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Lunch break review – 30th Nov 2018








The FBM KLCI remained below the 1,700-point level at the midday break today, against the backdrop of mixed regional markets. At mid-day, the FBM KLCI dipped 1.35 points to 1,694.99. The index had earlier risen to its intra-morning high of 1,702.98.

Losers led gainers by 464 to 238, while 306 counters traded unchanged. Volume was 1.27 billion shares valued at RM931.36 million.

Meanwhile, Asia Pacific markets traded up Friday morning as investors waited for a highly-anticipated meeting between President Donald Trump and his Chinese counterpart Xi Jinping at the G-20 summit in Argentina, which many are hoping would help ease escalating trade tensions between the two countries.

US President Trump told reporters Thursday that he was “close” to doing something on trade with China but added he wasn’t sure if he wanted to do it. “Because what we have right now is billions and billions of dollars coming into the United States in the form of tariffs or taxes, so I really don’t know,” he said.

Meanwhile, reports said that White House advisor Peter Navarro would be attending the dinner between Trump and Xi. News of his attendance dampened hopes that a trade deal could be hatched at the meeting given his longstanding hawkish tone on U.S.-China trade.

Elsewhere, the Wall Street Journal reported that officials from both governments said the U.S. and China are exploring a trade pact that would halt further tariffs from Washington in exchange for new talks looking at major changes to Beijing’s economic policies.




AIRASIA (RM3.11, +4.4%)

AirAsia rose 13 sen to RM3.11 with 24.07 million shares done after the low-cost carrier declared a special dividend of 40 sen a share.

However, a local stockbroker downgraded the stock to a Hold to Reduce with a lower target price of RM2.12 based on sector average CY20F P/E of 10 times and after adding its special dividend per share (DPS) of 70 sen.


AEON CO (M) (RM1.70, -5.0%)

Aeon Co fell 9 sen or 5.0% to RM1.70 in lackluster volume and trade at mid-day. It had recently reported a cumulative nine months ended Sept 30, 2018 (9MFY18) core net profit (CNP) of RM71.0 million (+8%), which a local research house had said came in at 60%/63% of its own forecast and the consensus full-year estimates.

The results were deemed as within expectations as the research house expects stronger results in the fourth quarter (4Q) from the usual year-end promotion which historically accounted for 40% of the group earnings. The fair value pegged for the stock by the research house is at RM2.60.



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.