Friday, July 13th, 2018


KLCI extends gains for 6th day, Dialog lifts


KUALA LUMPUR: Sustained local institutional support for battered down but fundamentally strong blue chip companies saw the FBM KLCI climbing for the sixth day on Friday. The firmer key Asian markets helped shore up local market sentiment. Fresh China data suggest the Sino-US trade war has yet to make a dent on the Chinese economy, Reuters reported. The KLCI rose 18.36 points or 1.08% to 1,721.93, after adding 14.8 points on Thursday. Turnover improved to 3.27 billion shares valued at RM2.83bil. The broader market was firmer with advancers leading declinersRead More sees 7.1% rise in net profit in Q2, declares 4.9 sen dividend

PETALING JAYA: Bhd's net profit for the second quarter (Q2) ended June 30, 2018 grew 7.1% to RM384.34 million from RM358.89 million a year ago on the back of stronger earnings before interest, tax, depreciation and amortisation (ebitda), lower capital expenditure (capex) spending and higher operation cash flow.

Revenue for the quarter under review expanded to RM1.62 billion from RM1.55 billion.

The group has proposed to declare an interim dividend of 4.9 sen for the quarter under review.

For the first six months of the financial year, Digi's net profit went down 5.3% to RM770.45 milliom compared with RM732 million last year, while revenue increased to RM3.25 billion from RM3.13 billion.

Digi told Bursa Malaysia that its service revenue increased 2.1% to RM1.48 billion in Q2, underpinned by solid postpaid and internet revenue growth.

Taking cue from its strong performance in the first half of the financial year, Digi's focus for the next six months, will be on stepping up growth and efficiencies by executing strategies in focus areas of growth across postpaid and prepaid; leveraging on data driven-insights and customer segmentation; and delivering on cost agenda on a platform of sustainable and efficient cost structure.

“Albeit with continued market challenges ahead in the second half of 2018, Digi will continue to aim towards improving 2018 service revenue growth development, sustaining ebitda margin around 46%-47% and delivering efficient capex between 10%-12% of service revenue.”

The stock fell 2 sen or 0.5% to close at RM4.16 on 2.3 million shares traded.

Bursa Malaysia ends higher for 5th consecutive day

KUALA LUMPUR: Persistent buying interest in index-linked counters and small capitalisation stocks against a backdrop of positive market sentiment spurred Bursa Malaysia to close stronger for the fifth consecutive trading.

At 5pm the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) finished at the intra-day high of 1,721.93, up 18.36 points, from yesterday's close of 1,703.57.

The key index remained in the positive territory, staying above the 1,700 points level, throughout the day.

Hermana Capital Bhd Chief Executive Officer and Chief Investment Officer Datuk Dr Nazri Khan Adam Khan said the local bourse's performance was influenced by easing worries over the trade war between the United States and China.

“Reduction in tension sparked investors' risk appetite. So far there is no additional worries to the market. They (market players) are cheering over this positive development,” he told Bernama.

Similarly, regional bourses also staged an uptrend with Japan's Nikkei 225 increasing 1.85% to 22,597.35, Hong Kong's Hang Seng gained 0.21% to 28,541.57 and Singapore's Straits Times added 0.31% to 3,262.94.

Back home, the overall market breadth was bullish with gainers thumping losers 605 to 315 with 422 counters unchanged, 567 untraded and 19 others were suspended.

Volume increased sharply to 3.27 billion units, valued at RM2.83 billion, from 2.69 billion units, worth RM2.51 billion, recorded yesterday.

Of heavyweights, Maybank added one sen to RM9.51, Tenaga chalked up 16 sen to RM14.64, both Petronas Chemicals and CIMB rose nine sen each to RM8.62 and RM5.72 respectively, while Public Bank was flat at RM23.00.

Trading in IHH Healthcare, which was halted at 9.22am, resumed in the afternoon and closed three sen higher at RM6.00 with 5.44 million shares changing hands.

Earlier, the group announced that its indirect wholly-owned unit had proposed to subscribe approximately 31.1% in India's chain of specialist hospitals, Fortis Healthcare Limited, for RM2.35 billion.

Among actives, MRCB lost five sen to 69 sen, APFT inched up half-a-sen to three sen, MyEG bagged 4.5 sen to 90.5 sen while Borneo Oil was flat at six sen.

BAT was the biggest gainer today, bagging 80 sen to RM33.20 while Ajinomoto topped the losers list, giving up 30 sen to RM21.70.

The FBM Emas Index chalked up 131.32 points to 12,146.21, the FBM70 surged 164.18 points to 14,783.63, the FBMT100 Index soared 128.7 points to 11,948.03, the FBM Emas Shariah Index increased 143.42 points to 12,238.76, the FBM Ace Index advanced 33.6 points to 5,351.34 and the FTSE Bursa Malaysia Small Cap Index climbed 170.79 points to 14,242.47.

Sector-wise, the Finance Index bolstered 122.42 points to 17,034.38, the Industrial Index bagged 29.85 points to 3,179.56 and the Plantation Index gained 22.78 points to 7,512.54.

Main Market volume widened to 2.15 billion shares, valued at RM2.56 billion, from 1.79 billion shares, worth RM2.27 billion, recorded on Thursday.

Warrants turnover improved to 761.7 million units, valued at RM183.47 million, versus yesterday's 646.28 million units worth RM183.91 million.

Volume on the ACE Market improved to 356.5 million shares, valued at RM83.38 million, from 247.06 million shares, worth RM52.7 million, transacted yesterday.

Consumer products accounted for 52.62 million shares traded on the Main Market, industrial products (313.88 million), construction (295.18 million), trade and services (841.09 million), technology (80.74 million), infrastructure (25.58 million), SPAC (356,000), finance (70.54 million), hotels (18.94 million), properties (415.22 million), plantations (22.3 million), mining (27,100), REITs (11.18 million) and closed/fund (13,500). — Bernama

More renewable energy projects expected in near term

PETALING JAYA: More renewable energy (RE) projects are expected to come up for bids in the near term as the new Energy, Green Technology, Science, Climate Change and Environment Ministry is committed to push up the nation’s RE capacity.

MIDF Research, which recently attended the Minister Yeo Bee Yin’s maiden townhall, said the latter pointed that the country already attains abundant reserve capacity of 30%, which is much higher than most countries.

“While there is no indication of an ideal or target reserve capacity, the new Minister indicated that the abundant reserve capacity gives the industry decent time to build up its RE capacity within the next three to seven years, without the need for much more major new plant-ups in the near-term.

“This suggests in the near future, sector opportunities could tilt heavily towards RE project awards and a dearth of future fossil fuel plants,” the research firm said in its report last Friday.

MIDF added that the ministry aims to reduce the reliance on imported fuel by aggressively increasing the RE contribution to the mix from just 2% currently to 20% “in the future”.

It said the push for RE is not entirely new and efforts had been taken previously to increase RE contribution to the system such as the Large Scale Solar (LSS) projects.

“Solar accounts for the bulk of Malaysia’s RE. However, there is the issue of getting RE sources to reach grid parity for it to be cost competitive and gain a larger share of generation mix without burdening end-consumers,” it said.

MIDF also noted that given the indication of excessive reserve capacity, the pace of any major plant-ups in the near-term is likely to be impacted.

It added that although the new Minister’s intention is to champion RE, it opined that the shift is for RE to eventually dilute contribution from fossil fuel rather than near-term, outright replacement.

“There is the issue of feasibility to induce RE in a big way into the system too which will have to be sorted out,” it added.

Positively, MIDF said that most of the incumbent players such as Tenaga Nasional Bhd (TNB) and Malakoff Corp Bhd are already paving way into the RE space (in particular, solar), while Cypark has been moving aggressively into RE in recent years.

Meanwhile, the research house also highlighted that the four Independent Power Producer (IPP) projects cancellations are likely to hit selective players, the majority of which are likely to be non-listed.

“Among the major projects in the pipeline, we think Edra’s Track 4B with a massive 2242MW capacity in Malacca could come under scrutiny given that it was a directly awarded project.”

“While Track 4A (TNB-SIPP) was a controversial project awarded on a directly negotiated basis (previously to the TNB-YTL-SIPP consortium) back in 2014, the project is already well underway (28% completion),” it said, noting that Tadmax is another directly negotiated power plant project at Pulau Indah.

MIDF said, others might involve LSS project awards such as Quantum Solar which was the first to be awarded LSS projects under the LSS initiative on a direct award basis.

“Ranhill was recently awarded a 300MW CCGT project in Sandakan Sabah. There has yet to be any development announced on the project so far,” it added.

Nonetheless, MIDF said it remained positive on the power sector while its top pick include TNB and YTL Power.

Asian shares extend bounce but trade war caps gains


SHANGHAI (July 13): Asian shares extended their recovery on Friday, as investors shifted their focus to bullish expectations for Wall Street earnings and as a weaker yen supported Japanese stocks, though Sino-U.S. trade tensions have tempered exuberance. Keeping trade squarely in view was Chinese trade data, which showed its trade surplus with the United States swelling to a record in June, a result that could further inflame a bitter trade dispute with Washington. Financial spreadbetters expect European stocks to rise, with London’s FTSE .FTSE set to open up 41 points, Frankfurt’sRead More

May says US trade deal back on track after Trump’s criticism

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Oil rattled by trade war sets price on course for weekly slump

NEW YORK, July 13 — Oil is poised for the biggest weekly loss in almost five months after escalating trade tensions between the US and China rattled investors while Libya’s plans to boost output allayed some fears of a supply crunch. Futures in…

Matrix Concepts sell properties for RM3.71m

PETALING JAYA: Matrix Concepts Holdings Bhd is disposing of several properties for RM3.71 million through related party transactions.

In an exchange filing, the group noted the agreements involve the disposal of one unit of three-storey shop office and one unit of two-and-a-half-storey shop office located in Negeri Sembilan, to Kuntum Kemuning Sdn Bhd and Anexco Sdn Bhd, respectively.

Matrix Concepts managing director Ho Kong Soon is a major shareholder and director of Kuntum Kemuning and Anexco.

The transactions are expected to be completed within 24 months from the date of the sale purchase agreement.

Asia markets on course for positive end to tough week

NEW YORK, July 13 — Most Asian markets rose again today following a record close on Wall Street as trade war fears are tempered by hopes China and the US will eventually reach a compromise, while attention turns to the start of earnings season….

MAHB looking for investment opportunities abroad

KUALA LUMPUR: Having previously announced the exit from its investments in Delhi and Hyderabad airports in India, Malaysia Airports Holdings Bhd (MAHB) said it will evaluate any opportunities for overseas investments including India on a case-by-case basis to determine the viable investment strategies for value accretion.

MAHB's acting CEO Raja Azmi Raja Nazuddin told reporters today that potential business models for investments includes major equity investment or small scale stake holding and facility management services.

Earlier this year, MAHB announced that it will be divesting its 11% stake in GMR Hyderabad International Airport Ltd for RM295.3 million.

Meanwhile, last year, the group announced its plans of disposing of its 10% stake in Delhi International Airport Pte Ltd (DIAL) for RM292.6 million.

Both disposals were made to GMR Airports Ltd.

On another note, MAHB and the Malaysian Investment Development Authority(MIDA) today inked a memorandum of understanding (MoU) to explore potential areas of collaboration to promote and facilitate economic activities to drive investments into the country.

The initiative will include the KLIA Aeropolis and Subang Aerotech Park, the latter of which will be part of the Subang Airport Regeneration Initiative.