Kenanga Today
14 July 2020
By Goh Yin Foo I [email protected]
BURSA 13-Jul Day chg % chg KLCI 1,606.4 14.59 0.92% Research Highlights FTSE EMAS 11,318.8 112.0 1.00% FTSE Smallcap 12,595.8 52.50 0.42% NEWS HIGHLIGHTS FTSE MESDAQ 7,247.5 71.9 1.00% GHL’s Philippines arm gets approval to begin lending operations KLSE Mkt Cap 1,598.0 12.9 0.81% (RM'b) Texchem gets UMA query from Bursa
BURSA DAILY TRADING PARTICIPATION Saudee to buy two meat trading firms for RM20m via share issue Participation Net (RM’m) Value (%) Local Institution -183.1 48.6% Daya Materials associate signs subscription agreement pending Local Retail 260.2 39.7% PN17 regularisation finalization Foreign -77.1 11.7% Premium jewellery distributor Aurora Italia gets Bursa nod to list
INDICES 13-Jul Day chg % chg on LEAP Market Dow Jones 26,085.8 10.5 0.04% MACRO BITS S&P 500 3,155.2 -29.8 -0.94% NASDAQ 10,390.8 -226.6 -2.13% S&P slashes emerging market forecasts, warns of permanent FTSE-100 6,176.2 80.8 1.33% scars Nikkei 225 22,784.7 493.9 2.22% SHCOMP 3,443.3 60.0 1.77% IMF slashes Middle East and Central Asia growth forecasts HSI 25,772.1 44.7 0.17% STI 2,631.1 N/A N/A China trades sanctions with U.S. in row over Uighur Muslims KOSPI 2,186.1 35.8 1.67% Sweden joins France, Germany in weighing measures against TWSE 12,211.6 137.9 1.14% China over Hong Kong JCI 5,064.4 33.2 0.66% SET 1,342.4 -8.1 -0.60% No one will be left out in the economic stimulus measures — Muhyiddin FOREX 13-Jul 10-Jul % chg USD/MYR: 4.2638 4.2668 -0.07% Ruling party removes Speaker by a margin of two votes EUR/USD: 1.1330 1.1300 0.27% GBP/USD: 1.2604 1.2622 -0.14% China's export slump to ease in June as economies reopen, USD/YEN: 107.07 106.93 0.13% imports fall less: Reuters poll USD/SGD: 1.3895 1.3910 -0.11% Indonesia's debt-sharing experiment worries rupiah investors USD/HKD: 7.7507 7.7526 -0.02%
Thailand plans USD3.2b soft loans to help tourism, services KEY STATS KLCI Spot Thailand tightens borders over fears of second wave of Vol (m shares): 9,549.4 8,699.0 9.78% coronavirus Value (RMm): 5,703.3 5,036.6 13.24% KLCI Future Federal Reserve's USD3.0t virus rescue inflates market bubbles July-20 1,605.0 1,595.5 0.60% August-20 1,601.0 1,590.5 0.66% BoE's Bailey sees economy improving, but 'very worried' about CPO Price 2,402.0 2,384.0 0.76% jobs (RM/tonne) Soybean (US$/bu) 874.0 887.3 -1.49% Russia's central bank says it sees room for further rate cut SoyOil (USc/lb) 28.2 28.4 -0.53% IDEAS OF THE DAY (SEE SEPARATE REPORTS FOR DETAILS) Gold (US$/troy oz) 1,814.1 1,801.9 0.68% Nymex crude oil 40.1 40.6 -1.11% On Our Technical Watch: HLT, ESCERAM (US$/bbl) Latex (RM/kg) 4.68 4.66 0.43% Tin (US$/mt) 17,525.0 17,379.0 0.84%
# Top Volume Top Gainer Top Loser %Chg Vol %Chg Vol %Chg Stock Price Stock Price Stock Price Vol (m) (+/-) (m) (+/-) (m) (+/-) 1 TOPGLOV 24.00 9.5 32.50 TOPGLOV 24.00 9.5 32.50 TM 4.06 -1.7 2.51 2 HARTA 17.90 4.9 22.80 HARTA 17.90 4.9 22.80 PCHEM 6.22 -1.3 3.38 3 GENM 2.52 -0.4 10.60 KLCCSS 14.82 2.1 0.41 KLCCSS 7.96 -1.1 0.02 4 DIALOG 3.90 0.5 8.18 IHH 5.40 1.1 2.15 RHBBANK 5.05 -0.8 3.53 5 GENTING 4.12 0.7 7.26 GENTING 4.12 0.7 7.26 SIMEPLT 5.00 -0.6 1.48 6 CIMB 3.80 -0.3 6.47 MAXIS 5.35 0.6 1.43 PETDAG 20.72 -0.5 0.11 7 SIME 2.15 0.0 5.76 DIALOG 3.90 0.5 8.18 IOICORP 4.48 -0.4 3.84 8 MAYBANK 7.89 -0.1 4.40 DIGI 4.36 0.5 1.97 HLFG 13.92 -0.4 0.19 9 TENAGA 11.32 -0.4 4.26 MISC 7.88 0.4 1.11 GENM 2.52 -0.4 10.60 10 AXIATA 3.40 -0.3 3.94 HAPSENG 9.02 0.3 0.27 TENAGA 11.32 -0.4 4.26 Notes: # KL Composite Index (FBMKLCI) component stocks
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Kenanga Today
14 July 2020
Corporate News
GHL’s Philippines arm gets approval to begin lending operations
GHL Systems Philippines Inc, a wholly-owned subsidiary of GHL Group, announced that its new lending unit GHL Philippines Financing Services has received relevant certifications to commence operations. In a statement, the payment service provider said GHL Philippines Financing Services’ certificate of operations was granted by the Philippine Securities and Exchange Commission. The unit will also be under the purview of the Anti-Money Laundering Council. (The Edge)
Texchem gets UMA query from Bursa
Texchem Resources Bhd has received an unusual market activity (UMA) enquiry from Bursa Malaysia Securities Bhd over the spike in the company’s share price and volume. At yesterday’s noon break, shares of the diversified group rose as much as 36.8% or 23 sen apiece to 85.5 sen, with 7.9m shares done. This came after the stock settled 34.04% or 16 sen higher at 63 sen last Friday, after 5.5m shares changed hands. The counter’s 200-day average volume stood at 134,634 shares. (The Edge)
Saudee to buy two meat trading firms for RM20m via share issue
Frozen food processor Saudee Group Bhd (formerly known as Sinaria Corp Bhd) has proposed the acquisition of two meat trading firms for RM20m in a move to expand its offerings, especially the premium product range. The purchase consideration of RM10m for each firm will be settled via the issuance of 31.3m new Saudee shares at 32 sen apiece, the group said in a filing with Bursa Malaysia. (The Edge)
Daya Materials associate signs subscription agreement pending PN17 regularisation finalization
Daya Materials Bhd associate Daya Maxflo Sdn Bhd (DMAX) entered into a conditional subscription agreement with WK Propel Sdn Bhd (WKP) for the subscription of 342,955 new shares by WKP in DMAX for a cash consideration of some RM4m, pending finalisation of Daya Materials' regularisation plan under Bursa Malaysia's Practice Note 17 (PN17) classification. Daya Materials said DMAX is an 86.4%-owned subsidiary of Daya Petroleum Ventures Sdn Bhd, which in turn is a 51%-owned subsidiary of Daya Materials. (The Edge)
Premium jewellery distributor Aurora Italia gets Bursa nod to list on LEAP Market
Home-grown premium jewellery distributor Aurora Italia International Bhd has obtained Bursa Malaysia Securities Bhd’s approval to list on the LEAP Market of Bursa Securities. In a statement, its managing director said the fundraising and proposed listing on the LEAP Market involve the placement of 30.6m Aurora Italia shares, representing 10% of the enlarged capital at 10 sen per share. (The Edge)
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Kenanga Today
14 July 2020
Macro Bits Global S&P slashes emerging market forecasts, warns of permanent scars Rating agency S&P Global cut its emerging market growth forecasts on Monday, predicting a 4.7% slump on average this year due to the coronavirus and warned that all countries would be left with permanent scars too. (Reuters) IMF slashes Middle East and Central Asia growth forecasts The International Monetary Fund (IMF) has revised downwards its growth projections for the Middle East and Central Asia as economies were hurt worse than expected by the double blow of lower oil prices and the coronavirus crisis. (Reuters) China trades sanctions with U.S. in row over Uighur Muslims China announced “corresponding sanctions” against the United States on Monday after Washington penalised senior Chinese officials over the treatment of minority Uighur Muslims in the western region of Xinjiang. (Reuters) Sweden joins France, Germany in weighing measures against China over Hong Kong Sweden said on Monday it supported Franco-German efforts for a robust response to China’s new security law on Hong Kong, joining Denmark and the Netherlands in pushing the European Union to consider countermeasures on Beijing. (Reuters) Malaysia No one will be left out in the economic stimulus measures — Muhyiddin The government will ensure that no Malaysians are left out, especially the bottom 40% income (B40) group in the implementation of the Prihatin Rakyat Economic Stimulus Package (Prihatin). (The Edge Markets) Ruling party removes Speaker by a margin of two votes The motion of removing the Speaker has been passed as a total of 111 MPs voted for it to remove Tan Sri Mohamad Ariff Md Yusof from the position, versus a total of 109 votes against the motion. (The Edge Markets)
Asia Pacific China's export slump to ease in June as economies reopen, imports fall less: Reuters poll The slump in China’s exports likely eased in June as some countries reopened their economies, while imports contracted less sharply on higher crude oil and commodities purchases, a Reuters poll showed on Monday. (Reuters) Indonesia's debt-sharing experiment worries rupiah investors Indonesia’s experiment to borrow money for free from the central bank has excited proponents of modern monetary theory and raised concerns about its effects on inflation and the rupiah. (Reuters) Thailand plans USD3.2b soft loans to help tourism, services Thailand plans THB100.0b (USD3.2b) of new soft loans to help small-and medium-sized enterprises (SMEs) in the tourist and services sector hit by the coronavirus pandemic, the finance minister said on Monday. (The Edge Markets) Thailand tightens borders over fears of second wave of coronavirus Thailand ordered security stepped up at its land borders on Monday after concerns surged over a possible second wave of coronavirus infections, following the arrests of thousands of illegal migrants in the past month. (Reuters)
Americas Federal Reserve's USD3.0t virus rescue inflates market bubbles The Federal Reserve’s USD3.0t bid to stave off an economic crisis in the wake of the coronavirus outbreak is fuelling excesses across U.S. capital markets. (Reuters)
Europe BoE's Bailey sees economy improving, but 'very worried' about jobs Bank of England Governor Andrew Bailey said on Monday he thought that Britain’s economy was starting to recover but had a long way to go, with the outlook for jobs a particular worry. (Reuters) Russia's central bank says it sees room for further rate cut Russian Central Bank Governor Elvira Nabiullina said on Monday she felt there was room for a further rate cut based on the inflation data that had come in for June and July. (Reuters)
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Kenanga Today
14 July 2020
List of Oversold Stocks (14-Day RSI<30-mark) NAME* LAST PRICE RSI_14D RSI_9D RSI_3D LOW 30D MULPHA INTERNATIONAL BHD 1.340 25.66 17.69 4.73 1.340 PINTARAS JAYA BHD 2.420 26.37 16.95 2.29 2.380 PERUSAHAAN SADUR TIMAH MALAY 3.920 29.15 16.70 3.57 3.920 IOI PROPERTIES GROUP BHD 0.965 29.70 22.95 13.32 0.950 *Only for stocks with market cap >RM300m Source: Bloomberg
List of Overbought Stocks (14-Day RSI>70-mark) NAME* LAST PRICE RSI_14D RSI_9D RSI_3D LOW 30D SUPERMAX CORP BHD 15.980 89.95 94.31 99.86 16.000 TOP GLOVE CORP BHD 24.000 86.94 91.61 99.71 24.500 KOSSAN RUBBER INDUSTRIES 12.700 86.52 92.06 99.76 13.200 HARTALEGA HOLDINGS BHD 17.900 84.15 88.30 94.68 18.100 PANSAR BHD 1.000 82.56 80.72 60.55 1.020 DUFU TECHNOLOGY CORP BHD 6.390 82.29 88.96 99.44 6.500 SERN KOU RESOURCES BHD 1.580 82.16 84.33 94.93 1.610 JF TECHNOLOGY BHD 3.260 81.94 82.46 68.39 3.460 KUB MALAYSIA BHD 0.745 81.74 85.67 91.18 0.760 JCY INTERNATIONAL BHD 0.445 80.89 86.05 92.63 0.450 TA ENTERPRISE BERHAD 0.570 78.41 89.22 99.92 0.570 KAWAN FOOD BHD 2.220 78.26 84.19 98.87 2.220 PENTAMASTER CORP BHD 6.100 77.53 82.94 94.99 6.230 MALAYSIAN PACIFIC INDUSTRIES 12.440 77.42 84.68 96.54 12.980 SAM ENGINEERING & EQUIPMENT 8.060 75.80 78.15 75.45 8.230 JHM CONSOLIDATION BHD 1.650 75.78 76.05 58.62 1.760 PUBLIC BANK BERHAD 18.520 75.21 83.38 99.05 18.600 UNISEM (M) BERHAD 2.450 74.71 77.81 75.44 2.540 FIMA CORP BHD 1.640 74.64 77.14 64.83 1.680 FRONTKEN CORP BHD 3.130 74.57 80.16 87.85 3.230 VITROX CORP BHD 10.380 74.52 75.70 74.04 10.460 INSAS BHD 0.755 74.13 80.26 84.29 0.770 IRIS CORP BHD 0.270 73.52 73.44 58.19 0.300 NAIM HOLDINGS BERHAD 1.030 73.10 77.66 92.11 1.060 RCE CAPITAL BHD 2.100 72.37 75.53 75.99 2.130 LII HEN INDUSTRIES BHD 2.860 72.00 73.98 79.61 2.870 MYETF DJ ISLAMIC TITANS 25 1.270 71.86 75.51 88.72 1.270 DAGANG NEXCHANGE BHD 0.240 71.79 76.24 76.91 0.270 THONG GUAN INDUSTRIES BHD 4.400 71.69 75.77 80.82 4.450 *Only for stocks with market cap >RM300m Source: Bloomberg
List of Oversold Warrants (14-Day RSI<30-mark) NAME LAST PRICE RSI_14D RSI_9D RSI_3D LOW 30D EXPIRY DATE GENTING BHD-C76 0.005 21.90 20.72 28.85 0.005 28/8/2020 HANG SENG IND-AV 0.110 28.33 25.68 30.19 0.100 30/10/2020 Source: Bloomberg
List of Overbought Warrants (14-Day RSI>70-mark) NAME LAST PRICE RSI_14D RSI_9D RSI_3D LOW 30D EXPIRY DATE EA HOLDINGS-WE 0.010 97.32 99.83 100.00 0.015 22/4/2023 HARTALEGA HOL-C47 0.455 93.14 94.13 97.98 0.490 24/12/2020 TOP GLOVE COR-C79 0.525 91.58 94.10 99.74 0.545 26/2/2021 SUPERMAX CORP-C91 2.360 87.90 94.37 99.89 2.380 31/12/2020 TOP GLOVE COR-C74 2.480 87.19 92.44 99.86 2.570 22/3/2021 HARTALEGA HOL-C40 1.470 86.91 91.17 97.24 1.490 22/3/2021 KOSSAN RUBBER-C6 1.080 86.01 92.06 99.77 1.140 24/12/2020 KOSSAN RUBBER-C8 0.370 85.85 91.90 99.83 0.390 29/1/2021 KOSSAN RUBBER-C10 0.565 85.59 83.28 71.96 0.695 24/12/2020 TOP GLOVE COR-C75 2.380 85.31 90.85 99.74 2.470 30/11/2020 HARTALEGA HOL-C33 2.080 84.90 89.46 96.42 2.140 7/12/2020 SUPERMAX CORP-C88 3.150 84.33 92.57 99.88 3.250 26/1/2021 HARTALEGA HOL-C44 0.950 83.03 89.29 96.01 0.980 31/12/2020 HARTALEGA HOL-C41 0.825 81.82 88.97 96.80 0.855 26/1/2021 TOP GLOVE COR-C80 0.520 81.62 86.10 97.41 0.545 29/1/2021 KOSSAN RUBBER-C7 0.875 80.81 90.61 99.78 0.935 26/4/2021 SUPERMAX CORP-C93 0.750 79.91 90.01 99.83 0.760 26/2/2021 DAGANG NEXCHANGE-WD 0.045 78.72 86.38 99.00 0.055 30/7/2021 FTSE Bursa Ma-C 0.130 78.57 87.01 96.91 0.130 28/8/2020 Source: Bloomberg
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Kenanga Today
14 July 2020
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.
This document has been prepared for general circulation based on information obtained from sources believed to be reliable but we do not make any representations as to its accuracy or completeness. Any recommendation contained in this document does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may read this document. This document is for the information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees. Kenanga Investment Bank Berhad accepts no liability whatsoever for any direct or consequential loss arising from any use of this document or any solicitations of an offer to buy or sell any securities. Kenanga Investment Bank Berhad and its associates, their directors, and/or employees may have positions in, and may effect transactions in securities mentioned herein from time to time in the open market or otherwise, and may receive brokerage fees or act as principal or agent in dealings with respect to these companies.
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KENANGA INVESTMENT BANK BERHAD (15678-H) Level 17, Kenanga Tower, 237, Jalan Tun Razak, 50400 Kuala Lumpur, Malaysia Telephone: (603) 2172 0880 Website: www.kenanga.com.my E-mail: [email protected]
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