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Lunch break review – 14th Dec 2018

BURSA MALAYSIA (FRI, 14 DEC 2018)

MID-DAYLUNCH BREAK REVIEW

BRIEF MARKET REVIEW:

The FBMKLCI pared some of its loss and was down 0.67% at the mid-day break. At mid-day, the FBM KLCI fell 11.25 points to 1,664.75. The index had earlier slipped to a low of 1,661.30. Losers led gainers by 470 to 190, while 1,242 countes traded unchanged.

Shares in Asia traded lower on Friday as China reported a slew of economic data that missed expectations, deepening worries about headwinds facing the world’s second largest economy.

China reported that industrial production in November grew 5.4% year-on-year, lower than the 5.9% that Reuters projected. Retail sales in the country rose 8.1% last month, below the 8.8% expected and the weakest pace since 2003, according to Reuters’ records.

On Thursday, the European Central Bank said it’s bringing to an end a crisis-era bond-buying program this month. Bond purchases by the ECB will fall from 15 billion euros ($17.04 billion) a month to zero by the end of December, but the central bank plans to spend cash from maturing bonds to purchase additional debt. The ECB also left benchmark interest rates unchanged.

STOCKS IN THE LIMELIGHT:

PERDANA PETROLEUM BHD (RM0.22, -2.22%)

Shares of PerdanaPetroleum Bhd fall to the low of RM0.215 on Friday after the company decided not to proceed with a private placement to raise up to RM109 million, which was first announced in May 2017. 

It decided to scrap the plan after taking into consideration its on-going corporate debt restructuring exercise under Bank Negara Malaysia, as well as the prevailing weak market conditions of the past six months.

The stock closed mid-day at RM 0.22, down 2.22%, with a low volume of 714.8 thousand shares traded.


PADINI HOLDINGS BHD (RM3.54, -4.07%)

Local media reported that Shares ofPadini Holdings Bhd – which have fallen some 36% since posting its first quarter financial results on Nov 30 – continued to extend its downward streak.

Padini’sshare price has been sliding since the company said its 1QFY19 which ended Sep30, 2018, fell 42.5% to RM17.96 million from RM31.2 million a year ago due tomargin compression, indicating that the fashion retailer had failed to benefit from the joy of the three-month tax holiday.

Analysts have also downgraded their ratings on the stock, with most of 12 research house who hold Sell calls with the target price ranging from RM4.05 to RM7.15, according to Bloomberg data.

Padini closed at RM 3.54 mid-day on a low volume of 510.6 thousand shares traded.

Prepared by:

Malacca Securities Quantitative Trading andAnalytics Division
BO1-A-13A, Level 13A, Menara 2,
No.3, Jalan Bangsar, KL Eco City,
59200 Kuala Lumpur
TEL: 03-2201 2100 (General)

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