By Teh Kian Yeong l [email protected] BURSA 6-Apr Day chg % chg
Research Highlights
NEWS HIGHLIGHTS
⚫ BNM okays start of talks in MBSB's planned MIDF buy from PNB (Comment included in Kenanga Today)
⚫ DanaInfra to issue RM2.5b Islamic bonds under RM71b scheme
⚫ TAFI Industries secures construction job in Kuala Langat
⚫ LTKM seeks two-day suspension pending announcement
⚫ Public Packages proposes two-for-five bonus issue MACRO BITS
⚫ Oil slips as IEA nations ready big release from reserves
⚫ IEA countries to tap 60.0m barrels of oil on top of U.S. release
⚫ RON97 down 10 sen, RON95 and diesel unchanged
⚫ Percentage of Malaysians using cash payments down to 78.0% — PayNet
⚫ MEF requests govt to expedite foreign workers' arrival in Malaysia for business recovery
⚫ China's services sector activity hit hard by Omicron surge - Caixin PMI
⚫ Japan to lift COVID entry ban for 106 countries including U.S.
⚫ S.Korea to increase international flights starting May
⚫ China's cabinet flags more measures to support economy
⚫ Brainard says Fed to shrink balance sheet rapidly as soon as May
⚫ Biden extends pause on student loan repayments through Aug. 31
⚫ Canada's Ivey PMI shows activity expanding at record speed
⚫ German factory orders fall as economy faces Ukraine war fallout
⚫ EU countries hunt for global coal stocks as Russian ban looms
IDEAS OF THE DAY (SEE SEPARATE REPORTS FOR DETAILS)
⚫ On Our Technical Watch: EVERGRN, OFI
KLCI 1,604.7 7.93 0.50%
FTSE EMAS 11,550.0 56.4 0.49%
FTSE Smallcap 16,900.1 118.43 0.71%
FTSE MESDAQ 5,870.3 5.8 0.10%
KLSE Mkt Cap (RM'b)
1,748.0 14.0 0.81%
BURSA DAILY TRADING PARTICIPATION
Participation Net (RM’m) Value (%)
Local Institution -95.49 50.62%
Local Retail 11.76 27.51%
Foreign 83.74 21.87%
INDICES 6-Apr Day chg % chg Dow Jones 34,496.5 -144.7 -0.42%
S&P 500 4,481.2 -44.0 -0.97%
NASDAQ 13,888.8 -315.35 -2.22%
FTSE-100 7,587.7 -26.0 -0.34%
Nikkei 225 27,350.3 -437.7 -1.58%
SHCOMP 3,283.4 N.A. N.A.
HSI 22,080.5 N.A. N.A.
STI 3,423.0 -22.1 -0.64%
KOSPI 2,735.0 -24.2 -0.88%
TWSE 17,522.5 N.A. N.A.
JCI 7,104.2 -44.083 -0.62%
SET N.A. N.A. N.A.
FOREX 6-Apr 5-Apr % chg
USD/MYR: 4.2142 4.2102 0.10%
EUR/USD: 1.0912 1.0970 -0.53%
GBP/USD: 1.3084 1.3126 -0.32%
USD/YEN: 123.96 122.89 0.87%
USD/SGD: 1.3590 1.3557 0.24%
USD/HKD: 7.8374 7.8326 0.06%
KEY STATS
KLCI Spot
Vol (m shares): 3,423.0 3,873.7 -11.64%
Value (RMm): 2,466.6 2,365.5 4.27%
KLCI Future
March-22 1,602.5 1,595.5 0.44%
April-22 1,602.0 1,595.0 0.44%
CPO Price (RM/tonne)
5,691.0 5,674.0 0.30%
Soybean (US$/bu) 1,619.5 1,631.0 -0.71%
SoyOil (USc/lb) 70.3 70.9 -0.87%
Gold (US$/troy oz) 1,923.1 1,927.5 -0.23%
Nymex crude oil (US$/bbl)
96.2 102.0 -5.62%
Latex (RM/kg) 6.80 6.79 0.07%
Tin (US$/mt) 44,210.00 44,779.0 -1.27%
# Top Volume Top Gainer Top Loser
Stock Price %Chg
(+/-) Vol
(m) Stock Price %Chg
(+/-) Vol
(m) Stock Price %Chg
(+/-) Vol (m)
1 PCHEM 9.99 1.4 16.90 MISC 7.76 3.9 9.55 INARI 3.08 -2.2 7.26
2 TOPGLOV 1.98 -2.0 16.80 KLK 26.72 2.8 2.28 TOPGLOV 1.98 -2.0 16.80
3 PBBANK 4.71 0.2 15.60 SIMEPLT 5.27 2.7 6.30 MRDIY 3.40 -1.2 4.10
4 MISC 7.76 3.9 9.55 IHH 6.39 2.2 2.03 HLFG 19.42 -0.9 0.22
5 CIMB 5.31 0.8 7.37 PETDAG 21.90 2.2 0.32 AXIATA 3.70 -0.8 3.43
6 INARI 3.08 -2.2 7.26 PCHEM 9.99 1.4 16.90 GENTING 4.64 -0.6 3.02
7 MAYBANK 8.89 0.3 6.85 HLBANK 20.26 0.8 1.03 HARTA 5.02 -0.6 2.96
8 SIMEPLT 5.27 2.7 6.30 CIMB 5.31 0.8 7.37 DIALOG 2.68 -0.4 3.59
9 SIME 2.40 0.0 5.89 PMETAL 6.24 0.7 4.83 MAXIS 3.92 -0.3 1.52
10 GENM 2.98 0.3 5.85 NESTLE 135.50 0.5 0.04 TENAGA 9.00 -0.1 2.95
Notes: # KL Composite Index (FBMKLCI) component stocks
Corporate News
• BNM okays start of talks in MBSB's planned MIDF buy from PNB Bank Negara Malaysia (BNM) said on Wednesday that it had granted approval for Malaysia Building Society Bhd (MBSB) to commence negotiations to acquire Malaysian Industrial Development Finance Berhad (MIDF) from Permodalan Nasional Bhd (PNB). MBSB said in a bourse filing that BNM had vide its letter dated April 6, stated it has no objection for MBSB to enter into discussions with PNB to explore the possibility of undertaking an acquisition of the 100% shareholding in MIDF which is held by PNB. The approval is valid for a period of six months from the date of its letter. MIDF is a diversified group financial services provider with three core businesses, namely investment banking, asset management and development finance. (The Edge Markets)
Comment: We are positively surprised by this development as the possible acquisition of MIDF would inject new diversified businesses into MBSB, which we believe requires further boons to uplift sentiment amidst disappointments in its key financing business. In 2019, MIDF was involved in a proposed merger with AL Rajhi Banking & Investment Corp (M) Bhd but it failed to materialise. The deal was set to closed a 1x PBV of RM1.7b. Based on the latest published 3QFY21 accounts of MIDF, its book value still stands at RM1.7b (vs MBSB’s RM8.7b book value). We reckon any transactions could involve fund raising or share swaps as MBSB’s internal cash pool only stands at RM655m per 4QFY21 accounts. However, as talks has yet to commence, we leave all present model assumptions unchanged. We have an UNDERPERFORM call and TP of RM0.520 on MBSB. (by: Clement Chua)
• DanaInfra to issue RM2.5b Islamic bonds under RM71b scheme Malaysia's infrastructure financing entity DanaInfra Nasional Bhd will issue a combined RM2.5b worth of Islamic medium term notes (IMTN) under its RM71b scheme across five tranches on Thursday (April 7), according to updates on the Bond and Sukuk Information Exchange's (BIX) website. The IMTN, which have tenures of seven to 30 years, will pay annual profit rates of between 4% and 4.8%. The proposed five tranches of IMTN include a seven-year RM415m IMTN (maturing on April 6, 2029) which offers an annual profit rate of 4%, a 10-year RM300m IMTN (maturing on April 7, 2032) which pays an annual profit rate of 4.1%. (The Edge Markets)
• TAFI Industries secures construction job in Kuala Langat
TAFI Industries Bhd has secured a contract for the construction of a single-storey factory and warehouse together with a two-storey office building in Kuala Langat, Selangor. In a filing with Bursa Malaysia, the group said the RM9.5m contract was awarded to its subsidiary TAFI Home & Office Sdn Bhd by Alpha Asset Sdn Bhd.
TAFI Group CEO said the 12-month contract is a testament to the group’s achievements and shared that its construction business is progressing well. (The Edge Markets)
• LTKM seeks two-day suspension pending announcement
Trading in the shares of LTKM Bhd will be suspended on Thursday and Friday (April 7 and 8), pending a material announcement. In a bourse filing on Wednesday, LTKM said Bursa Malaysia Securities Bhd has approved the company's request for the suspension. LTKM is principally involved in poultry farming and is one of the leading egg producers in the country, with a fully integrated poultry farming operation involving feed processing, production of eggs, processing and trading of organic fertilisers. LTKM shares closed up 12 sen or 8.1% at RM1.6 on Wednesday (April 6), giving the group a market capitalisation of RM229m. Over the past one-year, the counter has rallied 63% from 98 sen. (The Edge Markets)
• Public Packages proposes two-for-five bonus issue
Public Packages Holdings Bhd has proposed a bonus issue of up to 75.6m shares on the basis of two bonus shares for every five shares held. In a bourse filing, the adhesive tape manufacturer said the entitlement date will be determined after all approvals for the bonus issue are obtained. The group said the maximum number of 75.6m bonus shares was based on its existing 188.9m issued shares, and assuming full exercise of all its 6,500 outstanding options into new shares prior to the entitlement date of the bonus issue. It said based on the five-day volume-weighted average price (VWAP) of its shares up to March 31, and the lowest daily VWAP of the shares during the past three months, the theoretical ex-bonus price for the shares
Macro Bits Global
⚫ Oil slips as IEA nations ready big release from reserves Oil futures edged lower on Wednesday following a surprising rise in U.S. crude stocks and after news that large consuming nations would also release oil from reserves in conjunction with the United States to counter supply worries. (Reuters)
⚫ IEA countries to tap 60.0m barrels of oil on top of U.S. release Member countries of the International Energy Agency besides the United States have agreed to release 60.0m barrels of oil from storage, an official from the U.S. government and an IEA member country official told Reuters. (Reuters)
Malaysia
⚫ RON97 down 10 sen, RON95 and diesel unchanged The retail price of RON97 petrol dropped 10 sen a litre from RM3.91 to RM3.81 effective Thursday till April 13. The Finance Ministry said in a statement on Wednesday said the retail prices of RON95 petrol and diesel will remain unchanged at RM2.05 and RM2.15 per litre respectively for the same period. (The Edge Markets)
⚫ Percentage of Malaysians using cash payments down to 78.0% — PayNet Payments Network Malaysia Sdn Bhd (PayNet) revealed the percentage of Malaysians that use cash to pay has fallen 11 percentage points to 78.0% from 89.0% before the pandemic. (The Edge Markets)
⚫ MEF requests govt to expedite foreign workers' arrival in Malaysia for business recovery The Malaysian Employers Federation (MEF) hopes the government will shorten the time for foreign workers to arrive in the country as companies urgently need workers to expand and boost their businesses. (The Edge Markets)
Asia Pacific
⚫ China's services sector activity hit hard by Omicron surge - Caixin PMI Activity in China's services sector contracted at the sharpest pace in two years in March as a surge in coronavirus cases restricted mobility and weighed on demand, a private sector survey showed on Wednesday. (Reuters)
⚫ Japan to lift COVID entry ban for 106 countries including U.S. Japan plans to ease COVID 19-related border restrictions by lifting its entry ban for foreign nationals from 106 countries including the United States, Britain and France on Friday, the government said. (Reuters)
⚫ S.Korea to increase international flights starting May South Korea said on Wednesday it will add hundreds of international flights per week beginning in May, continuing to ease anti-coronavirus measures as its Omicron wave declines. (Reuters)
⚫ China's cabinet flags more measures to support economy China's cabinet on Wednesday held out the prospect of more measures to support an economy under pressure from a slowing global recovery, volatile commodity markets and COVID-19 outbreaks. (Reuters)
Americas
⚫ Brainard says Fed to shrink balance sheet rapidly as soon as May Federal Reserve Governor Lael Brainard called the task of reducing inflation pressures “paramount” and said the central bank will raise interest rates steadily while starting balance sheet reduction as soon as next month. (Bloomberg)
⚫ Biden extends pause on student loan repayments through Aug. 31 U.S. President Joe Biden said on Wednesday his administration was extending a pause on student loan repayments through Aug. 31 of this year, giving borrowers additional financial support after two difficult economic years during the pandemic.
(Reuters)
⚫ Canada's Ivey PMI shows activity expanding at record speed Canadian economic activity expanded at its fastest pace on record in March, Ivey Purchasing Managers Index (PMI) data showed on Wednesday. (Reuters)
Europe
⚫ German factory orders fall as economy faces Ukraine war fallout German factory orders fell for the first time in four months in the runup to Russia’s invasion of Ukraine, underscoring concerns over slower growth in Europe’s largest economy. (Bloomberg)
⚫ EU countries hunt for global coal stocks as Russian ban looms European buyers are increasing shipments of coal from across the globe against a backdrop of a proposed European Union ban on Russian imports and the scramble to relieve tight gas supplies, according to data and shipping sources. (Reuters)
List of Overbought Stocks (14-Day RSI>70-mark)
NAME* LAST PRICE RSI_14D RSI_9D RSI_3D HIGH 30D
FIAMMA HOLDINGS BERHAD 0.930 84.72 88.12 89.47 0.960
RAPID SYNERGY BHD 11.000 83.37 90.79 96.40 11.000
TANCO HOLDINGS BHD 0.400 81.92 85.12 89.38 0.400
CSC STEEL HOLDINGS BHD 1.710 78.04 83.99 97.71 1.720
COMPLETE LOGISTIC SERVICES 4.700 77.48 82.92 83.51 4.900
MUDAJAYA GROUP BHD 0.245 76.72 83.15 98.50 0.255
APOLLO FOOD HOLDINGS BHD 3.890 76.55 83.11 86.85 3.920
SUNWAY BHD 1.820 75.86 82.59 96.04 1.850
KSL HOLDINGS BHD 0.880 75.24 78.54 94.27 0.880
HEXTAR GLOBAL BHD 1.920 74.68 82.14 86.10 2.000
RUBBEREX CORP M BHD 0.645 73.82 75.69 65.15 0.700
MICROLINK SOLUTIONS BHD 0.630 72.71 82.39 98.33 0.630
CB INDUSTRIAL PRODUCT HLDG 1.620 72.57 79.60 97.10 1.640
KPOWER BHD 0.590 71.13 79.42 96.37 0.620
TA WIN HOLDINGS BHD 0.165 70.19 81.82 99.54 0.170
N2N CONNECT BHD 0.585 70.09 79.18 96.34 0.590
*Only for stocks with market cap >RM300m Source: Bloomberg
List of Overbought Warrants (14-Day RSI>70-mark)
NAME LAST PRICE RSI_14D RSI_9D RSI_3D LOW 30D EXPIRY DATE
SCANWOLF CORP BHD-WA 0.625 81.90 83.97 83.31 0.640 5/8/2026
TWL HOLDINGS BHD-WD 0.050 75.10 85.11 99.72 0.050 4/10/2024
GAMUDA BHD-A 0.215 71.80 77.51 92.91 0.215 30/9/2022
MUDAJAYA GROUP BHD-WA 0.090 70.44 74.12 84.40 0.100 3/10/2023
Source: Bloomberg
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Stock Ratings are defined as follows:
Stock Recommendations
OUTPERFORM : A particular stock’s Expected Total Return is MORE than 10%
MARKET PERFORM : A particular stock’s Expected Total Return is WITHIN the range of -5% to 10%
UNDERPERFORM : A particular stock’s Expected Total Return is LESS than -5%
Sector Recommendations***
OVERWEIGHT : A particular sector’s Expected Total Return is MORE than 10%
NEUTRAL : A particular sector’s Expected Total Return is WITHIN the range of -5% to 10%
UNDERWEIGHT : A particular sector’s Expected Total Return is LESS than -5%
***Sector recommendations are defined based on market capitalisation weighted average expected total return for stocks under our coverage.
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