Ringgit Ends Firmer Against US Dollar

The ringgit traded stronger at the close today, supported by improving global risk sentiment which triggered a weaker US dollar. As of 6pm, the local currency was traded at 4.1540/1590 versus the greenback compared with 4.1730/1780 yesterday. AxiCorp chief global market strategist Stephen Innes said. 

The ringgit retreated from its recent gains to close lower against the US dollar today despite a recovery in oil prices, amid fresh concerns over Covid-19 as the number of cases increased globally. A dealer said fears of a “second wave” of coronavirus cases intensified in several US states including Arizona, Florida, and the Carolinas that had put investors in a cautious mode. “The rising cases in the United States are worrying and renewed lockdowns in these (affected) states are pretty much unlikely."

The US dollar index (DXY), which measures the greenback's value against major currencies, extended its losses for the third consecutive day, amidst renewed expectations for the additional United States (US) fiscal stimulus and coronavirus vaccine before the year-end, dealers said. At 9 am, the local currency stood at 4.1440/1500 versus the greenback, compared with 4.1420/1460 at Wednesday’s close.

Meanwhile, the ringgit also fell against other major benchmark currencies. It decreased against the Singapore dollar to 3.0657/0717 from 3.0614/0662 recorded at Friday’s close and fell against the Japanese yen to 3.9987/9080 from 3.9897/9964. The local currency depreciated vis-a-vis the British pound to 5.3035/3151 from 5.2983/3075 and weakened against the euro to 4.7954/7052 from 4.7854/7926 previously. — Bernama. 

However, the stronger Chinese yuan, the stimulus impulse by US Presidential candidate, Joe Biden, and the weaker US dollar will help assuage the ringgit's concerns in line with Asian currency markets, which seemed to be running with Blue Wave stimulus hopes, he said. Bank Islam chief economist Dr. Mohd Afzanizam Abdul Rashid said the US dollar weakness was quite prevalent, with the greenback depreciating against the Japanese yen and the euro.

At the opening, the ringgit was also traded lower against other major currencies. It declined against the Singapore dollar to 3.0569/0618 from Wednesday’s close of 3.0555/0596  and decreased against the British pound to 5.4452/4535 from 5.4066/4122 yesterday. The local currency fell versus the yen to 3.9602/9671 from 3.9481/9531 and slipped against the euro to 4.9090/9178 from 4.9058/9109 previously.

Bursa Continues Uptrend, Hovers Near 1,600 Level

 KUALA LUMPUR: Profit-taking halted the rally on Bursa Malaysia as global markets tracked Wall Street lower amid rising coronavirus cases. Bursa Malaysia climbed higher today on optimism over Covid-19 recovery after Gilead Sciences reported some positive developments on clinical trial data. At 12.30pm, the FBM KLCI was down 8.99 points to 1,601.16 as investors sought safety in the 1,600 psychological level following recent gains. Market breadth was positive with gainers outpaced losers 380 to 164, while 299 counters were unchanged, 1,111 untraded, and 22 others suspended. Malacca Securities said US stock markets rebounded as the Dow surged 1.4 percent, reclaiming the 26,000 psychological level after Gilead Sciences said Remdesivir reduced risk death in Covid-19 patients with more studies needed. 

"Still, further upsides remain on the table over signs of a resurgence in bargain-hunting in glove-related stocks amid their attractive valuations, coupled with strong near-term fundamentals" Overnight, Wall Street retreated as several US states imposed restrictions on gatherings following another surge in Covid-19 cases. The pullback offset the euphoria experienced by global markets as Pfizer and Moderna announced breakthroughs in the development of a vaccine.

Malaysian financial counters, which marched higher in light of the news, slumped on Wednesday. Maybank fell 14 sen to RM8.16, Public Bank dropped 12 sen to RM18.78, RHB lost 11 sen to RM5.18 and CIMB slid nine sen to RM3.71. Hong Leong Bank bucked the trend to gain 10 sen to RM18. Meanwhile, Top Glove's share price stabilized after a rout yesterday on a drop-in sentiment over latex gloves demand and news that a portion of the group's workforce would be put in quarantine for Covid-19 infections.

Among heavyweights, Top Glove rose RM1.20 to RM23.12, Hartalega was 54 sen higher at RM17.60 and PetChem added eight sen to RM6.38.

Oil prices, however, were down ahead of a meeting of top producers this week. In contrast, Maybank and Tenaga shed two sen each to RM7.88 and RM11.34 respectively, while Public Bank reduced 22 sen to RM18.28. Of the most active, PDZ Holdings rose 10.5 sen to 31 sen. Vivocom was half-a-sen better at 4.5 sen and VSolar went down one sen to 4.5 sen. On the index board, the FBM Emas was 68.55 points improved at 11,275.36, the FBMT 100 Index expanded 68.26 points to 11,129.64 and the FBM Emas Shariah Index jumped 130.33 points to 12,942.28. 

The FBM 70 rose sharply by 155.72 points to 13,972.57 while the FBM ACE went up 57.56 points to 7,233.21. Sector-wise, the Financial Services Index fell 24.50 points to 13,522.14, the Industrial Products and Services Index increased 0.61 of-a-point to 139.68 and the Plantation Index appreciated 82.09 points to 6,872.11. — Bernama

K Power Revises Share Split, Free Warrants To Reward Shareholders

KUALA LUMPUR, Nov 13 -- Kumpulan Powernet Bhd (KPower) has proposed a one-to-four share split together with an issue of up to 150.8 million free warrants on the basis of one warrant for every three ordinary shares held following the share split exercise.

Kumpulan Powernet Bhd’s (KPower) share price rose more than 6% in morning trade on Bursa Malaysia today after the diversified company announced last Friday its proposed split of one existing share into four units besides its planned issuance of up to 150.78 million free warrants.

In a statement, the group said the proposal is a revision of the previous proposal of a one-to-two share split exercise announced on June 5, 2020. K Power said in a filing with Bursa that the share split aims to, among others, improve the trading liquidity of KPower shares and encourage greater participation by investors in the company’s shares.

Besides that, it said the free warrants would serve as a means for the group to raise fresh funds as and when they are exercised. We thought long and hard about how best to express our appreciation to our shareholders. This share split plus warrant is a splendid combination of a mutual win for the company and our shareholders. With the share split, there will be liquidity and the shareholders will be rewarded for staying with us for the long term.

AmInvestment Bank Bhd analyst Jeremie Yap wrote in a note last Friday that after the ex-dates of KPower’s share split and free warrant issuance,  AmInvestment’s fair value (FV) for KPower shares would be adjusted down to RM1.10. This is assuming full conversion of the warrants and the interest income [at 2% per annum] earned from the proceeds. It said the gross proceeds are expected to be utilized for the future working capital requirements of the group.

It added that the company would continue to explore new investment opportunities within the region and further solidify its ASEAN regional network after its successful investments in Indonesia and Nepal.

KPower’s current valuation of about 13 times CY21 earnings, AmInvestment believes the home-grown renewable energy player has a compelling investment case given its involvement in the green sector where the growth trajectory is just beginning.

Bursa Seen Maintaining Tight Range Trading Next Week

The covid-19 vaccine in the local market inspired rally alive on Thursday after a brief pause on profit-taking yesterday. A return to technology-focused market leaders, which thrived during COVID shutdowns but sold off earlier in the week as investors pivoted to economically-sensitive cyclical stocks, but the Bursa Malaysia out front.

While on Tuesday the yield of benchmark U.S. 10-year Treasuries reached the highest level since March, on Wednesday the U.S. bond market was closed in observance of Veterans Day.

This week we saw a bit of rotation from growth back to value, That we're back to tech has to do with its oversold nature and there's a sense of safety in heavily capitalized technology companies. Consolidation is expected to take place over the near term on the FBM KLCI as investors continue to lock in recent gains, which we deem to be a healthy move at the current juncture.

Meanwhile, we also think that the lower liners will undergo a consolidation with any weakness to be supported by the improved trading liquidity with investors continuing their quest to hunt for higher yields. the top traded stock today, shed 2.5 sen to 24.5 sen following news that it had abandoned plans to acquire industrial glove maker Pearl Glove.

Crude oil prices edged higher, extending their rally and building on gains sparked by the notion of reviving demand and a steeper-than-expected decline in Malaysian inventories. Other top active counters were Medtronic up six sen to 14.5 sen and Lambo unchanged at four sen.

The dollar gained ground against a basket of currencies and the safe-haven yen weakened on hopes that a medical solution to the pandemic could jump-start economic growth. Among the financial heavyweights, Maybank pushed higher by eight sen to RM7.77, Public Bank gained six sen to RM17.74, Hong Leong Bank rose 10 sen to RM16.70 and four sen to RM3.34.

Gold prices slid, hurt by a stronger dollar, and increased risk appetite which drew investors away from the safe-haven metal. Among the financial heavyweights, Maybank pushed higher by eight sen to RM7.77, Public Bank gained six sen to RM17.74, Hong Leong Bank rose 10 sen to RM16.70 and four sen to RM3.34.

Regional markets meanwhile stayed mostly flat as investors digested some of the previous gains. Both Japan's and China's key indices were unchanged while Hong Kong's Hang Seng dipped 0.4%.

Biden Leading The US Election Effect On Malaysian Stock Market

Presidential elections between President Donald Trump and former Vice President Joe Biden could have dramatic effects on various stocks and sectors, and investors have spent months trying to identify potential winners and losers. The result of the United States presidential election is expected to have a lasting, positive effect on Malaysian's stock market in the mid- to long-term.

Malaysia’s Budget 2021 is also a crucial highlight this event-heavy week which also saw Bank Negara Malaysia maintained the Overnight Policy Rate at 1.75.

Malaysia's prime minister urged lawmakers to pass the 2021 budget, in spite of efforts by the opposition to oust his government and pressure from unhappy partners within the governing coalition.

Bursa Technology index constituents pared gains when markets closed. At 5pm, leading gainer MPI ended at RM24.10 while Unisem finished at RM6.11 as investors took a cue from US stocks' overnight performance. Malaysia's 10-year benchmark yield up 0.4 basis points to 2.625%.

Here you find the latest information on FTSE Bursa Malaysia KLCI (^KLSE) including data, charts, related news, and more click here.

Bursa slips deeper into red, over 1,000 stocks fall

 Bursa Malaysia slipped deeper into the red in late afternoon trade on Friday with over 1,000 counters falling, tracking the falls in key Asian markets on worries about the outlook for tech giants.

FBM KLCI was down 28.76 points or 1.92% to 1,466.44. Turnover was 4.05 billion shares valued at RM2.37bil. There were 147 gainers, 1,056 losers and 248 stocks unchanged.

Key Asian markets fell with South Korea's Kospi down 2.56%, Japan's Nikkei 225 1.52% and the Topix 1.96% while the Shanghai Composite lost 1.49% and Singapore's STI 0.93%.

Top Glove lost 21 sen to RM8.57 and erased 2.59 points while Hartalega lost six cents to RM17.96 and shed 0.31 of a point.

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KLCI pares gains, remains subdued despite emergency unannounced

  The main index at Bursa Malaysia pared some of its loss, as sentiment somewhat remained subdued despite a proclamation of an emergency, which was bandied about last Friday, being averted.

FBM KLCI was down 7.70 points to 1,486.94. The index had earlier slipped to a low of 1,482.80.

.The United States has seen its highest ever number of new Covid-19 cases in the past two days, while France also set unwanted case records and Spain announced a state of emergency, it said.

CGS-CIMB Research said while the decision of Yang di-Pertuan Agong Al-Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah Shah to reject the government’s request for emergency powers to fight the Covid-19 pandemic is a major relief for the market and could lead to reduced political noise in the near term, it is unlikely to alleviate foreign investor concerns.

The actively traded stocks included newly-listed Mr DIY Group (M) Bhd, Vsolar Group Bhd, Advance Synergy Bhd, Luster Industries Bhd, Mah Sing Group Bhd, XOX Bhd, Kanger International Bhd and Sapura Energy Bhd.

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FGV Holdings Bhd rose as much as 7.48%

 FGV Holdings Bhd rose as much as 7.48% or eight sen to RM1.15 this morning after the plantation unit received buying interest from Perspective Land (M) Sdn Bhd (PLSB), which is wholly-owned by Tan Sri Syed Mokhtar Albukhary’s privately-held Restu Jernih Sdn Bhd.

At 10.57am, the counter had pared some gains, but was still up five sen or 4.67% at RM1.12. It saw 10.12 million shares change hands.

Hong Leong Investment Bank (HLIB) Research analyst Chye Wen Fei in a note today maintained the research house's "hold" rating for FGV, with an unchanged target price (TP) of RM1.08, given the sketchy details provided thus far.

According to FGV's filing with the bourse exchange yesterday, PLSB intends to participate in FGV via an injection of plantation assets in exchange for shares.

PLSB owns the Tradewinds group of companies, including Tradewinds Plantation Bhd and Central Sugars Refinery Sdn Bhd, which are in the same businesses FGV is involved in.

Malaysia’s opposition leader Anwar Ibrahim met the Southeast Asian nation’s king today

 After leaving the media without any statement upon leaving Istana Negara, Parti Keadilan Rakyat (PKR) President Datuk Seri Anwar Ibrahim is scheduled to hold a special press conference to make an important announcement regarding his meeting with the Yang di-Pertuan Agong, Al-Sultan Abdullah Ri ' ayatuddin Al-Mustafa Billah Shah today.
PKR Communications Director, Fahmi Fadzil confirmed the matter in a notification to the media.

Muhyiddin, who took power in March after securing enough support in Parliament to unseat Anwar’s reformist alliance, has dismissed Anwar’s claim to a majority. Muhyiddin currently boasts a slim two-seat majority and has been grappling to maintain support amid infighting in his coalition.
Allies in Muhyiddin’s ruling coalition have denied supporting Anwar, and branded Anwar a “desperado” for seeking to wrest power as the country struggles with the coronavirus.

Top Glove Corp raising more than US$1 billion from a listing in Hong Kong

 Top Glove, whose shares are traded in Kuala Lumpur and Singapore, is working with advisers on the potential share sale in Hong Kong. 

At US$1 billion, Top Glove’s listing would be the biggest ever by a Malaysian company in Hong Kong.

Deliberations are ongoing and details of the offering including size could increase depending on investor feedback, the people said.

The company confirmed that it is evaluating a dual primary listing in Hong Kong, according to an exchange statement Monday, without providing details of the offering.

FBM KLCI was up 10.35 points to 1,499.91

 The FBM KLCI was up 10.35 points to 1,499.91 in line with other Asian markets that rallied on US President Donald Trump backpedalling on a decision to halt further stimulus talks.

Most heavyweights on the FBM KLCI advanced, led by Petronas Chemicals climbing 20 sen to RM5.90, IHH Healthcare adding 10 sen to RM4.99 and Maybank risig seven sen to RM7.17.

Rubber counters took a breather after its recent rally with Top Glove staying flat at RM8.80 and Hartalega dipping four sen to RM16.86.



In plantations Sime Darby Plantation, which experienced a selloff yesterday, bounced 11 sen higher to RM5. IOI also rebounded seven sen to RM4.34 while KL Kepong stayed flat at RM22.46.

Top active stocks were Trive flat at 1.5 sen, Kanger down 0.5 sen at 19 sen and Bintai Kinden up 2.5 sen to 70.5 sen. Asian markets meanwhile ticked higher on renewed hopes for more US stimulus.

VALUE INVESTING REPORT OF SGX 30/09/2020

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