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Lunch Break Review – 21st Dec 2018

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BURSA MALAYSIA (FRI, 21 DEC 2018)

MID-DAY LUNCH BREAK REVIEW

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BRIEF MARKET REVIEW:

The FBM KLCI reversed its earlier losses and climbed at the midday break today, lifted including by Tenaga Nasional Bhd and key blue chips. At mid-day, the FBM KLCI rose 4.39 points to 1,654.95. The index had earlier fallen to its intra-morning low of 1,642.79.

Losers led gainers by 375 to 251, while 307 counters traded unchanged. Volume was 847.31 million shares valued at RM481.95 million.

Stocks in Asia were broadly lower on Friday morning following the overnight market rout on Wall Street.  In overnight market action stateside, stocks saw a second day of sharp sell-offs. The Dow and Nasdaq posted their lowest closes since October 2017, while the S&P 500 finished at its lowest level since September 2017.

Amid the slide in the stock markets on Thursday, oil prices plummeted to their lowest levels in more than a year, continuing a sell-off which has been driven by concerns about oversupply.

International benchmark Brent crude futures dropped $2.89, or 5.05%, to settle at $54.35 a barrel. U.S. West Texas Intermediate (WTI) crude futures declined by $2.29, or 4.75%, to settle at $45.88 a barrel. Brent hit a session low of $54.28 a barrel, its lowest price since mid-September 2017, while WTI sank to $45.67, its lowest price since late August 2017.

 

STOCKS IN THE LIMELIGHT:

DAGANG NEXCHANGE BHD (RM0.205, +2.50%)

Dagang Nexchange Bhd (Dnex) shares rose to the high of RM0.215 this morning after it proposed to dispose of its 51% stake in Forward Energy Sdn Bhd (FESB) to FESB managing director Datuk Azmi Abdullah for a nominal sum of RM1. Dnex closed at RM0.205 at mid-day on a high volume of 17.2 million shares traded.

Dnex said it wants to exit FESB, as the firm’s operating and other expenses amount to RM2 million annually. Azmi and his wife Datin Zarinah Md Shariff already control 42.33% of FESB, which is primarily engaged in the independent power producer (IPP) business. Dnex at the same is also acquiring a 100% interest in Forward Energy Generation Ltd (FEGL) from Labuan-incorporated Forward Energy Ltd for RM6.69 million.

 

BERJAYA CORPORATION BHD (RM0.275, -1.79%)

Local media reported that Berjaya Corp Bhd (BCorp) shares fell 1.79% at mid-morning today after its board yesterday said it is not aware of the restructuring plans announced by executive chairman Tan Sri Vincent Tan. The stock closed mid-day at RM0.275, down 1.79%, with a low volume of 1.5 million shares traded.

On Wednesday, Tan said he would sell his 46% shareholding in 7-Eleven Malaysia Holdings Bhd to his flagship BCorp, and then launch a takeover offer to buy out the remaining shares in the convenience store operator. In addition, BCorp may carve out the hotel assets from Berjaya Land Bhd (BLand), in which it controls a 70.32% stake, and float the assets in Singapore.

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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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