• The FBM KLCI (+0.01%) flatlined, albeit closing slightly in the green after a volatile intraday session. The lower liners finished mostly higher – headed by the FBM Ace (+0.7%) and the FBM Small Cap (+0.2%) indices, while the FBM Fledging closed almost unchanged. Meanwhile, seven out-of-the eleven sectors on Bursa Malaysia ended positive at Tuesday’s close.

• Market breadth was negative as decliners marginally beat the winners on a ratio of 360-to-348 stocks. Traded volumes shed 3.5% to 1.29 bln shares as investors adopt a wait-and-see attitude amid the lack of catalysts to spur buying interest.

• More than half the key index constituents advanced – led by BAT (+32.0 sen), Petronas Dagangan (+24.0 sen), Petronas Gas (+12.0 sen), Kuala Lumpur Kepong (+8.0 sen) and Maxis (+5.0 sen). Meanwhile, chart-toppers include Dutch Lady (+82.0 sen), Far East Holdings (+43.0 sen), Teck Guan Perdana (+41.0 sen), Heineken Malaysia (+12.0 sen) and ABM Fujiya (+11.5 sen).

• On the other hand, broader market laggards were United Plantations (-50.0 sen), Shell Refining (-18.0 sen), Ajinomoto (-10.0 sen), Nestle (-10.0 sen) and Magni-Tech Industries (-8.0 sen). Main index underperformers were Hong Leong Financial Group (-18.0 sen), RHB Bank (-5.0 sen) and Astro (-2.0 sen). Other key index decliners include Genting- affiliated companies like Genting (-16.0 sen) and Genting Malaysia (-5.0 sen).

• Key regional stockmarkets were mostly down on Tuesday as capital outflows continued to weigh on market sentiment. The Nikkei, however, climbed to 19,494.5 points, closing 0.5% higher after the Bank of Japan maintained its monetary policy, although the Hang Seng Index (-0.5%) and the Shanghai Composite Index (-0.5%) lost ground – led by the fast depreciation of the Yuan which further exacerbate capital outflows from the Asian stockmarkets. Meanwhile, ASEAN stockmarkets ended broadly lower on Monday’s closing bell.

• U.S. stockmarkets ended higher on Tuesday as investors looked forward to President-elect Donald Trump’s policies which are expected to boost the economy from next year. The Dow (+0.5%) finished just 25.0 points shy of the 20,000 psychological mark, while the S&P 500 closed 0.5% up with majority of its sectors in the positive territory. Meanwhile, the Nasdaq gained 0.4% to 5,483.9 points.

• European key stockmarkets rallied on the back of the recovery in banking stocks after a sharp selldown last Monday, on expectations of government assistance to aid the sector. The FTSE advanced 0.4% - led by gains in Carnival (+3.0%) after the latter reported better-than-expected quarterly earnings. The CAC and the DAX meanwhile, rose 0.3% and 0.6% respectively.

The Day Ahead

• We continue to think that there will be little movement on the FBM KLCI ahead of the Christmas break with most market participants staying on the sidelines. There also remains few catalyst for investors to look to with currency concerns remaining on the forefront of investors’ minds, as with the sustained withdrawal of foreign funds from many emerging markets, including Malaysian stocks, that will continue to dampen sentiments.

• Therefore, we think the key index will trend within the range between the 1,630 and 1,640 levels for the foreseeable future. Further upsides will be difficult to come by as there are few sustained buying, while there will be continued support from local institutional funds to keep the key index above the 1,630 level.

Company Briefs

• Berjaya Land Bhd’s (BLand) 2QFY17 net profit fell 13.3% Y.o.Y to RM180.5 mln, due to higher prize payout and operating expenses reported by 41.1%-owned associate, Berjaya Sports Toto Bhd and lower profit contribution from the property development and investment business from lower progress billings. Revenue for the quarter, however, rose marginally by 0.6% Y.o.Y to RM1.62 bln.

• For 1HFY17, cumulative net profit shrank 29.8% Y.o.Y to RM153.2 mln. Revenue for the quarter rose 1.9% Y.o.Y to RM3.17 bln.

• Separately, BLand announced that Datuk Ng Sooi Lin would retire as Chief Executive Officer effective 31st December 2016, but would continue to sit on the board as a Non-Executive Director starting from 1st January 2017. (The Star Online)

• Priceworth International Bhd has fixed a price of 10.5 sen per share for the 44.0 mln new shares of the first tranche of its delayed private placement, which aims to raise RM6.5 mln in total. The first tranche represents 68.5% of the total placement and approximately 6.9% of the issued and paid-up share capital of the group as at 30th September 2016. A further 20.2 mln shares remain to be placed out and Priceworth expect to complete the private placement by the end-January 2017. (The Edge Daily)
   
• George Kent (Malaysia) Bhd has bagged a RM364.9 mln contract from the Public Works Department (JKR) to build a 220- bed Endocrine Hospital in Precinct 7, Putrajaya, Selangor. It is the fourth hospital project that the group is building on a turnkey basis for the Health Ministry and will bring the total order book to an all-time high of over RM6.20 bln.

• Sitting on two acres, the scope of works include construction of the hospital extension complex with a link bridge to the existing main building block of Hospital Putrajaya as well as a multistorey parking block. The job will take 36 months and is scheduled to be completed by January 2020. (The Edge Daily)

• Yinson Holdings Bhd’s 3QFY17 net profit decreased 26.4% Y.o.Y to RM63.1 mln, on less favourable foreign exchange movements during the quarter. Revenue for the quarter, however, grew 15.6% Y.o.Y to RM127.9 mln.

• For 9MFY17, cumulative net profit declined 16.5% Y.o.Y to RM145.8 mln. Revenue for the period, however, added 16.1% Y.o.Y to RM357.8 mln. (The Edge Daily)

• UMW Holdings Bhd has entered into a share sale and purchase agreement with Permodalan Nasional Bhd (PNB) with the aim of consolidating its landbank in Serendah for future development.

• Its wholly-owned subsidiary, UMW Corporation Sdn Bhd (UMWC) and 51.0%- owned subsidiary, UMW Development Sdn Bhd (UMWD) had signed the agreement to consolidate its shareholding in UMWD.

• UMWC is to pay a total consideration of RM17.7 mln to acquire PNB’s 780,000 shares in UWMD, as well as the investment fund’s 3.1 mln (7.4%) cumulative Redeemable Preference Shares in UMWD. The parcels of land in Serendah belonging to UMWD measure approximately 616.2 ac. (The Edge Daily)

• Greenyield Bhd has appointed Tham Kin On as its Executive Director with immediate effect. The 28-year-old is the son of Managing Director Tham Foo Keong and his spouse, Twong Yoke Peng, the group's substantial shareholders.

• Having joined the family-run business in 2014, Kin On now oversees Greenyield's corporate finance team and is responsible for the development of the group’s strategies and business.

• Separately, Greenyield’s 1QFY17 net profit slumped 96.4% Y.o.Y to RM24,000 due to lower contribution from plantation segment, coupled with reduced net foreign exchange gains during the quarter. Revenue for the quarter shrank 14.6% Y.o.Y to RM6.7 mln. (The Edge Daily)  

Source: Mplus Research - 21 Dec 2016