Malaysia Daybreak | 20 April 2021 FBMKLCI Index
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Malaysia | April 20, 2021 Key Metrics Malaysia Daybreak | 20 April 2021 FBMKLCI Index 1,700 1,650 ▌What’s on the Table… ———————————————————————————————————————————————————————————————————————————————————————— 1,600 1,550 1,500 ASEAN - Economic Update – Diplomatic reset in US FX agenda 1,450 1,400 Clean slate for Vietnam and Switzerland as FX manipulator label removed. 1,350 Thailand, Malaysia and Singapore are on US Treasury watchlist. Shift to more 1,300 transparent approach lessens risk of addition to manipulator list, though Thailand Apr-20 Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Apr-21 likely to face more scrutiny than Malaysia and Singapore. ——————————————————————————— FBMKLCI 1,600.29 -8.09pts -0.50% Strategy Note – Steep rise in Covid-19 cases APR Future MAY Future 1599.5 - (-0.44%) 1595 - (-0.44%) New Covid-19 cases recently crossed the 2,000 mark and the Covid-19 infectivity ——————————————————————————— rate (represented by Rt) rose to a new record of 1.19. Malaysia is set to kick off Gainers Losers Unchanged Phase 2 of its immunisation programme today where it targets to vaccinate 9.4m 398 739 379 ——————————————————————————— individuals over five months. Concerns over rising Covid-19 cases and Turnover slower-than-expected vaccination efforts could lead to a pullback in the market. 7467.78m shares / RM4101.56m 3m avg volume traded 8336.91m shares 3m avg value traded RM4781.30m ——————————————————————————— Tan Chong Motor Holdings – Negative surprise decelerates recovery Regional Indices Tan Chong Motor has entered into a settlement with RMCD for the BOD FBMKLCI FSSTI JCI SET HSI 1,600 3,210 6,053 1,575 29,106 amounting to approx. RM108m. This is a negative surprise for the group. We cut ———————————————————————————————— our FY21-23F EPS to reflect the additional cost related to the BOD payment and Market Indices expect the group to stay in losses in FY21F. Retain Reduce with a slightly lower Close % chg YTD % chg RM1.00 TP, still based on 0.23x P/BV. FBMKLCI 1,600.29 (0.5) (1.7) FBM100 11,445.08 (0.5) (0.5) FBMSC 17,078.39 (0.9) 9.7 FBMMES 8,570.18 (0.3) (20.2) Dow Jones 34,077.63 (0.4) 11.3 ▌News of the Day… NASDAQ 13,914.77 (1.0) 8.0 ———————————————————————————————————————————————————————————————————————————————————————— FSSTI 3,209.72 0.2 12.9 FTSE-100 7,000.08 (0.3) 8.4 • Tan Chong to settle RM109m Customs bill via instalments over 36 months SENSEX 47,949.42 (1.8) 0.4 Hang Seng 29,106.15 0.5 6.9 • Phase Two of Covid-19 immunisation programme begins JCI 6,052.54 (0.6) 1.2 KOSPI 3,198.84 0.0 11.3 • Sunway to build RM1.2bn transit-oriented development on Jalan Cochrane Nikkei 225 29,685.37 0.0 8.2 • Selangor to step up digital adoption with Amazon, TM partnership PCOMP 6,459.76 (0.5) (9.5) SET 1,574.91 1.7 8.7 • PM announces Microsoft partnership under Bersama Malaysia initiative Shanghai 3,477.55 1.5 0.1 • MAHB to invest RM1.3bn to transform Subang Airport into APAC aviation hub Taiwan 17,263.28 0.6 17.2 ———————————————————————————————— • Freight Management proposes1-for-1 bonus issue Top Actives Close % chg Vol. (m) MINDA GLOBAL 0.170 9.7 447.1 FOCUS DYNAMICS 0.125 (16.7) 419.4 UCREST 0.435 24.3 323.9 SEDANIA 0.400 158.1 313.4 KEY ASIC 0.175 16.7 309.5 SASBADI HOLDINGS 0.205 32.3 258.9 DATAPREP HLDGS 2.000 29.9 142.4 BINA PURI 0.095 5.6 99.1 ———————————————————————————————— Economic Statistics Close % chg US$/Euro 1.2037 (0.02) RM/US$ (Spot) 4.1235 (0.01) RM/US$ (12-mth NDF) 4.1610 (0.69) OPR (%) 1.75 0.00 GOLD ( US$/oz) 1,770.86 (0.03) WTI crude oil US spot (US$/barrel) 63.38 0.40 CPO spot price (RM/tonne) 4,189.50 0.64 ———————————————————————————————————————— Ivy NG Lee Fang, CFA T (60) 3 2261 9073 E [email protected] Show Style "View Doc Map" IMPORTANT DISCLOSURES, INCLUDING ANY REQUIRED RESEARCH CERTIFICATIONS, ARE PROVIDED AT THE END OF THIS REPORT. IF THIS REPORT IS DISTRIBUTED IN Powered by the THE UNITED STATES IT IS DISTRIBUTED BY CGS-CIMB SECURITIES (USA), INC. AND IS CONSIDERED THIRD-PARTY AFFILIATED RESEARCH. EFA Platform Sources: CIMB. COMPANY REPORTS Sources: CIMB. COMPANY REPORTS Malaysia Daybreak | April 20, 2021 Global Economic News US President Joe Biden said he was willing to compromise on his US$2.3tr infrastructure proposal before meeting with a group of bipartisan lawmakers at the White House. The Democratic president said he would discuss with lawmakers what is in the program and how to pay for the initiatives. (Reuters) People who have fought off the Covid-19 virus will be deliberately reinfected in a first-of-its-kind trial at the University of Oxford that may shed light on how to develop more effective vaccines against the pathogen. Researchers are looking for 64 healthy, previously Covid-infected volunteers from 18 to 30 years old to be studied under controlled, quarantined conditions for at least 17 days, the U.K. university said. Participants will be infected with the original strain from Wuhan, China and followed for a year. (Bloomberg) Malaysia Economic News Several states in the country embarked on the second phase of the National Covid-19 Immunisation Programme on 19 Apr, which will continue until Aug this year. Under the second phase, the Pfizer-BioNTech and Sinovac vaccines will be administered, with priority to be given to 9.4m elderly citizens aged 60 and above, patients with chronic diseases and persons with disabilities (PWD). (Bernama) Volunteers participating in the phase three clinical trial of the Covid-19 vaccine from China do not need to be inoculated with other vaccines such as Pfizer-BioNTech, Sinovac, said Health Minister Datuk Seri Dr Adham Baba. He said this is because the volunteers are considered as a protected group and should not be given additional vaccines, as they are subject to a special study that will last for 13 months. (Bernama) The risk of Covid-19 infectivity among the frontliners who have received both doses of the vaccine jabs is at its lowest at just 0.003%, said Coordinating Minister of the National Covid-19 Immunisation Programme Khairy Jamaluddin. He said this showed the level of effectiveness of the Covid-19 vaccine, which means there is a better chance to either tackle the risk of infection and death or being admitted to the intensive care unit. (Bernama) Interstate travels for work, medical and educational purposes are only allowed from Monday to Thursday, said Deputy Inspector-General of Police Datuk Seri Acryl Sani Abdullah Sani. With the exception of emergency cases, deaths and long distance married couples, no interstate travels are allowed from Friday to Sunday, he said. Acryl Sani said any interstate travel application will only be approved for emergency cases and deaths involving immediate family members, namely parents, children and siblings. He also said that interstate travel to attend social events such as weddings and other gatherings are strictly prohibited. (Bernama) A Cabinet paper on the country's new investment policy will be tabled on Wednesday (21 Apr), says Senior Minister cum Minister of International Trade and Industry Datuk Seri Mohamed Azmin Ali. He said the new policy was to attract more high-quality investors in an effort to make Malaysia a high-income nation, and it was expected to be implemented immediately. (Bernama) The Festive Season Maximum Price Control Scheme (SHMMP) for Aidilfitri 2021 will be implemented for 30 days from 21 Apr to 20 May, involving 12 types of goods. Minister of Domestic Trade and Consumer Affairs Datuk Seri Alexander Nanta Linggi, when announcing the scheme today, said it was implemented under the Price Control and Anti-Profiteering Act 2011 as a 2 Malaysia Daybreak | April 20, 2021 measure to curb the increase in prices of essential goods during the month of Ramadan and ahead of the Aidilfitri celebration, he said. (Bernama) Minister of Domestic Trade and Consumer Affairs Datuk Seri Alexander Nanta Linggi says the hike in the costs of imported chicken feed is among the major causes of the increase in the price of chicken in the country recently. He said to remedy the situation, his ministry had held engagement sessions with major chicken farm owners in the country and discussed with the Ministry of Agriculture and Food Industries (MAFI) on implementing a fixed price for standard chicken. Through this effort, he said the price of standard chicken had been fixed at RM7.90 for the 2021 Aidilfitri Festive Season Maximum Price Control Scheme (SHMMP), compared to RM7.50 last year. (Bernama) The Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) suggested that more approved permits (APs) be issued for the import of chicken to control the price increase. Deputy Minister Datuk Rosol Wahid said to ensure this could be implemented, his ministry will discuss the matter with the Ministry of Agriculture and Food Industries (MAFI) soonest possible. (Bernama) Moody's Investors Service has assigned a senior unsecured rating of A3 to the proposed US dollar-denominated trust certificates (sukuks) with maturities of 10 and 30 years to be issued by Malaysia Wakala Sukuk Bhd, a special purpose vehicle established by the Malaysian government. The proceeds of the sukuks will be used by the issuer to purchase a Wakala asset pool consisting of vouchers representing travel entitlements on selected public transport in Malaysia. The assets will be managed by the government as the agent for the provision of Wakala services on behalf of the issuer (acting as trustee for the certificate holders).