Daily Market Commentary

Tuesday, 23 June 2020

TA Research, e-mail : taresearch@ta.com.my
For Internal Circulation Only

KLSE Market Statistics (22.06.2020) Review & Outlook

Volume Value Value/ Bursa Malaysia shares closed mixed on range bound trade Monday, with bargain
(mil) +/-chg (RMmn) +/-chg Volume Up Down hunting interest on key plantation, banking and rubber glove makers cushioning
profit-taking activities. The FBM KLCI ended up 3.98 points at 1,511.24, after
Main Market 3,148.6 -807.1 2,318.6 -1966.9 0.74 280 309 ranging between early low of 1,502.64 and high of 1,511.65, as losers beat gainers
Warrants 382.7 -54.1 90.1 -13.7 0.24 92 188 549 to 434 on moderate turnover of 6.33bn shares worth RM3.11bn.
ACE Market 2,802.7 869.4 704.1 171.4 0.25 56 51
Bond 0.2 -1.7 0.1 -0.3 0.39 2 0 Stocks are likely to extend sideways consolidation due to profit-taking and overbought
momentum, and pending more concrete local market leads. Immediate support
ETF 0.0 -0.1 0.1 -0.2 2.03 4 1 remains at the 1,500 psychological level, with the 30-day and 100-day moving
LEAP 0.0 0.0 0.0 0.0 0.06 0 0 averages respectively at 1,474 and 1,441 acting as stronger support platforms.
Total 6,334.3 3,112.9 0.49 434 549 Immediate resistance stays at the previous Monday's high of 1,548, followed by
Off Market 343.0 144.8 216.8 140.4 0.63 1,579, the 76.4%FR level, and recent peak of 1,590.

Bumi Armada shares are attractive to bargain on weakness for rebound upside
Major Indices towards the 38.2%FR (28sen), with tougher hurdle seen at the 50%FR (33sen)
Index +/- chg % chg % YTD chg ahead, while better chart supports are at 22sen and 20sen, the respective 30-day
and 50-day moving averages. Likewise, Dialog should attract bargain hunters prior
Malaysia to recovery upside to the 76.4%FR (RM3.68), with a confirmed breakout to aim
FBMKLCI 1,511.24 3.98 0.26 -4.88 for re-test of the 29/5/20 peak (RM3.99) going forward. Stronger retracement
FBMEMAS 10,615.97 15.37 0.14 -6.25 supports are at the 61.8%FR (RM3.49), 50%FR (RM3.34) and 38.2%FR (RM3.19).
FBMSCAP 12,140.01 -43.53 -0.36 -14.29
June Futures 1,510.00 6.50 0.43 -5.33 News Bites
Other Markets • Bank Negara Malaysia's international reserves amounted to US$102.8bn as at
DOW JONES 26,024.96 153.50 0.59 -8.81 June 15, down a marginal 0.1% from US$102.9bn as at May 29, and is sufficient
to finance 8.2 months of retained imports and is 1.1 times total short-term
NASDAQ (US) 10,056.48 110.35 1.11 12.08 external debt.
FTSE (UK) 6,244.62 -47.98 -0.76 -17.21 • Malaysia's May 2020 vehicle sales volume fell 62.2% to 22,960 units from
NIKKEI (JAPAN) 22,437.27 -41.52 -0.18 -5.15 60,760 a year earlier, as people were still fearful to come out even after the
government implemented the Conditional Movement Control Order.
KOSPI (KOREA) 2,126.73 -14.59 -0.68 -3.23 • Genting Malaysia Bhd is targeting to open its outdoor theme park - which will
HANG SENG (HK) 24,511.34 -132.55 -0.54 -13.05 be named "Genting SkyWorlds" - in 2Q21.
FSSTI (S'PORE) 2,629.69 -5.14 -0.20 -18.40 • Rubberex Corp (M) Bhd has received an unconditional mandatory takeover
offer to acquire all the remaining shares from Hextar Rubber Sdn Bhd and
SET (BANGKOK) 1,352.18 -18.64 -1.36 -14.41 Datuk Ong Choo Meng for a cash offer price of RM1.80 per share.
JCI (JAKARTA) 4,918.83 -23.44 -0.47 -21.92 • Sime Darby Bhd's subsidiary Sime Darby Motors Sdn Bhd has seen a "boom"
SHANGHAI 2,965.27 -2.36 -0.08 -2.78 in demand for its vehicles, backed by the government's Pelan Jana Semula
Ekonomi stimulus package, but did not disclose any sales figure.
SHENZHEN 1,936.65 5.54 0.29 12.40 • Unisem (M) Bhd (Unisem) has been granted by Bursa Malaysia Securities Bhd
AUSTRALIA 5,944.54 1.97 0.03 -11.06 an extension of time from 1 July 2020 to 31 December 2020 to comply with
the public shareholding spread requirement pursuant to Paragraph 8.02(1) of
Top 10 KLCI Movers Based on the Main Market Listing Requirements.
Off Market • Bursa Malaysia Bhd has rolled out a new set of features on its "Bursa Anywhere"
Mkt Cap. mobile application, allowing investors to apply for new Central Depository
(mn) (RM) Counter Mkt Cap. Chg Vol. Services accounts and register for e-Dividends using the app.
(RM’mn) (RM) (mn) • Techbond Group Bhd has been appointed as the exclusive distributor for a
AGES-PA 169.0 @ 0.03 cleaning and disinfecting chemical product in Malaysia for general and industrial
WIDAD 60.6 @ 0.54 PBBANK 65,142 0.20 0.88 usage by Calvatis Asia Pacific Co Ltd.
RUBEREX 57.2 @ 1.80 IHH 48,442 0.12 0.43 • Sarawak Consolidated Industries Bhd is banking on Oman and other Middle
SERBADK 20.0 @ 1.60 TOPGLOV 41,900 0.20 16.19 East countries to help it achieve RM1.5bn order book by the year-end.
CIMB 36,616 0.01 7.05 • Dagang NeXchange Bhd's has signed a strategic collaboration agreement with
GPACKET 13.0 @ 0.67 the Malaysia Automotive Robotics and IoT Institute to jointly develop and
FOCUSP 4.0 @ 0.41 MISC 34,817 0.08 1.76 operate a web-based information system for used vehicles.
KOSSAN 4.0 @ 6.81 PETGAS 34,034 0.08 0.19 • Singapore-based private equity firm Kendall Court has ceased to be a substantial
TROP 3.8 @ 0.78 AXIATA 32,183 0.05 2.68 shareholder of Green Packet Bhd, after it disposed of its entire stake via a
XINGHE 3.0 @ 0.23 PPB 25,408 0.56 0.18 direct business transaction.
PETDAG 22,214 0.20 0.05 • Bursa Malaysia Securities Bhd has issued an unusual market activity query to
ENGKAH 1.1 @ 0.75 Supercomnet Technologies Bhd, as its share price jumped 36 sen or 29.03%
WZSATU 1.0 @ 0.10 DIALOG 20,242 0.03 7.98 yesterday.
FBBHD 1.0 @ 0.30 • Daibochi Bhd posted a net profit of RM10.84mn on the back of a revenue of
PRTASCO 1.0 @ 0.28 RM151.98mn for 3QFY20.
• Muhibbah Engineering Bhd's net profit for 1Q20 plunged 85% to RM5mn
ILB 1.0 @ 0.29 from RM33mn a year ago as airport business in Cambodia was affected by
Exchange Rate Covid-19.
Commodities Futures • Tiong Nam Logistics Holdings Bhd recorded a narrower net loss of RM4.32mn
USD/MYR 4.281 0.012 Palm Oil (RM/mt) 2,444.00 -31.00 in 4QFY20, against a net loss of RM10.34mn a year ago due to the improved
USD/JPY 106.900 -0.020 Crude Oil (Brent) 42.98 1.06 performance in the logistics and warehousing services segment.
EUR/USD 1.121 0.001 Gold ($/tr.oz.) 1,764.30 8.10 • YNH Property Bhd's net profit slipped to RM3.01mn for 1Q20, down almost
59% from RM7.28mn a year earlier, on slower project progress and impact on
USD/CNY 7.076 -0.002 the group's hospitality arm as a result of the Covid-19 pandemic.
Important Dates • China's economy contracted in the three months to June from a year earlier,
signaling the start of a recession despite marginal improvements over the
VSOLAR - 3:1 Rights Issue - RI of up to 1,317.9m shares together previous period when the coronavirus roiled the economy, according to China
with up to 878.6m free detachable warrants. Beige Book.
3 rights shares for every 1 existing share held, at an issue price of • Sales of previously owned homes dropped 9.7% in May from the prior month,
RM0.03 per rights share, together with 2 free warrants for every 3 as the coronavirus pandemic kept shoppers indoors during the typically busy
spring homebuying season.
rights shares subscribed. Trading of Rights: 17/06 - 23/06/2020.
Application Closed: 01/07/2020. LISTING ON: 13/07/2020.
Disclaimer
The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without
notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of
this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein.

Kaladher Govindan, Head of Research

for TA SECURITIES HOLDINGS BERHAD (14948-M)

A PARTICIPATING ORGANISATION OF BURSA MALAYSIA SECURITIES BHD
MENARA TA ONE, 22 JALAN P RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL : 603 - 2072 1277. FAX : 603 - 2032 5048
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