TODAY

Stocks recommendation as per my earlier recommendations; HIBISCUS, KHEESAN, PELIKAN, BINACOM AND PN17 COMPCORP AND BRAHIMS. Under the radar; MUIIND, IBHD, IMPIANA, SCABLE, TNLOGIS, OCK, TAS, KPPROP, HUMEIND, ROHAS (Just watching not in yet)

PAOLO CONTE – It’s wonderful – Via con me. Paolo Conte is an Italian singer, pianist, composer, and lawyer, notable for his grainy, resonant voice.

What’s Up Buddy?

RHB: Technical Analyzer
31 January 2020
FKLI & FCPO: FKLI: Retracement Is Extending

Downtrend is extending; maintain short positions. The FKLI closed 4 pts weaker yesterday at 1,546 pts, after it reached a low and high of 1,538.5 pts and 1,550 pts. The negative session is a continuation of the index’s retracement leg, which resumed after it failed to cross above the 200-day SMA line last December and in early January. While the recent retracement is approaching an oversold RSI reading, in the absence of a positive price reversal signal, we are keeping to our negative trading bias.

Trading Stocks: Thong Guan Industries, Mega First Corp, Bahvest Resources, Carlsberg Brewery Malaysia, LKL International & JHM Consolidation

NEWS HIGHLIGHTS
EA Technique: Bullish on 2020 performance
WCE Holdings: WCE begins toll collection
Hong Kong: Exports in 2019 record decade’s sharpest drop at 4.1% amid trade war
E-commerce: Amazon revenue jumps on holiday sales as profit rises


HLIB: Bursa Malaysia (HOLD)
Ending in-line
Bursa reported FY19 core PATMI of RM189.2m (-16% YoY) which met both our expectations and consensus. Given stable cost base, lower FY19 earnings YoY was largely a function of revenue decline (mainly equities; -19.8% ADV fall). While Jan ADV showed improvement both MoM and YoY, we are cautious on its sustainability. Forecast is largely unchanged (±1%) but we take the opportunity to trim our applied PE multiple from 26x to 25x, tracking the Asian average. TP is lowered from RM6.29 to RM6.12. Maintain HOLD.

Malique & DJ Fuzz featuring Salam – Cerita Kedai Kopi

TODAY

Running away? Where to? Moon? 😀

I don’t know about you, but I’m bullish on oil. Historically, Brent crude oil reached an all time high of US$147.50 in July of 2008. U.S. Energy Information Administration’s (EIA) forecasts that the Brent crude oil spot price will average US$65 per barrel (b) in 2020 and US$68/b in 2021 and that the West Texas Intermediate (WTI) spot price will average US$59/b in 2020 and US$62/b in 2021As such, my Top Pick HIBISCS (5199). Still below the Recomendation**BUY HIBISCS** price targets, not 1 but 3 analysts that cover the stock; 1) DBS RM1.40. 2) BIMB RM1.50. 3) PUBLIC INVESTMENT BANK RM1.55. The above price targets are based on Brent crude oil prices US$65/bbl mark. BUY HIBISCS (5199) BEFORE IT’S TOO LATE.

You may want to consider this option;

As long as the PN17 companies have not been delisted, their listing status still has value. Well, partly this is due to an attrition and product life cycle process and partly this is because of the business cycle. You can buy CompCorp/Dhaya Maju Infrastructure (Asia) Sdn Bhd or Brahims/MRI VC Bhd or KHEESAN/MAMEE. Well, KHEESAN is not yet a PN17 company. But the name MAMEE DOUBLE DECKER sound interesting enough to grab KHEESAN shares. It’s just a thought. By the way, I like PELIKAN too. PELIKAN Art & Crafts Tools. Hmm. It puts some fun into my days and gives me something to look forward to.

Mentera Semerah Padi acapella cover by IDentity.

What’s Up Buddy?

Technical Stock Pick

BUY  StockLast PriceTarget Price
TASEK5.558.20
HUMEIND1.332.14
MCEMENT3.405.20
GREATEC2.634.00
MI2.013.02
TOPGLOV4.826.19
KOSSAN4.236.45
SUPERMX1.312.15
HARTA5.557.25
MUDAJYA0.520.74
*Last closing price when stock first recommended

sources RHB INVESTMENT BANK

Bursa Malaysia closes lower on weak market sentiment

BERNAMA via SUNBIZ (Jan 30) KUALA LUMPUR: Bursa Malaysia closed lower today on weak market sentiment as concerns on the economic impact of the 2019 novel Coronavirus, which originated from Wuhan, continued to weigh on investors.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 4.88 points to 1,545.59 from yesterday’s close of 1,550.47.

After opening 0.78 point better at 1,551.25, the benchmark index moved between 1,540.71 and 1,551.25 throughout the day.

On the broader market, losers outpaced gainers 646 to 253, with 368 counters unchanged, 724 untraded and 76 others suspended.

Turnover increased to 2.80 billion shares worth RM2.31 billion from 2.69 billion shares worth RM2.55 billion yesterday.

In a note, Malacca Securities Sdn Bhd said investors remained cautious on the economic impact from the Coronavirus outbreak.

“With the lack of fresh leads, we reckon that the key index will continue to trade in a downward bias momentum with the key index already re-testing the 1,550 key support level.

“A fall beyond the aforementioned level will see the key index tumbling to a fresh four-year low towards the 1,535 level or even the 1,500 psychological level. Any recovery is expected to be insignificant with gains limited towards the 1,575 for the time being,” it added.

The decline on the FBM KLCI was also in line with movements in regional stocks, with Hong Kong’s Hang Seng Index down 2.62% to 26,449.13, while Singapore’s Straits Times Index fell by 0.43% to 3,168.96 and the Jakarta Composite Index eased by 0.91%to 6,057.60.

Among the heavyweights on Bursa Malaysia, Maybank gained four sen to RM8.49, Public Bank lost 10 sen to RM18.90, Tenaga was eight sen lower at RM12.48 and Petronas Chemicals decreased 13 sen to RM6.45.

Of the actives, Bumi Armada shed two sen to 39 sen, Impiana Hotel was unchanged at 2.5 sen and RGB International added two sen to 19.5 sen.

On the scoreboard, the FBM Emas Index was 49.65 points lower at 11,029.97, the FBM Emas Shariah Index lost 71.27 points to 11,713.01 and the FBMT 100 Index fell 43.84 points to 10,826.78.

The FBM 70 erased 95.91 points to 13,897.38 and the FBM ACE decreased 14.57 points to 5,621.22

Sector-wise, the Industrial Products and Services Index inched down 1.31 points to 147.22, the Financial Services Index declined 24.26 points to 14,889.89 and the Plantation Index was 57.49 points weaker at 7,156.71.

Main Market volume rose to 1.79 billion shares worth RM2.05 billion from 1.65 billion shares worth RM2.28 billion yesterday.

Warrants turnover increased to 460.52 million units worth RM86.72 million from 410.79 million units worth RM70.40 million.

Volume on the ACE Market reduced to 557.77 million shares worth RM174.48 million from 621.91 million shares worth RM192.94 million.

Consumer products and services accounted for 419.74 million shares traded on the Main Market, industrial products and services (244.46 million), construction (87.97 million), technology (132.02 million), SPAC (nil), financial services (46.81 million), property (103.67 million), plantations (62.49 million), REITs (21.69 million), closed/fund (101,000), energy (444.61 million), healthcare (97.39 million), telecommunications and media (23.74 million), transportation and logistics (71.42 million) and utilities (34.33 million).

It’s too late for sorries, but I appreciate the sentiment.

«Life on Mars» (David Bowie) cover by Aurora. Aurora Aksnes, is a Norwegian singer, songwriter and record producer.

TODAY

Every Wednesday morning has its own uniqueness. One of the beautiful qualities of a good Wednesday is the early morning aerobics; I hope you are unto it too? With it, say bye to a Doctor. Good morning!

What’s Up Buddy?

RHB: Bumi Armada – BUY – TP: MYR0.61

With regards to the termination of contract on the FPSO Armada Claire in Mar 2016, the Supreme Court of Western Australia delivered its judgment on 24 Jan – ruling in favour of Woodside Energy (Woodside) on Armada Balvenes’ main claim of a repudiation of the contract. The latter is a Bumi Armada unit.

However, Armada Balvenes is entitled to USD2m in unpaid milestone claims and AUD341,165 in unpaid invoices. It is required to pay AUD1.6m for the reimbursement of miscellaneous charges, though. (Bursa Malaysia)

This court decision is unfavourable to Bumi Armada, as the company was seeking potential compensation of up to USD284m. Having said that, if it clears the outstanding amounts with Woodside, Bumi Armada could still see a net one-off cash inflow of MYR4.6m. The company is currently reviewing the judgment and considering possible grounds of appeal. Any appeal has to be lodged by 14 Feb.

FPSO Armada Claire is currently idle, and management is looking for redeployment opportunities amidst several enquiries. Recall that Bumi Armada impaired MYR570m on the vessel in 2Q16, and we do not expect any significant impairment/reversals subsequent to the court’s decision.

While keeping our earnings estimates – as the net cash inflow is rather insignificant – there is no change to our recommendation and SOP-derived TP. This was because as we have not factored any win from the litigation case.

My Top Pick;

I don’t know about you, but I’m bullish on oil. Historically, Brent crude oil reached an all time high of US$147.50 in July of 2008. U.S. Energy Information Administration’s (EIA) forecasts that the Brent crude oil spot price will average US$65 per barrel (b) in 2020 and US$68/b in 2021 and that the West Texas Intermediate (WTI) spot price will average US$59/b in 2020 and US$62/b in 2021As such, my Top Pick HIBISCS (5199). Still below the Recomendation**BUY HIBISCS** price targets, not 1 but 3 analysts that cover the stock; 1) DBS RM1.40. 2) BIMB RM1.50. 3) PUBLIC INVESTMENT BANK RM1.55. The above price targets are based on Brent crude oil prices US$65/bbl mark. BUY HIBISCS (5199) BEFORE IT’S TOO LATE.

You may want to consider this option;

As long as the PN17 companies have not been delisted, their listing status still has value. Well, partly this is due to an attrition and product life cycle process and partly this is because of the business cycle. You can buy CompCorp/Dhaya Maju Infrastructure (Asia) Sdn Bhd or Brahims/MRI VC Bhd or KHEESAN/MAMEE. Well, KHEESAN is not yet a PN17 company. But the name MAMEE DOUBLE DECKER sound interesting enough to grab KHEESAN shares. It’s just a thought. By the way, I like PELIKAN too 😄

My My Hey Hey – Neil Young. Neil Young is a Canadian-American singer-songwriter, multi-instrumentalist and activist. After embarking on a music career in the 1960s, he moved to Los Angeles, where he formed Buffalo Springfield with Stephen Stills, Richie Furay and others.

“No thief, however skillful, can rob one of knowledge, and that is why knowledge is the best and safest treasure to acquire.”
― L. Frank Baum

TNG Digital eyes smaller merchants as e-wallet battle hots up

SUNBIZ (Jan 28) PETALING JAYA: Against the backdrop of a highly competitive e-wallet segment, TNG Digital Sdn Bhd aims to expand its network of merchant partners in 2020 to stay ahead of its competitors.

Its CEO Ignatius Ong (pix) said the strategy for the company this year is to focus on roping in smaller merchants that are relevant to Malaysians such as roadside stalls, mamak stalls, convenience stores, wet markets and pasar malam (night markets).

“One of the ways that we continue to have an advantage over our competitors is by being at places that are relevant to the Malaysian experience,” he told SunBiz.

Ong said the focus on smaller merchants is in line with the e-wallet’s main objective is to replace cash transactions.

Towards this end, the e-wallet player will be working closely with agencies to partner with more merchants in a faster pace, including in small towns across Malaysia.

“We want to make sure our offerings can be enjoyed and benefit all Malaysians.”

Ong estimated that currently TNG Digital has attracted 60% of the big merchants with the likes of KFC, Shell and Legoland.

“For this segment, we want to work more with these key accounts to see how we could bring more value to our merchants and ourselves,” he said.

For example, discounts and promotions can be offered to a specific demographic within a merchant’s lean period.

Currently TNG Digital has a user base of 6.8 million people with more than 110,000 merchant partners.

With regard to its toll offering, Ong said its radio frequency identification (RFID) technology is being used in 25 highways in Malaysia.

“In the first or second quarter of 2020, we are expecting to get PLUS highways on board and subsequently we’re expecting a lot more take-up for the solution by highway users.”

In addition, TNG Digital has also introduced a pay direct system for the existing 12 million Touch ‘n Go cardholders, which would allow them to use the e-wallet to top up their cards via banks.

The e-wallet provider is also looking at offering investment products through its platform this year, as only 3% of the 24 million working population in Malaysia undertake investment activities.

“From an e-wallet perspective, we want to see the platform used to roll out products that are relevant to people. In that sense, we don’t pay too much attention to what our competitors do, but more important is to have a product that people want. At the end of the day, it’s all about financial inclusivity.”

With 48 e-money licences issued by Bank Negara Malaysia, there has been an expectation of consolidation among the e-wallet service providers.

Ong admitted that there are too many e-wallet players in Malaysia.

“If you look at China, a country with 1.4 billion people, there are only two e-wallets, I don’t see how Malaysia with a population of 32 million needs more than three.

“Moving forward, it’s all about how the strong will survive and flourish, and we’re definitely one of those guys,” he said.

TODAY

In a note, Rakuten Trade said it was not an auspicious start for the regional stock markets today as the spread of the 2019 Novel Coronavirus in Wuhan had investors scurrying for cover as many unloaded their positions, pushing down the overnight Dow Jones Industrial Average by 453 points.

It said crude oil prices also retreated on the potential negative impact of the virus outbreak on demand, with Brent crude oil trading below the US$60 per barrel level.

Coronavirus? What’s that got to do with the stock markets?

KIBLATKU – HAZAMI. Singer, Vocal Trainer, Songwriter and also producer. Hazami debut album was Tekad, Redha, Tabah (2002) . This was followed by Kata (2005), Kiblatku (2007) , and the double albums Yang Pertama and Running (2009), Petikan Sedekad Hazami (2012) and The Best Of Hazami (2013) .


Don’t panic. Are you sitting? You probably don’t need to sit. Well, possibly. At least lean on something. Please remember, the stocks of both good and bad companies tend to go down. But bad stocks tend to stay down, while good stocks recover and get back on the growth track.

What’s Up Buddy?

RHB: OCK Group (OCK MK, BUY, TP: MYR0.75)

Ripe For a Re-Rating? Maintain BUY

Company Update: Maintain BUY and SOP-based TP of MYR0.75, 28% upside. Management is confident of sealing the towerco divestment deal soon. A deal is crucial so as not to scuttle its regional expansion plans whilst removing the overhang on the stock. We maintain our earnings forecasts ahead of a seasonally strong 4Q19 showing (results due at end-February). Key risks are the planned divestment falling through and weaker-than-expected results/margins.

*28 Jan Tue*
*Icon(5255)* and *Icon-OR**(5255OR)* reclassified as DESIGNATED SECURITIES  (With the designation, trading in the counters will require payment upfront before buying and a free balance of securities before selling.)

RHB Technical Analyzer
28 January 2020
FKLI & FCPO: FKLI: Knife Is On The Immediate Support

Maintain long positions as the immediate support continues to persevere. The FKLI ended the latest session on the immediate support of 1,571 pts, indicating a 1.5-pt decline. The low and high were posted at 1,566.5 pts and 1,574.5 pts. As indicated in our recent reports, as long as the said immediate support is not breached towards the downside, there would still be no confirmation for a clear breakdown from the 50-day SMA line. Should the said level be breached in the coming sessions, it could potentially mark the end of the index’s multi-month countertrend rebound that started from 1,547.5 pts posted on 10 Oct 2019. For now, we stay with our positive trading bias.

Trading Stocks: Notion VTec, Top Glove Corp, JAKS Resources, GHL Systems, JF Technology & Insas

Liberia’s Weah to open up bids for oil and gas exploration

AFP via SUNBIZ (Jan 28) MONROVIA: Liberian President George Weah announced Monday that the West African country will launch a call in April for bids to resume offshore oil and gas exploration after years of stagnation.

“Nine offshore blocks will be put up, allowing competent and reputable international oil and gas companies to bid with the hope of recommencing exploration programs, following years of inactivity,” Weah said during his annual state of the nation address to parliament.

After two years in office, Weah recalled how he had promised to promote oil and gas exploration as a potential source of revenue for the poor country, saying the amendments to the law on petroleum passed last year now make that possible.

The basin where the nine new blocs are located is part of the last region off the coast of western Africa which has yet to be explored for potential reserves, according to experts.

The football star-turned-president has been under pressure as the country grapples with rampant inflation and anti-government demonstrations in the capital Monrovia to protest the economic downturn.

Liberia’s economy was already decimated after back-to-back civil wars and the 2014-2016 Ebola crisis.

On Monday Weah called on Liberians to be patient.

“Without trying to make any excuses, let me explain that many of the problems that my government has inherited are exogenous, and require solutions which must include global and innovative approaches,” he said.

“Although we have had economic issues, the change that I promised can still be felt. I know that you would like to see these changes take place more rapidly…. But what is important is that the change has already begun.”

Jampi cover by Hazami.

TODAY

Saudi says coronavirus impact on oil demand limited

AFP via FMT (Jan 27) RIYADH: Top oil exporter Saudi Arabia said on Monday that the impact of a deadly coronavirus epidemic on oil demand was “extremely limited” but that the kingdom was closely following events.

Oil prices plunged on Monday, with Brent crude dropping below US$60 a barrel for the first time in almost three months amid fears over the economic effects of the epidemic, which has killed over 80 people in China.

But the outbreak’s impact “on the global demand for oil is extremely limited,” Energy Minister Prince Abdulaziz bin Salman said in a statement cited by the SPA state news agency.

“A big part of the impact on global markets including the petroleum markets… is driven by psychological factors” and “pessimistic views” among dealers, he added.

Prince Abdulaziz recalled that the 2003 outbreak of Severe Acute Respiratory Syndrome (SARS) did not push down demand for oil.

He said Saudi Arabia was “closely watching” developments in oil markets, the global economy and that of China, a major buyer of Saudi crude.

“The kingdom and the OPEC+ alliance (of oil exporters) have the capability and the flexibility to respond to any changes… to support the stability of the oil markets, if needed,” he said.

I don’t know about you, but I’m bullish on oil. Historically, Brent crude oil reached an all time high of US$147.50 in July of 2008. U.S. Energy Information Administration’s (EIA) forecasts that the Brent crude oil spot price will average US$65 per barrel (b) in 2020 and US$68/b in 2021 and that the West Texas Intermediate (WTI) spot price will average US$59/b in 2020 and US$62/b in 2021As such, my Top Pick HIBISCS (5199). Still below the Recomendation**BUY HIBISCS** price targets, not 1 but 3 analysts that cover the stock; 1) DBS RM1.40. 2) BIMB RM1.50. 3) PUBLIC INVESTMENT BANK RM1.55. The above price targets are based on Brent crude oil prices US$65/bbl mark. BUY HIBISCS (5199) BEFORE IT’S TOO LATE.

Ryuichi Sakamoto – Forbidden Colours

Ryuichi Sakamoto is a Japanese composer, singer, songwriter, record producer, activist, and actor who has pursued a diverse range of styles as a solo artist and as a member of Yellow Magic Orchestra.

Quote of the Day: “If you want your energy bills to go up, you should support an ever greater dependence on foreign oil, because the rate of new discoveries is declining as demand in China and India is growing, and the price of oil and thus the price of coal will go sky high.”
— Al Gore

TODAY

I try not to miss you, but in the end I still do. 😄 LOL

Nil Sé’n Lá – Celtic Woman.

The Irish title of this song is “Nil Sé Ina La”. The English translation is “It’s Not Yet Day”. Celtic Woman is an all-female Irish musical ensemble conceived and created by David Kavanagh, Sharon Browne and David Downes, a former musical director of the Irish stage show Riverdance.

Hong Kong stocks up after week of virus jitters

AFP via MMO (Jan 24) HONG KONG: Hong Kong shares rose slightly in today’s trade as the market stabilised following a week of investor nerves over China’s coronavirus outbreak.

The Hang Seng index was up 0.11 per cent, or 31.33 points, to 27,940.45.

The bourse closed at lunch for the Lunar New Year holiday and trade returns on Wednesday.

Stock Limit Up
Limit up refers to the maximum amount an exchange allows the price of a stock, commodity futures or options contract, or other exchange-traded asset to increase in one trading day. Some exchanges even suspend trading when the limit price is reached.

In futures trading, the limit down price is the percentage decline possible in one trading day. In stocks, the limit down is the percentage decline permitted before automatic trading curbs kick in. The SC’s Limit Up Limit Down rule is designed to limit stock price volatility created by high-frequency trading.

Libyan central bank chief says oil blockade must be lifted

REUTERS via MMO (Jan 25) LONDON: A blockade of major Libyan oil ports is damaging the economy and must be quickly resolved, the Tripoli-based central bank governor told Reuters yesterday, adding that Libya could run a budget deficit in 2020 as a result.

“Now oil represents 93-95 per cent of total revenue and covers 70 per cent of total spending. This is a bullet in the head, that will hurt Libya and the Libyan people,” Sadiq al-Kabir said in an interview in London. “We really hope the crisis is resolved as fast as possible because it hurts everyone.”

Libya’s internationally recognised prime minister Fayez al-Serraj has warned of catastrophe if the week-long blockade by eastern-based commander Khalifa Haftar’s forces, which has cut oil output to almost zero, is not lifted.

Previously, oil production was 1.2 million barrels a day.

Kabir said the central bank had not yet agreed on a budget for 2020 with the internationally recognised government, which had proposed a budget deficit of 17.5 billion dinars (US$12.5 billion or RM50.8 billion).

“We rejected that and asked them to trim spending,” he said, adding that a deficit was still possible due to the oil blockade.

In 2019, the Tripoli government had planned to stop posting deficits but was then faced with a campaign of Haftar’s forces, requiring to pay for arms and logistical support of its forces.

Officials did not say whether a deficit was posted last year.

Kabir said authorities had made 23.8 billion dinars in 2019 in fees on hard currency sales which were introduced in 2018 as part of economic reforms. In 2018, fees worth 13.2 billion dinars were collected, he said.

Kabir has been challenged by eastern officials, which have set up their own government and central bank branch selling bonds outside the official financial system to raise funds.

The national debt, exclusively in local currency, was now 50 billion dinars, Kabir said.

Eastern officials complain they do not benefit from oil revenues, accusations rejected by Tripoli officials as the Tripoli-based central bank funds some public salaries and fuel supplies to the east.

Kabir declined to give a figure for foreign reserves but said they had risen slightly in the last two years, when oil production was more stable than in the aftermath of the 2011 revolution.

Since the fall of dictator Muammar Gaddafi’s regime in the 2011 Nato-backed uprising, oil-rich Libya has slid into chaos and has had no proper budget as rival administrations vie for power.

I don’t know about you, but I’m bullish on oil. Historically, Brent crude oil reached an all time high of US$147.50 in July of 2008. U.S. Energy Information Administration’s (EIA) forecasts that the Brent crude oil spot price will average US$65 per barrel (b) in 2020 and US$68/b in 2021 and that the West Texas Intermediate (WTI) spot price will average US$59/b in 2020 and US$62/b in 2021. As such, my Top Pick HIBISCS (5199). Still below the Recomendation**BUY HIBISCS** price targets, not 1 but 3 analysts that cover the stock; 1) DBS RM1.40. 2) BIMB RM1.50. 3) PUBLIC INVESTMENT BANK RM1.55. The above price targets are based on Brent crude oil prices US$65/bbl mark. BUY HIBISCS (5199) BEFORE IT’S TOO LATE.

TODAY

GENTLE REMINDER

Icon Offshore shares, rights classed as designated securities from Jan 28

SUNBIZ (Jan 24) PETALING JAYA: Icon Offshore Bhd shares and ordinary rights with warrants (Icon OR) have been declared “designated securities” by Bursa Securities Bhd, with effect from Jan 28 until further notice.

“The decision to designate the securities of Icon and Icon OR is due to excessive speculation observed in the trading of the securities and has been taken in the interest of ensuring a fair and orderly market,” the market regulator said in a statement.

With the designation, trading in the counters will require payment upfront before buying and a free balance of securities before selling.

In a Bursa filing this afternoon, Icon Offshore said Urusharta Jamaah Sdn Bhd had ceased to be a substantial shareholder after disposing 972,225 shares yesterday.

Urusharta Jamaah is a special-purpose vehicle set up by the government to manage Lembaga Tabung Haji’s underperforming assets.

Bursa Malaysia and its subsidiaries will be closed on Monday, 27 January 2020 in place of the Chinese New Year holiday which falls on Sunday 26 January 2020. Bursa Malaysia and its subsidiaries will resume operations on Tuesday, 28 January 2020.

MY THOUGHTS: As long as the PN17 companies have not been delisted, their listing status still has value. PN17? Well, partly this is an attrition and product life cycle process and partly this is because of the business cycle. You can buy CompCorp/Dhaya Maju Infrastructure (Asia) Sdn Bhd or Brahims/MRI VC Bhd or KHEESAN/MAMEE. Well, KHEESAN is not yet a PN17 company. But the name MAMEE DOUBLE DECKER sound interesting enough to grab KHEESAN shares. It’s just a thought. LOL 😄

Khazanah lodges police report over Malaysia Airlines board papers leak

MMO (Jan 24) KUALA LUMPUR, Jan 24 — Malaysia’s sovereign wealth fund Khazanah Nasional Bhd has lodged a police report yesterday over the leak of its entire board papers on Malaysian Airlines Bhd.

Financial newspaper The Edge reported that the wealth fund’s management were understandably shocked and upset over the leak.

“The sources said this was not a normal leak of information to the media which typically does not involve such detailed information.

“It appears that the entire set of confidential board papers on the various options being considered for the troubled national carrier was given to the news portal which published them in a series of articles earlier this week,” said the report.

Apparently only a small group of people had access to the documents.

The main content of the proposal was the merger of Malaysia Airlines with AirAsia Group Bhd and AirAsia X Bhd.

Khazanah was reportedly worried that the leak containing confidential information will make it difficult for future dealings with third parties as the integrity of its processes is now at stake.

Dear FocusM, all human beings have three lives: public, private, and secret.

One of my favourite songs; LANDING IN LONDON – 3 Doors Down feat Bob Seger. 3 Doors Down is an American rock band from Escatawpa, Mississippi, that formed in 1996. Bob Seger is an American singer, songwriter and musician.

TODAY

If my hubby knew how unproductive I am on Fridays, he wouldn’t want me here either. LOL 😄

RHB lowers rates in line with OPR cut

SUNBIZ (Jan 23) PETALING JAYA: RHB Banking Group has revised its Base Rate (BR) and Base Lending Rate (BLR) downwards by 25 basis points effective Jan 29 2020, in line with the reduction in the Overnight Policy Rate (OPR) by Bank Negara Malaysia.

In a statement, the group said RHB Bank Bhd,, RHB Islamic Bank Bhd and RHB Investment Bank Bhd will reduce its BR to 3.5% from 3.75% per annum, and will also revise the BLR to 6.45% from 6.70% per annum.

In line with the revision, RHB Bank’s fixed deposit rates will also be revised downwards by 25 basis points effective 29 Jan 2020.

Timing of 25 basis points (bps) cut a surprise; remains to be seen if this will spur loan demand

Maybank, Public Bank revise rates following OPR cut

SUNBIZ (Jan 23) PETALING JAYA: Malayan Banking Bhd (Maybank) reduced its base rate (BR) and base lending rate (BLR) by 25 basis points (bps) to 2.75% and 6.4% respectively, effective Jan 24.

In addition, its Islamic BR and base financing rate (BFR) will be reduced by 25 bps to 2.75% from 3% and to 6.4% from 6.65% respectively, it said in a statement yesterday.

Following the revision, Maybank’s deposit rates will also be adjusted downwards by 25 bps in tandem with the rate reduction.

The last revision to Maybank’s BR was on May 17, 2019 when it was adjusted to 3% from 3.25%.

Meanwhile, Public Bank has also reduced its BR, BLR and BFR by 25 bps effective Jan 28.

The bank said the move is in line with the cut in the Overnight Policy Rate of 25 bps by Bank Negara Malaysia on Jan 22.

At the same time, Public Bank’s fixed deposit rates will also be adjusted by 25 bps, effective on the same date.

Rohas (9741) – Immediate support at RM0.585.

I’m bullish on oil. Historically, Brent crude oil reached an all time high of US$147.50 in July of 2008. As such, my Top Pick HIBISCS (5199). Still below the Recomendation**BUY HIBISCS (5199) – price targets, by 3 analysts that cover the stock; DBS RM1.40, BIMB RM1.50, PUBLIC INVESTMENT BANK RM1.55. The above price targets are based on Brent crude oil prices US$65/bbl mark. U.S. Energy Information Administration’s (EIA) forecasts that the Brent crude oil spot price will average US$65 per barrel (b) in 2020 and US$68/b in 2021 and that the West Texas Intermediate (WTI) spot price will average US$59/b in 2020 and US$62/b in 2021. SO BUY HIBISCS (5199) BEFORE IT’S TOO LATE.

BURSA MALAYSIA TODAY: Half-Day Morning Trading Session on Friday, 24 January 2020. There will be no trading in the afternoon session.

Cerita Kedai Kopi. What makes a cafe a good cafe? Is it a warm and inviting atmosphere? Or is it quality food and coffee? How about free wifi? And perhaps a library of good magazines? Hmm 🥰

TODAY

Today is a Good Day to have a Good Day. Happy Thursday!

JSM & Eric – Jamie Berry feat. Octavia Rose – Lost In The Rhythm

What’s Up Buddy?

RHB Technical Analyzer
23 January 2020
FKLI & FCPO: FKLI: Back Below The 50-Day SMA Line

Maintain long positions while keeping the trailing-stop. The FKLI experienced a sharp intraday negative price reversal as it failed to hold on to its earlier session’s positive tone. At one point, it tested the 1,600-pt immediate resistance mark with a high of 1,600.5 pts, before sliding lower to settle 12.5 pts weaker at 1,578 pts. The negative performance nullified the prior three sessions’ price actions, which showed the index hovering around the 50-day SMA line. Should there be further negative price actions in the coming sessions with a downside breach of the 1,571-pt support level, chances are high that the index’s multi-month countertrend rebound may reach an end. For now, we stick to our positive trading bias.

Trading Stocks: KESM Industries, Revenue Group, KPJ Healthcare, QL Resources, Public Packages & Inari Amertron

I’m bullish on oil. Historically, Brent crude oil reached an all time high of US$147.50 in July of 2008. As such, my Top Pick HIBISCS (5199). Hibiscus Petroleum Berhad, its still below Recomendation**BUY price targets, not 1 but 3 analysts that cover the stock; DBS RM1.40, BIMB RM1.50, PUBLIC INVESTMENT BANK RM1.55. The above price targets are based on Brent crude oil prices US$65/bbl mark.

BRENT PRICE JANUARY OF 2020: The price of Brent oil so far this month stand at 66.41$ a barrel, compared with 67.31$ the previous month. Over last twelve months the price has raisen 11.78%. Brent crude is extracted from the North Sea and is also known as London Brent, North Sea Oil, Brent Blend and Brent petroleum. It is a light crude oil, slightly heavier than WTI, and sweet because of its low sulphur content and it is ideal for the refining of diesel fuel, gasoline. Brent oil makes up more than half of the world’s globally traded supply of crude oil. Brent blend crude serves as benchmark price for purchases of oil worldwide. It is traded electronically via the ICE futures exchangesource countryeconomy

I’m bullish on candy and chips market. I like KHEESAN (6203). Mamee-Double Decker is Khee San’s new controlling shareholder. Generally, a majority shareholder has more power than all of the other shareholders combined. Reverse merger/RTO? The Khee San group is principally involved in the manufacturing of candy and wafer products, including its Fruitplus range of chewy candies and Torrone Barley Mint, while Mamee’s portfolio includes MAMEE Monster, Mister Potato Chips and MAMEE Chef.

The Asia Pacific leads the global candy sales followed by North America. The target population for the candy market is primarily children and young population. The growing population in emerging economies has led to the high demand for candies, fuelled by impulsive purchase behaviour of consumers. Developing economies, where per capita candy consumption is very low compared to their western counterparts is slowing increasing. Many countries are witnessing campaigns and media advertisements related to innovative candy products which are directly impacting the sales rate of sugar-based confectionary. Companies are increasingly launching products with innovative flavours such as raw mango, Tamarind, Strawberry etc to woo consumers. – source mordorintelligence

The global instant noodles market reached a value of US$ 42.2 Billion in 2018, registering a CAGR of 6.2% during 2011-2018. The market value is further projected to reach around US$ 57.5 Billion by 2024, growing at a CAGR of 5.2% during 2019-2024. Instant noodles have gained popularity worldwide as they are portable, quick to make and easy to store. source researchandmarkets

Revenue in the Potato Chips segment amounts to US$43,702m in 2020. The market is expected to grow annually by 3.6% (CAGR 2020-2023). In global comparison, most revenue is generated in the United States (US$17,084m in 2020).source statista

Robin Schulz – Sugar (feat. Francesco Yates)

I like PELIKAN (5231). Pelikan International Corp Bhd’s net profit leaped 189% to RM4.89 million for the third quarter ended Sept 30, 2019 (3QFY19) from RM1.69 million in the previous corresponding quarter, despite lower revenue. Pelikan is one of the global major players in Arts and Crafts Tools. The global Arts and Crafts Tools market is valued at USD4290 million in 2020 is expected to reach USD5701.3 million by the end of 2026, growing at a CAGR of 4.1% during 2021-2026.

I like BINACOM (0195). The Global 5G Infrastructure Market was valued at USD 0.56 billion in 2016 and is projected to reach USD 22.93 billion by 2025, growing at a CAGR of 51.01% from 2017 to 2025. BINACOM has become a strong telecommunication networks supporting services partner to MAXIS, U Mobile and HUAWEI. BINACOM, its still below its IPO price of RM0.46. Public Investment Bank: Fair value RM0.54. KENANGA: Target Price RM0.58. Technically, a decisive breakout above downtrend line near RM0.40 will spur prices higher to RM 0.46 – 0 .485 levels.

Let’s Have Another Cup of Kopi Dangdut. Cheers!

TODAY

Happy Wednesday! Love all, trust a few, do wrong to none.

ATTA Global Group Bhd, which saw a suspension of trading at noon on Jan 16, announced today that the group’s executive chairman, Ooi Chieng Sim, was remanded by the police following a raid on the group’s premises for investigation of an offence under the Dangerous Drugs Act 1952.

Scomi Energy Services Bhd’s Practice Note 17 (PN17) status is confirmed, after its waiver application was rejected by Bursa Malaysia. In a statement today, Bursa said Scomi Energy joins its parent company Scomi Group Bhd on the list, and is the 24th company on the bourse to be listed as PN17.

If you have trouble imagining a 20% loss in the stock market, you shouldn’t be in stocks. – John Bogle

I’m bullish on oil. As such, my Top Pick HIBISCS (5199). At RM0.995, Hibiscus Petroleum Berhad still below price target, not 1 but 3 analysts that cover the stock; DBS RM1.40, BIMB RM1.50, PUBLIC INVESTMENT BANK RM1.55.

I like KHEESAN (6203). Mamee-Double Decker is Khee San’s new controlling shareholderGenerally, a majority shareholder has more power than all of the other shareholders combined. Reverse merger/RTO? The Khee San group is principally involved in the manufacturing of candy and wafer products, including its Fruitplus range of chewy candies and Torrone Barley Mint, while Mamee’s portfolio includes MAMEE Monster, Mister Potato Chips and MAMEE Chef.

I like PELIKAN (5231). Pelikan is one of the global major players in Arts and Crafts Tools. The global Arts and Crafts Tools market is valued at USD4290 million in 2020 is expected to reach USD5701.3 million by the end of 2026, growing at a CAGR of 4.1% during 2021-2026.

I like BINACOM (0195). It has become a strong telecommunication networks supporting services partner to MAXIS, U Mobile and HUAWEI. At RM0.37, still below its IPO price of RM0.46. Public Investment Bank: Fair value RM0.54. KENANGA: Target Price RM0.58. Technically, a decisive breakout above downtrend line near RM0.40 will spur prices higher to RM 0.46 – 0.485 levels.

Elton John – Goodbye Yellow Brick Road..

The song’s music was composed by Elton John, while the lyrics were written by Bernie Taupin. In my humble opinion, The Yellow Brick Road is the path to urban values, to wealth and social acceptability.

What’s Up Buddy?

RHB Gentle Reminder:
22 Jan (today)
XALL: Icon Price adjusted from Rm0.04 to Rm0.12 (Share consolidation 50:1 )NB: Can only sell 1/50 of holding/purchase prior to 22/01(R/I 100 : 1 consolidated share @ RM0.105 with 1 warrants : 4 Rts shares subscribed) Adj RM0.04 to RM0.12Rts comm 24/01Rts cease 03/02A R E Payment 10/02 Listing 20/02

The FBMKLCI Index dropped 1.55 points or 0.1%, to close at 1587.33 on Tuesday.

  • The index is taking a short breather the past couple of trading days, moving lower slightly.
  • Nonetheless, upward bias remains supported by key indicators: 1) MACD steadily converges towards the Signal line albeit at a slow rate, 2) RSI & Stochastic turning higher, exiting from oversold territories, now hovering around the mid-point mark.
  • Overall, short-term momentum is still pointing towards the upside. The market as a whole may also get a boost as well the next few days as Chinese New Year is fast approaching.