Bursa CFD Market News & Reviews

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The Week Ahead (14/9/2020)

The FBM KLCI snapped two straight days of losses on Friday as glove stocks were back on the uptrend on bargain hunting. Index linked glove makers Top Glove Corp Bhd and Hartalega Holdings Bhd were among the stocks that regained some of their lost ground.

Oil prices fell further on Friday and were on track for a second weekly drop after U.S. stock markets tumbled and U.S. stockpiles rose unexpectedly.

Read More: Bursa CFD Weekly

Global Economy

U.S. stock index futures climbed on Friday, with tech shares gaining after a pullback in the previous session, as Oracle’s solid quarter restored faith that tech related companies are emerging stronger from the coronavirus crisis.

European shares turned flat after opening marginally lower on Friday, a day after the European Central Bank took a less dovish tone than expected on stimulus, while growing prospects of a no deal Brexit kept risk sentiment subdued.

Chinese shares recovered lost ground to end higher on Friday, though the benchmark Shanghai Composite Index posted its biggest weekly drop in eight as Beijing’s rift with Washington had investors sticking to safer assets.


Company in Focus

Top Glove Corp Bhd, has bought back more of its own shares in the open market, while its share price rebounded today following a sharp fall recently. The world’s biggest rubber glove maker announced to the stock exchange that it bought back 13.42 million shares, with prices ranging from RM6.20 to RM8 apiece. The stock, which staged a strong rebound today, hit an intraday high of RM8.03.


Public Bank Bhd is going to hold Repayment Assistance Clinics (PBB RAC) at major cities and towns nationwide to help customers who require further assistance once the six month loan moratorium ends on Sept 30. In a statement, the bank said the clinics would be held on Saturday and Sunday for six weeks, starting Sept 19. To participate, the bank said customers can access its website for event details and pre registration procedures.


Axiata Group Bhd said its dividend of 2 sen per share for the second quarter ended June 30, 2020 will be paid on Oct 13. The counter will go ex on Sept 28, while the entitlement date is on Sept 29, Axiata said in a stock exchange filing today. The dividend payout was first announced with the group’s latest quarterly results last month. For the second quarter ended June 30 (2QYF20), Axiata’s net profit fell 63.72% to RM80.02 million or 0.9 sen per share, from RM220.56 million or 2.4 sen per share a year earlier, dragged by weaker performance in Malaysia and Nepal, and on a smaller one off gain on disposal.


FGV Holdings Bhd through its subsidiary Delima Oil Products Sdn Bhd (DOP) has introduced three new essential food items under its flagship brand SAJI, in line with its expansion into the fast moving consumer goods (FMCG) segment. In a statement today, it said the products consist of SAJI rice, SAJI coarse sugar and SAJI coconut milk, which are among the products set to hit the shelves this month, adding to the array of FMCG products under the brand.


RHB Investment Bank Bhd has maintained its “buy” rating on MISC Bhd at RM7.59 with an unchanged target price of RM8.91 with no changes to its earnings estimates due to expectations of a weaker 2H20F as a result of a moderation of tanker rates. In a note today, the research house said contract flows will slow down at least to the end of the year as they have a relatively muted near term outlook. RHB said MISC is focusing on the Mero 3 conversion and expecting the operating cash flow to grow 10 15% backed by new asset additions.


Bermaz Auto Bhd‘s net profit in the quarter ended July 31, 2020 (1QFY21) has rebounded from the immediate preceding quarter, helped by aggressive campaigning and government initiatives to rekindle market demand in the automotive sector. Group net profit stood at RM9.25 million or 0.8 sen per share in 1QFY21, up almost four fold from RM2.46 million or 0.21 sen per share in 4QFY20, when Bermaz went through six weeks without sales due to the Movement Control Order.


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