Wednesday, 28 October 2015

Daily Market Review | 28-Oct-2015

Just sharing the Hong Leong Investment Bank's research for your daily review. With hope that this insight will help you to make better decisions and ultimately bring more profit to your pockets! Click here to view the PDF.

And some major headlines which might be of interest to you and your investments. Previously we knew about Shell migrating part of their Operations out of Malaysia, then AMD and now RHB to downsize? Is the Malaysian economy still that good?

RHB to downsize 1,812 staff, pay out RM309mil
TO MAKE MONEY? Billionaire Lee tells why he is injecting his private land into IOI Properties
Fitch: Optimism in Budget 2016 may pose downside risks 

Happy Trading!

Monday, 12 October 2015

Daily Market Review | 12-Oct-2015

Just sharing the Hong Leong Investment Bank's research for your daily review. With hope that this insight will help you to make better decisions and ultimately bring more profit to your pockets! Click here to view the PDF.

Some major headlines today which might have an impact on the KLCI.

Happy Trading!

Friday, 9 October 2015

Daily Market Review | 09-Oct-2015

Just sharing the Hong Leong Investment Bank's research for your daily review. With hope that this insight will help you to make better decisions and ultimately bring more profit to your pockets! Click here to view the PDF.

Woke up this morning to know that the US market was bullish last night which might translate into a bullish market for KLCI later? Well that's something we will know in the next 30 mins.
Dow Jones 17,050.75 +138.46 (0.82%)
S&P 500    2,013.43          +17.60 (0.88%)
Nasdaq     4,810.79    +19.64 (0.41%)

And lastly the top headlines for today which might impact your decision on the counters that you might want to invest upon.

Happy Trading!

Wednesday, 7 October 2015

Daily Market Review | 07-Oct-2015

Just sharing the Hong Leong Investment Bank's research for your daily review. With hope that this insight will help you to make better decisions and ultimately bring more profit to your pockets! Click here to view the PDF.

Looks like the news for AirAsia going private was well received by the investors as there was a huge jump in the share price earlier today. As of writing, the share has gone up 8 cents or 6.40% increase for the day!

Happy Trading!

Hefty fine for MYEG

For all the MYEG investors, this is one piece of news that you would need to know about. Well it has yet to be finalized but chances of it happening would definitely be high too. Just beware and cautious on your investments as this would definitely have an impact on the share price. 

Read the article below or click on the link for the full article from The Sun.

PETALING JAYA: The Malaysia Competition Commission (MyCC) has proposed imposing a financial penalty of RM307,200 against MyEG Services Bhd for infringing Section 10 of the Competition Act 2010.

In a statement yesterday, MyCC said MyEG had abused its dominant position in the provision and management of online foreign workers permit renewal applications, by applying different conditions to equivalent transactions with other trading parties to the extent that it may harm competition.

The MyCC said the probe, which was based on the complaints filed by numerous parties, found that MyEG had harmed the level of competition in the selling of mandatory insurance policies for online foreign workers permit renewal applications as MyEG is also competing against other insurance companies in the market.

MyEG’s wholly-owned subsidiary MyEG Commerce Sdn Bhd is an agent of RHB Insurance Bhd, which sells the mandatory insurances.

Besides the financial penalty of RM307,200, there will be an additional penalty of RM15,000 for each day in the event MyEG fails to comply with a few remedial actions, including the termination of the existing agency agreements relating to the mandatory insurances and no entry into similar agency agreements – providing an efficient gateway to all insurance companies selling the mandatory insurances, which will allow them to compete at the same level.

MyCC is allowed by law to impose a financial penalty of up to 10% of the worldwide turnover of each enterprise and any remedial action.

In a reply to a Bursa Malaysia query late yesterday, MyEG clarified that at this juncture, the proposed decisions are not final.

“The management will review the proposed decisions with our external legal counsel and will submit a written representation and will make an oral representation to MyCC within the specified period of time to defend against the allegations made by MyCC,” it said.

Tuesday, 6 October 2015

AirAsia to go Private?

Just came across this piece of news a while ago on some speculation that maybe AirAsia might go private. Have a read below or click on the link to the original article from Reuters.

Founders of Asia's largest budget carrier, AirAsia, are sounding out investors to take the company private in a management-led buyout, after a critical research report knocked its shares to a seven-year low, people familiar with the matter said.

AirAsia Bhd co-founder Tony Fernandes is talking to banks to secure financing for the transaction, which could be launched over the next few months, said the people, who did not want to be identified as the discussions were confidential.

At Tuesday's closing level of 1.25 ringgit - exactly the price at which its shares were sold to institutional investors in an initial public offering more than a decade ago - AirAsia is valued at 3.48 billion Malaysian ringgit ($796 million).

Investors were spooked when Hong Kong-based GMT Research questioned AirAsia's accounts in a report in June, driving the airline's shares to their lowest levels since the global financial crisis in 2008.

Group CEO Fernandes, who has led AirAsia's rise from a two-plane operation in 2002 to a billion-dollar business, has been spending more time at AirAsia since then, putting his other businesses and sporting interest to one side.

GMT's allegation that AirAsia uses related-party transactions with loss-making associate carriers to boost its earnings pummeled the airline's shares by as much as 64 percent, and the stock remains down around 40 percent from its levels in early June.

Fernandes has steadfastly defended the company's finances and outlook and said the market was undervaluing AirAsia.

A source familiar with the matter said a challenge for any outside investor looking to invest in AirAsia was that the airline's revenues were largely in Malaysian ringgit, which has lost 20 percent this year, while its costs were in U.S. dollars.

"So anyone trying to buy a stake or who wants be part of the buyout will have to find ways to hedge the currency risk," the source said.

Obtaining financing would be key for the deal to succeed, said the people familiar with the deal.

When contacted by Reuters, an AirAsia spokeswoman declined to comment on the story.


AirAsia racked up losses and booked impairments during the global financial crisis, forcing it to raise funds later via a private placement and cut its debt.

The company had net debt of 10.5 billion ringgit ($2.4 billion) as of June 2015, down nearly 9 percent from the March quarter.

Fernandes, who along with his long-time business partner, Kamarudin Meranun, owns about 19 percent of AirAsia through a holding company, is hoping for an improvement in the business, helped by a sharp drop in fuel costs, and as main local rival Malaysian Airlines shrinks its routes.

AirAsia's planned move comes more than a year after state investor Khazanah Nasional took troubled national carrier Malaysian Airlines private following two devastating jetliner disasters.

Fernandes, one of Asia's best known corporate leaders, has announced a turnaround plan for AirAsia's loss-making Indonesian and Philippine affiliates as he battles competition from larger groups such as Singapore Airlines, Qantas Airways and Indonesia's privately held Lion Air.

"The share price is undervalued," said Kuala Lumpur-based RHB analyst Ahmad Maghfur Usman.

"Despite having high net gearing, AirAsia has a large fleet of aircraft and its loans are hedged at comfortable levels. It all boils down to whether the consortium (taking it private) can bring more synergy to AirAsia."

Monday, 5 October 2015

Alarming Facts! Must Know for Investors!

Imagine such amount of foreign funds exiting the local equity market. What would be impact in the long term? I would personally say that it has begun to reach an alarming state whereby such huge amounts of foreign funds start to leave the country. The market is not stable enough for the local investors to support and it certainly requires the extra support from the foreign investors. Many predict that the global economy is about to fall and more so for our local equity market.

Check out the article below from The Edge Markets about their say on the foreign funds offload.

Foreign funds offloaded RM598.7m last week, says MIDF Research

KUALA LUMPUR (Oct 5): After a heavy tide out the week before, the outflow of foreign fund from the local equity market reverted to its “normal” pace last week, according to MIDF Research.

In his weekly fund flow today, MIDF Research head Zulkifli Hamzah said the heavy swings in the movement of funds in the last two weeks proved to be a transient phenomenon.

He said investors classified as “foreign” remained net sellers on Bursa last week and that foreign funds offloaded RM598.7 million net in the open market (i.e excluding offmarket deals), a sharp decline from the RM1.27 billion outflow the week before.

Zulkifli said foreign funds were net sellers every single day last week. 

He said selling was relatively heavy on Monday and Thursday, reflecting spillover of negativities from the previous week’s global paranoia and apprehensions over emerging markets as a whole.

“For 2015, last week’s attrition raised the cumulative net foreign outflow to RM18.3 billion, almost three times the RM6.9 billion outflow for the entire 2014.
“More importantly, we believe the overhang of foreign liquidity in the market is now at its lowest since the Financial Crisis of 2007.
“We estimate the size of the overhang to have dropped to that below RM10 billion for the first time last week, for funds which came in since early 2010,” he said.
Zulkifli said foreign participation rate stayed elevated last week.
He said the average daily gross volume was RM1.14 billion, picking up from RM1.08 billion the week before.
“Nevertheless, we note that on Tuesday, the volume was only RM1.15 billion although net sale amounted to RM216 million.
“Local institutions were passive buyers, mopping up RM539.1 million net on RM2.0 billion participation rate. Average volume had surpassed the RM2 billion mark in the last 8 eight consecutive weeks,” he said.
Meanwhile, Zulkifli said retailers remained net buyers, purchasing RM59.6 million, after a record haul for 2015 in the preceding week.
Nevertheless, he said participation rate eased to RM664 million, indicating falling speculative element in the market.

Arsenal's Absolutely Awesome Performance | Arsenal 3 Manchester United 0

Arsenal will play host to Manchester United yesterday at the Emirates Stadium. Arsenal's last victory at home against the Red Devils were back in year 2011 when they managed to secure a victory by just a single goal from Aaron Ramsey.

Images source:

Arsene Wenger recently prefers Theo Walcott to Olivier Giroud as Walcott and Sanchez continues to impress together. The first goal was scored by Sanchez and it was Ozil's key pass from the edge of the penalty box saw Sanchez cheekly back heel the ball into the goal mouth. It was definitely a great goal from such a wonderful piece of skill.

The next counter attack from Arsenal saw themselves extending the lead once again. It was just a minute ago when Sanchez scores and this time around, Ozil the provider earlier became the goal scorer. Neat passes from Sanchez and Walcott before finally a square pass to Ozil who was unmarked. A quality like Ozil will not be missing out on such a golden opportunity to score and further extend the lead for his team.

It was all one way traffic with Arsenal pushing forward aggressively and they were rewarded with the third goal from Alexis Sanchez on the 19 minute. Theo Walcott once again turned provider to assist in Sanchez's goal. Sanchez took the ball and smashed it into the top corner and definitely a contender for goal of the week.

Aaron Ramsey who was the previous goal scorer back in year 2011 but he missed a great opportunity to score. Opportunities did come by for Arsenal and Manchester United through the second half but both teams did not capitalize on it. Great results for the Gunners but definitely a disappointing result for the Red Devils.

Check out the highlights from YouTube.

Daily Market Review | 05-Oct-2015

Just sharing the Hong Leong Investment Bank's research for your daily review. With hope that this insight will help you to make better decisions and ultimately bring more profit to your pockets! Click here to view the PDF.

There is some positive signs from the Tokyo Stock Exchange with the rise of roughly 1 percent. More news in the following links.

What's the impact of the acquisition by Axiata? I feel it's gonna be a positive impact for the Axiata Group in the Southeast Asia region. Read on for more information.

Happy Trading! 

Friday, 2 October 2015


There was an article today from The Star newspapers where the Chairman of Top Glove said that the business is very encouraging thus anticipating a great sales and profit for the company. TOPGLOV opened today weak and at one point it was down by 9 cents at 9.03am. Things are much better at this point of writing as TOPGLOV is up by 3 cents now. Things looking good for TOPGLOV despite the weak market today. 

All the best for the investors today in this counter! Happy Trading!

You can read up on the article as below or click on the link to access the article from The Star.

SHAH ALAM: Top Glove Corp Bhd expects its sales and profit to be at an all-time high this year, boosted by the weak ringgit and lower prices of raw materials.

Chairman Tan Sri Lim Wee Chai said business was “very encouraging”, also due to the results seen from the rubber glove manufacturer’s heavy investment in automation and computerisation in its factories.

“The weakening of the ringgit and strengthening of the US dollar is good for glove manufacturers like us and also for exporters. So, our profit definitely will increase substantially.

“It will be at an all-time high in terms of sales and profit,” he said at a press conference after the opening of the new Top Glove Tower in Setia Alam here.

Lim said the company’s results would be announced on Oct 15 for the financial year ended Aug 31.

“We have seen better results through internal improvement, especially in terms of quality and cost efficiency. We have invested a lot in automation and computerisation over the past three years.

“So now, we have a good harvest and have saved on about 1,000 workers through automation,” he said.

Asked about his outlook on rubber prices, Lim said the current price was reasonable and that he expects it to sustain for some time.

“In terms of latex concentrate, the price was at the height of about RM11 per kilo, but now we are buying for about RM4. Any commodity, when it is at an all-time high or an all-time low, it cannot last.

“The price of four or five ringgit is reasonable. So, we can see that the price of latex concentrate should be able to sustain at this level of between RM4 and RM5 for many months or even years,” he said.

On mergers and acquisitions (M&As), Lim said the company was in discussions with a few local as well as foreign companies to buy over their factories.

“We are always open to M&As. We have already acquired about six companies and have managed to turn loss-making glove companies into profitable companies within two to three years.

“We are talking to a few more glove factories, and this year, we will be more aggressive because we have strong financial strength and a very healthy balance sheet,” he said.

He said the company had net cash of close to RM200mil.

On passing its savings to consumers, Lim said the company had adjusted its prices by between 3% and 5% three times over the past three months following the drop in its costs.

The company produces 45 billion pieces of gloves per year and has 25% of the world market share.

On his wish list for the upcoming Budget announcement, Lim said he hoped the Government would provide incentives for local manufacturers, such as the re-investment allowance, so that they could be more competitive.

“This will allow manufacturers to reinvest in better machinery automation and computerisation.

“The Government withdrew this reinvestment allowance a few years ago and we think this is a mistake,” he said.

Lim added that Malaysia needed to reduce its dependency on foreign workers and also better manage these workers.

Top Glove Tower, which is a 23-storey Grade A and Green Building Index-certified Gold office and retail building, was launched by the Sultan of Selangor, Sultan Sharafuddin Idris Shah, yesterday.

The RM150mil tower has a built-up area of 640,000 sq ft, with 770 car parks and office and retail space of about 300,000 sq ft.

Top Glove occupies three floors and has another 20% of the space still available for rent.

Thursday, 1 October 2015

Daily Market Review | 01-Oct-2015

Just sharing the Hong Leong Investment Bank's research for your daily review. With hope that this insight will help you to make better decisions and ultimately bring more profit to your pockets! Click here to view the PDF.