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Lunch Break Review – 29th Nov 2018

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BURSA MALAYSIA (THU, 29 NOV 2018)

MID-DAY LUNCH BREAK REVIEW

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BRIEF MARKET REVIEW:

Bursa Malaysia trekked the key Asian markets and Wall Street higher early Thursday on expectations the US Federal Reserve could restrain its interest rate hikes next year.

At mid-day, market breadth was however still weaker as losers led gainers by 391 to 348, while 319 counters traded unchanged. Volume was 976.1m shares valued at RM969.8m.

Asia markets traded higher on Thursday morning ahead of a crucial meeting between President Donald Trump and Chinese leader Xi Jinping, which many are hoping would help ease trade tensions between the U.S. and China.

The session in Asia follows a major rally on Wall Street, where the Dow Jones industrial average jumped more than 600 points.

Stock market reaction in the U.S. was spurred by remarks from Federal Reserve Chairman Jerome Powell. He said Wednesday that he considers the central bank’s benchmark interest rate to be near a neutral level, an important distinction from remarks he made less than two months ago.

STOCKS IN THE LIMELIGHT:  

IHH HEALTHCARE (RM5.59, +6.5%)

IHH Healthcare Bhd shares have risen to a three-month high after Khazanah Nasional Bhd announced its divestment plan in the group. The healthcare provider jumped 34 sen to RM5.59, its highest since August.

Khazanah Nasional Bhd was reported to have confirmed that it has entered into an agreement with Japan’s Mitsui & Co Ltd to sell down its stake in marking the start of an asset rationalisation exercise. Khazanah said it will divest 1.4 billion shares or a 16% stake in IHH to Mitsui & Co Ltd at RM6.00 per share for RM8.42bil cash.

Following the disposal, Khazanah’s shareholding in IHH will decrease to 26.05% based on the enlarged share capital of IHH after the completion of the acquisition of 30% additional equity interest in Acibadem Saglik Yatirimlari Holding AS by IHH.

FGV HOLDINGS (RM0.94, +2.7%)

It was reported that FGV Holdings Bhd has posted its biggest quarterly loss ever in the three months to end-September after forensic investigations determined that it had overpaid for a plantation asset purchased in 2014, forcing the company to make a huge impairment charge on the acquisition in the current quarter.

The world’s largest palm oil producer made a loss of RM849.25mil in the third quarter ended Sept 30, compared to a net profit of RM41.53mil a year ago.

Impairment charges amounted to RM788mil, much of it from Asian Plantations Ltd (APL). Without the impairment, the loss before zakat and taxation for the group was RM123mil.

At mid-day, the rose 2.7% to RM0.94 after a selldown on the stock price for many days prior.

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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)

The Quantitative Trading and Analytics Division houses the elite data scientists, programmers and proprietary traders that work the proprietary algorithm trading desk of Malacca Securities. Join and network with us at our elite mPower Algorithm program, mPower Trading program and Elite Education courses.

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