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Lunch Break Review – 12th Nov 2018

BURSA MALAYSIA (MON, 12 NOV 2018)

MID-DAY LUNCH BREAK REVIEW

 

 

BRIEF MARKET REVIEW:

The FBM KLCI managed to stay above the crucial 1,700-point level at midday break today, despite losing 0.31% in the morning session, in tandem with a decline at regional markets. At 12.30pm, the FBM KLCI fell 5.30 points to 1,702.79. The index had earlier slipped to a low of 1,700.83.

Asia markets retraced some of their early losses Monday morning but investors remained wary about global risks that include a trade fight between the U.S. and China, growth outlook, as well as oil prices.

Oil prices will also be closely watched on Monday after the Organization of the Petroleum Exporting Countries (OPEC) and its allies warned about surging oil output that is set to leave the crude market oversupplied in 2019. A committee of several OPEC members and other crude exporters said that a larger group of roughly two dozen nations may have to launch a fresh round of output cuts in order to keep the oil market balanced. That announcement came as rising supply and a weaker outlook for demand have contributed to a sharp pullback in oil prices.

 

STOCKS IN THE LIMELIGHT:

 

MALAYSIAN RESOURCES CORPORATION (RM0.765, 0.00%)

MLSSB, a wholly-owned subsidiary of MRCB Prasarana Sdn Bhd, which in turn is a wholly-owned subsidiary of MRCB, has entered into a termination and settlement agreement in relation to the Concession Termination with the Government of Malaysia today for the design, construction, management, operation and maintenance of the Eastern Dispersal Link Expressway (EDL).  Pursuant to the Termination Agreement, the government will pay MLSSB a sum of RM1,325,800,000, subject to the terms and conditions contained in the Termination Agreement. The stock will resume trading at 2.30pm later.

 

FRASER & NEAVE (RM33.74, -0.30%)

Fraser & Neave Holdings Bhd (F&N) expects 90% of its product line to be subjected to Malaysia’s proposed sugar tax on sweetened beverages. But the impact of the tax on F&N’s business cannot be ascertained at this juncture, as the company awaits more details on the tax. The group needs more details on the tax from the government before the company is able to fully assess its impact on F&N’s business. It is reported that Malaysia will impose an excise tax of 40sen per liter on sweetened beverages, starting April 1, 2019. This will be on beverages that contain sugar exceeding 5 grams per 100 milliliters, as well as juices that contain more than 12 grams per 100 milliliters, quoting Finance Minister Lim Guan Eng, during the tabling of Budget 2019. The stock traded at a low volume of 15k shares at mid-day.

 

 

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)