (OCK) recovery moving into FY21f. FY20 was largely affected by the slowdown of sites deployment due to the Covid-19 pandemic with domestic mechanical & engineering works were halted for several months. Moving into the FY21f, we note that the re-implementation of Movement Control Order (MCO 2.0) will be less severe given the relaxation of business operations, whilst the deployment of Covid-19 vaccination may provide some relieve, particularly towards end-2021.

Serba Dinamik Holdings Bhd – 1Mar21

While the oil & gas business segment will continue to anchor the overall earnings growth, Serba Dinamik is gradually shifting towards other business segments, particularly the ICT business segment. For the time being, the ICT segment orderbook of approximately RM2.2bn (close to 12.0% of total orderbook of RM18.7bn) will sustain earnings visibility over the foreseeable future.
technical focus

Technical Focus – MESB

Primarily involved in the retailing and trading of quality leatherwear products and operates a few boutiques and over 270 consignment retail counters throughout premier departmental store in Malaysia. Consumer spending may accelerate following the roll-out of Covid-19 vaccine across the globe. Solid balance sheet with a net cash position of RM19.1m in 2QFY21, translating to net cash per share of 18.0 sen (c.35.2% of share price). Technically, price has rebounded to form a flag-formation breakout above RM0.55, targeting the next resistances at RM0.575-0.595, with long term target at RM0.63.
market pulse

Sentiment still dour

Mirroring regional downtrend, the FBM KLCI ended the week in red despite final hour bargain hunting. However, we believe buying support could emerge as the market sentiment is likely to turn positive following the news on the arrival of China’s CoronaVac vaccine in Malaysia. Nevertheless, we expect the political developments may provide the volatility to the market. On the side note, commodities upcycle in crude palm oil and Brent crude oil are likely to sustain over the near to mid-term based on the current momentum.

AME Elite Consortium Bhd – 26th Feb 21

As of 3QFY21, AME is equipped with an unbilled construction orderbook of approximately RM200.0m, representing unbilled orderbook-to-cover ratio at 1.1x against FY20 construction revenue of RM185.2m that will provide earnings visibility over the next two years. While there were 22 Covid-19 cases reported at the worker’s dormitory, AME has conducted immediate sanitisation and set up a separate off-site quarantine centre.

OCK Group Bhd – 26th Feb 21

As of FY20, OCK owns and manages over 4200 telco sites in Malaysia (500 sites), Myanmar (1,000 sites) and Vietnam (2,700 sites) that will provide stream of recurring income over the long term. We note OCK will actively participate on the National Digital Network Initiative (Jendela) plan with RM4.0bn infrastructure works for more than 1,700 sites to be tendered by 1Q2021, whilst capitalising on the 5G transition that may see demand for telecommunication sites quadruple against the number of 4G sites.
market pulse

Return of volatility

The FBM KLCI has rebounded strongly amid bargain hunting activities as steel-related and technology stocks were traded higher following several strong sets of results under the respective sectors. Meanwhile, healthcare sector was the sole decliner in the broader market. We believe the market will be pricing in Covid-19 vaccination progress and market may trend on an upward bias tone, focusing on recovery theme stocks. On the commodity side, the crude palm oil price has climbed above RM3,700, while Brent oil price is firmly trading above USD65.

SLP Resources Bhd – 25th Feb 21

Moving in FY21f, we believe that sales from the local market will continue to take charge (>50%), after raking 53.3% of total revenue in FY20 as oppose to only 39.0% recorded in FY19. For now, SLP will focus on ramping up the production of kitchen and garbage bag, targeting 25% of production output in FY21f (from less than 20% recorded in FY20).

Econpile Holdings Bhd – 25th Feb 21

As of 2QFY21, Econpile’s is equipped with an unbilled construction orderbook of approximately RM930.0m from 23 on-going projects. Moving forward, the group’s unbilled orderbook-to-cover ratio at 2.3x against FY20 revenue of RM403.0m will provide earnings visibility over the next three years.
market pulse

Rebound in sight

Selling pressure in the glove counters persisted, pushing the FBM KLCI into the negative territory in the afternoon trading session. Whilst the National Covid-19 Immunisation Programme kickoff did not boost the local bourse yesterday, we opine some bargain hunting activities to arise in lower liners after close to 1,000 counters closing in the red. Meanwhile, the Brent oil price continues to climb above USD67.
market pulse

Bargain hunting may take shape

In contrast with the regional gains, the FBM KLCI failed to sustain its intraday gains as the key index slipped into negative territory during the final trading hour. We expect the arrival of the second batch of Pfizer-BioNTech vaccine today and the vaccine distribution to different states will continue to attract buying interest in recovery-theme stocks moving forward. Meanwhile, crude oil price continued to remain firm above the USD65 level for the time being. Also, traders will focus on high earnings certainty sectors during this reporting season.

Leong Hup International Bhd – 24th Feb 21

Regionally, LHI plans to (i) strengthen their ready-to-eat (RTE) and ready-to-cook (RTC) products in Singapore market, (ii) improve production of aquatic feed in Vietnam operations and (iii) capitalise on the stability of poultry prices stemmed by the Indonesia’s government effort to enforce aggressive culling activities and improve feed volume to capture additional market share.
technical focus

Technical Focus – PPHB

Primarily focused on the production and sale of paper packaging products and is supported by seven manufacturing plants in Malaysia and two sales offices in Malaysia and Singapore. Offers JIT (Just–In-Time) services, Total Packaging Concepts, Designing & Supply Chain Management. Solid balance sheet with a net cash position of RM48.7m in FY20, translating to net cash per share of 25.8 sen (c.25.3% of share price). Technically, a breakout above RM1.03 may target the next resistances at RM1.08-1.17, with long term target at RM1.25.
market pulse

Corporate earnings in focus

Selling pressure in glove heavyweights triggered as Covid-19 could come to an end with the arrival of Covid-19 vaccine. Despite selling activities on Wall Street overnight, we believe there could be some fresh buying support given the IDSS and PDT short sale have been extended for another 6 months. We believe traders may lookout for bashed down stocks yesterday. Also, we observed that the Brent oil price has climbed strongly overnight above USD65.

Econpile Holdings Bhd – 22nd Feb 21

The latest win bumps Econpile's outstanding orderbook of approximately RM950.0m, which translates to an orderbook-to-cover ratio of 2.4x against FY20 revenue of RM403.0m that provide earnings visibility over the next 2 years. Following the washout year in FY20, we believe that earnings recovery is largely on track with construction activities begun to normalise which was already demonstrated in 1QFY21.
technical focus

Technical Focus – KRONO

Engages in the provisions of business consulting for information technology software and data solution related businesses with key clientele include Jollibee Food Corporation, Toshiba Information Equipment (Philippines), Ocean Park (Hong Kong) and NCS Internal Video & Surveillance Smart City (Singapore). Leveraging on the tabling of MyDigital that aims to achieve 80% of end-to-end online government services integration by 2025 together with 80% usage of cloud storage across government agencies by 2022. Demand is expect to accelerate as businesses are migrating to online processes. Technically, price has formed a flag-formation breakout above RM0.86, targeting the resistances of RM0.925-1.00, with long term target at RM1.10.
market pulse

Arrival of Covid-19 vaccine

Bucking the regional trend, the FBM KLCI snapped three-day losing streak to close higher on bargain hunting. Sectors such as telecommunication and technology were headed higher following the launch of MyDigital initiative and the Malaysia Digital Economy Blueprint. Whereas the key index is subject to further consolidation, we believe the earlier-than-scheduled national vaccine rollout on coming Wednesday and the declining number of Covid-19 cases should lift the market sentiment and traders may focus on recovery theme again.
macquarie structured warrants 20200914

HSI warrants take centre stage post CNY holidays

It was another buoyant week for the Hang Seng Index (HSI) futures as it extended its win streak to three weeks in a row with prices touching their highest in 32 months. With the market being closed on Monday in conjunction with the Lunar New Year holidays, trading in the HSI futures resumed Tuesday on a higher note as prices..
market pulse

Sentiment remain cautious

In line with most regional peers, the FBMKLCI skidded on profit taking activities for the third straight session and market sentiment may remain cautious ahead of the weekend. Despite ongoing profit taking, we opine the downside risk could be limited as some bargain hunting may start to take place ahead of the full blown reporting season next week. Meanwhile, the Brent crude oil price has loses its grip, pulling back from level above the USD65.
market pulse

Back below 1,600

Following the announcement of MCO extension in several states, the local bourse endured a rough ride as economic recovery progress took another backseat. The weakness was also largely in line with the negative performance across regional peers which we reckon that the pullback is deem to be healthy to allow the recent gains to be digested. While the market liquidity has yet to taper, we think the rotational play amongst the lower liners may prolong with the on-going batch of corporate earnings release largely in focus.
market pulse

Liquidity driven market

Profit taking activities emerged on the FBM KLCI, snapping the four-day positive streak. We believe sentiment should stay positive, despite the mixed trading tone on Wall Street and the MCO extension in several states as we think the ongoing rally in the crude oil price and the clearer timeline for the Covid-19 vaccination programme should be the focus for the economic to recover moving forward. As we are heading into the reporting season, companies with high earnings certainty could be under the limelight.
technical focus

Technical Focus – 17th Feb 21

Specialised in high rise residential, mixed and commercial developments with several notable contracts completed include Menara Hap Seng 3, KL Eco City Phase 1 & 2, One Central Park and Westside III. Outstanding orderbook of RM2.20bn, representing an orderbook-to-cover ratio of 6.8x against FY19 revenue of RM322.8m will sustain earnings growth at least for the next 3 years. Healthy balance sheet with a net cash position of RM65.6m in 3QFY20, translating to net cash per share of 10.1 sen (c.10.9% of share price). Technically, price has rebounded above the daily EMA20 level, suggesting further recovery to target the next resistances at RM0.965-1.08 with long term target at RM1.20.
market pulse

An Oxpicious start

The first trading day after the Lunar New Year break saw the FBM KLCI climbing with all sectors finished in the green, in line with its regional peers. Meanwhile, oil price rose to its highest since January 2020 on the back of the Middle East tensions. With Wall Street inching higher overnight, we opine trading interest on the local front will remain robust as vaccine rollout across more countries may drive the optimism for an economic recovery. Likewise, the lower liners may continue its uptrend in the near term.

Jaks Resources Bhd – 15th Feb 21

JAKS’s growth trajectory will be supported by the diversification into the long term recurring income from the power generation concession in Vietnam, whilst tapping into the Malaysia’s planned pipe replacement programme nationwide. Whilst the concession segment will generate earnings sustainability, the current outstanding orderbook able to provide earnings visibility for the next 12 months with core net profit expected return to the black at RM98.0m in FY21f. We assigned a P/E multiple of 9.0x to all but the concession segment that is valued on a discounted cash flow approach, arriving at a fair value of RM0.82.
technical focus

Technical Focus – 15th Feb 21

Regarded as one of the leading local ICT distributor with more than 6,600 resellers, comprising retailers, system integrators and corporate dealers nationwide. More than 40 renowned leading principals like Hewlett Packard, Asus, Lenovo, Apple, Dell, Microsoft, Cisco, Samsung, VMWare and IBM. Partnership formed with NetApp in mid-2020 and the existing gradual growth from enterprise systems business with notable clients such as Heitech Padu Bhd and Mesiniaga Bhd will anchor growth. Technically, price has formed a flag-formation breakout above RM2.47, targeting the next resistances at RM2.65-2.76 with long term target at RM3.00.
market pulse

Re-testing 1,600 again

Despite the sharper-than-expected economic contraction of -3.4% in 4Q20, the FBM KLCI inched up ahead of the Lunar New Year holiday as investors may have priced in the impact of the ongoing MCO. We expect the positive sentiment on Wall Street overnight may spillover to stocks on the local front as market players should refocus after the long break ahead of the full blown reporting season. Meanwhile, we noticed crude oil price has surged above USD62 firmly last week.
market pulse

Focus on 4Q20 GDP data

The FBM KLCI charged higher yesterday, mainly boosted by the gains in banking heavyweights as traders tagged along with the recovery theme. However, we believe the tone may turn slightly cautious ahead of the Bank Negara Malaysia’s (BNM) announcement on Malaysia’s economic performance for 4Q20. Also, market participants might reduce trading activities prior to the long weekend. Hence, the FBM KLCI may stay within a rangebound mode throughout the session.

Teo Seng Capital Bhd – 10th Feb 21

We reckon that chicken eggs prices will linger around RM0.30 per Grade C chicken egg as on increasing demand as more business activities are allowed following the reducing number in Covid-19 cases. Meanwhile, poultry players will continue their expansion plans once the MCO is lifted.
technical focus

Technical Focus – 10th Feb 21

Established relationship with past and existing clientele with repeating notable customers include Worldwide Holdings Bhd, UM Land Group and Tropicana Group. Bagged a total of 5 major construction contracts with combined value at RM646.6m since listing in July 2020, bumping unbilled orderbook to approximately RM950.0m to provide earnings visibility over next 2 years. Proposed 1-for-2 free warrants as part of the initiative to reward existing shareholders. Technically, price has formed a flag-formation breakout above RM0.545, targeting the next resistances at RM0.59-0.605 with long term target at RM0.65.
market pulse

Upward bias view on broader market

Despite mixed trading tone on Wall Street overnight, the FBM KLCI tracked its regional peers to close higher yesterday. We reckon the local bourse to remain upside bias view at the current juncture, lifted by buying interest in recovery-themed stocks and the energy sector – the latter could be focused on the back of firmer crude oil price. In view of the number of Covid-19 cases dropped below 3,000 level yesterday, market should position themselves into recovery themed stocks at least for this week.
market pulse

Bargain hunting may emerge

As the local bourse saw cautious trading sentiment ahead of the Lunar New Year celebration, investors may continue to reduce their exposure in the stock markets. Meanwhile, with the National Covid-19 Immunisation Plan came closer, and the daily cases stayed within the below the 4,000 mark for the fourth day running, investors may point towards recovery play moving forward. Also, Brent oil price has surged above the US$60 level, which may set a positive tone on the local front.

Mobilia Holdings Bhd – 8th Feb 21

Mobilia offers a wide range of home furniture and consistently launch new designs to suit the latest market trends and preferences. We are sanguine on Mobilia’s prospects due to the resilient demand from the adoption of work-from-home trend. We project earnings to recover by 48.1% to RM10.8m in FY21f, boosted from expansion of the new factory in March 2020 that is able to undertake additional orders, rising trend of work-from-home and steady global population growth. Mobilia is valued by pegging its FY21f core EPS of 2.7 sen to 10.0x PE (15% discount to peers average of 11.8x), leading to a FV of RM0.27.
technical focus

Technical Focus – 8th Feb 21

Supported by key clientele include public listed companies (PLC) such as Maybank, Hong Leong Bank, RHB bank, Tenaga, Telekom, Celcom, Sarawak Energy and Aeon Credit with 9MFY20 net profit expanded 21.1% YoY to RM7.3m. Capitalising on the adoption of digitalisation of financial services via the introduction of the SmartCIT cash-in-transit cash collection and management with IoT secured logistic solution. Launch of buySolar online marketplace platform will generate a new avenue of income stream. Technically, the short-term consolidation breakout above RM0.53 ensue further recovery towards the next resistances at RM0.58-0.61 with long term target at RM0.685.
market pulse

Still wobbly

The FBM KLCI underperformed its regional peers last Friday, as gloves and plantation heavyweights lost their ground following their recent rallies. The selling pressure among local and foreign institutions continued to weigh on the local bourse despite buying interest among local retail investors. With the US stockmarkets inching higher last Friday, we expect the local bourse may see some rebound, but traders should be trading cautiously ahead of the Lunar New Year holiday. The lower liners may see some rebound ahead of the vaccine rollout.
macquarie structured warrants 20200914

Warrants over Greatech, HSI and Top Glove among most active

Despite another shorter trading week, trading activity in structured warrants remained active with its total traded value inching up 0.4% week-on-week (w-o-w) to RM319.2mil last week. Warrants over stocks contributed more than 72% of the total warrants turnover, followed by warrants over the Hang Seng Index (HSI) and iShares China A50 ETF, which contributed 24.8% and 1.8%, respectively.
market pulse

Improving sentiment

Mirroring the gains on Wall Street, the FBM KLCI edged mildly higher after Prime Minister Tan Sri Muhyiddin Yassin’s update on the scheduled rollout of Covid-19 vaccination programme by the end of February 2021. The announcement coupled with the positive performance on Wall Street overnight may lift the overall market sentiment on the local front. Meanwhile, the lower liners will continue to enjoy their upward momentum as liquidity remains well on the equities market.
market pulse

Choppiness prevails

After experiencing a downward trend since mid-January, the FBM KLCI delivered a second session of gain as most of the counters ended positive except for healthcare stocks. As investors likely to have priced in news of further lockdown measures, buying interest in selected counters with high earning certainty during the February reporting period should be seen, while the broader market should be lifted by the mildly positive performance on Wall Street overnight.
technical focus

Technical Focus – 3rd Feb 2021

Over 500 products exported to countries like Vietnam, Hong Kong, the Philippines, Cambodia and Singapore through established distributors, hypermarkets, supermarkets and dealer network. Agrochemical business to play a key role in earnings sustainability, while the manufacture and distribution of healthcare disposable products will be boosted by higher demand from the elevated number of Covid-19 cases. Net cash position of RM11.3m in 3QFY20, translating to net cash per share of 0.1 sen (c.1.5% of share price). Technically, price has experienced a breakout-pullback-continuation pattern above RM0.89 accompanied by rising volumes, targeting RM0.94-0.965 with long term target at RM1.00.
market pulse

Recovery in progress

While the broader market may price in the extension of MCO2.0 (except for Sarawak), we believe market players may turn their focus to Sarawak-related stocks following the uplift of MCO2.0 as more economic sectors are allowed to operate moving forward. Also, tracking the positive sentiment on Wall Street overnight that should lift the overall market sentiment on the local front.
technical focus

Technical Focus – 2Feb21

Engages in manufacturing and distributing bakery products that are marketed under the trademarked brands of “Top Baker” and “Daily’s”. Retail outlets expansion plan in the Central region by setting up more new retail outlets in Klang Valley and plans to establish a franchise system, whilst continue to expand its distribution network in the Northern region. Demand for bakery to be sustainable as bread and related products, particularly sandwich loafs are deemed to be affordable essential food for the mass. Technically, we may anticipate for a resistance breakout above the RM0.25 level to target the next resistances at RM0.27-0.29 with long term target at RM0.335.

Silver lining ahead

Tracking the regional and Wall Street gains overnight, market players could be factoring in a Conditional MCO instead of a strict MCO (albeit in a rising Covid-19 cases environment) moving forward to avoid further breakdowns in the economy. Thus, we may anticipate a mild rebound moving forward. However, the rebound may attract profit taking activities as Malaysia’s Covid-19 status has not flattened out at this current juncture. We might observe some trading interest within healthcare and vaccine related sectors in the near term.
market pulse

On a better footing

The FBM KLCI outperformed its regional peers to end mildly higher on Wednesday following the announcement by the Health Ministry on the supply of 18.4m doses Covid-19 vaccines by Pharmaniaga and Dpharma in March 2021. Given the rebound on Wall Street overnight, coupled with the relaxation of MCO to allow all businesses to operate until 10pm which may contribute to some positive impact to the market, albeit rising Covid-19 cases may still dampen the economic recovery. Meanwhile, the lower liners are seeing some rebound signs.
technical focus

Technical Focus – 27th Jan 21

10 manufacturing plants located across Peninsular Malaysia, supported by approximately 700 employees. Notable completed roofing projects include Pantai Hospital (Penang), SMJK Jit Sin (Penang), Toyo Tires plant, Fedex (Batu Kawan), Econsave (Taiping) and Inari (Batu Kawan). Demand in the local market to remain firm over the foreseeable future as building projects resume operations, while higher steel prices may contribute to improvement in margins. Technically, a trendline breakout above the RM0.91 level may drive price higher towards the next resistances at RM0.97-1.00 with long term target at RM1.04.
market pulse

Finding stability

In tandem with the regional peers, the FBM KLCI inched lower due to heavy selling in glove heavyweights and Petronas-related counters. With growing concerns over the still-rising Covid-19 cases, that may contribute to the potential extension of MCO (albeit with some relaxation in SOP). Hence, it may limit the upside potential on the key index over the near term until the vaccine rollout. Nevertheless, we expect some bargain hunting activities to emerge in the near term on high certainty sectors ahead of the February reporting season.

Hartalega Holdings Bhd – 26th Jan 21

The strong performance was attributed to the elevated ASPs, which we expect the trend to stay put over subsequent quarters. Moving forward, 4 production lines will be commissioned in March 2021, whilst the remaining 4 surgical lines under Plant 7 will be commission in subsequent quarters which will increase annual installed capacity to 44.0bn pieces. Beyond that, Plant 8 is expected to commence operations by end-2021, followed by NGC 2.0 in 2022.
market pulse

Health DG Brushing off MCO3.0 concerns

The selling on the FBM KLCI yesterday could have overdone as Health DG brushed off concerns over MCO3.0 and broader market could perform a relief rebound today. On the glove related stocks, we believe HARTA’s upbeat result could spillover to buying support on glove manufacturers and glove proxies today. However, investors could stay cautious ahead of the release of Malaysia's Producer Price Index tomorrow. As foreign funds turned into the selling mode, we expect the rebound might face with profit taking activities in the near term.
technical focus

Technical Focus – 25th Jan 21

17 manufacturing operations located in Malaysia, China and Thailand with products exported to 70 countries worldwide. Earmarked a sizeable expansion plan with planned CAPEX of RM150.0m for 2021 & 2022 with RM30-40m will be allocated to set up a manufacturing plant in Myanmar that provides lower cost of production and better margins. Healthy balance sheet with net cash position of RM118.3m, translating to net cash per share of RM0.31 (c. 12.4% of share price) in 3QFY20. Technically, a consolidation breakout above RM2.54 may drive share price higher towards the next resistances at RM2.70-2.88 with long term target at RM3.26.
market pulse

Volatility beckons

Tracking a mixed performance on Wall Street last Friday, we think the mild rebound on the FBM KLCI last Friday could further fizzle off today and market sentiment is expected to be cautious ahead of the first US Federal Reserve meeting under the Biden’s administration as well as the holiday-shortened week. As we are heading into the reporting season, investors may turn to selected sectors with high earnings certainty while the Covid-19 cases continued to rise.
macquarie structured warrants 20200914

Investors ‘put’ the Hang Seng Index as it breaches 30,000

The Malaysia warrants market posted a 22.3% week-on-week (w-o-w) decline in terms of turnover at RM313.1mil last week. Warrants over stocks continued to dominate the warrants space with RM223.8mil traded which account for 71.5% of the total warrants turnover. Meanwhile, the Hang Seng Index (HSI) warrants saw an uptick in trading interest last week at RM76.3mil which is 11.3% higher than the prior week.
market pulse

Below 1,600

With Wall Street charging towards its all-time-high region after Joe Biden’s transition into the White House, we expect mild bargain hunting activities to emerge on our local front. However, following the extension of the Movement Control Order for the six states to 4th February, we reckon the upside could be capped today as Covid-19 infections are still rising. Hence, it could be translating to another consolidation day. Nevertheless, we believe market players to rotate into several laggard plays in the stock market.
market pulse

Still searching for a footing

Tracking the strong gains on Wall Street overnight after Joe Biden was sworn in as the 46th US president, we expect rebound could be seen on the local front especially on the technology sector. Nevertheless, market volatility remains in place amid the expansion of MCO to all states except for Sarawak due to the worsening of the Covid-19 situation. On the banking sector, we expect trading interest will be seen after BNM’s move to keep the interest rate unchanged until the next meeting. Meanwhile, we expect the vaccine rollout plan that could come in 1Q21 may benefit the distribution segment.
technical focus

Technical Focus – 20th January 2021

Operates 141 retail stores, covering 1.5m sqf of gross floor area under several household brands such as Vincci, Vincci+, Vincci Accessories, Tizio, Padini Authentics, PDI, Padini, Seed, Miki and P&Co. Decline in shopping complexes footfall has attributed to the weaker performance in FY20 will see recovery from own digital marketing channels and third-party online portals such as Lazada platform. Healthy balance sheet with net cash position of RM25.2m, translating to net cash per share of RM0.04 in 1QFY21. Technically, a breakout above RM2.84 may drive share price higher towards the next resistances at RM3.00-3.17 with long term target at RM3.30.
market pulse

BNM’s OPR decision in focus

We expect the negative sentiment could persist over the near term as investors will be waiting for the Bank Negara Malaysia’s (BNM) decision on the overnight policy rate (OPR) later in the afternoon; any further cut in the OPR may cause downward pressure on banking stocks. Also, there have been some negative selling activities amongst the glove heavyweights and we believe it may continue for another session today. Meanwhile, consolidation might be seen for selected lower liners following the recent gains.

Serba Dinamik Holdings Bhd – 19th Jan 2021

With the exclusion of the O&M and EPCC contracts located at Malaysia due to their nature of work scopes being call-out basis, the remainder eight O&M and ICT contracts secured has a combined value of approximately US$135.8m (c.RM548.2m). The move has sustained the outstanding orderbook at approximately RM18.7bn (relatively unchanged since early December 2020), representing 4.1x orderbook cover ratio against FY19 revenue of RM4.5bn.
market pulse

Containing MCO 2.0 impact through PERMAI

The FBM KLCI extended another red bar as the talks around OPR cut in the mid-week continued to weigh on the major constituents of the key index – banking stocks. Meanwhile, the technology sector outperformed the local bourse yesterday as investors continued to like the sector for its higher earning certainty. We reckon the announcement by the Prime Minister of a RM15.00bn Malaysian Economic and Rakyat’s Protection Assistance Package (PERMAI) might lift the market sentiment, albeit investors’ sentiment to stay cautious ahead of the BNM MPC meeting.
technical focus

Technical Focus – 18th Jan 2021

Engages in the design development, manufacture, marketing and sale of precision engineering parts. Key business associates include multinational semiconductor companies such as Broadcom, Synergie - CAD, Bece Pt Ltd, U4Global Solutions and GFMI. Venturing into the production to manufacture critical automotive parts in mid-2021. Improving fundamentals and operates in a healthy balance sheet with net cash position of RM53.6m, translating to a net cash per share of RM0.10 in 1QFY21. Technically, breakout above RM0.96 may drive share price higher towards the next resistances at RM1.03-RM1.11 with long term target at RM1.23.
market pulse

Turning wobbly

With the retreat of crude palm oil prices, coupled with the speculation of another round of Overnight Policy Rate (OPR) cut, investors could further reduce their position in plantation and banking heavyweights; that may translate to potential negative trading tone amongst banking stocks and dragging down the FBM KLCI this week. Also, market sentiment may remain weak amid the ongoing rising Covid-19 cases despite the re-imposition of MCO. On the flipside, we expect some rotational play towards building materials segment amid the firmer commodity prices such as tin, iron, aluminium and etc.
macquarie structured warrants 20200914

Hang Seng Index on a bull run for the second week

The second trading week of the year saw investors continuing to focus on glove names such as Top Glove, Supermax, Kossan Rubber and Hartalega. Warrants over stocks made up 79% of total warrants turnover for the week which came in at RM402.9mil, while warrants over the Hang Seng Index (HSI) and iShares China A50 Index (A50CHIN) took up 17% and 2.6% of total turnover, respectively.
market pulse

Marking time

Tracking the negative sentiment on Wall Street, coupled with the pullback in the FBM KLCI yesterday, we expect trading tone on the local front to further consolidate. Also, the overheated rally in the technology stocks may take a breather with traders digesting their gains over the next few days. Given some of the essential sectors are still operating under MCO 2.0, companies shall be able to register some earnings at least for this quarter. Meanwhile, we expect traders to lookout for LSS4 and immigration related news over the near term.
market pulse

Striding higher

Tracking the gains on regional markets, the FBM KLCI has closed at the highest level since the beginning of the year, with buying interest seen in the recovery themed stocks such as banking and gaming heavyweights. Investors shrugged off concerns on the first day of MCO 2.0 while the essential sectors remain opened. The key index may take a little following yesterday’s rallies, but we expect the downside to be limited. The lower liners saw some rebound signs as the indexes made significant headway yesterday after recent consolidation.
technical focus

Technical Focus – 13th Jan 2021

Primarily focused on the production and sale of paper packaging products and is supported by seven manufacturing plants in Malaysia and two sales offices in Malaysia and Singapore. PPHB offers JIT (Just–In-Time) services, Total Packaging Concepts, Designing & Supply Chain Management. Relatively low gearing at 0.1x in 3QFY20 and PPHB is trading well below the book value of RM1.39. Technically, price has rebounded above the daily EMA9 level, targeting the next resistances at RM1.09-1.14, with long term target at RM1.25.
market pulse

Recovery in progress

The FBM KLCI recouped most of its intraday losses in the afternoon session yesterday, as market sentiment was lifted by a nationwide state of emergency proclaimed by the Yang di-Pertuan Agong that will be enforced until 1st August 2021. While the move should be reducing some of the political uncertainties in the country, the key index still closed lower as the number of Covid-19 cases remains high. However, we believe the local bourse should find stability soon as some bargain hunting activities were noticed in the market. The lower liners may extend their gains yesterday as the rise in the indexes was supported by rising trading volume throughout the day.
market pulse

Economic recovery derailed

Fear over the new lockdown measures has driven profit taking activities on the local bourse, leading the FBM KLCI to close lower after a choppy trading session yesterday. Following the Prime Minister’s special address on the implementation of tighter movement restrictions in most parts of the country, we expect the market outlook to remain subdued today as further lockdowns may cause further stress to the economy. However, the negative market sentiment may not last long while the market awaits for vaccine rollout. The lower liners might also see greater selling pressure.
technical focus

Technical Focus – 11th Jan 2020

Hong Seng Consolidated Bhd (Hong Seng) turnaround fortune is on the table, following the venture into the healthcare segment which allows the group to provide pharmaceutical, medical and healthcare supplies. We also note that further diversification into gloves manufacturing with production of 2 nitrile gloves lines in April 2021 is timely. Total of 6 nitrile gloves production lines in September 2021 will produce approximately 1.5bn pieces of gloves per annum. Technically, a consolidation breakout above RM1.06 may drive price towards the next resistances at RM1.17- 1.25, with long term target at RM1.40.
market pulse

Towering higher

Sharp gains in gloves heavyweights came as investors feared for another round of nationwide or certain states lockdown being imposed as buying activities have now catered towards the healthcare sector. As it is, all heads will turn to the Covid-19 public health measures that are expected to be more stringent today. With the prospects of economy recovery remain clouded by the rising number of Covid-19 cases, we think that the lower liners may continue to remain under pressured over the near term on mounting concerns over the disruption of supply chain with numerous factories and retail outlets were temporary closed.
macquarie structured warrants 20200914

Warrants over glove makers start the new year roaring

The first week of 2021 saw the Malaysia warrants market clocking in an overall turnover of RM404.9mil with warrants over single stocks making up over 79.6% of the total turnover while warrants over the Hang Seng Index came in second, constituting up to 14.4%. Warrants over other indices and foreign underlyings made up the rest of the total turnover for the week.
market pulse

Re-capturing 1,600

Following the rebound yesterday, we believe that the local bourse is now attempting to find stability as investors bargain hunt and nibble on beaten down stocks. While there are signs of return in foreign funds, we remain cautious amid the negative market undertone as the number of new Covid-19 cases in Malaysia surpassed 3,000 mark yesterday. The lower liners are expected to remain in the purple patch, though we do not discount the possibility of rotational play may take precedence amid the improved trading liquidity.
market pulse

Marred by political uncertainty

It was another lacklustre performance on the FBM KLCI as sentiment was largely dented by the renewed political uncertainty. With the volatility has yet to abate, we reckon that the sentiment will remain largely indifferent over the foreseeable future. At the same time, the elevated new cases of Covid-19 will continue to pile pressure on the pace of economic recovery as the prospects of more stringent measures on the CMCO being discussed. The lower liners will also remain choppy as traders are opting to keep their trades on a shorter time frame to reduce exposure to the volatile market environment.
technical focus

Technical Focus – 6th Jan 2021

Following the recent retracement, valuations amongst glove players have turned appealing to investors as future prospects remain well supported by the strong demand and rising ASPs. At the same time, the ramping in production capacity will accelerate topline contribution over the foreseeable future. Although the vaccine for Covid-19 was rolled out in certain part of the globe recently, we think that the demand will remain relatively intact with spot orders for major glove players fulfilled till end-2021. At the same time, the rising number of Covid-19 cases across the globe will continue to spur demand in subsequent quarters before the vaccine is available for the mass.
market pulse

Rebound in store

Bargain hunting activities emerged on the FBM KLCI as the key index returned into the positive territory in the second half of the trading session, lifted by gains in glove heavyweights. We reckon that further recover is in store as investors may start to accumulate on the beaten down gloves stocks. Gains, however, is expected to be limited by the high number of new Covid-19 cases that may continue to pose a hurdle for a smooth economic recovery. Elsewhere, the lower liners may creep higher on the back of the rotational play amid the returning of risk appetite into the equities market.
market pulse

Volatility persists

Although there were signs of recovery at the start of the trading bell, stocks across Bursa Malaysia were hammered by the uplift of regulated short selling activities. For now, we think that the volatility may persist, taking cue from the selldown on Wall Street overnight. On a brighter note, the recovery in Malaysia Manufacturing Purchasing Managers’ Index (PMI) may provide some cushion to further weakness. Meanwhile, we also think that the lower liners may continue to endure further profit taking as investors risk appetite dwindled due to the rising number of Covid-19 cases.
technical focus

Technical Focus – 4th Jan 2021

Established track record, backed strong export sales to Asia countries over the years. Annual production capacity of 525,000m3 that is running at utilisation rate of approximately 90%. Adoption of work-from-home will continue to spur demand for office furniture with current orderbook fulfilled until March 2021. Embarking into the green initiative via the installation of 2,000 kw/h solar photovoltaic panels, targeting in 2021. Technically, we may anticipate for a potential flag-formation breakout above RM0.72, targeting the next resistances at RM0.78-RM0.815 with long term target at RM0.90.
market pulse

Welcoming 2021

After recording 2.4% YoY gain in 2020, we reckon that the FBM KLCI is poised for further upsides moving into 2021. The extended gains will largely be dictated by the pace of economic recovery, coupled with the roll-out of Covid-19 vaccine progress in Malaysia. Coming closer, bargain hunting activities may emerge from the previous session selldown, but gains are likely to be tepid owing to the surge in number of new Covid-19 cases reported. We also expect the lower liners to march higher, driven by the resumption of improve trading liquidity.
technical focus

Technical Focus – 31st Dec 2020

Since vaccine news has been surfacing in the news media, the Brent oil has been establishing its upward move above USD46. The trend has been more stable with the stimulus hopes in the US as well as vaccine rollout in several countries; Brent oil price has been trading above USD50 over the past two weeks. Should the Brent oil charges above USD52, we expect buying interest may return on O&G sector on Bursa Exchange. Under the O&G sector we like PENERGY and SERBADK.
market pulse

FBM KLCI may rebound higher

With the US stock markets closing marginally higher, coupled with the year-end window dressing activities, we expect trading interest on the local exchange will be positively skewed for the final day of 2020. Meanwhile, we believe Brent oil price may trade firmer on the back of greater-than-expected oil inventory draw of 6.1m barrels for the week ended 25th Dec. Besides, we opine market players may focus on recovery themed stocks given more countries allow vaccine for emergency use.

Kim Loong Resources Bhd – 30th Dec 2020

Back home, we reckon that stockpiling activities will peak towards end-2020. The move will come as Malaysia will impose the export tax for CPO at 8.0% from January 2021 and will revise subsequently on monthly basis. On Kim Loong, do note that the impending acquisition of oil palm estates in Sabah, tentatively in January 2021 will boost the group’s FFB production by approximately 10.0%.
market pulse

FBM KLCI may be supported along 1,620

Wall Street ended in the negative territory after hitting the record highs throughout the session may set a mixed tone on the local front, but the FBM KLCI could be supported by mild window dressing activities. On the broader market, traders could focus on the automotive segment on the back of the SST exemption extension until mid-2021. Meanwhile, crude palm oil price remains firmly on the upward trend (RM3,550 as of yesterday closing). Also, we believe traders may anticipate that the LSS4 contracts to be awarded by 1H2021.
market pulse

FBM KLCI may revisit 1,660

With the US stock markets trended towards the all-time-high region as well as yearend window dressing activities, we expect the buying support to persist on the local stock exchange. Meanwhile, traders may focus on the stronger-than-expected November exports numbers, which could lift export related sectors. Also, Pharmaniaga’s vaccine distribution news is likely to spur interest within the logistic companies. While we believe the rising commodities prices may support the steel related counters, the upside might be limited after several rounds of rally over the past few weeks.
market pulse

Window dressing activities to persist

Heading into the final week of 2020, we believe the market may still focus on window dressing activities, but upside could be limited given the new Covid-19 variant that is haunting the reopening of the major economies. Meanwhile, market participants may lookout for trading ideas along the construction and building materials sectors on the back of ongoing and new infrastructure projects that will be expected moving into 2021 as well as rising commodities (copper, iron, aluminium and etc) prices. Besides, crude palm oil price has hit multi-year high which could translate to firmer corporate earnings.

Econpile Holdings Bhd – 24th Dec 2020

We remain sanguine that earnings recovery will be materialise in coming quarters on the back of the resumption of physical works as well as the supply chain such as concrete, cement, steel and etc.
market pulse

Recovery-themed stocks may trade higher

We expect the positive momentum on the local front could sustain today ahead of the long weekend. We believe market participants are still expecting newsflow on the KL-SG HSR as well as LSS4 contracts to surface in the news media in the near term. Meanwhile, crude palm oil price has hit the multi-year high above the RM3,500 level; this could translate to firmer earnings moving forward for plantation companies. Also, health experts commented that vaccines in production would be effective against the new variant and this could rekindle trading interest on recovery-themed stocks.
market pulse

FBM KLCI could be due for a rebound

Without any fresh catalyst, we expect the selling pressure to continue on the local front. However, the silver lining for today will be the commitment of vaccine rollout plan by Malaysia’s government. Meanwhile, market participants could also take part in the glove manufacturers following the new virus strain in the UK which resulted in a faster pace of infected cases. Besides, investors are waiting for HSR and LSS4 contracts to be dished out in the near term.
market pulse

KLCI may find support along 1,640

As the market was spooked by the new Covid-19 virus strain that caused another lockdown in the UK; the negative sentiment may spillover to stocks on the local front. However, we opine that the downside risk might be limited given the vaccine rollout is on the way. Investors could remain focus on the potential emergence of HSR news flow, coupled with the LSS4 that is expected by year-end. Meanwhile, focus could turn to the vaccine distribution candidates this week.
Get Wiz

Steel sectors are heating up

we have positioned ourselves for building materials and construction related stocks. That gave us some potential trades today after we have put in
market pulse

Market may be due for a rebound

Although the US stock markets ended the week on a negative tone, we expect stocks on the local front could be due for a technical rebound after the 3-day pullback last week. We believe the KL-SG HSR and water-related stocks may remain in focus given the news on RM4bn Rasau water treatment plant calling for tender next year is still fresh. Meanwhile, we expect trading interest to rekindle in plantation sector as CPO surged and closed firmly above RM3,400 last Friday.
market pulse

Water-related stocks to focus

With the Wall Street trending higher overnight, we opine buying support may spillover towards our local front after a two-day pullback. Mainly, traders will continue to build their interest on the back of the KL-SG HSR news. Meanwhile, we think the surfacing of the RM4bn Rasau water treatment plant to be called for tender next year would spur trading interest amongst water-related counters. Besides, some of the commodities such as crude oil, CPO and gold have remained quite resilient over the past few sessions and trading interest should be noted within those sectors.
market pulse

Broader market to remain positive

With the US stockmarkets inching higher overnight, we believe stocks on the local may proceed higher, but profit taking could emerge on glove manufacturers on the back of Covid-19 cases was observed in several glove companies, which may attract profit taking activities after a two-day rebound. Meanwhile, with the ongoing market talks on the KL-SG HSR, we opine traders will continue to trade within the construction and property sector. Meanwhile, Brent oil price has surged above USD51 on the back of crude oil inventory declined by 3.1m barrels last week.
technical focus

Technical Focus – 16th Dec 2020

Established in 1977, 3A is one of the leading food and beverage ingredients manufacturer which supply its products locally (61%), to Singapore (9%) and other foreign countries (30%). 3A has been constantly upgrading its plant to improve its production efficiencies. Meanwhile, in respond to the increasing demand for the HVP and caramel products, the group has been expanding both the HVP and caramel plants. Also, 3A has invested in R&D to broaden the range of their existing products. Technically, price has experienced a resistance breakout above RM0.90, targeting the resistances at RM1.05-1.10-1.15, while the support is at RM0.91.
market pulse

Buying interest to return

Tracking the positive sentiment on Wall Street, coupled with the approval of third budget reading yesterday, we expect the buying interest could spillover towards stocks on the local front. Also, with the ongoing window dressing activities, the FBM KLCI could be lifted higher as funds maybe rotating back towards value and recovery themed stocks over the next two weeks. On commodities side, crude oil and crude palm oil has been traded on a firmer tone, while lumber price has shot up strongly since October.

Econpile Holdings Bhd – 15th Dec 2020

Outstanding orderbook has now risen to approximately RM1.00bn, which translates to an orderbook-to-cover ratio of 2.5x against FY20 revenue of RM403.0m that will provide earnings visibility till FY23. We remain sanguine that earnings recovery will be materialise in coming quarters on the back of the resumption of physical works as well as the supply chain such as concrete, cement, steel and etc.

Hartalega Holdings Bhd – 15th Dec 2020

As the availability of Covid-19 vaccine at the doorstep across the glove in near future, we think that the pent-up demand trend may likely to taper in 2022. The move, coupled with the impending new entrants of gloves manufacturers and expansion of existing capacities will subsequently bring the meteoric rise of gloves ASPs to an inflection point. Nevertheless, we reckon that despite the retracement in ASPs of gloves, it will still come higher against pre-Covid-19 levels.
market pulse

Profit taking activities to persist

Wall Street started the week on a mixed note amid the additional Covid-19 restrictions and it may spillover towards stocks on the local front. Also, with the recent political developments ahead of the third budget reading in the parliamentary session today, that may limit the upside potential on the FBM KLCI as well as the broader market at least for the near term. Once there is more clarity on the third budget vote, we might experience rekindling of buying interest moving forward. On a side note, the Brent oil price is hovering near the USD50 despite the new Covid-19 measures in the US.
macquarie structured warrants 20200914

Warrants over rubber gloves and banks among most active

Trading activity in structured warrants continued to remain strong as overall turnover rose by 19.8% to RM826.5mil. Warrants over rubber gloves and banks were in the spotlight last week following Top Glove’s record 1Q21 profit which surged 2,041% year-on-year (y-o-y) to RM2.38bil on higher demand due to the pandemic, while the banking stocks saw Public Bank leading the rally, gaining 17.7% week-on-week (w-o-w), following its four-for-one bonus issue proposal announced recently.

2020 Review and 2021 Outlook

2020 is a washed out year and we believe the economy may recover in 2021, given the resumption in business activities and potential vaccine availabilities next year. On the market outlook, we think it could be a broad based upward move next year as recovery-themed sectors will be in focus. Hence, we believe, market participants are positioning in that direction for 2021. Sector wise, we like travel, logistics, consumer, construction, plantation, O&G, packaging and healthcare as we opine broad recovery will be anticipated.
market pulse

Recovery tone may persist

Despite sentiment on the Wall Street trended mixed last week, we believe trading interest on the local front will remain robust, riding on the recovery theme as well as the ongoing window dressing period. Also, the positive vaccine development such as the emergency rollout of Covid-19 vaccine in the UK, US and Canada in the near term may point towards the optimism on economic recovery moving forward. With the anticipated recovery in business activities, we expect Brent oil and crude palm oil prices to remain firm within USD45-50 and RM3,200-3,400, respectively over the near term.
market pulse

Sentiment to recover amid vaccine optimism

Although Wall Street ended on a mixed note, we expect the trading activities on the local front may skew towards the positive side given the US FDA panel recommends the approval of Pfizer’s Covid-19 vaccine for emergency use; this may boost recovery-theme stocks on the local front as market players may continue to take profit on healthcare related stocks. Also, we noticed Brent oil and crude palm oil prices have trended higher overnight, which is in line with the optimism of vaccine news developments.
market pulse

Likely to take a pause

Tracking the negative sentiment on Wall Street, coupled with the selling pressure on the healthcare stocks, we expect broader market sentiment on the local front to stay muted and market players may digest their gains further. Also, FBM Small Cap has formed a bearish engulfing bar, which may suggest some pullback to be seen in the near term. Nevertheless, we believe traders will be monitoring for recoverytheme stocks today given the re-opening of business activities as well as optimism on Covid-19 vaccine positive developments.
market pulse

Recovery in sight for FBM KLCI

Tracking the recovery in healthcare stocks led by Top Glove ahead of its release of result, we believe healthcare segment could rebound further at least for the first session of the day. Meanwhile, for the recovery-theme stocks, generally they may take a breather as market players are focusing on healthcare segment. Selectively, we may anticipate higher trading interest on banking stocks due to Public Bank’s bonus issue announcement. Besides, for the relaxation of CMCO, it should translate to higher demand for food consumption.
market pulse

Mild profit taking activities ahead

Given the Wall Street traded on a mixed note, we expect mild profit taking activities to emerge on the local front within some of the recovery-theme stocks as the market could be overheated after trading volume on the local exchange surged above 10bn for the third trading day. Nevertheless, trading interest on the technology stocks could remain positive owing to the all-time-high move on Nasdaq. Meanwhile, we expect buying support to surface within the construction, building materials, as well as transportation and logistics companies today on the back of relaxation of CMCO measure.
macquarie structured warrants 20200914

Warrants market robust with wider interest

Call warrant over Supermax, SUPERMX-C1I, took the crown last week with 171.4mil units traded as the underlying shares traded lower for the majority of last week following the 6.8% surge on Monday, ending the week at RM8.29, 2.7% lower week-on-week (w-o-w).
technical focus

Technical Focus – 7th Dec 2020

Established track record, backed by key clienteles from the European countries industry top players such as Jura and Nestle (Switzerland), AEG, Krups, Bosch and Siemens (Germany). Earnings recovery will be largely in place as the 1HFY20 was impacted by the global supply chain disruption with both China and Malaysia operations were affected by the temporary shutdown in production due to the Covid-19 pandemic Prospective dividend yields at 5.1% and 5.4% for FY20f and FY21f deemed to be relatively attractive. Technically, price has experienced a resistance breakout above RM2.75, targeting the next resistances at RM2.89-2.94 with long term target at RM3.12.
market pulse

Recovery still intact

We believe that the pullback owing to the mild profit taking is healthy to allow for some gains to be digested with the recovery trend still intact at current juncture. Tracking the gains on Wall Street on last Friday, coupled with the higher commodity prices (both crude oil and crude palm oil), further upsides are largely in the cards. The relaxation of CMCO measures also bodes well the economic growth. The lower liners are also expected to trend higher amid the liquidity driven market, though some toppish signs are returning to the fore.

Serba Dinamik Holdings Bhd – 4th Dec 2020

The latest win is a testament of Serba Dinamik’s position as one of the major players in the oil & gas industry. Assuming a burn rate of approximately RM400.0m in December 2020, Serba Dinamik’s outstanding orderbook will come at RM18.3bn by end-2020; within our assumption of RM18.5bn.
market pulse

Commendable breakthrough

The FBM KLCI delivered another commendable performance amid optimism that Malaysia economy is widely touted to emerge from the Covid-19 pandemic slump following the recent progress of Covid-19 vaccine developments. Still, we reckon that the strong upsides may also attract quick profit taking activities over the interim. At the same time, the lower liners are set for the extended rally that is largely driven by the ample of liquidity as investors continue to seek for higher yields investments.
market pulse

Market momentum still sturdy

The FBM KLCI edged mildly lower as sentiment turned downbeat as investors booked in gains from the previous session rally. While the local bourse is demonstrating some mild weakness, we reckon that the general recovery trend is still intact as the attention remains focus on the pace of economic recovery. The positive development over the Covid-19 vaccine will also continue to aid the recovery progress. Meanwhile, the lower liners are expected to charge higher, driven by the ample liquidity with the equities market remain in favour.

AME Elite Consortium Bhd – 2nd Dec 20

The proposed AME REIT would also provide stable and recurring income to investors, with at least 90.0% of its income to be distributed as dividends to unitholders. We note that slightly more than half of the current tenants of the industrial properties has more than 5 years of lease under their agreements. Additionally, AME REIT is expected to benefit from lower tax rate compared to prevailing corporate tax rate at an average of 23.4% recorded over the past 4 years.
technical focus

Technical Focus – 2nd Dec 20

Established historical track record since inception in 1975 with strong brand presence in the Malaysia household market. Demand will be relatively healthy, owing to the rising awareness of personal hygiene following the Covid-19 pandemic. Disposal of loss-making toilet rolls and tissue manufacturing subsidiary; NTMP Paper Mill (Bentong) Sdn Bhd allow the group to streamline and focus on the existing core businesses. Technically, price has experienced a flag-formation breakout above RM0.73, targeting the next resistances at RM0.795-0.815 with long term target at RM0.90.
market pulse

Swift recovery

Expectedly, the FBM KLCI performed a swift recovery as the key index recouped most of its previous session losses to re-claim the 1,600 psychological level. We reckon some stability will ensue with further upsides are in the cards as investors continue to focus on the economic recovery progress. Meanwhile, we believe that the lower liners will continue to enjoy their upward momentum as liquidity remains well on the equities market with investors capitalising on the positive market sentiment.
market pulse

Tempered by MSCI portfolio re-balancing

The FBM KLCI started off the week on a dour note alongside with the weakness across regional peers on the increasing geopolitical tension between US and China. Still, the FBM KLCI recorded 95.82 pts on gain (+6.5% MoM) during November 2020. Although we see renewed volatility unfolding, we reckon that bargain hunting activities may take precedence after the sharp fall yesterday. On the other hand, we think that the lower liners are poised for further upsides, driven by the improved trading liquidity which may extend the rotational play.
Get Wiz

Final day of November, what have you traded?

The Bursa Exchange has been quite volatile last week and the FBM KLCI has turned negative at the time of writing going into the final day of the reporting season. Although the market was slightly negative, things are going well for our Daily Pick list
macquarie structured warrants 20200914

Lower overall warrants turnover for the week; HSI warrants back in focus

The overall warrants market turnover came in at RM593.0mil last week, dropping by approximately 26.8% versus the previous week as stocks over glove makers took a breather. Warrants over Malaysian shares still dominated the total turnover, making up approximately 85.2% of the total warrants turnover at RM505.5mil, followed by warrants over indices with RM41.8mil (7.0%) and warrants over foreign underlyings which made up the balance.

Suria Capital Holdings Bhd – 30th Nov 20

Moving forward, we reckon that a recovery is largely remained in place following the improvement in shipments amid the recovery in economic activities that sent commodity prices (CPO) to multi-year high. We note that the installation of 80 reefer points at Sapangar Bay Container Port was completed in September 2020, bringing the total to 292. Meanwhile, the construction of a new jetty at Sapangar Bay Oil Terminal will commence in December 2020 and is targeted for completion by end-March 2022.
technical focus

Technical Focus – 30th Nov 20

A leading construction player with strong historical track record of completion of notable projects such as St. Mary Residences, The Shore Mixed Commercial Development, EcoSky Condominum and Vista Residences. Equipped with an unbilled orderbook of RM3.60bn that represents an orderbook-to-cover-ratio of 3.4x against FY19 revenue of RM1.06bn that will provided earnings visibility for the next 3 years. Backed by a net cash position of RM182.0m in 3QFY20, representing net cash per share of 14.7 sen. Technically, price has experienced a resistance breakout above RM0.965, targeting the next resistances at RM1.02-1.07 with long term target at RM1.12.
market pulse

Defending 1,600

After delivering a two consecutive days of solid performance, mild profit activities set onto course as the FBM KLCI staged a mild pullback on last Friday. Still, we maintain our positive tone on the local bourse as investors will continue to pin their expectations over the economic recovery following the recent batch of corporate earnings that appears to have bottomed-out. The lower liners may continue to edge higher, largely supported by the liquidity-driven momentum as investors continue their quest for higher yields.

Protasco Bhd – 27th Nov 20

We note that new contracts flow remain absent in 3QFY20, implying tapering of construction orderbook. On a brighter note, the maintenance segment is expected to provide some alleviation to the weakness across other segments, backed by an outstanding orderbook to approximately RM3.70bn that ensure recurring stream of income till 2029. We expect Protasco to tap into the RM1.30bn allocation for construction and upgrading of rural roads for 920km under Budget 2021.

Econpile Holdings Bhd – 27th Nov 20

As of 1QFY21, Econpile’s is equipped with an unbilled construction orderbook of approximately RM680.0m from 25 on-going projects. Moving forward, the group’s unbilled orderbook-to-cover ratio at 1.4x against FY20 revenue of RM403.0m will provide earnings visibility over the next two years.
market pulse

Towering above 1,600

The passing of Budget 2021 has instilled further confidence into the Malaysian market as the FBM KLCI soared beyond the 1,600 psychological level yesterday. With the uncertainty from the aforementioned event being eliminated, the focus has now reverted back to the economic recovery progress. Hence, we reckon that the positive momentum may resume over the near term. The lower liners are also on a positive note with investors nibbling on beaten down stocks, capitalising on the positive market sentiment.

OCK Group Bhd – 26th Nov 20

We attended the post quarter results analyst briefing and came away feeling re-assured on OCK Group Bhd (OCK) expansion moving into FY21f. 9MFY20 was largely affected by the slowdown of sites deployment due to the Covid-19 pandemic. Moving into the final quarter of FY20, we understand that the 4Q results are traditionally stronger over the years may see an exception in FY20 due to the current implementation of Conditional Movement Control Order (CMCO) that is impacting the engineering services segment via restriction of interstate travel.

Chin Well Holdings Bhd – 26th Nov 20

Although there were signs of recovery taking shape after emerging from a net loss position in 4QFY20, we reckon that the pace of recovery is expected to remain tepid as companies scaled down their operations. With several countries in Europe returning to lockdown mode, the outlook appears to be relatively challenging.

AME Elite Consortium Bhd – 26th Nov 20

Moving forward, we believe that AME will be able to capitalise on the initiative delivered under Budget 2021 which entails RM100.0m for the maintenance of infrastructure of industrial parks and RM42.0m under JENDELA to improve internet connectivity in 25 industrial parks. Manufacturers of pharmaceutical products will enjoy 0-10% tax rate for 10 years for investment in Malaysia which may attract foreign investors to re-locate or expand their facilities also bodes well for AME.

OCK Group Bhd – 26th Nov 20

As of 3QFY20, OCK owns and manages over 4200 telco sites in Malaysia (500 sites), Myanmar (1,000 sites) and Vietnam (2,700 sites) that will provide stream of recurring income over the long term. Moving forward, OCK remain committed to drive their overseas expansion via brownfield acquisitions in Vietnam and greenfield acquisitions in Myanmar. At the same time, the group remains committed to increase their tower tenancy ratios in Myanmar and Vietnam which could further strengthen their bottomline margins.
market pulse

All eyes on Budget 2021 vote

It was a firm performance on the FBM KLCI, mirroring the gains on Wall Street overnight as US President-elect Joe Biden is stepping up to improve global trade relations. Back home, investors will be keeping an eye on the Budget 2021 vote to provide further clarity on the political landscape in Malaysia. The lower liners are attempting for a recovery, but gains will be choppy as quick profit taking remains on the table with investors opting to keep their trades short due to the recent volatility.

Regionally, LHI plans to (i) strengthen their ready-to-eat (RTE) and ready-to-cook (RTC) products in Singapore market, (ii) improve production of aquatic feed in Vietnam operations and (iii) capitalise on the stability of poultry prices stemmed by the Indonesia’s government effort to enforce aggressive culling activities and improve feed volume to capture additional market share.
technical focus

Technical Focus – 25th Nov 20

A leading content and consumer company, serving 5.7m or 75.0% of Malaysian households. Stay at home trend saw the streaming services, AstroGo recorded 65.9% YoY growth to 1.4m active monthly users in 1HFY21. Home shopping and commerce business segment; Go Shop recorded its strongest revenue in 2QFY21 at RM145.0m (+59.3% YoY). Technically, the flag-formation breakout above RM0.795 may lead to further upside with next resistances at RM0.84-RM0.88 with long term target at RM0.945.
market pulse

Escalated selling activities

Selling pressure across the board escalated as the FBM KLCI underperformed its regional peers to finish sharply lower yesterday. Market sentiment has turned dour as the recent spikes in Covid-19 cases are dampening the prospects of economic recovery. Meanwhile, the uncertainty over voting of Budget 2021 deters investors to take further positions. We leave our views unchanged that the lower liners are toppish, hovering largely in the overbought territory that may see further pullback over the near term.
Get Wiz

Another option to spot for decent entries

This is because not all the stocks being chosen will perform during that particular day, thus it may be triggered in the following 5 days due to the ongoing trading activities on those stocks that we have picked. 

Let us show you one of the counters that we have put in on 17th of November - APPASIA

Serba Dinamik Holdings Bhd – 24th Nov 20

Moving forward, Serba Dinamik will continue to eye its overseas expansion, focusing in the Middle East region which is traditionally their strong foothold. Long-term recurring income remains to be seen from projects such as the Teluk Ramunia Yard, Pengerang Integrated Development and Bintulu Integrated Energy hub; the latter was recently completed.
market pulse

Still in consolidation

The FBM KLCI was traded in a lacklustre manner as the key index re-tested the 1,600 psychological level. As there was absence of follow-through buying beyond the aforementioned level, we reckon that the local bourse will be poised for further consolidation. At the same time, the uncertainty surrounding the vote on Budget 2021 are also keeping investors on their toes. The lower liners are looking increasingly toppish which may prompt profit taking activities over the near term.
technical focus

Technical Focus – 23rd Nov 20

One the largest aluminium extrusions manufacturer in Malaysia with production capacity at 100,000MT per annum. Aluminium prices have bottomed-out since April 2020 and subsequently rallied to 2Y high as demand from China soared. Also, effective 1st November 2020, China’s Ministry of Ecology and Environment has lifted the import restrictions on high-grade aluminium scrap. Technically, we may anticipate for a potential flag-formation breakout above RM0.55, to target the next resistances at RM0.59-RM0.615 with long term target at RM0.68.
market pulse

Sideways to linger

Mild bargain hunting activities took precedence as the FBM KLCI ended the week on a positive tone on bargain hunting in gloves heavyweights. We reckon that a consolidation will be in the picture over the near term amid the lack of fresh leads. In the meantime, gains will be limited by the rising number of Covid-19 cases that may derail the prospect of V-shaped economic recovery. Meanwhile, the lower liners are likely to trend higher, owing to the rotational play, whilst investors will continue to keep an eye on the barrage of corporate earnings releases as well as Budget 2021 vote this week.
macquarie structured warrants 20200914

Mah Sing and AirAsia warrants joined the bandwagon

The Malaysia warrants market recorded a RM809.8mil turnover last week, which is 1.7% higher than the prior week due to renewed interest in stocks which were badly beaten down due to the Covid-19 pandemic. Nonetheless, warrants over rubber glove stocks continued to dominate the warrants space with RM455.4mil traded, which made up more than 56.2% of the total warrants market.
market pulse

Finding stability

Expectedly, the toppish condition that warrants a pullback saw the FBM KLCI retreated. The meteoric rise since the start of the month has seen a shift in sentiment as investors were quick to lock in recent gains. Meanwhile, the uncertainty over the passing of Budget 2021 also weighed on the recent market sentiment. Going forward, we expect choppiness to prevail with mild bargain hunting activities to take place. Elsewhere, the lower liners are likely to trend higher, boosted by the liquidity driven market, coupled with the rotational play.
market pulse

Consolidation beckons

Signs of profit taking activities are emerging on the FBM KLCI following the key index breakthrough above the 1,600 psychological level. We now expect a consolidation to take place as investors digest their recent gains. The sideways trend is expected to allow fresh legs for further upside over the near term. In the meantime, the lower liners are expected to consolidate as well with the investors focusing on the barrage of corporate earnings releases.

Teo Seng Capital Bhd – 18th Nov 20

Following the previous quarter upswing in chicken egg prices, the ASP of chicken eggs began to show a downward trend, dropped by 21.8% QoQ in 3Q2020 to average of RM0.23 per egg in September. The decline was dragged by lower consumer demand due to shrinking economic activities amid second wave of Covid-19 pandemic. The downturn in ASP of chicken eggs has been a drag on the company’s top-line growth, albeit the growth in sales quantities of eggs QoQ and stable contribution from the animal health products segment.
technical focus

Technical Focus – 18th Nov 20

Crude palm oil prices (CPO) have now retained its position RM3,000/MT level since late October 2020; amid the improving demand prospects. The positive momentum will be back by the higher export shipments to India and China with the latter will be stocking up their inventory ahead of the festive season. While, the export tax exemption 2H2020 will drive price to be competitive at international levels, the resumption of operations under the agriculture and plantation sector at Sabah since the start of November bodes well. The improved domestic ties following the signing of Regional Comprehensive Economic Partnership also bodes well for export to the world’s second largest importer.
market pulse

Defending 1,600

Following the breakthrough above the 1,600 psychological level, we now expect the higher possibility of profit taking over the near term. Still, further upsides remains on the table over signs over resurgence of bargain hunting in gloves-related stocks amid their attractive valuations, coupled with the strong near term fundamentals. Elsewhere, the rotational play amongst the lower liners remains in place, spurred by the higher-than-average trading activities as investors continue to search for higher yields.
market pulse

Looking beyond 1,600

It was another firm performance on the local bourse, despite a choppy trading session yesterday. We reckon that gains would likely to extend for the FBM KLCI to power beyond the 1,600 psychological level owing to the positive progress over the Covid-19 vaccine development from Moderna. At the same time, gains will be backed by the positive momentum on Wall Street overnight, coupled with expectations that the economy will continue to deliver a quicker-than-expected recovery. We also think that the lower liners may continue their upbeat momentum, spurred by the liquidity driven market.

Buying interest yet to taper

The stronger-than-expected 3Q2020 GDP (-2.7% YoY) vs. consensus forecast of -4.0% YoY contraction boosted the FBM KLCI to recover most of its intraday losses last Friday. The three consecutive days of foreign fund inflow will continue to lend support for any weakness over the near term. Meanwhile, we view the conclusion of Regional Comprehensive Economic Partnership (RCEP) bodes well for Malaysia alongside with 14 nations that will strengthen the trade partnership between these countries. Moving forward, investors will be focusing on the barrage of corporate earnings releases, which expects to record sharp QoQ recovery.

Technical Focus – 16th Nov 20

Regarded as a concessionaire for Malaysian Electronic-Government (E-Government) MSC flagship application. Builds, operates and owns the electronic channel to deliver services from various Government agencies to Malaysia citizens and businesses. Volume transactions to remain upbeat for immigration and JPJ-related services and motor vehicle trading related services premised to the gradual re-opening of economic activities. Meanwhile, the one-stop portal for Covid-19 health screening will see a boost from the recent spike in number of Covid-19 cases. Technically, the flag-formation breakout above RM1.45 may drive price higher towards the next resistances at RM1.53-1.61 with long term target at RM1.70.
macquarie structured warrants 20200914

Warrants over HSI and rubber gloves most active

Despite the surge in stock markets, overall warrants turnover last week fell slightly by 6.1% to RM796.4mil. Active trading remained in warrants over the Malaysian shares with a trading value recording at RM724.1mil, representing approximately 90% of overall warrants turnover last week.
market pulse

All eyes in 3Q GDP

It was another exceptional performance on the FBM KLCI that recovered all its year-to-date losses, lifted by the gains across the board. Moving forward, investors will shift their focus on the 3Q2020 GDP data which may see the contraction to be milder against the prior quarter as economic activities resumed gradually. For now, we think that the key index is increasingly toppish and may warrant a pullback over the near term. The lower liners, meanwhile, remain supported by the liquidity driven market as investors capitalise on the positive market sentiment.
market pulse

Consolidation beckons

Expectedly, the FBM KLCI retreated after staging a sharp rally over the course of past 5 trading days. A consolidation is expected to take place over the near term as the FBM KLCI as investors continue to lock in recent gains, which we deem to be a healthy move at current juncture. Meanwhile, we also think that the lower liners will undergo a consolidation with any weakness to be supported by the improved trading liquidity with investors continue their quest to hunt for higher yields.

Market down, but M+ Wiz positive

First of all, the market turned negative amid profit taking activities. However, what we have selected for M+ Wiz list was with a good recovery theme in it as well as some sectors with earnings certainty. Our picks are
market pulse

Turning toppish

It was another exceptional performance on the FBM KLCI, spurred by the positive developments on the potential Covid-19 vaccine, coupled with the higher crude oil prices. We reckon that further upsides are still in the cards, although the move may also attract profit taking activities in the interim. Investors may start to lock in their gains to digest the recent run-up before returning with fresh legs for further upside. Although the lower liners are also looking toppish, any weakness will be cushioned by the improvement in trading liquidity in recent days.
technical focus

Technical Focus – 11th Nov 20

Started off in 1997 and subsequently grown into one of the largest express delivery service provider in Malaysia. Implementation Conditional Movement Control Order (CMCO) across several states at Peninsular Malaysia, coupled with extension of CMCO in states that were already affected may continue to boost demand. Singles’ day sales (11.11) may also provide an additional leg for further online delivery orders. Technically, a potential symmetrical triangle formation breakout above RM0.445, to target the next resistances at RM0.49-0.545 with long term target at RM0.60.
market pulse

Another milestone on vaccine progress

After delivering a solid performance last week, the FBM KLCI was supported by the eleventh hour buying in selected index heavyweights. While further upsides are still on the cards, we think that any firmer upward move may attract quick profit taking activities. A consolidation beckons owing to the positive signs of vaccine development by Pfizer and BioNTech which could be a boon for economic recovery, but a bane for glove makers stocks. The lower liners are still on course for further upside, driven by the improved trading liquidity.

SLP Resources Bhd – 9th Nov 20

While the exports sales are expected to remain sluggish as certain European countries have returned to lockdown, we reckon that the weakness will be cushioned by the improved sales from the local market. Already, 3QFY20 bottomline rose 7.8% QoQ alongside with the recovery at topline that registered 6.6% QoQ improvement.
technical focus

Technical Focus – 9th Nov 20

We reckon that gloves-related stocks will retain their position as favourites amongst investors following the tabling of Budget 2021. Investors will breathe a sigh of relief as the possibility of implementation of windfall tax did not materialise. Instead, glove manufacturers will collectively voluntary contribute a combined sum of RM500.0m to combat against Covid-19, which includes partially covering the cost of the Covid-19 vaccine as well as expenses for healthcare equipment. Meanwhile, we expect demand to remain relatively robust in subsequent quarters owing to the pent-up demand that has yet abated alongside with the rising average selling prices (ASP)
market pulse

Cheering on Budget 2021

The all-rounded Budget 2021 that aims ensure sustainable living and rejuvenate economic activities is well received by majority which could provide a catalyst for further up strides. Foreign funds net buying rose to the highest level since mid-January 2020, coupled with the diminishing uncertainties surrounding the US political situation will ensure stability, moving forward. The lower liners are expected to remain robust, owing to the positive market momentum that is driven by the resurgence in trading liquidity.
macquarie structured warrants 20200914

Higher warrants turnover for the week; US election outcome in focus

The overall warrants turnover for first week of November jumped by approximately 17.9%, surging to RM868.7mil from RM736.9mil a week ago. The event-packed week saw warrants over Malaysian shares still dominating the total turnover, making up approximately 86.4% of the total warrants turnover at RM750.6mil, followed by warrants over the Hang Seng Index

Budget 2021 – Contain and Reboot

We believe Budget 2021 is perceived as mildly positive; it focuses on containing the Covid-19 health crisis and rebooting the economy, as well as supporting the welfare of the rakyat. Covid-19 fund will help to contain the health crisis, while higher development expenditure could translate to improved construction activities. Meanwhile, the budget allocated for the technology sector may drive FDI into Malaysia. We are positive on healthcare, construction, technology, telco sectors, while neutral on property, tobacco and consumer sectors.
market pulse

Budget 2021 in focus

Strong gains on Wall Street overnight spill over to Asia markets, including the FBM KLCI as foreign funds net buying rose to the highest level since mid-August 2020. Moving forward, investors will be anticipating on the announcement of Budget 2021 that points to further measures to be dished out to rejuvenate the economy. Under the prevailing largely positive market sentiment, we expect the market undertone to remain buoyant as investors’ quest to search for higher yields returned.
market pulse

Finding stability

The FBM KLCI managed to hold onto its gains as the key index snapped a four-day losing streak mild bargain hunting activities in beaten down stocks. Although the US presidential election race remains on course, investors breathed sigh of relief that the neckline race will see neither party holds the neither majority in Senate nor in House of Representatives; which suggest that any broad policy changes are off the table. Meanwhile, we still think that rotational play amongst the lower liners may take charge over the interim, owing to the positive market sentiment.
technical focus

Technical Focus – 4th Nov 20

Renewable energy diversification equipped Advancecon with a total of 3 major solar projects with combined 3,710.5kWp solar photovoltaic system that will provide long term recurring income to sustain earnings visibility over the years. Outstanding construction orderbook of RM730.9m will provide earnings visibility to the construction segment over the next 24 months. Proxy to the potentially higher spending on infrastructure developments under Budget 2021, backed by its strong track record in execution of mega-infrastructure projects. Technically, a recovery beyond RM0.36 may drive share price towards the next resistances at RM0.395-RM0.41 with long term target at RM0.455.
market pulse

All eyes on US election

Despite Bank Negara move to keep the benchmark interest rates unchanged, it was another volatile session as the FBM KLCI that was bogged down by the extended selling activities from foreign funds. Moving forward, we expect the tepid momentum to continue as investors will be monitoring on the US election results that has been keep investors on their toes. Meanwhile, we expect rotational play to take charge on the lower liners, although sentiment remain rocky as US enters into the ballot tallying during market trading hours today.
market pulse

Rebound in store

The FBM KLCI took a dive before recovering most of its intraday losses on the back of strong Chinese economic data. We reckon that bargain hunting activities may take precedence over the near term, although sentiment remains largely indifferent at current juncture. At the same time, investors will be focusing on Bank Negara’s monetary policy decision today that may provide further clarity on the economic recovery progress. The lower liners are also attempting to find stability, following the recent rout.

Selling continues on the broader market

On Bursa Exchange, it has been fairly negative as market players continue to sell off on several heavyweights last week. Despite the higher Covid-19 confirmed cases globally on a daily basis, selling pressure continues to mount on healthcare stocks especially the glove segment and this has contributed to the negative broad market sentiment
macquarie structured warrants 20200914

Volatility Index hits 4-month high, U.S. election coming up

Warrants over the S&P 500® Index (SP500) captured interest last Friday with the U.S. presidential election coming up on 3 November 2020. The Chicago Board Options Exchange (CBOE) Volatility Index (VIX), which is a measure of U.S. market volatility and often referred to as the fear index

Kimlun Corporation Bhd – 2nd Nov 20

Kimlun Corporation Bhd’s long-term prospects remains uncertain owing to the depleting construction orderbook (approximately RM1.40bn as of 30th June 2020) that will provide earnings visibility over the next 2 years, whilst the manufacturing segment orderbook of RM370.0m will also sustain the segment earnings over the next 2 years. We are ceasing coverage on Kimlun Corporation Bhd due to reallocation of internal resources and the lack of retail and institutional interest.
technical focus

Technical Focus – 2nd Nov 20

Under the prevailing market volatility, we see gold proxy companies as a hedging methodology. Gold prices is expected to remain steady above US$1,900/oz in view of the barrage of uncertainties such as the upcoming US election, rising Covid-19 cases and lesser optimism over the pace of global economic recovery after several countries across Europe have returned to the state of lockdown. At the same time, the CBOE Volatility Index (VIX) that represents the market expectations of 30-day forward volatility has jumped to near 40.0 in recent day; the highest since mid-June 2020. The low interest rate environment will continue to entice investors into gold as an alternative investment.
market pulse

A barrage of uncertainties ahead

The sluggish global equities performance permeates to stocks across Bursa Malaysia and we see the volatility to remain unabated owing to several factors; rising political tension domestically, impending US election and rising number of Covid-19 cases globally. We reckon that the extended volatility may take place this week as investors’ sentiment remains cautious. The lower liners are expected to remain on a choppy mode as investors prefer to adopt the wait and see approach before taking further risks.
market pulse

Sentiment remain indifferent

We reckon that the consolidation may prolong owing to uncertainties surrounding the political developments on the local front, impending US election, rising number of Covid-19 cases globally and pace of economic recovery in the final quarter of 2020. The lower liners are also in a purple patch as sentiment remain cautious with quick profit taking are limiting any significant gains. Hence, we continue to advocate the “hit and run” technique, keeping trades in a shorter time frame.
technical focus

Technical Focus – 28th Oct 20

LKL engages in the provision of medical/healthcare beds, medical equipment, composite dressing, medical peripherals and accessories and it is well equipped to undertake further expansion, targeting annual production capacity of 6,500 beds in FY22 (from 5,000 in FY20). Earnings growth will be supported by the acquisition of 60% equity stake in Tahmaz Meditech Sdn Bhd that comes with a minimum net profit of RM15.0m from FY22-FY24. Technically, a rebound above RM1.05 may target the next resistances at RM1.19-1.27 with long term target at RM1.43.

Hartalega Holdings Bhd – 27th Oct 20

With the reported earnings coming above expectations, we raised our earnings forecast by 61.9% and 84.3% to RM1.86bn and RM2.12bn for FY21f and FY22f respectively to account for the higher-than-expected ASPs. Consequently, we upgrade our recommendation to BUY (from Hold) with a higher target price of RM23.34 (from RM18.44). Our target price is derived by ascribing a targeted PER of 43.0x to their FY21f EPS of 54.3 sen. The target PER is in line with the 5Y historical forward average.
Get Wiz

Bloodbath yesterday do we have any signals?

Out of 6 counters, there are only 2 being triggered. ELSOFT in the first session and PCHEM during the last 30 minutes were flashed in our M+ Wiz. However, today we have a whole set of new components (8 of them) in our list
market pulse

Weakness prevails

Bargain hunting activities have lifted the local bourse to recover most of its intraday losses yesterday as investors breathed signs of relief over the political status quo. We think that the local bourse performance will continue to be dictated by the political developments over the foreseeable future, whilst the renewed volatility on Wall Street overnight may pile pressure on Bursa Malaysia stocks. Although the lower liners are demonstrating mild signs of recovery, it is still too early to tell for a meaningful rebound over the near term.

Chin Well Holdings Bhd – 26th Oct 20

Chin Well Holdings Bhd operations were back to full force since early May 2020 following the approval from MITI to resume their operations. Although the operations were back to normal, demand has yet return to pre-Covid-19 levels as global economy remain roiled by the rising new cases of Covid-19, particularly in Europe. We gather that the European markets (excluding FY20) traditionally make up to 30-55% of total revenue over the past years.
technical focus

Technical Focus – 26th Oct 20

Elsoft is positioned as a key player in the back-end semiconductor testing and also for front-end wafer testing. Key clients include multinational companies like Philips, Avago, Osram, Cree Technology and Liteon. A laggard technology play against its peers in the similar industry, trading at forward PE for FY21f at 14.9x; lower than the 5Y historical average of 24.5x as well as Bursa Malaysia’s Technology sector that is trading at 5Y historical average of 27.6x. Technically, a flag-formation breakout above RM0.63 may spur price towards the next resistances at RM0.685-0.72 with long term target at RM0.755.
market pulse

Relief recovery

Given that the speculations over the potential declaration of state of emergency move did not materialise, we reckon that a relief rebound on the FBM KLCI may take shape. Gains, however, is expected to be limited following the rising number of Covid-19 cases that may see the Conditional Movement Control Order (CMCO) to be extended. The lower liners are also bracing for a rebound after enduring some volatility on last Friday, supported by the recent batch of mostly strong corporate earnings.
macquarie structured warrants 20200914

Warrants over glove-related names most active amid increasing Covid-19 cases

Last week warrants trading activity remained robust with the overall warrants turnover surging 26.1% week-on-week (w-o-w) to RM1.3bil, mainly contributed by warrants over the Malaysian shares. With Covid-19 cases worldwide showing no signs of slowing down, coupled with surging cases reported daily in Malaysia recently, the rubber glove sector continues to be in the spotlight as demand for gloves is expected to remain elevated.
market pulse

Finding stability

The FBM KLCI endured a choppy trading session before bargain hunting activities took charge to power the key index higher yesterday. For now, we reckon that the local bourse may attempt to find stability with nibbling on beaten down stocks. Although the prevailing negative market sentiment is deterring investors to take large positions, the lower liners may continue to see rotational play, boosted by the higher than historical average trading activities.
market pulse

Downward bias consolidation resumes

It was another bleak performance on the local bourse that was marred by the selling pressure from gloves heavyweights yesterday. The near term weakness is expected to prevail as any recovery will be tempered by quick profit taking activities. Nevertheless, we still think that rotational play will remain on the table that is buoyed by rise in trading activities as of late, though the negative market sentiment are also keeping gains in check. Hence, we advocate traders to lock in quick profits, avoiding to holding position for too long.
Get Wiz

Is the market too challenging for you?

Overall (after testing for 55 days live in our virtual portfolio), we have some positive days near to 56%, while positive trades just slightly above 50%. You must be asking why the virtual portfolio could stand out so well at above 30% returns?
technical focus

Technical Focus – 21st Oct 20

I-Stone is regarded as a proxy to the rising adoption of automation amongst companies in order to improve production efficiencies & capabilities and to maintain a leaner operational cost structure. Key clients include EMS players like Dyson, V.S. Industry Bhd and ATA IMS Bhd. Capitalising on the adoption of fourth industrial revolution (Industry 4.0) with opportunities under the field of artificial intelligence, big data, robotics and the leasing of automated lines and equipment. Technically, a flag-formation breakout above RM0.215 may lead to further upsides towards the next resistances at RM0.24-RM0.265 with long term target at RM0.28.
market pulse

Keeping gains in check

The FBM KLCI endured a choppy trading session before succumbing to quick profit taking as investors were roiled by the political uncertainty in the local scene, coupled with the selling activities from foreign funds. Meanwhile, the further stringent measures imposed due to the unabated new Covid-19 cases may derail the prospects of economic recovery projection in 2021. Likewise, the lower liners and broader market shares may undergo a consolidation to allow fresh legs return into the picture.
market pulse

Uptick in momentum

Expectedly, the FBM KLCI rebounded from the three-day slump as investors bargain hunt on beaten down stocks and likely to charge higher today. At the same time, the positive Chinese economic data may also serve as a leading indicator of global economic recovery, should Covid-19 were to be contained over the foreseeable future. The lower liners could have follow through buying support, boosted by the sturdy trading activities as market participants capitalise on the positive market breadth.

SLP Resources Bhd – 19th Oct 20

SLP Resources Bhd (SLP) saw its operations returned to full force in recent months as the company ramp up their production to fulfil the backlog orders. Although the recovery is on the cards, we think that production has yet to reach pre-Covid-19 levels as demand remain relatively sluggish, particularly from Europe that is remain beleaguered by the continuous rising new daily cases. Nevertheless, the worst could be over for SLP as days of recovery are set to shape up in FY21f.
technical focus

Technical Focus – 19th Oct 20

Malaysia alongside with numerous countries across the globe is heading into the third wave of Covid-19. Back home, the number of new cases reported has surged to triple digits consecutively since the start of October 2020. The usage of personal protective equipment (PPE) by healthcare workers under the Health Ministry (MOH) is expected to see uptick in recent and upcoming months. Hence, we reckon that demand for rapid test kits to be on the rise in tandem with mass testing conducted in ensuring the safety of the nation’s living environment.
market pulse

Rebound in store

After three consecutive days of pullback, we reckon that a rebound is in store as investors bargain hunt on beaten down stocks. The upcoming release of China 3Q2020 GDP data may serve as a leading indicator to the pace of global economic recovery as China’s economic activities has returned to the norm with only double digits of new daily cases reported since April 2020. Meanwhile, trading activities remain relatively robust will ensure the rotational play remain in place under the prevailing low yield environment.
macquarie structured warrants 20200914

Demand surged for call warrants over Mah Sing and Comfort Glove

The Malaysia warrants market saw a steep recovery in terms of turnover last week which saw a total of RM1.0bil. traded compared to RM767.0mil traded the week before. The warrants over Malaysian shares continued to dominate the warrants space with RM992.5mil turnover, representing 98.7% of the total warrants market. In particular, we saw enormous investors interest in call warrants over Mah Sing Group (Mah Sing) and Comfort Glove last week as both underlyings saw their share prices reaching new highs.
market pulse

Downward bias consolidation

The extended consolidation on the local bourse is likely to continue in view of the lack of fresh leads, coupled with the uncertainties surrounding the political and Covid-19 situation. The negative sentiment across global markets may also weigh on Bursa Malaysia, although bargain hunting activities may also emerge at later stage. Although there were signs of quick profit taking activities, rotational play amongst the lower liners are keep trading activities at a vibrant level as investors continue to seek for higher yield investments.
market pulse

Another jab from US Department of Labour

We reckon that the consolidation will remain a feature over the foreseeable future as the recent spike in Covid-19 cases may keep a lid on the prospects of economic recovery. US Department of Labour (DOL) move to add Malaysian rubber gloves to its latest list of goods produced with forced labour also trigger some profit taking to gloves heavyweights today. Elsewhere, the re-implementation of Conditional Movement Control Order saw trading activities turning up the heat again as rotational play are shifting towards the healthcare thematic space.
technical focus

Technical Focus – 14th Oct 20

Involved in the design and volume production of high precision metal machining of hard disk drive, computer, camera, consumer electronics and electrical and automotive industries components. Ventured into the production of three-ply surgical mask in early July 2020 under the brand “Novid” and will expand production into kids mask and N95 respirators is deemed timely. Operating with a lean balance sheet with net gearing at 0.04x as of 30th June 2020. Technically, a breakout above RM1.16 may drive share price higher towards the next resistances at RM1.32-1.44 with long term target at RM1.69.
market pulse

Still cautious amid political developments

The FBM KLCI marched higher yesterday as investors as there were no changes in the political agenda in Malaysia. Although the unemployment rate recorded at 4.7% in August 2020 (unchanged from previous month), the number of unemployed person decreased by 3,500, suggesting that the labour market is recovering (albeit gradually). Meanwhile, the continuous rotational play amongst the lower liners provided further room for upsides over the near term.
market pulse

Dragged down by profit taking

Expectedly, the FBM KLCI staged a pullback as investors opted to lock in recent gains following a two-day of rally. At the same time, the rising number of Covid-19 cases triggered the re-implementation of conditional movement control order (CMCO) in Selangor, Kuala Lumpur and Putrajaya may deter the pace of economic recovery. Still, the vibrant trading activities will continue to provide rotational play amongst the lower liners, capitalising on the firmer momentum in recent times.
macquarie structured warrants 20200914

Higher warrants turnover for the week; glove makers still in focus

Besides that, call warrant TOPGLOV-C81 landed on third place last week with a total 94.7mil units traded. The December 2020 expiry call warrant was also the top warrant traded by value with a total traded value of RM62.0mil. Other than warrants over glove makers, the index warrants close to expiry HSI-HAY and HSI-C9V
Get Wiz

Healthcare Stocks Back in Action

We noted that last week was not a good week for healthcare stocks as they underwent some consolidation phase, but it gives us the opportunity to look out for the breakout formation in the near term (as they are still in the uptrend intact position). Bursa Exchange was also mixed with the laggards and leaders being on a neutral tone.

AME Elite Consortium Bhd – 12th Oct 20

AME Elite Consortium Bhd (AME) is regarded as an industrial park specialist that involves in industrial park development, leasing of industrial properties and managed workers’ dormitories. Capitalising on trade diversion with companies relocating their manufacturing facilities amid the on-going US-China trade war. Property investment & management services segment provide sustainable long term earnings visibility. We initiate coverage on AME with a BUY call and fair value of RM2.29, based on 13.0x P/E pegged to its forward FY22f EPS of 17.6 sen.
technical focus

Technical Focus – 12th Oct 20

One of the leading regional retailers of cosmetics and personal care ("CPC") products, under the brand - The Body Shop and Natura. Operates a total of 121 retail stores across West Malaysia, Sabah, Labuan, Vietnam and Cambodia with products also sold via selected third-party online stores such as Hermo, Tiki, Lazada and Shopee. Surge in e-commerce channel will continue to cushion the weakness from the retail stores channel over the foreseeable future. Technically, a flag-formation breakout above RM0.44 suggests for further upside that may drive share price towards the next resistances at RM0.475-0.495 with long term target at RM0.505.
market pulse

Still on the hunt

After two consecutive days of rally (FBM KLCI rallied approximately 40 pts), we reckon that a consolidation may take place at the start of the week as investors would digest recent gains. In the meantime, the recent aggressive move may also tone down in view of the political instability in coming days. On a brighter note, the positive market breadth, coupled with the strong trading volumes in recent days suggests that investors’ appetite remain within the equities market in search for higher yields.
market pulse

Boosted by eleventh hour buying

The eleventh hour buying support that sent the FBM KLCI sharply higher yesterday may warrant a consolidation as investors would opt to digest their gains. The move would come ahead of the political uncertainty next week amid the impending meeting between opposition leader, Datuk Seri Anwar Ibrahim with Yang di-Pertuan Agong. Meanwhile, we continue to see rotational play amongst the lower liners owing to the vibrant trading activities.
market pulse

Bargain hunting may emerge

The eleventh hour sharp selling pressure in selected index heavyweights sent the local bourse spiraling lower yesterday. After the previous session slump, we think that bargain hunting activities may emerge on the local bourse as investors nibble on beaten down stocks. It was a tale of two sides as the lower liners managed to march higher on the back of the rotational play, coupled with the favourable market sentiment.
technical focus

Technical Focus – 7th Oct 20

Focused on delivering complete and customisable payment solution to key partners across various industries such as AmBank, Affin Bank, Visa, MasterCard, MEPS, Petronas, Taobao.com, Touch ’n Go and Giant. Capitalising on the rising adoption of e-payment nationwide, whilst the Covid-19 pandemic has sped up adoption for QR payments in order to minimise contact. Acquisition of 40.0% equity stake in artificial intelligence (AI) company Wannatalk Malaysia Sdn Bhd value-add into the business to business to consumer (B2B2C) solution. Technically, a trendline breakout above RM1.18 may drive share price higher towards the next resistances at RM1.27-1.30 with long term target at RM1.40.
market pulse

Knee jerk retreat

The knee-jerk reaction selldown was due to the projected number of Covid-19 cases at end-October 2020 by the health director-general Tan Sri Dr Noor Hisham Abdullah. Nevertheless, speculations over MCO 2.0 have been quashed by the Prime Minister’s latest announcement may provide some alleviation to the selldown. The lower liners and broader market shares have turned downbeat which may see any gains to be tempered by quick profit taking over the near term amid the rising cases of Covid-19.

Embrace the winter – with gloves and healthcare stocks

Although economy is likely to contract in 2020, we think several stimulus measures across the globe should be able to cushion the downside risk and market players are expecting a recovery in 2021; similar case for Malaysia. For local exchange, we opine the trading activities will hover around gloves and related proxies and healthcare stocks without any meaningful drop in Covid-19 cases. Besides, trade diversions and trade catalyst should turn out well for 4Q20. We have picked CAREPLS, ESCERAM, DNONCE, PECCA, TOMYPAK, AME and WEGMANS for this quarter.

Teo Seng Capital Bhd – 6th Oct 20

Moving forward, TSCB aims to ramp-up their promotional activities in order to maintain and increase their market share. At the same time, TSCB is strengthening their downstream business by introducing new products such as hard-boiled eggs, soft-boiled eggs and herbal eggs in order to diversify their products base.
market pulse

Still ascending

With the slight bullish mode on the local bourse amid the resurgence of buying momentum in glove heavyweights due to spike in Covid-19 cases, we believe that the FBM KLCI movement will now be dictated by the glove heavyweights again. In the meantime, government authorities have quashed rumours for re-implementation of Movement Control Order (MCO) provided some alleviation to the economic recovery progress. The lower liners and broader market also on a recovery mode as investors capitalise on the rising trading activities.
macquarie structured warrants 20200914

Lower warrants turnover for the week, in line with broader market

Total warrants turnover last week saw a 21.3% decline from the previous week to RM681.4mil, in line with the reduced activity in the broader market, in addition to the Hong Kong market having a much shorter trading week pursuant to the market holidays on Thursday and Friday. Market making for warrants over Hong Kong underlyings such as the Hang Seng Index (HSI) and the iShares China A50 ETF will resume on Monday (5 Oct).
technical focus

Technical Focus – 5th Oct 20

Distributes 88 brands of electrical products and accessories, comprising of 85 third-party brands and remainder 3 brands of their own. Aims to open additional 7 new outlets that will ramp up the total number of outlets to 15 over the next 3 years by penetrating into second-tier cities across Peninsular Malaysia. Entered into a collaboration agreement with Prima Nexus Sdn Bhd (PNSB) to distribute rapid test kits for the detection of Covid-19 which have been approved by the Ministry of Health Malaysia (MOH). Technically, a short-term consolidation breakout above RM0.375 will boost price towards the next resistances at RM0.405-RM0.435 with long term target at RM0.47.
market pulse

Anchored by gloves heavyweights

Despite the FBM KLCI marched higher, gains were mostly induced by recovery in gloves heavyweights. We reckon that the trend may continue over the foreseeable future amid the spike in Covid-19 cases locally, coupled with news that US President Donald Trump has also contacted the aforementioned virus. The lower liners and broader market, however, may continue to endure choppiness as volatility takes charge.
market pulse

Down, but not out

Amid the lack of follow-through buying interest, we reckon that the downward bias consolidation on the key index will remain in place. Additionally, the recent increase in Covid-19 cases across Peninsular Malaysia will pose a stumbling block for the nation economic recovery. Nevertheless, the lower liners are attempting to find their footing, with rotational play across sectors will keep trading interests at a decent level.

Optimax Holdings Bhd – 1st Oct 20

Established in 1995, Optimax is as one of the most reputable eye care providers, supported by the high volume of surgeries conducted over the years as well as its established network of eye specialist centres. We project its earnings to decline by 16.2% YoY to RM7.2m in FY20 due to the impact of Covid-19 outbreak and MCO, while the earnings is projected to grow at 57.0% YoY to RM11.4m in FY21, underpinned by its expansion plans with 2 additional surgeons on board by FY21. Optimax is valued by pegging its FY21f core EPS of 4.2 sen to 24x PE (c.30% discount to peers average of 34.8x), leading to a FV of RM1.00.
market pulse

Tempered by quick profit taking

Gains on the local bourse were largely tepid as investors were quick to book profits amid the on-going volatility. Therefore, we reckon that any gains will be tempered by opportunity to sell into strength, particularly from foreign funds (YTD net outflow at RM22.3bn). Elsewhere, the lower liners are will continue to endure a rough ride amid the fading trading interest ahead of the end of blanket loan moratorium that saw trading value slumping to the lowest level since June 2020.
technical focus

Technical Focus – 30th Sep 20

Operates 5 factories sitting on a built-up area of 510,000 sqf, supported by 850 employees with revenue contributed by more than 50 countries across the globe. Benefiting from the US-China trade war following the trade diversion to manufacturers in the South East Asia countries due to import tariffs being placed in Chinese furniture makers. Healthy balance sheet with net cash position at 73.8m as of 3QFY20. Prospective dividend yields are relatively decent at 4.1% for both FY20f and FY21f respectively. Technically, the flag-formation breakout above RM0.725 signals for further upside towards the next resistances at RM0.77-RM0.825 with long term target at RM0.87.
market pulse

Not ripe for further upside

The FBM KLCI succumbed to another round of selling pressure as investors were quick to lock in their gains on the dour economic outlook presented by World Bank. We continue to think that significant upsides will be difficult to come by as the tepid economy recovery remains beset by the unabated new cases of Covid-19. In the meantime, the lower liners are also in a choppy mode as valuations have turned less unappealing at current juncture.

Kim Loong Resources Bhd – 29th Sep 20

With the reported earnings coming above our forecast, we raised our FY21f and FY22f net profit higher by 60.3% and 61.8% to RM92.5m and RM101.4m respectively, accounting for the higher CPO prices assumption at RM2,600/MT (initial assumption at RM2,300/MT). Consequently, we upgrade KLR to BUY (from Hold) with a higher target price of RM1.74 (from RM1.16).
market pulse

Tepid Gains

It was another choppy trading session on the FBM KLCI as quick profit taking activities are now limiting further upsides. Hence, the consolidation is expected to remain in shape for an extended period. Elsewhere, the dwindling trading interests ahead of the end of blanket loan moratorium may also keep gains across the lower liners in check. Investors are opting to remain at the side lines, waiting for further leads before pouncing aggressively into the market again.
macquarie structured warrants 20200914

Rubber glove and HSI warrants among most active

The total warrants turnover fell 13.7% to below RM1.0bil at RM863.8mil for the week ended 25 September 2020. Warrants over the Malaysian counters continued to be the biggest contributor to the warrants market, representing almost 90% of turnover, followed by warrants over the Hang Seng Index (HSI) which contributed 7.9% to the overall warrants’ market share.

Serba Dinamik Holdings Bhd – 28th Sep 20

Serba Dinamik Holdings Bhd (Serba Dinamik) and Huawei Technologies (M) Sdn Bhd have formed a partnership to drive digital transformation in urban and rural Malaysia. Both signed a memorandum of understanding (MOU) which marks the start of the partnership to develop digital solutions via the adoption of Huawei Cloud and Artificial Intelligence (AI) technology.
technical focus

Technical Focus – 28th Sep 20

Operates at a production space in excess of 3.5m sqf in both Malaysia and Vietnam with products sold to over 60 countries in 5 continents across the globe. • A one-stop furniture manufacturer; well equipped to capitalise on the stronger demand from the US-China trade diversion. Demand to remain stable on the recovery in US housing starts data that is currently near pre-Covid19 levels, coupled with the rising adoption of work from home. Technically, price has formed a flag-formation breakout above RM1.42 which may propel share price higher towards the next resistances at RM1.59-RM1.70 with long term target at RM1.80.
market pulse

On track for more

We continue to think that the glove heavyweights will dictate the direction on the local bourse which is gaining momentum as of late. The conclusive of the Sabah state snap election may bring about some calamity with the focus now shifting back to the political scene at West Malaysia. In the meantime, we reckon that retail players may continue to nibble on the mild recovery mode from the lower liners and broader market shares, capitalising on the recent positive market sentiment.

Gloves up again

Although most of the key index components trended lower, the FBM KLCI managed to trend higher owing to gains in glove heavyweights as the number of Covid-19 cases across the globe remained elevated. In the meantime, FTSE Russell has retained Malaysia bonds in the watch list will provide some alleviation for the prospects of further foreign capital flight. The lower liners and broader market shares are expected to experience a consolidation phase as investors may turn more defensive ahead of the Sabah state election over the weekend.
market pulse

Marred by political uncertainty

Following the renewed local political uncertainty, coupled with the dour note set by Wall Street overnight, we see the FBM KLCI to endure further volatility. The selling was more pronounced as foreign funds (YTD: outflow of RM21.65bn) continue to shy away from Malaysia equities. The lower liners and broader market shares will remain under pressure as sentiment turned dour as of late, while investors will be keeping an eye on the FTSE Russell decision on keeping Malaysia in the World Government Bond Index.
technical focus

Technical Focus – 23rd Sep 20

Established presence across regional markets; backed by notable clients include Infineon, Panasonic, Taiwan Semiconductor Manufacturing Company (TMSC), Seagate, Western Digital and Biocon. Supported by outstanding orderbook of RM488.0m to provide earnings visibility over the next 12-18 months. KGB has maintained a healthy balance sheet with a relatively low net gearing of 0.1x in 2QFY20. Technically, a breakout above RM1.18 may signal for further upside towards the next resistances at RM1.24-RM1.27 with long term target at RM1.33.
market pulse

Finding stability

Despite yesterday recovery which was mainly led by bargain hunting activities, the near term outlook remains indifferent with uncertainties remain on the table. We also note that significant upsides over the near term will be capped by the lack of fresh catalyst which may keep investors at bay. In the meantime, the lower liners are also going on an extended consolidation spell as traders were quick to lock in any profits.
market pulse

Accelerated selling

Following the tepid market sentiment, we continue to see the local bourse to undergo an extended downward bias consolidation spell. The uncertainty in both domestic and overseas political avenue, rising number of Covid-19 cases and toppish market condition continues to weigh on the performance on the local bourse. The lower liners were not spared as trading activities starts in taper ahead of the end of blanket loan moratorium.
macquarie structured warrants 20200914

Warrants over glovemakers remain in focus

The Malaysian warrants market saw a dip in trading last week with the total warrants turnover coming in at RM932.2mil, down by approximately 10.4% from RM1.04bil a week ago due to a shorter trading week in conjunction with the Malaysia Day holiday on 16 September. Warrants over Malaysian shares were still the major contributor to the total warrants turnover making up approximately 93.3% with a total value traded of RM869.6mil, followed by warrants over the Hang Seng Index (HSI) which recorded a total value traded of RM56.8mil, approximately 6.1% of the total warrants turnover.
wiz-plantation-stocks

A good week for Plantation Stocks?

Shown in the figure below, we noticed the strong trend for the FCPO since the range of RM2795-2800 to above RM3000, closing at RM3080 last Friday and we believe this trend may still sustain over the near term, targeting RM3150 and longer term target will be set around the RM3400 level. With the firm trend in FCPO, traders would have noticed the buying support for plantation has grown in the past few trading days on Bursa Exchange.
market pulse

Not ripe for further recovery

The consolidation on the local bourse is expected take shape over the foreseeable future amid the lack of fresh leads. Still, we believe that the movements of glove heavyweights will continue to dictate the direction on the key index. Elsewhere, we see rotational play amongst the lower liners to stand pat amid the positive market breadth, whilst retail players continue to seek for higher yield investments.
technical focus

Technical Focus – 21st Sep 20

Ranked as the fourth largest cocoa grinder in the world with total cocoa processing capacity of 250,000 MT p.a. New cocoa processing plant in Cote D’Ivoire coming on stream in 2H2021 brings additional grinding capacity of 60,000MT p.a. Demand expected to remain resilient premised to the improved retail sales spending as economic across the globe begun gradual re-opening of economic activities in 2Q2020. Maintained a healthy balance sheet with net gearing standing at 0.3x as of 2QFY20 with prospective decent dividends yields FY21f and FY22f at 2.7-4.0%. Technically, a breakout above RM3.33 may drive share price higher towards the next resistances at RM3.53-RM3.67 with long term target at RM3.79.
market pulse

Rebound taking a pause

After marching higher for three consecutive days, the FBM KLCI appears to have taken a breather, allowing earlier gains to be digested whilst re-asses the current market condition. We reckon that a consolidation may take shape in view of the lack of fresh leads. The renewed volatility will keep traders on their toes as quick profit taking activities may limit any significant upsides over the near term.
technical focus

Technical Focus – 17th Sep 20

Crude palm oil prices (CPO) have now soared beyond RM2,900/MT level; the highest since January 2020 amid the improving demand prospects. The positive momentum is driven by the lingering trade spat between US and China which will see the latter shifting their purchases to CPO as opposed to soybean. On the local front, the export tax exemption since Jun-2020 till end-2020 will drive price to be competitive at international levels. We reckon the demand will be sustainable, premised to the recent strings of better-than-expected economic data from China with palm oil shipments from Malaysia during the period 1-15 September 2020 rose 12.4% MoM to 780,305 tonnes.
market pulse

Still on ascend

We see the positive sentiment to take charge over the foreseeable future as investors returned to bargain hunt on beaten down stocks, but we caution that significant gains would likely to be choppy. The positive momentum continues to be spurred by the stronger-than-expected economic data worldwide. At the same time, the impending release of Top Glove Corporation Bhd’s quarterly financial performance may also provide fresh legs to extend the upside.
market pulse

Inching higher

The FBM KLCI remained upbeat with investors continue to seek for higher yields in the equities markets. Tracking the gains on Wall Street overnight, the positive momentum may spill over to the local bourse. Meanwhile, the robust trading sentiment will continue to see rotational play on the table over the near term. However, we also see bouts of quick profit taking activities ahead of the mid-week break.

Soft landing after a choppy trading week

Throughout the week, we believe those that follow us on M+ Wiz may face some challenges entering and exiting your position due to the negative market forces that continue to selldown stock market. The selling was rampant across the board and healthcare segment to a big hit last week, down11%, while technology stocks fell 5.5%.
macquarie structured warrants 20200914

Supermax and Top Glove call warrants stole the limelight

The Malaysia warrants turnover jumped 56.8% to RM1.04bil. from RM662.82mil a week ago due the drastic increase in trading activities in warrants over Supermax Corporation, Top Glove Corporation and Hang Seng Index (HSI). The trading in warrants over Malaysia stocks was the biggest contributor last week with RM980.43mil. traded followed by the HSI warrants which saw RM75.81mil. traded.
technical focus

Technical Focus – 14th Sep 20

Given that there are no signs of abating in the new numbers of Covid-19, we see demand for personal protective equipment (PPE) to remain sturdy overtime. According to Statista (German market data specialist), global PPE market is expected to balloon from US$52.0bn in 2019 to US$93.0bn in 2027. Concerns over the confirmed Covid-19 cases (more than 200,000 daily since 20-Jul-20) likely to ensure demand remains intact. The retracement in gloves-related stocks in recent weeks suggests that weakness is likely to be overdone, primed for recovery. Also, we see valuations have turned more compelling at current juncture.
market pulse

Recovery in store

We see signs on changing tides as the FBM KLCI will be largely dictated by the movement in glove maker heavyweights. Gains across overseas markets may provide some stability over the near term, but we do not discount further volatility ahead due to a barrage lingering uncertainties. At the same time, the positive sentiment transpired to gains across the lower liners as investors bargain hunt on the recent selldown.
market pulse

Mild bargain hunting activities may emerge

Given the decline move on Wall Street, we believe the FBM KLCI’s upside could be limited and traders are advice to trade only on those fundamentally sound stocks as both the FBM Small Cap and FBM ACE are trending lower at this moment. Hence, probability of making gains over the near term could be rather limited.
market pulse

Bank Negara in focus

Tracking the gains on Wall Street overnight, the FBM KLCI may stage a recovery back above the 1,500 level. The lower liners that were in a purple patch in recent days may also find some support as bargain hunting activities comes into centre stage. In the meantime, investors will be keeping an eye on Bank Negara monetary decision today.
week smoothly wiz pro

Starting the week smoothly despite weaker sentiment

We have been facing some headwinds in the market since last Friday on the broader market and we noticed trading volume and value on the Bursa Exchange have been lower over the past four trading days, the trading volume was below 10bn shares traded, while trading value was below RM5bn as compared to a week ago. We believe this coincides with the lifting of loan moratorium this month and market participants could have started to trade slower and reduce their exposure in the markets to repay their loans.
technical focus

Technical Focus – 9th Sep 20

The recent volatility has sent stocks across Bursa Malaysia into a bloodbath as investors scrambled to offload their holdings for various reasons such as the souring US-China trade relations, domestic political uncertainty, mixed bag of economic data and toppish valuations following the run-up in recent months. We reckon that choppiness may prevail as investors are also taking this opportunity to offload their holdings ahead of the end of blanket loan moratorium. At the same time, investors are opting to stay at the side lines due to the lack of fresh catalysts.
market pulse

Re-testing 1,500

We see the consolidation to linger over the near term on the FBM KLCI as gains will be measured by the weakness from glove heavyweights. For now, any strong recovery will be tempered by quick profit taking activities. The lower liners may continue to endure a rough ride on the back of the negative market breadth, although there are some pockets of opportunities for a rebound play.

Datasonic Group Bhd – 8th Sep 20

DSONIC is banking on four major national projects, namely; (i) National Integrated Immigration System, (ii) i-KAD project, (iii) Digital MyKad (e-KYC) project and (iv) Electronic Medical Records (EMR). We believe the current outstanding orderbook is able to provide earnings visibility for the next 3-5 years. Although earnings may be subdued in FY21f, we reckon a strong recovery will take place in FY22f, increasing by 157.6% YoY to RM70.1m. DSONIC could justify by pegging its FY22f EPS of 5.2 sen to P/E of 31.0x (+1 SD against 5Y historical average of 25.0x), arriving at a fair value of RM1.61.
market pulse

Attempting for a rebound

The lack of fresh leads kept investors at bay as the recent batch of corporate earnings offers little direction on the prospects of swift economic recovery. For now, we reckon that a consolidation on the local bourse remain on course over the foreseeable future. At the same time, the negative market sentiment is deterring the sustainability of the buoyant trading momentum, as traders brace themselves towards the end of blanket loan moratorium.
technical focus

7th Sep 2020 – Technical Focus

100% export oriented furniture manufacturer with products sold mostly to countries in the Middle East and Asia Pacific countries. Rapid shift of companies moving to working from home, in an effort to maintain business continuity ensures higher demand. Meanwhile, Spring Art will expand product range by releasing four new collections annually, focusing on living room furniture and bedroom furniture. Technically, price has formed a flag-formation breakout above the daily EMA20 level which share price may propel higher towards the next resistances at RM0.265-0.275 with long term target at RM0.30.
market pulse

Monitoring 1,500

After last week’s dour performance, we think that volatility will remain on the table, although any potential recovery will be measured for the time being in view of the lack of fresh leads. Investors may turned more risk averse as demonstrated by the slower trading activities, waiting for stability to kick-in. We are also cautious on the falling trading activities that indicate investors turning more risk averse for the time being.
market pulse

Renewed volatility

It appears that the downside momentum may linger given that the FBM KLCI failed to build onto its previous session gains. We opine that the renewed volatility across global equities may send the local bourse to end the week on a soft footing. Meanwhile, the lower liners could also be due for a pullback, premised to their toppish valuations.
market pulse

Turning the tide

The FBM KLCI appears to have found its footing as the key index staged a solid recovery from near the oversold region. We expect more gains to come by on the recent positivity on the Covid-19 situation, whilst capitalising on the positive global economic data. Also, we see the lower liners continue their quest on recovery driven by the ample trading liquidity rising on the upbeat market undertone.
technical focus

2nd Sep 2020 – Technical Focus

With gold price hovering near US$2,000, we see the safe haven commodity relatively attractive as a hedging tool against the toppish market condition. We reckon that the economic recovery to remain in a choppy mode following US Federal Reserve stance on interest rate direction over the next two years.
market pulse

Still subdue

It was another lacklustre performance on the FBM KLCI as strong gains at the start of the trading bell were tempered by quick profit taking activities. While we do not discount the possibility of a recovery from the last week steep falls, gains will be measured with the wariness still very much a feature of the current market environment. On the other hand, we continue to see the lower liners faring on a better note backed by the extended rotational play.
market pulse

Dragged down by portfolio re-balancing

The sluggish performance on the local bourse marred by the quarterly MSCI rebalancing may see recovery at the start of the week. Still, remain cautious over uncertainty on the US Federal Reserve remarks that economic outlook will remain frail with interest rates to stay low in the next two years. Nevertheless, ample of liquidity in the equities market will keep trading opportunities in a sweet spot.
technical focus

1st Sep 2020 – Technical Focus

A key player in the Electronics Manufacturing Services (EMS) space in Malaysia for the manufacturing and assembly of surface mount technology and PCBA assembly for LED lighting modules. Technically, short-term trendline breakout above RM1.69 may propel share price higher towards the next resistances at RM1.88-RM2.00 with long term target at RM2.20.
market pulse

Finding A Footing

Expectedly, mild gains took place as investors remain cautious on the sluggish corporate earnings undertone in general. We think that the FBM KLCI may continue its quest to find stability investors with market recovery to be choppy owing to the weakness in Genting-related financial performance. At the same time, the strong trading interests (trading volume above 10.0bn) powered by rotational play amongst the lower liners may continue to dominate the trading scene.

Kimlun Corporation Bhd – 28th August 2020

Kimlun Corporation Bhd’s 2QFY20 net loss stood at RM9.7m against a net profit of RM13.4m recorded in the previous corresponding quarter, due to the shutting down of the operations except for the minimum permitted critical works such as slope protection and delivery of products for permitted critical works. Revenue for the quarter declined 71.1% YoY to RM94.0m. For 1HFY20, cumulative net loss stood at RM3.1m vs. a net profit of RM29.4m recorded in the previous corresponding quarter. Revenue for the period contracted 47.3% YoY to RM339.3m.

Suria Capital Holdings Bhd – 28th August 2020

Suria Capital Holdings Bhd’s 2QFY20 net profit fell 60.0% YoY to RM5.8m due to lower contribution from all the four major business segments that were impacted by global supply chain disruption. Revenue for the quarter decreased 33.5% YoY to RM46.5m. For 1HFY20, cumulative net profit contracted 45.8% YoY to RM16.3m. Revenue for the period declined 25.7% YoY to RM103.5m.

OCK Group Berhad – 28th August 2020

OCK Group Bhd (OCK) 2QFY20 net profit declined 8.5% YoY to RM6.4m, mainly dragged by the weakness in mechanical & electrical engineering services segment on the back of closure of project sites due to implementation of Movement Control Order. Revenue for the quarter slipped 6.8% YoY to RM108.0m. For 1HFY20, cumulative net profit climbed 5.3% YoY to RM13.0m. Revenue for the period, however, contracted 1.0% YoY to RM217.2m.

Chin Well Holdings Bhd – 27th Aug 2020

Following two consecutive bleak quarters (which close to 90% of worksites were halted), we expect recovery to take place on the back of the resumption of operations whilst the group will be kept busy to fulfill backlog orders. Still, the recovery is expected to be soft as companies scaled down their operations.

Protasco Bhd – 27th Aug 2020

 Protasco Bhd's 2QFY20 net loss stood at RM1.7m vs. a net profit of RM2.8m recorded in the previous corresponding quarter, dragged down by the lower contribution across all but the maintenance segment. Revenue for the quarter decreased 8.8% YoY to RM171.9m. For 1HFY20, cumulative net loss stood at RM4.2m against a net profit of RM4.0m recorded in the previous corresponding quarter. Revenue for the period slipped 13.5% YoY to RM354.9m.

Econpile Holdings Bhd – 27th Aug 2020

Econpile Holdings Bhd's 4QFY20 net loss stood at RM16.5m vs. a net profit of RM23.2m recorded in the previous corresponding quarter, dragged down by the enforcement of Movement Control Order (MCO) that affected construction activities. Revenue for the quarter sank 82.6% YoY to RM30.7m.
market pulse

Signs of rebound

After three consecutive days of pullback, we think bargain hunting activities may emerge, albeit at a mild level to provide some support to the local bourse. Still, the barrage of sluggish corporate earnings may cap further gains from the recovery. Meanwhile, we see the stocks that delivered stronger-than-expected corporate earnings to keep trading activities at a healthy level.

Serba Dinamik Holdings Bhd – 26th Aug 2020

Moving forward, Serba Dinamik will continue to eye its overseas expansion, focusing in the Middle East countries following the latest contract win. Together with the acquisition of Teluk Ramunia Yard in 3Q2020, the waste water treatment plant under progress and Pengerang Integrated Development remains on track for completion by 1Q2021, whilst the Bintulu Integrated Energy hub will provide long term recurring income for the group.

Leong Hup Intl Bhd – 26th Aug 2020

The expansion of downstream segment (The Bakers Cottage) will provide some stability should broiler prices were to trend lower. Demand is expected to remain sound on the back of the relatively cheaper selling prices as oppose to their peers in the F&B space. At the same time, we reckon that the improvement from feedmill segment will cushion any weakness from the livestock segment.
technical focus

26th Aug 2020 – Technical Focus

Largest hospital support service player in Southeast Asia having serve over 300 hospital beds across several countries such as Malaysia, Singapore, Indonesia, Taiwan, India and United Arab Emirates. More than 30 years of experience in highway maintenance having managed and maintained over 3,100km of expressways in Malaysia and Indonesia.
market pulse

Lingering Dour Tone

Investors are using this opportunity as an excuse to lock in recent gains on the back of the sluggish quarterly financial performance, in general. We reckon that the downward bias consolidation may linger but weakness will be cushioned by the higher crude oil prices. The negative momentum on Bursa Malaysia may also keep any strong gains at bay with quick profit taking activities in the horizon.
market pulse

Not out of the Woods

The FBM KLCI failed to build onto its previous session gains and may remain on a sideways mode for a longer period. We reckon that the potential vaccine for Covid-19 being fast-tracked may continue to weigh on the underperformance in glove related stocks. Despite that, it was a tale of two half with the lower liners continues their quest of recovery supported by the buoyant trading activities.
macquarie structured warrants 20200914

Warrants over glove makers remain in the spotlight

The third week of August saw the overall warrants turnover dropping by 9.7% to RM930.5mil, largely due to a shortened trading week in conjunction with Awal Muharram on Thursday. Warrants over Malaysian shares remained the major contributor to the total warrants turnover for the week making up approximately 95.2% of total warrants turnover at RM885.8mil, followed by warrants over the Hang Seng Index with RM38.0mil (4.1%) and other index warrants which made up the balance.
technical focus

24th Aug 2020 – Technical Focus

I-Stone is one of the key players in the design, manufacturing and modification of specialised automation machines. Proxy to the rising adoption of automation amongst companies in order to improve production efficiencies & capabilities and to intain a leaner operational cost structure.
market pulse

Still Lacklustre

With the lack of fresh leads, the FBM KLCI may linger within a tight range as gains will be tempered by quick profit taking activities. As it is, investors will continue to digest the barrage of corporate earnings releases to re-asses their investment strategies. We also see trading activities among the lower liners to remain vibrant, supported by the uninterrupted liquidity as investors continue to seek for higher yields in the equities market.
Get Wiz

Good ending for the week after gloves and healthcare rebounded

Throughout the past few weeks, we have observed Lumber futures traded to all time high and firmly standing strong within that region. Meanwhile, we have seen some net buying moments from the foreign investors based on what we can gather from Bursa Malaysia’s website.
market pulse

Mixed Signals

We see the consolidation on the local bourse remain in shape for longer as investors remain cautious on the current market undertone. On a brighter note, the signs of positive developments between US and China trade talks may provide some fresh impetus on the recent consolidation. Also, the higher-than-average trading liquidity will continue to spur rotational play amongst the lower liners, keeping the market undertone on healthy level.
technical focus

19th Aug 2020 – Technical Focus

One of the largest thermoform F&B packaging manufacturers in Malaysia with extrusion capacity of 67.6m kg per annum following the expansion the new Kulai plant in 4Q2019. Proxy to the rising demand for consumer trend of takeaway and ready-to-eat meals under new normal environment.
market pulse

Building Momentum

With the FBM KLCI attempting to find stability, we reckon that the sentiment will remain largely dictated by the movement of glove-heavyweights. Still, we think that further gains will be choppy owing to the quick profit taking activities as investors have now turned cautious on the recent volatility. Meanwhile, the improved trading sentiment alongside with trading activities will continue to ensure liquidity and sustain the historically higher-than-average retail participant rate.
market pulse

Return of Foreign Funds

While the FBM KLCI is attempting to find stability, rotational play amongst the lower liners will keep trading activities at a healthy level, particularly the recovery from technology sector. At the same time, the return of foreign funds in recent days is a testament of the resilient demand of Malaysia equities on the expectations of economic recovery.
technical focus

17th Aug 2020 – Technical Focus

After delivering the weakest quarterly performance since 3QFY14 with net profit only came in at RM7.0m in 4QFY20, we believe that a recovery is largely in place in subsequent quarters owing to the resumption in work since 1st May 2020 that will improve production capacity, coupled with the newly production of battery packs that will improve margins, going forward.
market pulse

Momentum Still Weak

Expectedly, quick profit taking sent the FBM KLCI alongside with major indices to close in the red. The weakness was compounded by the sluggish 2Q2020 GDP growth data that came below consensus expectations. Moving forward into the final two weeks of the month, we think that investors will be focusing on a barrage of corporate earnings data that is expected to be as dour on the whole, in tandem with the recent release of Malaysia’s GDP data.
macquarie structured warrants 20200914

Supermax and HSI warrants in focus

Overall warrants turnover for the second week of August saw a huge drop, falling by 38.4% to RM1.03bil, mainly due to the sharp decline in trading activity of warrants over Malaysian shares which recorded a turnover of RM846.0mil, a 45.4% decrease from the week prior. Trading activity in the Hang Seng Index (HSI) warrants however surged with the turnover soaring 50.1% week-on-week (w-o-w) to RM186.5mil.

Rotational moves in the Market

We have been monitoring the retailers’ trading participation over the past week, the 5-day average participation rate continued to stay above the 45% (at one point it touched the 48.2% level). This is considered euphoric to us, but we think selectively there are still plenty of opportunities on Bursa Malaysia stock exchange.
market pulse

All Eyes on GDP Data

After some hiccups in recent days, investors have now begun to bargain hunt on beaten down glove-related stocks. While we think that quick profit taking may set in with the outlook remain indifferent weigh-down by on-going Sino-US geopolitical concerns and rising number of Covid-19 cases, the recent buying from foreign funds may provide some stability. Meanwhile, investors will be keeping an eye on the release of 2Q2020 Malaysia GDP data which is widely touted to be the first contraction since 3Q2009.

Teo Seng Capital Bhd – 13th Aug 2020

Teo Seng Capital Bhd’s (Teo Seng) 2QFY20 net profit fell 37.4% YoY to RM3.2m, dragged by the weakness in the poultry farming segment due to decline in average selling price (ASP) of chicken eggs, coupled with decrease in sales quantities of eggs. Revenue for the quarter decreased 0.4% YoY to RM120.8m.
market pulse

Signs of Recovery

We reckon that a recovery may kick off supported by the gains across financial stocks that may provide some cushion the pullback in glove heavyweights. Likewise, investors will also be taking the opportunity to bargain hunt on beaten down stocks backed by the higher-than-average liquidity, but we caution that quick profit taking activities are still on the horizon.
market pulse

Still Under Pressured

With the lack of fresh impetus, we think that the consolidation may continue to be a feature, while the impending batch of corporate earnings may see any gains to be tempered by quick profit taking activities. At the same time, the weakness on Wall Street overnight may permeates to stocks across Bursa Malaysia. Still, we think that rotational play amongst the lower liners will keep trading activities at an elevated level.
technical focus

12th Aug 2020 – Technical Focus

Demand for crude oil is expected to improve over the foreseeable future, backed by the positive streak of China’s economic data that suggest the world’s biggest oil consumer may ramp up their purchases. At the same time, Iraq’s move to pledge their support by cutting additional 40,000 barrels/day may provide some alleviation to the on-going demand-supply imbalance.

Sarawak Consolidated Industries Bhd

SCIB operates 4 factories producing precast concrete products in Kuching, Sarawak with a total capacity of 500k MT per annum. All these years, this segment is the bread and butter for SCIB, generating revenue of around RM57-86m in FY16-19.

Hartalega Holdings Bhd – 11th Aug 2020

 Hartalega Holdings Bhd's subsidiary Hartalega NGC Sdn Bhd has proposed to acquire a 60.6-ac. tract of land in Sepang, Selangor, from Kumpulan Tanjung Balai Sdn Bhd for RM158.3m. The industrial land is a sub-divisional tract that forms part of a larger plot measuring 126.1-ac. and is located adjacent to the existing NGC Sepang.

Kimlun Corp Bhd – 11th Aug 2020

Kimlun Corporation Bhd will pay RM40.0m cash for a 49.0% stake in property developer Bayu Damai Sdn Bhd (BESB), which is in the midst of acquiring nine plots of land in Alam Damai, spanning 43.5-ac. for RM95.0m.
market pulse

Bargain Hunting May Emerge

Expectedly, quick profit taking activities emerged as investors offload from the recent rally. With the indifference still a feature, we see Malaysian equities maintaining their consolidation for longer to digest the recent gains. While there could be mild bargain hunting taking place, investors will be watchful on the upcoming batch of corporate earnings that is reflective of the full impact stemmed from Covid-19.
macquarie structured warrants 20200914

Glove makers continue to steal the show

It was a roaring start for the month of August with the total warrants turnover clocking in RM1.6bil in the first week of the month. Warrants over Malaysian shares remained the biggest contributor comprising approximately 92.8% of the total warrants turnover, followed by warrants over the Hang Seng Index (HSI), which contributed 5.3% while warrants over the FBM KLCI, S&P 500 Index and iShares FTSE A50 China ETF made up the balance of the total warrants turnover.
technical focus

10th August 2020 – Technical Focus

The rise in the adoption of paper products are also on an upward scale in recent times. Already, Nestle Malaysia has reported that the group will be implementing 100% paper straws for all their ultra-high temperature (UHT) products by end-2020 will attribute to greater demand for paper packaging materials.
market pulse

Sentiment Remains Subdue

Although the trading activities rose to fresh record high, we see signs of pullback taking shape as traders were quick to lock in gains in the overheating market environment. On the local bourse, the lack of fresh catalyst and political uncertainties may keep any gains in check. We also think that a pullback is due owing to the overbought condition amongst the lower liners as evident on the negative market breadth.

Serba Dinamik Holdings – 7th August 2020

 We are upbeat on the abovementioned contract secured and will strengthen the group’s outstanding orderbook to approximately RM18.50bn, providing earnings visibility till 2026. Breakdown of the existing orderbook; 50.0% from EPCC, 40% from O&M and 10% from ICT.
market pulse

Recovery in Place

We see the liquidity driven market with trading volumes at fresh new high to play a key role for further upside on stocks across Bursa Malaysia. Sentiment is also driven by the Ringgit that rose to 5-months high against the Greenback alongside with the higher crude oil prices. At the same time, investors will be keeping an eye on Malaysia’s unemployment rate as a gauge to the economic performance.
market pulse

Lower Liners in Focus

Although the local bourse remained under pressured, the lower liners may continue with their ascending move. We continue to think that the liquidity driven market with trading volumes at fresh record high again may provide further impetus to the lower liners over the near term. Additionally, the positive momentum from Wall Street overnight may permeates into stocks across Bursa Malaysia.

Hartalega Holdings Bhd – 5th August 2020

The average plant utilisation rate has improved to above 85% in FY20 which we see the uptick to continue to hit beyond 90% for existing capacities. Going forward, the rising number of infections from Covid-19 (2nd wave in several countries across the globe) will keep demand for healthcare related products at elevated level and we see Hartalega will continue to capitalise on the pandemic.
technical focus

5th August 2020 – Technical Focus

Crude palm oil prices (CPO) have now soared towards around the RM2,800 per tonne level; the highest in six months amid the improving demand prospects. The positive momentum is reflective of the Malaysian Palm Oil Council (MPOC) move to revise the price outlook to a high of RM2,994 per tonne, from RM2,594 per tonne announced earlier.
market pulse

Finding Stability

Expectedly, market sentiment was stabilised by the bargain hunting activities in selected index heavyweights yesterday. Still, investors are wary ahead of the upcoming batch of quarterly earnings results that kicked off this week. Elsewhere, we see rotational play amongst the lower liners to dominate the market sentiment with trading volumes rising to fresh record high again.
market pulse

Weakness Prevails

We reckon that the FBM KLCI will remain in the consolidation mode with mild bargain hunting activities to take precedence. Any weakness is likely to be cushioned by gains in glove heavyweights. On the other hand, the lower liners, particularly FBM ACE stocks will be spurred by the record high trading volumes.
macquarie structured warrants 20200914

Investors look to puts for downside protection

The warrants market in Malaysia witnessed yet another exciting week with RM1.6bil traded. Despite a shorter trading week as the market is shut on Friday in conjunction with the Hari Raya Haji celebration, the total turnover is up 7.6% week-on-week (w-o-w) as investors continue to favour warrants over Malaysian stocks such as Hartalega Holdings, Topglove Corporation and many more.
technical focus

3rd August 2020 – Technical Analysis

Completion of industrial land sale for RM30.0m will improve bottom line margins from interests cost saving. Technically, price has experienced a consolidation breakout above RM0.64 accompanied by rising volumes, targeting RM0.73-RM0.75 with long term target at RM0.835.
market pulse

Dampened by Political Instability

Market sentiment was grappled with renewed volatility as investors were quick to offload their holdings after the Malaysia’s political situation took another agenda with the dissolution of Sabah state assembly. We expect the volatility to remain a feature as investors will be brace by a barrage of corporate earnings releases towards the end of the month which takes into account of the full impact of Movement Control Order (MCO).
market pulse

No breakthrough, yet.

The dovish tone set by the US Federal Reserve in regards to the low interest rate environment implies that liquidity will remain within the stockmarkets and assets that deliver higher yields. For now, the FBM KLCI is also largely on track to deliver its biggest monthly gain since October 2011, whilst the both the FBM Small Cap and FBM Fledgling are still on course for a V-shaped recovery
technical focus

29th July 2020 – Technical Focus

Signing ceremony of for the Johor Bahru-Singapore Rapid Transit System (RTS) valued at RM3.2bn is scheduled on 30th July 2020 at the Causeway. The construction with Singapore bearing 61% of the total cost and remainder (39%) by Malaysia is expected to commence after the appropriate approvals are obtained in January 2021 and is expected to be operational at the end of 2026.
market pulse

Back Above 1,600

The FBM KLCI delivered a solid performance and that looks to persist over the near term as the market was brighten up again by the rally in glovemakers stocks. At the same time the stronger ringgit against the Greenback may provide some impetus for further gains. Despite that, we caution that gains will be capped by the weakness on Wall Street overnight, while investor will monitor for developments surrounding the two-day US Federal Reserve monetary policy meeting.

Vibrant Participation from Retailers Boosts Bursa Malaysia Exchange

Since MCO, we noticed strong retailer’s participation hovering around 22-41% (average 32%) of total trading volumes in 2020; this is an important journey where retailer’s participation normally would range between 16-25% over the past few years. Given the decent participation from traders and investors, we are developing some great tools to provide great trading opportunities for clients. Hence the creation of our M+ Wiz is to identify real-time opportunities for traders.
market pulse

Improved Sentiment

We expect the consolidation on the local bourse to prolong as any gains will be punctuated by quick profit taking activities. Nevertheless, the sustainable high trading volumes suggest that trading opportunities are still prevalent within the broader market and lower liners, particularly FBM-ACE listed stocks as investors continue their quest to seek for high yield investments.
macquarie structured warrants 20200914

Glove names continue to be in the limelight

Although the overall warrants turnover saw a decline of 27.2% last week, it still recorded a turnover above the RM1bil mark at RM1.4bil. Warrants over Malaysian shares were the biggest contributor, comprising approximately 90% of the total turnover, followed by warrants over the volatile Hang Seng Index (HSI), which contributed 7.7% of the total turnover.
technical focus

27th July 2020 – Technical Focus

The PENJANA stimulus package revolves 100.0% exemption on export duty on crude palm oil, crude palm kernel oil and processed palm kernel oil throughout 2H2020. Hence, we see positive tone to remain in place, recognising the government’s effort to boost the export of crude palm oil and related products.
market pulse

Global Political Uncertainty Woes

Following the rising geopolitical tension between the two economic powerhouses, we reckon that the weakness may prolong on the local bourse as investors turned wary particularly after the recent upward swing. As it is, the negative market breadth also suggests that gains could be choppy over the near term.
market pulse

Building up Momentum

The upbeat momentum on the FBM KLCI continues to be induced by the strong performance on glovemakers heavyweights. Gains, however, may be limited owing to the weakness on Wall Street overnight which may permeates to the Asia equities. Amid the rising number of Covid-19 cases, the buying momentum in glove makers stocks may provide some cushion to further weakness.

SLP Resources Bhd – 23rd July 2020

Moving forward, SLP will focus on production of essential packaging products for food & beverages (F&B), hygiene and healthcare sectors. The shift in consumer behaviour from dining out to take-away and home cook is deemed as an opportunity for plastic packaging products players to capitalise.
market pulse

KLCI Still in Consolidation Mode

With the lack of follow-through buying interest, we see the FBM KLCI remain in consolidation as the recent glove-induced rally might be taking a breather. At the same time, the lofty valuations might cap further gains at this current juncture. Nevertheless, the ample liquidity driven market may continue to provide further trading opportunities as rotational plays dominate the current market scenario.
technical focus

22nd July 2020 – Technical Focus

Following the outbreak of Covid-19 pandemic, the adoption of cloud services and digitalisation has been on an upward scale across the globe. The new normal of remote working is expected to remain in place even if lockdowns were to be lifted as individuals and corporates are both conducting more e-learning, online meetings, e-ecommerce and various activities through the screen.
market pulse

Attempting 1,600 Again

Financial institutions in Malaysia have declared that extension of loan moratorium is off the table, with options for repayment to targeted groups; suggests that the potential spike in non-performing-loans in the final quarter of the year will be contained and the nation is on track for recovery. Further stimulus from central banks across (EU and Japan) and positive developments vaccine for Covid-19 may further contribute to the positive sentiment.
market pulse

Still Wobbly

After a pullback yesterday, we think that mild bargain hunting activities will take charge as investors’ risk appetite remains well within the equities market. This is demonstrated by the rising trading activities as of late which may see rotational play to stay firm over the foreseeable future. In the meantime, expectations over further stimulus measures to combat the economic slowdown due to the rising number of Covid-19 cases may provide further boost the recovery
macquarie structured warrants 20200914

Another volatile week for glove names

The Malaysian warrants market hit yet another record high turnover last week with RM1.98bil traded, averaging at about RM396mil per day. The share prices of glove makers swung wildly through the week, their increased volatility and stream of newsflow further attracting investors’ interest.
market pulse

Bouncing Back

Following the strong recovery led by gains in glove heavyweights, we expect the positive momentum to continue as investors build onto their position, capitalising on the pullback of healthcare-related stocks. At the same time, the positive market undertone, coupled with the prevailing low interest rate environment may also drive rotational play amongst the lower liners as retail participants continue to adopt the hit-and-run technique in penny stocks.
technical focus

20th July 2020 – Technical Focus

The recent quarterly result (1QFY20) was mainly impacted by disruption of work site progress in China due to the lockdown since January 2020 and Movement Control Order (MCO) in Malaysia since March 2020. Although we expect further weakness in next quarter bottom line, we are sanguine on the recovery in 2HFY20, supported by outstanding orderbook of RM321.0m, of which RM149.0m was secured in the first four months in FY20 to provide earnings visibility over the next 12-18 months.
market pulse

Further Retracement in Store

Tracking the negative Wall Street performance, we expect profit taking activities on gloves sector may continue and the FBM KLCI is likely to see further consolidation today. Despite the rising Covid-19 confirmed cases, the developments of Covid-19 vaccines are surfacing in the news media; thus it could dampen the buying support on overall glove stocks in the near term.

Econpile Holdings Bhd – 16th July 2020

The latest win bumps Econpile's outstanding orderbook to RM700.0m, which translates to an orderbook-to-cover ratio of 1.1x against FY19 revenue of RM663.3m and will provide earnings visibility till final quarter of year 2021. We are sanguine that earnings recovery will be materialise from FY21 on the back of the resumption of supply chain such as concrete, cement, steel and etc
market pulse

Consolidation in Place

We see the consolidation on the FBM KLCI taking shape as the rally in glove heavyweights lose steam following the positive developments from Moderna in their clinical trial test on Covid-19 patients. For now, investors will be keeping an eye on China’s 2Q2020 GDP data today as a yardstick to economic recovery performance after lifting the lockdown.

1H20 Review & 3Q20 Outlook

Consensus are expecting a slowdown in economic activities for 2020, but we believe the stimulus packages from several central banks would be able to cushion the downside risk and may translate to a potential recovery in 2021. For the local markets, we expect the trading interest to crowd around gloves or healthcare stocks.
technical focus

15th July 2020 – Technical Focus

Pecca Group Bhd (PECCA) principally involved in the styling, manufacturing and distribution of leather car seat covers for Original Equipment Manufacturer (OEM) and Pre-Delivery, Inspection (PDI) and Replacement Equipment Manufacturer (REM) market segments with bulk of its sales to Toyota Boshoku UMW Sdn Bhd (Toyota) and Fuji Seats (Malaysia) Sdn Bhd (Perodua). We reckon that vehicle sales will see gradual improvement after vehicle sales rose to 22,960 units in May 2020 vs. only 141 units sold in April 2020.
market pulse

Recovery Still Intact

Although the unemployment rate rose, the quantum appears to have peak which bodes well for the general economy as businesses gradually re-opened. We think that upsides are still in prevalent and any weakness will be cushioned by gains in glove heavyweights amid the on-going shortages of masks, gowns, face shields and gloves in the US with the rising number of new cases of Covid-19.

Hartalega Holdings Berhad – 14th July 2020

Demand-supply imbalance is expected to remain in place as the capacity expansion of all glove players coupled with the new entrants of glove players in the pipeline would not be able to match up to the upward trajectory demand stemmed from the rising new cases of Covid-19.
market pulse

Beyond 1,600

Investors will digest the barrage of corporate earnings releases from US, of which analysts are predicting -44.6% YoY in earnings contraction in 2QFY20. Back home, rotational play will continue amongst the lower liners, while the extended rise on glove heavyweight shares will continue to anchor the performance on the local bourse. At the same time, investors will be keeping an eye on Malaysia’s unemployment rate for May 2020, after record high at 5.0% registered in April 2020.

Protasco Berhad – 14th July 2020

Protasco Bhd's unit Sun Rock Development Sdn Bhd has entered into a contract to dispose of three pieces of commercial land to NSK Property Sdn Bhd for RM16.7m cash. The lands in question are located in Johor Bahru and total about 2.7-ha.
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Capturing some decent trends outside of Glove Stocks

From the way investors and traders are trading the stocks on Bursa Malaysia, we noticed healthcare specifically the gloves heavyweights are the one making strong and significant moves on the market. However, the objective of our M+ Wiz is to provide some alternative opportunities for the retailers.
macquarie structured warrants 20200914

Record high turnover for Malaysia warrants market

Last week, the Malaysia warrants market saw the highest weekly turnover in 2020 with RM1.28bil traded. The record high trading activities in warrants can be attributed to the high demand for warrants over Malaysian shares and the Hang Seng Index (HSI), with a combined turnover of RM1.23bil, more than 95.0% of total warrants turnover.
technical focus

13th July 2020 – Technical Focus

Following the outbreak of Covid-19, Samchem’s chemical distribution segment is well positioned to undertake the higher demand for pharmaceutical products that are used as active ingredients or excipients for the production of medicinal products.
market pulse

Edging Higher

It was another solid performance on the local bourse, largely buoyed by the unprecedented rise in glove heavyweights. Although we reckon that the extended gains to continue, the first parliamentary sitting since the Movement Control Order (MCO) took place may see investors staying on the side-lines; awaiting for further political developments. Nevertheless, the revision of market circuit breaker rules may provide a boost for further strides.
market pulse

Hitting Resistance Again

The FBM KLCI has now turned slightly cautious after the recent streak of gains as penny counters took the lead. Given the lack of fresh leads, we see the consolidation to take place as investors continue to monitor on the developments of economic recovery. At the same time, the renewed volatility on Wall Street may also limit any potential gains.
market pulse

Buying Momentum Resumes

The prevailing low interest rate environment enticed investors’ portfolio allocation to other asset classes, including the equities market in search for higher yields. We think that the positive momentum as foreign funds net buying hit the highest level since 17th January 2020, coupled with the surge in trading activities will enable the Malaysian stockmarket to trend higher.

Serba Dinamik Holdings Bhd – 8th July 2020

We continue to like Serba Dinamik as one of the key players in the oil & gas industry, backed by its sturdy orderbook comprising of dozens of jobs from local and overseas that will provide long-term earnings visibility, coupled with the group’s ongoing effort diversification into businesses that generates long-term recurring income.
technical focus

8th July 2020 – Technical Focus

Advancecon Holdings Bhd (Advancecon) is regarded as one of the leading players, having over 25 years of experience in provision of earthworks and civil engineering services to the local construction industry. The group has and currently undertaking several notable projects such as property related projects such as Setia Ecohill, Setia Eco Garden and Cyberjaya Flagship Zone and infrastructure transportation projects such as West Coast Expressway, Lekas Highway and Pan Borneo Highway.
market pulse

Pullback in Store

We think that the pre-emptive move by Bank Negara may provide some support to the local market as investors shift their portfolio to alternative investments in search for higher yields. For now, a consolidation could be due following the recent stretch of rally that allows investors to digest the recent gains, while the renewed volatility on Wall Street may permeates to stocks on Bursa Malaysia.

Chin Well Holdings Bhd – 7th July 2020

On a brighter note, the Vietnam operations were largely unaffected which may see the production of the reinforcement bar in Vietnam to US which may see shipment rising to approximately 600 tonnes by end-2020 from approximately 200 tonnes in 1Q2020. We see the improvement capitalizing from the US move to impose the antidumping taxes on threaded rods on countries like Thailand, Taiwan, India and China.
market pulse

Towering Higher

It was another solid performance on the key index with gains in line with regional equities. For now, investors would keep an eye on Bank Negara’s monetary policy decision later in the evening.
technical focus

6th July 2020 – Technical Focus

At RM1.22, Hexza trades at trailing-12 months (TTM) PE 16.0x, which is below its two-year historical average of 17.1x. Technically, the uptrend formation is established and price is attempting to form resistance breakout above RM1.23, targeting RM1.38-RM1.49.
macquarie structured warrants 20200914

Glove makers continue to dominate warrants space

The major contributor to the total warrants turnover last week were still the warrants over Malaysian shares which made up approximately 80.9%, with a total value traded of RM646.6mil, while warrants over the Hang Seng Index (HSI) came in second place

TCS Group Holdings Bhd – 6th July 2020

Between FY17-19, the residential projects segment was anchoring the revenue via contributing between 72.2-87.2% to the group’s revenue. In FY19, the residential projects segment accounts to RM279.4m, representing 77.9% of the group’s total revenue. Residential projects include construction of residential buildings such as terrace houses, bungalows, high rise apartments and condominiums.
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The Wiz Signalled us a Few Opportunities

We observed selected sectors such as gloves and technology were having some good moves last week, accompanied by a decent sentiment and traded volumes on…

OCK Group Bhd – 6th July 2020

We were surprised by corporate exercise as OCK has only completed the private placement to raise RM52.3m back in November 2019. Nevertheless, the impact would be miniscule considering the size of the cash call. The move would enable OCK to improve bottom line by approximately 0.6% and 1.1% to RM33.1m and RM35.1m for FY20f and FY21f respectively on the back of the interest cost saving but at the expense of dilution in EPS.
market pulse

Still on the Move

After five consecutive days of winning streak, we think that upsides are still on the cards but will be restrained by the Covid-19 situation across the globe. Although the global economic recovery came in better-than-anticipated, investors will now shift their attention to the upcoming batch of corporate earnings in US to assess the impact of Covid-19.
market pulse

Vaccine Hopeful Booster

The potential vaccine for Covid-19 provided a boost for global equities including the FBM KLCI as investors pinned their hopes for normalcy. The positive developments may attribute to the economy recovery towards pre-Covid-19 levels in line with initial expectations by consensus. Hence, we see the key index to build onto its gains, largely on track to snap a 3-week losing streak.
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M+ Wiz: Disconnect to CONNECT

14th June 2020 Source: M+ Wiz Last Friday, no doubt that Wall Street spooked investors by diving near to 7%. While most of the people…
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M+ Wiz: Trending Higher

During the lacklustre period, were you able to pick upward trending counters? We understand most of the workforces are gradually going back to work during…

PENJANA – Building the Economy together

Under the short term economic recovery plan - PENJANA, there are 40 key initiatives worth RM35bn directed through 3 main cores; namely (i) Empower People, (ii) Propel businesses and (iii) Stimulate the Economy. We will go through some of the salient points that will allow market participants to identify the potential beneficiaries and stocks related to that sector.

Economic Stimulus Plan: Beyond Covid-19

Our Prime Minister will be speaking later today at 3.00 pm in regards to the upcoming economy stimulus plan. As you may have known, the 3 segments that the government are targeting will be (i) Empowering People, (ii) Propelling Businesses, and (iii) Stimulating the Economy.

Don’t Miss Out on All These Calls Anymore!

It was a bullish day for Malaysia 's stock equities market. The benchmark index, FBMKLCI returned above 1,500 marking whereby it added 17.55 points to close at 1,507.69 today.

M+ Wiz List

We have noticed some selling pressure on gloves stocks and investors/ traders will be asking "What's next?".

Call warrant HSI-C9T topped the chart

The Malaysia warrants market caught fire last week as the average daily turnover jumped to RM180.7mil, the highest level since Apr 2019. This surge in trading activities despite a shorter trading week in Malaysia in conjunction with the Hari Raya holidays can be attributed to the increase in demand for warrants over Malaysia stocks which made up 84.2% of the total value traded. This also marks the third consecutive week of the Malaysia stocks warrants’ domination of the local warrants market.

Revisiting G-Love

In order to rally higher, the share price will need to make a healthy retracement/pull back. A pull back in share price after the rally, indicates profit taking activities by short term traders & scalpers. Thus when the share price breaks higher in future, it encounters lesser resistance as the profit taking already taken place.

Started from the ‘bottom’, now we’re here

DUFU (7233) was alerted on M+ Wiz today upon market opening, triggered by our trend rules: Support Rebound and Buyers Intact. Upon the triggers, the share price had been moving higher and traded to its day high of RM4.08, up by 17 cents.

Limit Up on HEXZA (3298)

Wiz was able to identify another good probability setup for HEXZA during afternoon session. HEXZA was alerted twice as the price broke above the intraday resistance and morning high after consolidating near top.

Warrants market winds down for long weekend

The last week of April saw a slowdown in warrants trading activity ahead of the long weekend. The Hong Kong market was shut last Thursday for the Birthday of the Buddha i.e. no market making for warrants over the Hang Seng Index (HSI) and iShares China A50 Index ETF, while both the Malaysia and Hong Kong markets were shut last Friday for Labour Day

Create An Edge for your trading

29th April 2020 Many have a misconception that trading is as good as gambling, as traders are betting their money on an unpredictable outcome. Yet,…

M+ Wiz: of Momentum and Swings

As shown in the chart above, number 1 indicates the share price formed a consolidation and made a breakout on last Friday. On the other hand, number 3 has shown the MACD has crossed above the centreline, above zero-level.

M+ Wiz: Getting the Right Trigger

ADVENTA (7191) appears to be one of the outperforming stocks that alerted on M+ Wiz today. It was triggered at 9.12AM this morning when the stock was trading at RM0.755. ADVENTA went as high as RM0.975

M+ Wiz: REDTONE

REDTONE (0032) opened gap up and shot up to intraday high of RM0.495 today. For those who been followed us on our Facebook, this stock is mentioned during our Facebook Live session on 20th April and in our Facebook post on 22nd April 2020.

M+ Wiz: Highlights

Did you capture MYCRON & HLT today? Have you ever wondered, why some of the alerts are highlighted in yellow while some are highlighted in…

HSI-H8M still active but lower turnover as expiry looms

Major equity indices closed in the positive territory last week amid market volatility from a mixture of good news and bad economic data. On Tuesday (14 Apr), the HSI futures opened 40 points higher from the previous close and continued to climb higher throughout the day after China released their trade data for the month of March

The Power of Wiz: Stock Recap

The alert on HARTA was triggered on 8th April as the price action met M+ Wiz rule: [Trend] Buyers Intact when it broke above previous day high and resistance level of RM7.20. Although we spotted a price-volume divergence, the price went higher and hit the highest RM7.73 yesterday. Traders should remain cautious on the divergence despite the rally.

What’s the Flag?

A good Flag/Pennant chart pattern normally starts with a strong rally on high volume (consists long green candle) and followed by a..

The Gold Mine

Gold is considered to be a safe haven and serves as a form of insurance against adverse economic events. On Thursday, Gold surged more than 1%

M+ Wiz: HARTALEGA

HARTA is illustrating an upward swing amid the ongoing Covid-19 crisis. As the trend stays positive and price continues to trade higher, it meets and triggers on our

Index warrants dominate the warrants market

Index warrants continue to dominate the Malaysian warrants market, with the top ten warrants by turnover last week consisting of five warrants over the Hang Seng Index (HSI) (3 call warrants and 2 put warrants), three warrants over the S&P 500® Index (SP500) (2 put warrants and 1 call warrant) and 2 warrants over the local benchmark FBM KLCI (both put warrants).

SP500-CK surged 260.7% as S&P 500 futures rebounded

The Malaysia warrants market picked up more trading momentum last week with a RM407.6mil turnover, 23.4% higher than the previous week. While markets remained volatile amid the Covid-19 pandemic, global equities erased some of the earlier losses following more monetary easing by central banks plus the additional stimulus measures proposed by local governments to dampen the economic impact of the contagious virus.

Growing demand in index warrants as markets remain volatile

The Fed’s move failed to lift investors’ worry as they continued their selloff last Monday (16 Mar), resulting in the S&P 500® Index (SP500) triggering its circuit breaker, halting its trading for 15 minutes on Monday morning. Upon reopening, the SP500 plunged further to close at 2,386.13 points, down 12.0%, the biggest drop since the crash of 1987. Week-on-week (w-o-w), the SP500 slid 15.0%.

5 Ways to Survive the Bear Market

So, how do you avoid catching a falling knife and trade according to the trend? With the market diving into bearish territory, we could consider

Large moves in net positions for HSI warrants

The first week of March recorded a warrants turnover of RM342.9mil, an 18.0% decline from the previous week. Despite the overall decline in the week’s trading activity within the local Bourse by 27.1%

HSI warrants in the spotlight as futures extend higher

The second week of February witnessed a total warrants turnover of RM285.3mil amid a less volatile week, which contributed to a 21.8% week-on-week (w-o-w) drop in turnover for the overall warrants market.

Volatile week for the markets

Warrants Commentary (3 to 7 February) Last week, the warrants market in Malaysia recorded a total turnover of RM364.7mil, 14.5% higher than the previous week.…

HSI-H8K stole the limelight with 197.0% gain w-o-w

We saw a surge in warrants interest among investors amid worries over the Wuhan coronavirus outbreak at a global scale. Out of all warrants listed on Bursa Malaysia, warrants over the Hang Seng Index (HSI) were the most popular

Volatile week for the global markets

Warrants Commentary (6 to 10 January) Happy New Year! The Malaysian warrants market started to warm up after the holiday season, with turnover for last…

Slower market, though HSI warrants remain active

Last week, the Malaysia warrants market saw a general slowdown in trading activity as we entered into the first week of December, though warrants over the Hang Seng Index (HSI) still maintained an average daily turnover of RM37.2mil. Total turnover came up to RM247.5mil, a decline from RM319.3mil in the previous week. 

Put warrant HSI-H8F gains 42.0% in 2 days

Warrants Commentary (18 to 22 November) Last week, the Malaysia warrants market recorded a turnover of RM333.0mil, 2.3% lower than the previous week. We continue…

Bullish trend extends another week

Warrants Commentary (4 to 8 November) The overall Malaysia warrants turnover for last week came up to RM290.9mil, about 43% above the previous week’s turnover.…

Call warrant HSI-C7F rose 30% w-o-w

Warrants Commentary (10 to 13 September) The Malaysian warrants market was sloppy last week, only clocking in a turnover of RM347.3mil., 10.7% lower compared to…

Episodic week for HSI warrants

Warrants Commentary (2 to 6 September) Last week saw a lower turnover in the Malaysian warrants market compared to the previous week, partly due to…

Call warrant HSI-C7F stole the limelight

Warrants Commentary (26 August to 30 August) The Malaysian warrants market recorded a total turnover of RM558.4mil. last week, 33.0% higher compared to a week…

HSI-H6R emerged as investors’ favourite

Warrants Commentary (29 July to 2 August) Malaysia’s warrants market saw a lower total turnover of RM414.4mil. due to the 4-day trading week. However, trading…

Warrants trading activity higher last week

Warrants Commentary (22 July to 26 July) Trading activity in structured warrants increased last week as the overall warrants turnover surged 19.6% to RM478.4mil. Warrants…

HSI-C5P and MYEG-C68 stole the limelight

Warrants Commentary (8 July to 12 July) The Malaysia warrants market recorded a turnover of RM432.5mil. last week, 13.9% higher than the preceding week. Warrants…

TM-C41 took over the stock warrant space

Warrants Commentary (27 May to 31 May) The Malaysian warrants market was revived last week following the shorter trading week in the preceding week, sporting…
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