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Lunch Break Review – 9th Nov 2018






The FBM KLCI fell 13.51 points or 0.78%, as Asian shares took a cue from the US’ plan to raise interest rates gradually. At Bursa Malaysia, the KLCI settled at 1,707.91 at 12:30pm.

Reuters reported Asian stocks pulled back from a one-month high on Friday, as the U.S. Federal Reserve appeared poised to deliver another interest rate hike next month, paring gains made earlier this week, after US midterm elections triggered a global equities rally. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.1% and was headed for a loss of 1% for the week.

It was reported that the Fed held interest rates steady on Thursday, but remained on track to continue, gradually raising borrowing costs, pointing to healthy economic prospects that were marred only by a dip in the growth of business investment. The central bank has hiked U.S. interest rates three times this year and is widely expected to do so again next month.




The stock rose as much as RM11.54 after the company posted a strong 20.3% increase in net profit to RM63.25m for the first financial quarter ended Sept 30, 2018 from RM52.59 million in the corresponding quarter last year mainly due to higher revenue. In a filing with Bursa Malaysia, MPI said its revenue for the Asia and Europe segments were higher by 14% and 3% respectively, but 10% lower for the USA segment compared with the same quarter last year. The board of directors has declared a first interim single tier dividend of 10sen per share, to be paid on Dec 12, 2018. Volume was heavy with 240k shares traded at mid-day.



Moody’s Investor Service has affirmed the A1 domestic issuer and foreign currency senior unsecured ratings of Petroliam Nasional Bhd (Petronas), but changed its outlook to negative from stable. In a statement yesterday, the global rating agency’s senior vice-president Vikas Halan said the decision to change the outlook to negative reflects its view that the financial profile of Petronas may deteriorate if the government continues to ask the national oil company to keep dividend payments high, especially should oil prices decline. This follows the announcement by the government that Petronas will pay dividends of RM26 billion in 2018 and RM54 billion (inclusive of a one-off special dividend of RM30 billion) in 2019. 280k shares were traded at the mid-day break. Petronas Dagangan is the subsidiary of Petronas.



Prepared by:

Malacca Securities Quantitative Trading and Analytics Division

BO1-A-13A, Level 13A, Menara 2,

No.3, Jalan Bangsar, KL Eco City,

59200 Kuala Lumpur

TEL: 03-2201 2100 (General)