THURSDAY 2 SEPTEMBER 2021

Bulletin Today

BURSA HIGHLIGHTS Closing Pts Chg % Chg FBM-KLCI 1,586.89 (14.49) (0.90)  The Dow edged down 48.20 points or 0.1% to 35,312.53 whereas Volume: Total (mil): 4,910.59 476.68 10.75 the Nasdaq rose 50.15 points or 0.3% to 15,309.38 Total Value (RM' mil): 3,390.74 (274.34) (7.49) Gainers 510  U.S. construction spending rises modestly in July Losers 562  U.S. manufacturing grows modestly in August Unchanged 428  U.S. private sector jobs growth below expectations in August TRADE STATISTICS  Prestar extends partnership with Japan’s Murata Machinery Participation Bought Sold Net  LYC Healthcare's unit proposes 42.0m RPS at RM1.00 each to 44.46 Institution 1,447 1,568 (121) Kenanga Investors 30.97 Retail 1,053 1,048 5 24.57 Foreign 891 775 117  UEM Edgenta to resume paying dividends in FY21, paying out 50%- 100.00 3,391 3,391 80% of PATANCI  Solarvest secures RM175.0m LSS project FTSE-BURSA MALAYSIA  Tabung Haji said to be weighing privatisation of TH Plantations Index Closing Pts Chg % Chg  BCB appoints ex-chief secretary to govt Ali Hamsa as new Chairman FBM 70 15,017.45 (6.01) (0.04) FBM 100 11,265.04 (77.87) (0.69)  Paramount buys land in Sepang for RM103.0m FBM Palm Oil - NC 10,926.01 25.15 0.23  SCIB bags RM80.0m medical equipment contract for a proposed JB FBM Smallcap 16,061.84 116.01 0.73 hospital project FBM Emas 11,561.34 (66.53) (0.57) FBM Fledgling 21,706.10 167.55 0.78  Paragon Union slapped with UMA query after 39% jump on share price WORLD  Pekat unit accepts RM18.1m solar photovoltaic systems job Index Closing Pts Chg % Chg Dow Jones 35,313 (48) (0.14) Nasdaq 15,309 50 0.33 THE SLANT FTSE 100 7,150 30 0.42 Nikkei 225 28,451 361 1.29 Hang Seng 26,028 149 0.58  The FBM KLCI pulled-back yesterday after an extended run-up that Korea Kospi 3,207 8 0.24 Singapore STI 3,088 33 1.07 has left it on an overbought streak. In the process, the key index Thailand SET 1,634 (4) (0.26) slipped back below the 1,600 points level with recent big movers like Jakarta 6,091 (59) (0.97) banking and glovemaker stocks ending the day lower on profit taking Shanghai 3,567 23 0.65 activities. The broader market, however, remained mixed as losing Shenzen 2,418 (12) (0.49) stocks were still ahead of gaining stocks, while total traded volumes KLCI FUTURES stayed largely moderate despite showing a pick-up in activities. Index Closing Pts Chg % Chg Volume FBM-KLCI 1,586.89 (14.49) (0.90) 239m  We see further near-term consolidation after the key index’s FKLI – Sep 21 1,576.00 (12.50) (0.79) 9,210 FKLI – Oct 21 1,575.00 (13.50) (0.85) 174 extended runup continues to leave it at toppish levels. At the same FKLI – Dec 21 1,570.50 (11.00) (0.70) 57 time, the valuation of many stocks recovered in the recent runup FKLI – Mar 22 1,560.00 (11.00) (0.70) 15 after their valuations were tripped lower by the incessant selling in the first half of the year. As it is, there are still few noteworthy leads FOREX & COMMODITIES to sustain the runup as the renewed buying was mainly the result of Closing Pts Chg % Chg CPO Futures (Nov) 4,176.00 (78.00) (1.83) Malaysian equities playing catch-up the global equity markets’ YTD Brent (USD/b) 71.59 (1.40) (1.92) ascend. Under the prevailing environment, we think that the Gold (USD/Ounce) 1,813.90 0.28 0.02 downside bias is poised to continue over the near term that could USD/RM 4.1543 (0.0009) (0.02) send the key index back to the 1,580-support level. Below that, the SGD/RM 3.0838 (0.0049) (0.16) JPY/RM 3.7754 (0.0016) (0.04) other support is at 1,570, while the resistances are at 1,593 and the 1,600 points respectively.

 The mixed trading environment among the lower liners and broader market shares are likely to persist due to the lack of buying interest.

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THURSDAY 2 SEPTEMBER 2021

As with the index heavyweights, there are still few catalysts for market players to follow and this is likely to leave these stocks to drift further over the near term.

GLOBAL AND ECONOMICS UPDATE

 U.S. stocks saw strength for much of the session on Wednesday before giving back some ground in the latter part of the trading day. The Dow edged down 48.20 points or 0.1% to 35,312.53 whereas the Nasdaq rose 50.15 points or 0.3% to 15,309.38.

 U.S. construction spending rises modestly in July Construction spending in the U.S. slightly beat expectations in July. Construction spending rose by 0.3% M-o-M to an annual rate of $1.57t in July after falling by less than a tenth of a percent to $1.56t previously, backed by a climb of 0.3% M-o-M in private construction to an annual rate of $1.23t. RTT News

 U.S. manufacturing grows modestly in August Manufacturing activity in the U.S. unexpectedly grew slightly stronger in August, according to the Institute for Supply Management. The manufacturing PMI inched up to 59.9 in August from 59.5 in July, supported by new orders index and production index climbing to 66.7 and 60.0 in the same month from 64.9 and 58.4 in July, respectively. RTT News

 U.S. private sector jobs growth below expectations in August Private sector employment in the U.S. increased below expectations in August, according to payroll processor ADP. Private sector employment climbed by 374,000 jobs in August after rising by 326,000 jobs in July. Service providers led the job growth with employment climbing by 329,000 jobs. RTT News

CORPORATE NEWS

 Prestar extends partnership with Japan’s Murata Machinery Prestar Resources Bhd is extending its collaboration with Murata Machinery Ltd (Japan) for the supply of automated storage and retrieval system (ASRS) racking systems. The group recently signed a supplemental manufacturing partnership agreement with Murata's logistic and automation division to include additional nine subsidiaries of Murata from various regions and countries for the manufacturing partnership agreement. Business

 LYC Healthcare's unit proposes 42.0m RPS at RM1 each to Kenanga Investors LYC Healthcare Bhd has proposed to issue 42.0m redeemable preference shares (RPS) at an issue price of RM1.00 per RPS to Kenanga Investors Bhd. The funds will be partially used to acquire 70% equity interests in both Aqurate Ingredients Intl (M) Sdn Bhd and Microbiome Intl (M) Sdn Bhd, as well as fund the expenses

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THURSDAY 2 SEPTEMBER 2021

related to the issuance of the RPS and working capital. The Edge Markets

 UEM Edgenta to resume paying dividends in CY21, paying out 50%- 80% of PATANCI UEM Edgenta Bhd is planning to resume its dividend payment in CFY21 after it withheld dividends last year, as the group aims to be a defensive stock. The group is maintaining its dividend policy of between 50%-80% dividend payout ratio based on profit after tax and non-controlling interests (PATANCI), which was adopted in 2018. The Edge Markets

 Solarvest secures RM175.0m LSS project Solarvest Holdings Bhd has clinched contract to build a solar photovoltaic (PV) energy generating facility in Chuping, , worth RM175.0m. The group had been appointed the engineering, procurement, construction and commissioning (EPCC) contractor for the development of the 50MW solar PV facility and received the project from Classic Solar Farm Sdn Bhd. The Star Business

 Tabung Haji weighing privatisation of TH Plantations — sources News reports reported that Malaysia’s pilgrimage fund is considering taking TH Plantations Bhd private amid a rally in palm oil prices. Lembaga Tabung Haji had is believed to have asked banks for proposals for the potential deal. The Edge Markets

 BCB appoints ex-chief secretary to govt Ali Hamsa as new Chairman Former Chief Secretary to the government, Tan Sri Dr Ali Hamsa has been appointed as the BCB Bhd’s new Chairman, effective Sept 1. Tan Sri Dr Ali Hamsa also holds directorship in several companies, including KPJ Healthcare Bhd, YB Ventures Bhd, G Capital Bhd, Kulim (Malaysia) Bhd and NCB Holdings Bhd. The Edge Markets

 Paramount buys land in Sepang for RM103.0m Paramount Corp Bhd is acquiring a parcel of freehold residential land measuring approximately 13.3 ha. in for RM102.7m. The land is within a kilometre radius of Paramount’s Sejati Residences and Sejati Lakeside. The Star Business

 SCIB bags RM80.0m medical equipment contract for a proposed JB hospital project Consolidated Industries Bhd (SCIB) has been awarded a contract worth an estimated RM80.0m to procure, supply, install, test and commission medical equipment for the proposed development of a specialist hospital in Bandar Baru Uda, Bahru. The project sum is the maximum purchasing budget for all the equipment to be supplied on a capital equipment lease concession basis. The Star Business

 Paragon Union slapped with UMA query after 39% jump on share price Paragon Union Bhd has been slapped with an unusual market activity (UMA) query by Bursa Malaysia. The loss-making carpet

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maker said that it is not aware of any corporate development, rumour, report and explanation that may account for the usual trading activity. This is the second time the group has been issued with the UMA query. The first UMA query this year was in February. The Edge Markets

 Pekat unit accepts RM18.1m solar photovoltaic systems job Pekat Group Bhd was awarded a contract worth RM18.1m to build solar photovoltaic power plants at 16 sewerage treatment plants owned by Indah Water Konsortium Sdn Bhd. The project was awarded by MFP Solar Sdn Bhd, a 55:45 joint-venture (JV) between Mega First C&I Solar Sdn Bhd, a unit of Mega First Corporation Bhd, and Pekat's unit Pekat Teknologi Sdn Bhd. The Star Business

IMPORTANT: This report has been prepared from sources that are believed to be reliable but we do not hold ourselves responsible for its completeness and accuracy. All opinions and estimates in this report are subject to change without notice. We do not accept any liability that may arise from the use of information in this report. Inter-Pacific Research Sdn Bhd and or its associates may from time to time have interest and/or underwriting commitments in the company being reported. This report is for internal circulation only and the contents or any part thereof cannot be reproduced in any manner whatsoever except with the prior written consent of Inter-Pacific Research Sdn Bhd.

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