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MALAYSIA Retail Market Monitor Friday , 31 July 2015 MARKET NEWS FBMKLCI CHART The FBMKLCI rose 0.93pt (-0.05%) to close at 1,699.92pt yesterday. Meanwhile, Asian stocks rose, led by Japanese shares, as profits from Nintendo Co. to Nomura Holdings topped estimates, and the Federal Reserve said the US economy is progressing towards an interest-rate increase. The MSCI Asia Pacific Index climbed 0.1% to 140.94. The FBMKLCI’s top gainers were Westports Holdings (+4.5%), SapuraKencana Petroleum (+3.0%) and Astro Malaysia Holdings (+2.4%) while the top losers were CIMB Group Holdings (-1.7%), Genting Malaysia (-1.2%) and IOI Corporation (-1.2%). In the broader market, losers outpaced gainers 401 to 383 with 354 counters unchanged. Turnover was 1.62b shares valued at RM1.58b. From the technical perspective, the FBMKLCI managed to close in a positive mode even though the outlook for our index remains timid as a lack of catalysts pared down earlier gains. Based on the DMI, the selling pressure still exceeds buying pressure at Source: BursaStation the moment and we expect sideways movements ahead with the benchmark index likely to consolidate further. Support and resistance levels are as follow: KEY INDICES Chg Prev Close YTD (%) Support: 1,688, 1,671 (%) DJIA 17,745.98 (0.03) (0.43) Resistance: 1,737, 1,751 S&P 500 2,108.63 0.00 2.42 US markets ended mixed despite positive economic data. The S&P 500 ended flat at FTSE 100 6,668.87 0.57 1.57 2,108.66, while the DJIA fell 5.41 points at 17,745.98.The US economy expanded at an CSI 300 3,815.41 (2.93) 7.97 FSSTI 3,249.52 (1.05) (3.44) annualised 2.3% rate in the second quarter, while first-quarter growth was increased HSCEI 11,137.33 (1.21) (7.07) from -0.2% to 0.6%. Whole Foods Market Inc plunged 12% after the supermarket chain HSI 24,497.98 (0.49) 3.78 on Wednesday posted earnings that missed forecasts. Procter & Gamble Co. fell 4% JCI 4,712.49 (0.18) (9.84) after its fiscal fourth-quarter revenue slightly missed expectations. Shares of Facebook KLCI 1,699.92 0.05 (3.48) Inc. lost 2.1% after the social-media company late Wednesday reported a drop in KOSPI 2,019.03 (0.91) 5.40 second-quarter earnings. Nikkei 225 20,522.83 1.08 17.60 SET 1,417.49 0.67 (5.35) WHAT’S IN THE PACK TWSE 8,651.49 1.03 (7.05) Malaysia Airports Holdings Notion Vtec (NOTION MK) BDI 1,100.00 (0.36) 40.66 CPO (RM/mt) 2,124.00 0.62 (6.27) (MAHB MK/BUY/RM6.05/Target: Technical BUY with +25.3% potential return Nymex Crude RM7.60) BUY with a target price of RM0.72 and (US$/bbl) 48.51 (0.02) (15.63) 2Q15: Weak headline numbers but stop-loss at below RM0.39. Based on TOP VOLUME operating cash flow remains healthy. the daily chart, NOTION is forming higher highs and higher lows that Price Chg Vol Public Bank indicate an uptrend pattern. Stock (RM) (%) (‘000) (PBK MK/HOLD/RM18.88/Target: Pesona Metro 0.64 7.56 90,673 RM19.30) Complete Logistic (COMPLET Lee Swee Kiat Group 0.36 (5.26) 41,840 2Q15: Earnings in line with our MK) Xidelang Holdings Ltd 0.19 5.71 32,289 expectations, underpinned by relatively Technical BUY with 36.2% potential return Ifca Msc Bhd 0.98 (5.77) 22,467 Jaks Resources Bhd 0.96 (0.52) 22,150 strong non-interest income growth. BUY with a target price of RM1.24 and stop-loss at below RM0.795. COMPLET TOP GAINERS Tenaga Nasional has just passed the consolidation Price Chg Vol (TNB MK/BUY/RM12.54/Target: phase and managed to penetrate the Stock (RM) (%) (‘000) RM15.30) breakout level of RM0.855 yesterday. Hubline Bhd 0.02 50.0 1,053 3QFY15: A modest 2% electricity demand Cybertowers Bhd 0.08 23.0 3,298 growth, good control over general KSL Holdings (KSL MK) Greenyield Bhd 0.26 20.9 16,109 expenses and tax credits. 9MFY15 results Technical BUY on breakout with 18.8% Notion Vtec Bhd 0.48 14.4 4,904 within expectations. potential return Luster Industries Bhd 0.08 12.5 16,696 BUY on breakout with a target price of TOP LOSERS RM2.09 and stop-loss at below RM1.59. Share price has been trading Price Chg Vol Stock (RM) (%) (‘000) below the downtrend line and we Lion Corp Bhd 0.04 (22.22) 446 expect KSL will make a higher high if it Asia Media Group 0.03 (16.67) 744 penetrates the breakout level of Kumpulan Powernet 0.45 (16.04) 103 RM1.76. Scan Associates Bhd 0.06 (14.29) 3,087 Sam Engineering & 5.30 (8.93) 109 Source: Bloomberg www.utrade.com.my 1 MALAYSIA Retail Market Monitor Friday , 31 July 2015 TRADERS’ CORNER Notion Vtec (NOTION MK) Technical BUY with +25.3% potential return Last price : RM0.475 Target price : RM0.595, RM0.72 Support : RM0.395 Stop loss : RM0.39 BUY with a target price of RM0.72 and stop-loss at below RM0.39. Based on the daily chart, NOTION is forming higher highs and higher lows that indicate an uptrend pattern. Yesterday, the stock managed to penetrate the breakout level of RM0.475 with a higher trading volume. This bullish movement is supported by an uptick in the RSI and a bullish crossover in the MACD and the DMI. We peg our targets at RM0.595 and RM0.72. Expected Timeframe: 2 weeks to 2 months Complete Logistic (COMPLET MK) Technical BUY with +36.2% potential return Last price : RM0.91 Target price : RM1.04, RM1.24 Support : RM0.80 Stop-loss : RM0.795 BUY with a target price of RM1.24 and stop-loss at below RM0.795. COMPLET has just passed the consolidation phase and managed to penetrate the breakout level of RM0.855 yesterday. The uptick in the RSI together with the increasing trading volumes suggests buying momentum is set to continue in the near term. We expect the stock to continue trending upwards towards the immediate resistance of RM1.04 along the current upleg. A breakout above this level would extend the uptrend towards the previous high of RM1.24 Expected Timeframe: 2 weeks to 2 months www.utrade.com.my 2 MALAYSIA Retail Market Monitor Friday , 31 July 2015 TRADERS’ CORNER KSL Holdings (KSL MK) Technical BUY on breakout with +18.8% potential return Last price : RM1.67 Target price : RM1.99, RM2.09 Support : RM1.60 Stop-loss : RM1.59 BUY on breakout with a target price of RM2.09 and stop-loss at below RM1.59. Share price has been trading below the downtrend line and we expect KSL will make a higher high if it penetrates the breakout level of RM1.76. This is supported by the EMA 7-day which is on the verge of making a golden cross with the EMA-21, indicating a bullish signal. This is consistent with the uptick in the RSI, which suggests stronger buying momentum ahead. We peg our targets at RM1.99 and RM2.09. Expected Timeframe: 2 weeks to 3 months www.utrade.com.my 3 MALAYSIA Retail Market Monitor Friday , 31 July 2015 CORPORATE NEWS Asia Poly Holdings: Launches cash call sets sights on new plant. Asia Poly Holdings Bhd has proposed a rights issue and a special bumiputra issue with the aim of raising funds to retire part of its borrowings and to set up a waste management plant, as well as complying with the bumiputra equity requirement. In a filing with Bursa Malaysia, the cast acrylic sheet manufacturer proposed a two-call 2-for-1 rights issue along with free detachable warrants on a 1-for-3 basis. The ACE Market company, whose share price has more than tripled since the year started, also proposed a special issue of up to 15% of its enlarged issued and paid-up capital to bumiputra investors to be recognised by the International Trade and Industry Ministry. The proposed exercise, among others, allows the company to raise capital without incurring interest costs, issue new Asia Poly shares without diluting the existing shareholders’ equity interest, and adhere to the 12.5% bumiputra equity requirement. (Source: Starbiz) CI Holdings: Johari steps down as CI Holdings group MD. Datuk Johari Abdul Ghani, who was appointed as Finance Deputy Minister, has resigned as group MD of CI Holdings Bhd (CIH) effective July 29. The edible oil and tap maker told Bursa Malaysia that executive director Megat Joha Megat Abdul Rahman had been redesignated as group MD and he also replaced Johari as a remuneration committee member. Johari, 51, had been CIH group MD for more than 12 years. He began his career with an international accounting firm and has held senior positions in various listed and unlisted companies, including that of Uda Holdings Bhd chairman. (Source: Starbiz) KAF Investment Bank: KAF Investment Bank buys 76% of KAF Seagroatt. KAF Investment Bank Bhd (KAFIB) is buying a 76.74% stake in KAF-Seagroatt & Campbell Bhd for RM248.64m or RM2.70 a share. KAFIB said on Thursday it would undertake a mandatory general offer (MGO) for the remaining stake at RM2.70 also. The move will see KAFIB owning the stock-broking, fund management business and research.