Kenanga Today

30 July 2020

By Goh Yin Foo l [email protected]

BURSA 29-Jul Day chg % chg
KLCI 1,611.4 1.48 0.09% Research Highlights
FTSE EMAS 11,469.3 2.8 0.02%
FTSE Smallcap 13,130.7 -54.63 -0.41% NEWS HIGHLIGHTS
FTSE MESDAQ 8,523.9 47.3 0.56%
 Luxchem 2Q net profit falls 23.5% to RM7.6m, declares one sen
KLSE Mkt Cap 1,629.7 1.5 0.09%
(RM'b) dividend

BURSA DAILY TRADING PARTICIPATION  KNM’s unit bags RM21.0m contract in Australia
Participation Net (RM’m) Value (%)
Local Institution -109.65 44.73%
 KIP REIT 4Q NPI up 17%, declares DPU of 1.53 sen
Local Retail 203.28 43.29%
 Newly listed TCS clinches RM146.3m construction contract
Foreign -93.63 11.98%
 SYF Resources injects RM30.0m into ongoing residential project
INDICES 29-Jul Day chg % chg
Dow Jones 26,539.6 160.3 0.61% MACRO BITS
S&P 500 3,258.4 40.0 1.24%
NASDAQ 10,542.9 140.9 1.35%  Public investors plan move to government bonds in safety play
FTSE-100 6,131.5 2.2 0.04%
Nikkei 225 22,397.1 -260.3 -1.15%  How the coronavirus is crushing credit ratings
SHCOMP 3,294.6 66.6 2.06%
 Three-month loan moratorium extension for targeted groups
HSI 24,883.1 110.4 0.45%
STI 2,573.5 -9.5 -0.37%  Tengku Zafrul: 601,000 borrowers, 13,000 SMEs opt out of
KOSPI 2,263.2 6.2 0.27%
moratorium
TWSE 12,541.0 -45.8 -0.36%
JCI 5,111.1 -1.9 -0.04%  Thai tourist arrivals slump 66% year-on-year in January-June amid
SET 1,338.4 N.A. N.A.
pandemic
FOREX 29-Jul 28-Jul % chg  Indonesia launches USD7.0b loan guarantee scheme for 'priority'
USD/MYR: 4.2430 4.2533 -0.24%
companies
EUR/USD: 1.1746 1.1738 0.07%
GBP/USD: 1.2964 1.2881 0.64%  Japan government sees economy shrinking this year on COVID-19
USD/YEN: 105.00 105.21 -0.20%
hit: sources
USD/SGD: 1.3757 1.3791 -0.25%
USD/HKD: 7.7501 7.7502 0.00%  Fed chief says coronavirus surge slowing U.S. economic recovery
KEY STATS
KLCI Spot  U.S. jobless benefit at risk as Congress coronavirus talks stalled
Vol (m shares): 10,537.0 11,851.9 -11.09%
Value (RMm): 6,953.0 7,244.9 -4.03%  Euro zone outlook gets slight boost from EU stimulus deal:
KLCI Future Reuters poll
July-20 1,614.0 1,615.5 -0.09%
Aug-20 1,611.0 1,610.0 0.06%  BoE's Haldane sees mixed signals from regional visit
CPO Price 2,645.0 2,603.0 1.61%
(RM/tonne) IDEAS OF THE DAY (SEE SEPARATE REPORTS FOR DETAILS)
Soybean (US$/bu) 891.5 896.8 -0.59%
SoyOil (USc/lb) 29.7 29.5 0.64%  Sector Update: Banking
Gold (US$/troy oz) 1,953.4 1,944.6 0.45%
Nymex crude oil 41.3 41.0 0.56%
 Company Update: RHBBANK, QL, OCK
(US$/bbl)
 On Our Technical Watch: MMCCORP, YTL
Latex (RM/kg) 4.58 4.58 0.00%
Tin (US$/mt) 17,961.5 18,043.0 -0.45%
 Economic Viewpoint: US FOMC Meeting

# Top Volume Top Gainer Top Loser

%Chg Vol %Chg Vol %Chg
Stock Price Stock Price Stock Price Vol (m)
(+/-) (m) (+/-) (m) (+/-)
1 TOPGLOV 26.14 -1.0 20.30 PCHEM 6.28 2.3 2.71 IHH 5.48 -3.0 1.88
2 HARTA 20.12 1.1 15.70 PPB 19.50 2.2 1.06 SIME 2.15 -1.4 5.75
3 CIMB 3.60 0.3 9.96 KLCCSS 4.80 1.7 1.71 GENM 2.29 -1.3 9.01
4 GENM 2.29 -1.3 9.01 NESTLE 142.00 1.6 0.04 MAYBANK 7.75 -1.0 5.62
5 DIALOG 3.76 -0.3 6.07 TENAGA 11.42 1.2 2.11 TOPGLOV 26.14 -1.0 20.30
6 SIME 2.15 -1.4 5.75 MAXIS 5.33 1.1 2.76 KLK 23.68 -0.6 0.20
7 MAYBANK 7.75 -1.0 5.62 HARTA 20.12 1.1 15.70 MISC 7.85 -0.5 2.67
8 GENTING 3.85 -0.3 4.93 HLFG 13.64 1.0 0.09 HAPSENG 8.92 -0.3 0.32
9 AXIATA 3.25 0.9 3.34 AXIATA 3.25 0.9 3.34 PETDAG 21.48 -0.3 0.17
10 RHBBANK 5.00 -0.2 2.88 KLCCSS 7.80 0.7 0.59 DIALOG 3.76 -0.3 6.07
Notes: # KL Composite Index (FBMKLCI) component stocks

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Corporate News
 Luxchem 2Q net profit falls 23.5% to RM7.6m, declares one sen
dividend
Luxchem Corp Bhd's net profit for the second quarter ended June 30, 2020
(2QFY20) fell 23.45% to RM7.6m, from RM9.9m a year earlier, mainly dragged
down by its manufacturing segment. In a bourse filing, Luxchem said revenue
fell to RM140.3m, from RM188.4m, mainly attributable to its trading segment.
Earnings per share slipped to 0.85 sen versus 1.13 sen previously. Luxchem
declared a single-tier interim dividend of one sen per share for FY20, to be paid
on Sept 30. (The Edge)
 KNM’s unit bags RM21.0m contract in Australia
KNM Group Bhd’s unit has bagged a contract worth RM20.9m (4.2m euros)
from an Australian oil and gas firm for the supply of air coolers bundles for gas
compression stations in Australia. In a filing with Bursa Malaysia, KNM said its
indirect wholly-owned subsidiary FBM Hudson Italiana SpA (FBM) has inked a
restated goods and services agreement with Origin Energy Upstream Operator
Pty Ltd (Origin) for the job. (The Edge)

 KIP REIT 4Q NPI up 17%, declares DPU of 1.53 sen

KIP Real Estate Investment Trust's (KIP REIT) net property income (NPI) grew
17% to RM13.2m for the fourth financial quarter ended June 30, 2020
(4QFY20), from RM11.3m a year ago. The growth, KIP REIT said, was largely
underpinned by 11 months’ income contribution arising from the acquisition of
AEON Mall Kinta City (AMKC), but partially offset by the amortisation of rental
rebates. The rebates were given to eligible non-essential tenants during the
Movement Control Order (MCO) period, which amounted to RM1.6m, KIP
REIT’s statement showed. (The Edge)
 Newly listed TCS clinches RM146.3m construction contract
Newly listed TCS Group Holdings Bhd has clinched a RM146.3m contract for
main building works for serviced apartments in Sentul, Kuala Lumpur. In a
bourse filing, the group announced that its wholly-owned subsidiary TCS
Construction Sdn Bhd has received a letter of acceptance from Southern Score
Sdn Bhd — which is principally involved in construction, contractors,
subcontractors and property development — for the construction of the Vista
Sentul Residences. The contract is expected to be funded by internally
generated funds and/or borrowings. (The Edge)
 SYF Resources injects RM30.0m into ongoing residential project
SYF Resources Bhd said it is injecting some RM30.0m into one of its residential
development projects to expedite the construction progress. SYF said the
Alstonia Residence project in Kajang is being undertaken by Darul Majumas
Sdn Bhd, which is 75% owned by the group via its indirect subsidiary SYF
Development Sdn Bhd. In a bourse filing, SYF said the new capital investment
will enable Darul Majumas to raise sufficient funds to expedite the construction
and completion of the project. “The subscription was funded via internally-
generated funds of the company,” it added. (The Edge)

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Macro Bits
Global
 Public investors plan move to government bonds in safety play More public institutions, including central
banks, sovereign wealth funds and public pension funds, plan to increase their weighting in government bonds
than cut back, as they chart a move to perceived safety during the COVID-19 pandemic. (Reuters)
 How the coronavirus is crushing credit ratings The crippling effects of the coronavirus crisis have crushed
government and corporate finances and sent debt soaring. It is also crunching their credit ratings and causing a
spike in defaults. S&P Global has already made 1,190 downgrades so far this year. That is just 136 short of the
record 1,326 set in 2009 during the global financial crisis, and more than four months are left in the year. (Reuters)

Malaysia
 Three-month loan moratorium extension for targeted groups Prime Minister Tan Sri Muhyiddin Yassin today
announced that banks will offer a three-month loan moratorium extension and assistance to targeted groups in
view of the current tough economic times. The move is expected to benefit some three million individuals and
businesses, particularly those who suffer pay cuts and are unemployed due to the Covid-19 pandemic, according
to Muhyiddin, who had a live televised speech this afternoon. (The Edge Markets)
 Tengku Zafrul: 601,000 borrowers, 13,000 SMEs opt out of moratorium The number of individual borrowers
who continue to repay loan instalments and opt out of the moratorium facility increased to 601,000 in July 2020
from 331,000 in April, Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said. (The Edge Markets)

Asia Pacific
 Thai tourist arrivals slump 66% year-on-year in January-June amid pandemic Thailand recorded no foreign
tourist arrivals and spending for a third straight month in June, as borders remained closed amid the pandemic,
with a 66% year-on-year drop in the January-June period to 6.69 million visitors. (Reuters)
 Indonesia launches USD7.0b loan guarantee scheme for 'priority' companies Indonesia has launched a
IDR100.0t (USD6.92b) loan guarantee scheme targeting businesses in priority sectors as part of efforts to help
companies stay afloat during the coronavirus pandemic, the finance minister said. (Reuters)
 Japan government sees economy shrinking this year on COVID-19 hit: sources Japan’s government expects
the economy will contract this year as activity slowly recovers from the coronavirus crisis, with a return to growth
seen next year, four government sources told Reuters. (Reuters)

Americas
 Fed chief says coronavirus surge slowing U.S. economic recovery The surge in U.S. coronavirus cases is
beginning to weigh on economic activity, the head of the Federal Reserve said, and he promised the U.S. central
bank would “do what we can, and for as long as it takes,” to limit damage and boost growth. (Reuters)
 U.S. jobless benefit at risk as Congress coronavirus talks stalled U.S. congressional Republicans and
Democrats, struggling to reach a deal to provide more aid to those hurt by the coronavirus pandemic, slid on
Wednesday toward letting a $600-per-week unemployment benefit lapse when it expires this week. (Reuters)

Europe
 Euro zone outlook gets slight boost from EU stimulus deal: Reuters poll Euro zone economic growth next
year will be slightly stronger than previously thought, according to a Reuters poll of forecasters taken after
European Union leaders agreed on EUR750.0b to support economies ravaged by the coronavirus. (Reuters)
 BoE's Haldane sees mixed signals from regional visit Bank of England chief economist Andy Haldane said he
saw mixed signals about the economy after a series of online meetings with businesses and community groups in
northeast England. Haldane, who voted against expanding BoE stimulus last month, said estate agents had seen
a rapid rebound in activity since reopening in May, probably reflecting pent-up demand. (Reuters)

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List of Oversold Stocks (14-Day RSI<30-mark)

NAME* LAST PRICE RSI_14D RSI_9D RSI_3D LOW 30D
DUTCH LADY MILK INDS BHD 40.200 19.32 15.36 9.22 40.200
PADINI HOLDINGS BERHAD 2.120 19.87 10.63 4.56 2.110
AEON CO (M) BHD 0.850 20.11 15.02 23.69 0.830
CAPITALAND MALAYSIA MALL TRU 0.700 21.54 18.95 16.80 0.690
MALAYSIA BUILDING SOCIETY 0.535 23.10 15.86 4.22 0.535
TASEK CORP BHD 5.700 28.49 8.81 0.00 5.680
ATLAN HOLDINGS BERHAD 3.670 28.56 26.26 30.77 3.570
UOA DEVELOPMENT BHD 1.580 28.70 20.56 1.91 1.580
IOI PROPERTIES GROUP BHD 0.925 29.27 27.91 24.19 0.925
PMB TECHNOLOGY BHD 2.590 29.94 24.12 8.79 2.560
*Only for stocks with market cap >RM300m
Source: Bloomberg

List of Overbought Stocks (14-Day RSI>70-mark)

NAME* LAST PRICE RSI_14D RSI_9D RSI_3D LOW 30D
HUBLINE BHD 0.085 98.17 99.67 100.00 0.090
POH KONG HOLDINGS BHD 0.845 91.50 95.57 99.68 0.915
CAREPLUS GROUP BHD 3.300 86.78 90.76 94.12 3.320
TA ENTERPRISE BERHAD 0.610 86.06 93.65 99.62 0.615
APOLLO FOOD HOLDINGS BHD 3.800 84.63 90.72 98.83 3.920
SCGM BHD 3.060 84.36 87.89 89.84 3.180
TEK SENG HOLDINGS BHD 0.940 83.26 88.17 93.59 1.020
KOSSAN RUBBER INDUSTRIES 17.920 82.93 85.02 93.07 18.800
VITROX CORP BHD 11.840 81.64 85.92 97.13 11.840
XOX BHD 0.255 80.76 79.97 68.21 0.315
BIOALPHA HOLDINGS BHD 0.290 80.17 81.53 76.75 0.395
EURO HOLDINGS BHD 1.700 79.75 86.90 98.78 1.770
PPB GROUP BERHAD 19.500 78.65 84.32 98.32 19.500
RUBBEREX CORP M BHD 5.040 77.78 84.02 95.42 5.200
INNOPRISE PLANTATIONS BHD 0.920 77.77 83.49 84.19 0.965
BAHVEST RESOURCES BHD 0.530 77.09 82.89 86.73 0.625
SUPERMAX CORP BHD 18.680 76.68 75.61 71.57 19.620
COMFORT GLOVE BHD 5.270 76.34 81.54 93.78 5.450
GUAN CHONG BHD 3.150 76.01 83.87 97.23 3.260
DKSH HOLDINGS MALAYSIA BHD 3.470 75.19 78.00 86.67 3.580
IRIS CORP BHD 0.330 74.83 78.56 95.45 0.350
V.S. INDUSTRY BERHAD 1.390 74.45 78.24 89.29 1.410
MYETF DJ ISLAMIC TITANS 25 1.350 74.20 77.80 91.24 1.350
ZHULIAN CORP BHD 1.480 73.89 75.25 67.21 1.600
UNITED PLANTATIONS BHD 13.940 73.83 81.01 93.41 13.960
UNISEM (M) BERHAD 2.780 73.40 76.67 91.78 2.840
TOMYPAK HOLDINGS 0.715 73.26 73.14 54.10 0.745
HARTALEGA HOLDINGS BHD 20.120 73.17 75.23 89.18 20.500
DESTINI BHD 0.255 72.67 75.69 76.65 0.270
ADVENTA BHD 2.390 72.52 78.29 90.94 2.440
TA GLOBAL BHD 0.265 72.07 74.69 81.29 0.265
TA ANN HOLDINGS BERHAD 2.910 72.03 74.28 62.67 2.990
NTPM HOLDINGS BHD 0.605 71.67 79.33 95.75 0.620
FRONTKEN CORP BHD 3.680 71.17 71.19 65.95 3.780
MAH SING GROUP BHD 0.670 70.71 70.69 53.98 0.725
HO WAH GENTING BHD 0.670 70.63 73.35 71.93 0.700
LAND & GENERAL BHD 0.115 70.50 75.47 88.09 0.115
THONG GUAN INDUSTRIES BHD 4.750 70.01 71.44 64.99 4.900
*Only for stocks with market cap >RM300m
Source: Bloomberg

List of Oversold Warrants (14-Day RSI<30-mark)

NAME LAST PRICE RSI_14D RSI_9D RSI_3D LOW 30D EXPIRY DATE
GENTING BHD - C85 0.080 28.08 22.73 16.08 0.080 13/11/2020
Source: Bloomberg

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List of Overbought Warrants (14-Day RSI>70-mark)

NAME LAST PRICE RSI_14D RSI_9D RSI_3D LOW 30D EXPIRY DATE
MSCM HOLDINGS BHD-WA 0.180 89.81 92.82 97.22 0.185 22/9/2024
ASIA POLY HOLDINGS-WB 0.330 83.68 86.33 97.68 0.345 12/12/2022
APPASIA BERHAD-WA 0.350 82.58 85.59 81.30 0.375 23/12/2024
HLT GLOBAL BHD-WA 0.925 81.09 87.60 96.88 0.945 27/12/2022
XOX BHD-WB 0.130 80.21 81.20 79.64 0.145 3/3/2023
PA RESOURCES-WB 0.040 79.99 86.39 99.28 0.045 17/12/2022
BIOALPHA HOLDINGS-WA 0.220 78.84 79.12 74.22 0.350 5/1/2022
GUNUNG CAPITAL BHD-WB 0.290 78.78 83.24 88.25 0.295 4/10/2020
SCH GROUP-WA 0.040 78.43 86.38 99.39 0.040 5/12/2021
GUAN CHONG BH-CP 0.165 76.74 85.12 98.55 0.165 30/11/2020
TOP GLOVE COR-C81 1.020 76.40 73.58 59.16 1.150 31/12/2020
HARTALEGA HOL-C48 0.755 75.65 75.81 84.22 0.805 31/12/2020
HARTALEGA HOL-C44 1.200 74.90 78.22 92.86 1.230 31/12/2020
KOSSAN RUBBER-C10 0.685 74.61 76.88 93.87 0.720 24/12/2020
SUPERMAX CORP-C97 0.680 73.52 69.25 62.38 0.785 26/2/2021
V.S. INDUSTRY-C30 0.210 72.77 76.54 86.82 0.220 22/3/2021
SUPERMAX CORP-C96 1.290 72.75 69.50 63.32 1.410 31/12/2020
V.S. INDUSTRY-C28 0.090 72.25 77.53 88.07 0.100 9/10/2020
DAGANG NEXCHANGE-WD 0.060 72.01 72.64 57.38 0.075 30/7/2021
HARTALEGA HOL-C47 0.460 71.62 72.98 92.83 0.490 24/12/2020
SOLID AUTOMOTIVE-WA 0.050 71.11 81.90 98.99 0.055 16/12/2020
HARTALEGA HOL-C45 0.685 70.97 76.45 92.22 0.715 26/2/2021
TOP GLOVE COR-C83 0.855 70.31 69.55 62.32 0.895 31/5/2021
PERAK TRANSIT BHD-WA 0.015 70.20 74.86 89.67 0.020 19/9/2020
Source: Bloomberg

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Stock Ratings are defined as follows:

Stock Recommendations

OUTPERFORM : A particular stock’s Expected Total Return is MORE than 10%

MARKET PERFORM : A particular stock’s Expected Total Return is WITHIN the range of -5% to 10%
UNDERPERFORM : A particular stock’s Expected Total Return is LESS than -5%

Sector Recommendations***

OVERWEIGHT : A particular sector’s Expected Total Return is MORE than 10%

NEUTRAL : A particular sector’s Expected Total Return is WITHIN the range of -5% to 10%
UNDERWEIGHT : A particular sector’s Expected Total Return is LESS than -5%

***Sector recommendations are defined based on market capitalisation weighted average expected total
return for stocks under our coverage.

This document has been prepared for general circulation based on information obtained from sources believed to be reliable but we do not
make any representations as to its accuracy or completeness. Any recommendation contained in this document does not have regard to the
specific investment objectives, financial situation and the particular needs of any specific person who may read this document. This
document is for the information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees.
Kenanga Investment Bank Berhad accepts no liability whatsoever for any direct or consequential loss arising from any use of this document
or any solicitations of an offer to buy or sell any securities. Kenanga Investment Bank Berhad and its associates, their directors, and/or
employees may have positions in, and may effect transactions in securities mentioned herein from time to time in the open market or
otherwise, and may receive brokerage fees or act as principal or agent in dealings with respect to these companies.
Published and printed by:

KENANGA INVESTMENT BANK BERHAD (15678-H)

Level 17, Kenanga Tower, 237, Jalan Tun Razak, 50400 Kuala Lumpur, Malaysia
Telephone: (603) 2172 0880 Website: www.kenanga.com.my E-mail: [email protected]

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