FBMKLCI
1603.32pts -5.11pts
(-0.32%) Volume 1.692b Value RM 1.971b
1) The KLCI retested the 1600 psychology support neckline
before closing marginally above inline with the weaker US market overnight as
growth concerns and weaker commodity prices weighed on sentiments. Region
bourses were mostly lower today as NIKKEI -4.05% led in losses, followed by ASX
-3.81%, HSI -2.97%, SHCOMP -2.02% ahead of important Chinese manufacturing data
later this week. CONSUMER index lost the most grounds today weighed by UMW
-3.25%, PPB -1.55%, BAT -1.41%, NESTLE -1.18% while PLANTATION +0.23% index
bucked the trend boosted by IOICORP +0.77%, HSPLANT +7.31%. Market breadth was
negative as losers beat gainers by 598 : 227. Futures closed at 1598.5pts
(5points discount)
2) Heavyweights : CIMB -2.16% RM4.53, AXIATA -1.38%
RM5.71, TENAGA -0.66% RM11.96, SKPETRO -3.14% RM1.85, PBBANK -0.34% RM17.42,
DIGI +1.27% RM5.55, GENM +1.75% RM4.05, PCHEM +0.99% RM6.10.
3) DBT: DUFU
9.321mil @ RM0.27 (5.312% PUC), HARTA 9mil @ RM4.60, BARAKAH 0.750mil @ RM0.90
4) Situational:-
RHBCAP -2.32% RM5.88 - Abu Dhabi state fund Aabar
Investments may refuse to invest in a
RM2.5b rights issue by RHB Capital in a sign of disappointment among
Gulf investors with economic and political instability in Malaysia. RHB,
Malaysia's fourth largest bank by assets, announced the rights issue in April
to support its growth and meet regulatory requirements for capital. Aabar owns
about 21.0% of the bank.
D&O -6.75% RM0.34 - Taiwan-based light-emitting diode
(LED) manufacturer Epistar Corp plans to
subscribe to 10.0% of the issued and paid-up share capital of Dominant Opto
Technologies Sdn Bhd DOT), a unit of
D&O Green Technologies Bhd (D&O Green Tech, for RM64.9m. D&O Green
Tech said the company and DOT entered into a conditional share subscription agreement
with Epistar for the stake subscription.
5) APM : announced that on 29 September 2015, APM via its
wholly owned subsidiary, Auto Parts Holdings Sdn Bhd (APH) entered into a Joint
Venture Agreement with Tinnos Asia Sdn Bhd, a subsidiary of Tinnos, Inc. to
carry on the business of developing, manufacturing and supplying automotive
In-vehicle Infotainment (IVI) systems and Internet of Things (IoT) products,
which are of or derived from original designs of Tinnos and/or developed
jointly by Tinnos and joint venture companies to the Original Equipment Market
and Replacement Equipment Market in Malaysia and other Asean countries.
Automotive IVI systems comprise a collection of hardware devices encompassing
software which may be installed into automobiles, vehicles and other forms of
transportation to provide audio and video entertainment as well as navigation
systems. IoT products offer advanced connectivity of devices, systems and
services in automobiles, vehicles and other forms of transportation such as
Digital Clusters, Around View Monitoring Systems (AVM), Head up Display (HUD),
Forward Collision Warning System (FCWS), Connected to V2X (Automotive Vehicle
to Everything) Communication and other future joint development products.
Tinnos will provide the joint venture the technology and technical support to
facilitate the setting up and operation of a production plant in Malaysia and
subsequent production plants in other Asean countries. A new joint venture
company will be incorporated under the proposed name "Apinnos Sdn
Bhd" to carry out the joint venture in Malaysia, based on the following
shareholding proportion (APH - 60% equity interest, Tinnos - 40% equity
interest). The investment in JV Co will be financed through internally
generated funds ; +ve, the JV arrangement is in line with the expansion plan of
the Group into new products. The JV is expected to contribute positively to the
profitability and growth of APM Group in the future. There is no special risk
associated with the JV other than operational risks. APM's investment in the JV
is expected to generate reasonable returns in the longer term.
6) Market : We maintain our view that the FBMKLCI will
continue to trade sideways within the range of 1570-1650 points with negative
bias amid weaker economic outlook and depressing MYR against the Greenback.
