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Maybank IB issues 14 new warrants

PETALING JAYA: Maybank Investment Bank Bhd (Maybank IB) has issued 12 new European style cash-settled call warrants over ordinary shares of Aeon Credit Service (M) Bhd, AirAsia Group Bhd, AMMB Holdings Bhd, CIMB Group Holdings Bhd, Petronas Chemicals Group Bhd, Petronas Dagangan Bhd, Petronas Gas Bhd, Ranhill Holdings Bhd, RHB Bank Bhd, Sapura Energy Bhd, Supermax Corp Bhd and Top Glove Corp Bhd.

It also issued one European style cash-settled call warrant and one European style cash-settled put warrant over the FTSE Bursa Malaysia KLCI.

The call warrants and put warrant were listed on April 10 with an issue size of 100 million each.

The tenure for the 13 call warrants and one put warrant is about 10 months.

Maybank IB said in a statement that it reiterates the defensive core equity strategy as Bank Negara’s dovish statement from the recent Monetary Policy Statement implies that Malaysia’s economic growth will ease slightly this year.

“Based on the FBM KLCI’s end-March market close, the benchmark index is currently priced at 16 times 12-month forward earnings.

Maybank IB noted that local institutions were net buyers of RM1.4 billion in shares in March 2019, with buying interest focused on small to mid-sized market capitalisation stocks.

“On the other hand, upside is seen in Malaysian equities from fresh foreign net buying if Malaysia’s economic fundamentals improve and policy risks dissipate going forward.”

It said there may be pockets of opportunities for investors to trade on newsflow and thematics. This tranche of call warrants includes underlying companies in the financial, oil & gas, transportation and glove sectors.


Bursa Malaysia closes broadly lower

KUALA LUMPUR, April 17 — Bursa Malaysia ended broadly lower today led by selling activities mainly in selected heavyweights, amid a lack of catalysts. At the close, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) fell 8.56 points to 1,620.9…


MIER says there’s room for Bank Negara to cut policy rate

KUALA LUMPUR: There is room for Bank Negara Malaysia (BNM) to reduce the Overnight Policy Rate (OPR) as domestic money supply growth is declining and the US Federal Reserve is adopting a stagnant rate stance, said Malaysian Institute of Economic Research (MIER) senior research fellow Dr Zulkiply Omar.

BNM has maintained the OPR at 3.25% since January 2018. It is widely expected that the central bank will cut the key rate within the year as the economic growth moderates.

Speaking at MIER’s 24th Corporate Economic Briefing here today, Zulkiply said the rate cut expectation is further supported by negative sentiment on domestic production and consumption due to the weak ringgit, which was pressured by the massive short-term capital outflow of RM44.4 billion last year.

Nonetheless, he said the pressure on the ringgit has diminished following the stable US interest rates, which have helped reduce the volatility of hot money flows.

With the increase in BNM’s international reserves to US$103 billion (RM423.3 billion) on March 29, 2019, he said this indicates that the ringgit has been strengthening after declining for four quarters in a row in 2018.

Looking ahead, he opined that the ringgit will remain stable and is unlikely to weaken further following the Fed’s dovish stance.

The ringgit weakened 0.51% to 4.1305 against the greenback as at 5pm today.

Meanwhile, MIER executive director Emeritus Professor Datuk Dr Zakariah Abdul Rashid has proposed income policy to tackle deflation, apart from monetary and fiscal policies.

“When we increase income, we don’t have to worry about the increase in prices that will result in a reduction in consumer purchasing power. In fact, that’s the effect that we want. We want prices to go up, which are better and will stimulate demand and give incentives for people to work.”

He said fiscal policy may have its limitation as the government is faced with public debt problems, while the monetary policy is restrictive, having to consider interest rate differentials between Malaysia and the US.

MIER is maintaining its 2019 gross domestic product (GDP) growth projection for Malaysia at 4.5% on less encouraging domestic and external factors. This compares with BNM’s estimate of 4.3% to 4.8% growth.

On a separate note, Zakariah said Malaysia’s trade with China could take a hit due to the protracted trade war between the US and China. This is based on the RM178 billion trade between Malaysia and China in 2017.

The economic impact will cover over 550,000 employees, RM53 billion of value added production and RM769 million in taxes.

However, Zakariah reiterated that MIER has not detected a diversion in trade between Malaysia and China, since the start of the US-China dispute.

Hypothetically speaking, Zakariah said, the trade spat between the world’s two largest economies will definitely affect Malaysia, due to the spillover effect.

However, so far, for 2017 and 2018, the numbers for Malaysia’s imports from and exports to China have not declined, he added.

In 2017, Malaysia’s exports to China amounted to US$29 billion, and imports from that country totalled US$38 billion.


Bursa Malaysia bucks regional trend to close lower

KUALA LUMPUR: The FTSE Bursa Malaysia KLCI (FBM KLCI) settled lower on Tuesday amid an overall cautious market, in contrast to the regional markets.

At the close, the benchmark index eased 1.87 points to 1,629.46 against Monday’s closing of 1,631.33.

It opened 0.25 of-a-point higher at 1,631.58 and fluctuated between 1,626.99 and 1,635.47 throughout the day.

A dealer said the market was weak due to lack of catalysts.

Meanwhile, Bursa Malaysia Bhd announced that that the T+2 settlement, a part of Bursa Malaysia’s ongoing efforts to improve operational efficiency and reduce systemic risk cycle, will be launched on April 29, 2019.

The shorter settlement cycle would align the clearing and settlement processes of the Malaysian capital market with those of major global exchanges in the US, Europe and Asia-Pacific, which are already operating a T+2 settlement cycle, it said in a statement today.

Meanwhile, market breadth was negative with 475 losers and 355 gainers while 388 counters were unchanged, 670 were untraded and 19 others were suspended.

Volume was easier at 2.49 billion units worth RM1.79 billion against Monday’s 3.13 billion units worth RM1.75 billion.

Of the heavyweights, Public Bank added two sen to RM22.60, Petronas Chemicals increased five sen to RM8.95, Axiata gained two sen to RM4.18, Maxis was flat at RM5.56, Maybank declined four sen to RM9.21 and TNB trimmed two sen to RM12.30.

Of the actives, Karex advanced 6.5 sen to 58.5 sen, Vortex rose one sen to 19 sen, Price worth was flat at seven sen, Sapura Energy edged down half-a-sen to 33 sen, Prestariang trimmed five sen to 48 sen and Hibiscus Petroleum fell one sen to RM1.13.

The FBM Emas Index declined 17.274 points to 11,544.47, the FBMT 100 slipped 18.20 points to 11,373.41 and the FBM 70 gave up 43.75 points to 14,431.85.

The FBM Emas Syariah Index declined 17.74 points to 11,750.86 and the FBM Ace Index climbed 14.14 points to 4,685.71.

Sector-wise, the Financial Services Index trimmed 28.81 points to 16,799.61, the Plantation Index shed 14.17 points to 7,257.42, while the Industrial Products and Services Index gained 0.15 of-a-point to 168.49.

Main Market volume decreased to 1.53 billion shares worth RM1.62 billion against 1.79 billion shares worth RM1.54 billion on Monday.

Warrants turnover fell to 491.58 million units valued at RM108.37 million from 541.80 million units valued at RM131.21 million yesterday.

Volume on the ACE Market dropped to 465.64 million shares worth RM65.84 million against Monday’s 800.32 million shares worth RM80.60 million.

Consumer products and services accounted for 278.39 million shares traded on the Main Market, industrial products and services (233.57 million), construction (171.37 million), technology (188.49 million), SPAC (nil), financial services (36.02 million), property (117.74 million), plantation (40.86 million), REITs (7.95 million), closed/fund (21,000), energy (375.49 million), healthcare (16.60 million), telecommunications and media (18.57 million), transportation and logistics (19.56 million), and utilities (27.70 million).

The physical price of gold as at 5pm stood at RM164.91 per gramme, up 55 sen from RM164.36 at 5pm yesterday. — Bernama


MIER: Malaysia’s trade with China could take a hit if trade war lingers

KUALA LUMPUR: Malaysia’s trade with China could take a hit due to the protracted trade war between the US and China.

The Malaysian Institute of Economic Research (MIER) executive director Datuk Zakariah Abdul Rashid said this is based on the RM178 billion trade between Malaysia and China in 2017.

The economic impact will also include over 550,000 employees, RM53 billion of value added production and RM769 million in taxes.

However, MIER has reiterated that it hasn’t detected a trade diversion in the trade between Malaysia and China, since the start of the US-China trade war.


Huawei says not discussed 5G chipsets with Apple, says chairman

SHENZHEN, April 16 — Huawei Technologies, one of the world’s biggest smartphone makers, has not had talks with Apple Inc about supplying it with 5G chipsets, Rotating Chairman Ken Hu said today. Hu made the remark at the company’s annual…


Bursa ends mixed on profit-taking

KUALA LUMPUR, April 15 — Bursa Malaysia closed mixed today in line with the regional market sentiment, as mild profit-taking in selected consumer and plantation counters limited gains, a dealer said. The benchmark FTSE Bursa…


Prestariang seeks RM732m from Malaysian government over SKIN termination

PETALING JAYA: Prestariang SKIN Sdn Bhd (PSKIN), a subsidiary of Prestariang Berhad, has filed a legal claim amounting to RM732 million from the Malaysian government for the termination of the RM3.5 billion National Immigration Control Systems (SKIN) project via expropriation.

The legal action comes after Prestariang the government were unable to reach an amicable settlement despite multiple rounds of negotiations.

Prestariang told Bursa Malaysia that the sum is calculated based on the contractual formula provided in the concession agreement signed by both parties.

“In its legal claim, PSKIN highlights that the concession agreement (CA) clearly spells out the government’s obligations in the event the project is unilaterally terminated by way of expropriation. Prestariang wish to reiterate PSKIN has never defaulted on the CA. Despite the agreement for a 15-year concession, the government unilaterally terminated the CA by way of expropriation, which took effect on January 22, 2019. PSKIN strongly believes that the CA was fair and reasonable,” it stressed.

Under the CA signed in 2017, PSKIN was to design, deliver, maintain and provide scheduled upgrades for an improved immigration and border control system for Immigration Department Malaysia.

PSKIN was to received approximately RM3.5 billion over a 15-year concession period, with the entire capital expenditure of the project to be borne privately by SKIN.

Prestariang said since 2014, PSKIN had undertaken extensive technical studies and work thus incurred a substantial amount expenses relating to the project.

The company had also entered into numerous third-party contracts in their execution of the project.

At 3.45pm, Prestariang’s share price was trading 7 sen or 11.67% lower at 53 sen on 34.49 million shares done.



Bursa Malaysia ends volatile week on firmer note

KUALA LUMPUR: Bursa Malaysia ended the week on a higher note after three consecutive days of losses, boosted by gains in heavyweights such as Tenaga, Axiata and Malaysia Airports.

The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) rose 5.94 points to 1,630.17 from 1,624.23 at yesterday’s close.

The index opened 0.3 of-a-point higher at 1,624.53 and fluctuated between 1,623.44 and its intraday high of 1,631.09 throughout the day.

Market breadth was mixed with 399 gainers and 411 losers while 439 counters were unchanged, 630 untraded and 32 others suspended.

Volume was lower at 3.26 billion units worth RM2.08 billion from 3.58 billion units worth RM2.27 billion.

Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew said the FBM KLCI managed to recover almost half of losses yesterday.

“The market is actually quite mixed, as we have more stocks down but active stocks are primarily related to two sectors – construction and oil and gas, which are mostly gainers.

“However, the construction index is down amid news the East Coast Rail Link (ECRL) will be resumed at RM44 billion,” he said.

In the meantime, regional Asian markets exhibited mixed tone after Chinese trade data showed imports fell more than expected, signalling ongoing fragility in the country, despite a rebound seen in exports data at a five-month high.

It was reported the Chinese’s dollar-denominated imports were down 7.6% in March from a year ago, while dollar-denominated exports rose 14.2%, with investors now seeking for fresh directions from new data, next week.

China is expected to released its gross domestic product numbers on April 17.

On the home front, heavyweights Tenaga rose 22 sen or 1.8% to RM12.28, after yesterday’s 4% fall.

Axiata added six sen to RM4.15, IHH Healthcare was five sen higher at RM5.60 and Malaysia Airports increased 21 sen to RM6.82.

Maybank inched up one sen to RM9.27 and Public Bank lost two sen to RM22.60.

Topping the active list, Sapura Energy rose one sen to 34.5 sen after bagging five new engineering, construction and drilling contracts worth RM1.3 billion.

Bina Puri gained three sen to 21.5 sen and Econpile Holdings was 3.5 sen higher at 61.5 sen, benefiting from the ECRL announcement.

Bumi Armada was flat at 20 sen.

The FBM Emas Index rose 28.06 points to 11,561.46, the FBMT 100 was 27.85 points higher at 11,385.97 but the FBM 70 shed 19.53 points to 14,478.49.

Meanwhile, the FBM Emas Shariah Index climbed 35.08 points to 11,762.39 and the FBM Ace Index rose 35.39 points to 4,749.40.

Sector-wise, the Financial Services Index added 7.8 points to 16,822.07, the Plantation Index put on 36.22 points to 7,269.34, while the Industrial Products and Services Index declined 0.99 of-a-point to 168.13.

Main Market volume decreased to 2.37 billion shares worth RM1.89 billion from 2.80 billion shares worth RM2.10 billion yesterday.

Warrants turnover declined to 401.6 million units valued at RM93.2 million from 469.5 million units valued at RM102.3 million previously.

Volume on the ACE Market swelled to 491.4 million shares worth RM89.7 million from 302.3 million shares worth RM70.1 million on Thursday.

Consumer products and services accounted for 324 million shares traded on the Main Market, industrial products and services (223.1 million), construction (541.3 million), technology (70.9 million), SPAC (nil), financial services (32 million), property (240.1 million), plantation (18.3 million), REITs (8.0 million), closed/fund (6,600), energy (757.3 million), healthcare (19.1 million), telecommunications and media (52.8 million), transportation and logistics (42.7 million), and utilities (40.6 million). — Bernama