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Lunch Break Review – 28th Jan 2019

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BURSA MALAYSIA (MON, 28 JAN 2019)

MID-DAY LUNCH BREAK REVIEW

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BRIEF MARKET REVIEW:

The FBM KLCI dipped 0.14% at mid-day today, dragged by losses including at Hartalega Holdings Bhd, Press Metal Aluminium Holdings Bhd, Top Glove Corp Bhd and Genting Bhd. At 12.30pm, the FBM KLCI fell 2.32 points to 1,698.71. Losers led gainers by 392 to 268, while 355 counters traded unchanged. Volume was 1.2 billion shares valued at RM755.85 million.

Asian markets tracked mostly higher Monday afternoon as investors waited for a new round of high-level U.S.-China trade talks, which is set to begin later in the week. China is set to send a delegation led by Vice Premier Liu He to Washington for a fresh round of high level trade talks later this week.

Investors will be watching for any important developments on the U.S.-China trade front, with the two sides racing to strike a deal before a deadline in early March. Beijing and Washington have been locked in an ongoing trade war, which saw both sides slap tariffs on each other’s goods.

 

STOCKS IN THE LIMELIGHT:

SUIWAH CORPORATION BHD (RM2.68, +22.94%)

The Edge Markets reported that shares of Penang-based Suiwah Corp Bhd rose as much as 65 sen or 30% earlier this morning after it had, last Friday, received a privatisation offer from its major shareholder Suiwah Holdings Sdn Bhd (SHSB).

In a filing with Bursa Malaysia last Friday, Suiwah said it had received a letter from SHSB — the private investment vehicle of Suiwah managing director Datuk Hwang Thean Long, who founded the group — and parties acting in concert (PAC), requesting the group to undertake a selective capital reduction and repayment exercise (SCR). The Hwang family, which holds a 30.91% stake in Suiwah, is looking to take the company private at RM2.80 per share.

SHSB stated in the letter that the privatisation plan comes as Suiwah shares have been thinly traded, recording an average daily trading volume and average monthly trading volume of 15,456 shares and 160,067 shares respectively for the past two years, which represents 0.07% and 0.77% of Suiwah’s total free float. The stock closed mid-day at RM2.68, with a high volume of 45,600 shares traded.

 

CAN-ONE BHD (RM2.71, -2.52%)

Shares of Can-One Bhd fell 3.6% this morning on renewed concerns of its mandatory general offer (MGO) for the remaining 66.61% stake in Kian Joo Can Factory Bhd it does not own.

Can-One’s proposed MGO was first announced back in December when the company said it had signed a conditional share sale agreement with Tan Kim Seng to buy his 0.49% stake in Kian Joo for a cash consideration of RM6.71 million or RM3.10 per share, a hefty 51% premium to its five-day volume weighted average price. Upon completion of the proposed acquisition, Can-One would see its shareholding in Kian Joo increase to 33.39% and would thus be obliged to extend an MGO for the remaining stake.

CANONE closed at RM2.71 at mid-day on a low volume of 33,600 shares traded.

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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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