Kenanga Today

21 March 2023

By Ahmad Ramzani Bin Ramli l ahmadramzani@kenanga.com.my Raymond Ng l ngiy@kenanga.com.my

BURSA 20-Mar Day chg % chg
KLCI 1,401.8 -9.92 -0.70% Research Highlights
FTSE EMAS 10,249.1 -87.3 -0.84%
FTSE Smallcap 15,034.2 -208.35 -1.37%
NEWS HIGHLIGHTS
FTSE MESDAQ 5,218.7 -30.2 -0.58%
KLSE Mkt Cap 1,605.5 -12.2 -0.76% ⚫ Sapura Energy finds a white knight
(RM'b)
⚫ SNS Network to supply apple products, accessories to Kumon
BURSA DAILY TRADING PARTICIPATION
Participation Net (RM’m) Value (%) Malaysia
Local Institution 56.8 45.9%
⚫ Leform clinches RM19.5m project to supply and install guardrails
Local Retail 31.7 31.4%
Foreign -88.5 22.7% on part of WCE

INDICES 20-Mar Day chg % chg ⚫ IJN terminates information system contract with Theta Edge
Dow Jones 32,244.6 382.6 1.20%
S&P 500 3,951.6 34.9 0.89% ⚫ SMTrack's auditors resign
NASDAQ 11,675.5 45.03 0.39%
FTSE-100 7,403.9 68.5 0.93% MACRO BITS
Nikkei 225 26,945.7 -388.1 -1.42%
⚫ China's Xi in Russia to meet Putin over Ukraine war
SHCOMP 3,234.9 -15.636 -0.48%
HSI 19,000.7 -517.9 -2.65% ⚫ Global house prices continue to fall on rising borrowing costs, says
STI 3,139.8 -43.5 -1.37% IMF
KOSPI 2,379.2 -16.5 -0.69%
TWSE 15,420.0 -33.0 -0.21% ⚫ Export growth expanded to a three-month high in February on base
JCI 6,612.5 -65.747 -0.98% effect (See Economic Viewpoint: Malaysia External Trade)
SET 1,555.5 -8.2 -0.53%
⚫ MAA: Vehicle sales jumped 39.0% on-year in February on backlog
FOREX 20-Mar 17-Mar % chg
orders
USD/MYR: 4.4858 4.4865 -0.02% ⚫ China's exports to North Korea more than double in Jan-Feb on
EUR/USD: 1.0696 1.0670 0.24%
agricultural shipments
GBP/USD: 1.2223 1.2173 0.41%
USD/YEN: 131.29 131.85 -0.42% ⚫ Indonesia sets aside USD455.0m to subsidise electric motorcycle
USD/SGD: 1.3406 1.3423 -0.13% sales
USD/HKD: 7.8435 7.8494 -0.08%
⚫ Japan plans USD75.0b investment across Indo-Pacific to counter
KEY STATS China
KLCI Spot
⚫ Banking turmoil may prompt Fed to go slow on interest rate hikes
Vol (m shares): 3,469.6 4,426.7 -21.62%
Value (RMm): 1,932.7 4,088.4 -52.73% ⚫ Euro zone trade deficit flat in Jan despite increased energy import
KLCI Future spend
March-23 1,401.0 1,412.0 -0.78%
April-23 1,403.5 1,414.0 -0.74% ⚫ British manufacturing output rebounds, outlook remains bleak,
CPO Price 3,785.0 3,920.0 -3.44% survey shows
(RM/tonne)
Soybean (US$/bu) 1,486.0 1,476.5 0.64% ⚫ German economy heading for contraction in Q1, Bundesbank says
SoyOil (USc/lb) 57.9 57.5 0.80%
Gold (US$/troy oz) 1,982.8 1,973.5 0.47% IDEAS OF THE DAY (SEE SEPARATE REPORTS FOR DETAILS)
Nymex crude oil 67.6 66.7 1.35%
(US$/bbl) ⚫ On Our Radar: TUNEPRO
Latex (RM/kg) 5.18 5.19 -0.29%
⚫ On Our Technical Watch: ATAIMS, PJBUMI
Tin (US$/mt) N.A. 22,400.0 N.A.
⚫ Economic Viewpoint: MY External Trade

# Top Volume Top Gainer Top Loser

%Chg Vol %Chg Vol %Chg
Stock Price Stock Price Stock Price Vol (m)
(+/-) (m) (+/-) (m) (+/-)
1 GENM 2.55 -4.1 10.10 CELCOMDIGI 4.15 2.5 3.90 GENM 2.55 -4.1 10.10
2 PBBANK 3.95 -0.5 10.00 MAXIS 3.92 1.6 0.79 PCHEM 7.00 -3.2 9.93
3 PCHEM 7.00 -3.2 9.93 PETDAG 20.36 0.7 0.12 MRDIY 1.60 -3.0 4.97
4 CIMB 5.15 -1.3 8.22 MISC 7.10 0.6 2.65 GENTING 4.44 -2.6 2.56
5 RHBBANK 5.50 0.0 6.52 IHH 5.84 0.3 4.94 KLK 21.00 -2.6 0.27
6 SIME 2.13 -1.4 5.09 PETGAS 16.44 0.2 0.25 TM 4.86 -2.0 1.99
7 MRDIY 1.60 -3.0 4.97 PMETAL 4.78 0.2 4.46 SIME 2.13 -1.4 5.09
8 IHH 5.84 0.3 4.94 QL 5.68 0.2 0.86 CIMB 5.15 -1.3 8.22
9 MAYBANK 8.34 -0.5 4.90 HLBANK 20.10 0.0 0.91 AMBANK 3.68 -1.3 2.36
10 PMETAL 4.78 0.2 4.46 INARI 2.35 0.0 1.28 DIALOG 2.28 -1.3 1.60
Notes: # KL Composite Index (FBMKLCI) component stocks

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 Kenanga Today
21 March 2023

Corporate News
• Sapura Energy finds a white knight
SAPURA Energy Bhd has found a white knight in its bid to recover from its
beleaguered financial position. In court documents sighted by The Edge, the
company said it had received a “formal letter from a white knight” last month
that indicated it would provide financial support to Sapura Energy, subject to
certain conditions. The financial support is in the form of a RM1.8b capital
injection. With the emergence of the white knight, Sapura Energy has filed
a new proposal to restructure its RM10.3b debt owed to nine lenders
grouped under financiers of its multi-currency financing (MCF) facilities. It
owes another RM5.1b to its vendors. (The Edge Markets)

• SNS Network to supply apple products, accessories to Kumon

Malaysia
SNS Network Technology Bhd’s wholly-owned subsidiary, SNS Network (M)
Sdn Bhd has signed a collaboration agreement with Kumon Education
(Malaysia) Sdn Bhd (Kumon Malaysia) for the supply of Apple iPad products
and accessories. As part of the agreement, SNS will create and maintain a
portal from which Kumon Malaysia’s parents and students can access while
also undertaking all services related to the supply of Apple iPad products
and accessories. (The Star)

• Leform clinches RM19.5m project to supply and install guardrails

on part of WCE
Leform Bhd has secured a project worth RM19.5m to supply and install
guardrails on section 11 of the West Coast Expressway (WCE), which is the
last section of the WCE stretch. The group’s 60%-owned subsidiary LF
Engineering Sdn Bhd has on Monday (March 20) obtained the letter of
acceptance and executed the subcontract agreement from IJM Construction
Sdn Bhd, Leform said in a bourse filing. IJM is the main contractor for the
construction of section 11, which starts from the proposed Beruas
Interchange and ends at Taiping South Interchange of WCE. (The Edge
Markets)

• IJN terminates information system contract with Theta Edge

Theta Edge Bhd received a contract termination notice from Institut Jantung
Negara Sdn Bhd (IJN) dated March 17, 2023. According to a Bursa Malaysia
filing on Monday (March 20), its wholly owned subsidiary Theta
Technologies Sdn Bhd received the notice for the contract which IJN
awarded on Feb 25, 2021. Theta Edge is consulting its advisers on the
termination and is assessing the materiality of the financial impact, it said.
The contract entails the supply, conducting requirement study, design,
developing/customising, configuring, integration, data migration, installation,
testing, training, support and maintenance of the hospital information system
and electronic medical record for IJN. (The Edge Markets)

• SMTrack's auditors resign

SMTrack Bhd has received a notice in writing from Messrs Russell Bedford
LC PLT (Russell Bedford) on their resignation as the external auditors of the
company. “The resignation of Russell Bedford is on a voluntary basis due to
resources constraint to allocate time to carry out audit for the newly acquired
subsidiary, namely V Ultimate Sdn Bhd, more particularly as Russell Bedford
have yet to receive the management accounts for V Ultimate and its
subsidiaries as of to-date for them to finalise the audit for the financial year
ended Dec 31, 2022,” SMTrack said in a Bursa filing. (The Star)

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 Kenanga Today
21 March 2023

Macro Bits
Global
⚫ China's Xi in Russia to meet Putin over Ukraine war Chinese President Xi Jinping flew into Moscow on Monday
where he was expected to press Beijing's role as a potential peacemaker in the Ukraine war while Russian President
Vladimir Putin hoped for support against Western pressure. (Reuters)
⚫ Global house prices continue to fall on rising borrowing costs, says IMF Global housing markets are retreating
after years of steady gains, according to the International Monetary Fund (IMF). (The Edge Markets)

Malaysia
⚫ Export growth expanded to a three-month high in February on base effect Exports expanded to a three-month
high in February (9.8 YoY; Jan: 1.4%), beating consensus of 4.7% but below the house forecast of 14.3%. MoM (-
0.3%; Jan: -14.5%): growth contracted marginally, reflecting an improved demand following a shorter working period
in the previous month due to the Lunar New Year holidays. Nonetheless, growth came in below our forecast as we
may have overestimated the effect of China’s economic reopening. 2023 export forecast maintained at 5.8% (2022:
25.0%) amid heightened external risks. (See Economic Viewpoint: Malaysia External Trade)
⚫ MAA: Vehicle sales jumped 39.0% on-year in February on backlog orders A total of 62,649 vehicles were sold
in February throughout Malaysia, up 39.0% from the 45,062 units sold in the same month a year earlier, according
to the Malaysian Automotive Association (MAA). (The Edge Markets)

Asia Pacific
⚫ China's exports to North Korea more than double in Jan-Feb on agricultural shipments China's overall exports
to North Korea more than doubled in the first two months of 2023 from a year earlier, with major exports including
granulated sugar, soybean oil and rice, Chinese customs data showed on Monday. (The Edge Markets)
⚫ Indonesia sets aside USD455.0m to subsidise electric motorcycle sales Indonesia will allocate IDR7.0t
(USD455.88m) in state funds to subsidise electric motorcycle sales through 2024, officials said on Monday, as it
pushes mass adoption of EVs with the aim of attracting investment in the domestic industry. (Reuters)
⚫ Japan plans USD75.0b investment across Indo-Pacific to counter China Japan's Prime Minister Fumio Kishida
on Monday announced a new plan to promote an open and free Indo-Pacific, promising billions of dollars in
investment to help economies across the region in everything from industry to disaster prevention. (Reuters)

Americas
⚫ Banking turmoil may prompt Fed to go slow on interest rate hikes Most Wall Street banks expect the U.S.
Federal Reserve to hike the benchmark interest rate by 25 basis points at the end of its two-day meeting on
Wednesday, while money markets are leaning toward a pause as worries about a global banking crisis mount.
(Reuters)

Europe
⚫ Euro zone trade deficit flat in Jan despite increased energy import spend The euro zone trade deficit was little
changed in January from a year earlier, with sharply higher cost of energy imports outweighing a pick-up of
manufactured goods exports, data showed on Monday. (Reuters)
⚫ British manufacturing output rebounds, outlook remains bleak, survey shows Britain's manufacturing output
bounced back in the first three months of 2023, chiming with other measures of the economy that improved, but
firms expect the sector to contract as inflationary pressures persist, a survey showed on Monday. (Reuters)
⚫ German economy heading for contraction in Q1, Bundesbank says Germany's economy will shrink again in the
first quarter of the year and underlying inflation could prove to be stubborn even if overall price growth is likely to
slow sharply soon, the Bundesbank said in a monthly report on Monday. (Reuters)

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 Kenanga Today
21 March 2023

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

NAME* LAST PRICE RSI_14D RSI_9D RSI_3D LOW 30D
JAKS RESOURCES BHD 0.185 11.28 4.78 0.05 0.180
HAP SENG CONSOLIDATED 5.010 14.52 8.34 0.54 5.010
DUTCH LADY MILK INDS BHD 26.000 16.32 13.98 6.44 26.000
HIBISCUS PETROLEUM BHD 0.900 19.54 10.77 0.44 0.900
SHIN YANG SHIPPING CORP BHD 0.570 22.34 17.79 14.47 0.560
CAN-ONE BHD 2.870 22.40 19.33 12.02 2.830
I-BHD 0.230 22.71 20.00 17.61 0.230
AEON CREDIT SERVICE M BHD 10.920 23.27 20.61 11.59 10.880
POH HUAT RESOURCES HLDGS BHD 1.290 23.87 16.65 5.93 1.270
YINSON HOLDINGS BHD 2.400 24.53 16.65 5.20 2.380
MALAYSIAN BULK CARRIERS BHD 0.330 24.66 18.97 5.11 0.330
V.S. INDUSTRY BERHAD 0.810 25.30 20.01 15.40 0.810
TA ANN HOLDINGS BERHAD 3.150 25.54 21.26 17.29 3.130
LBS BINA GROUP BHD 0.390 27.77 20.61 3.67 0.390
CARLSBERG BREWERY MALAYSIA B 21.160 27.77 22.95 17.95 20.960
SAMCHEM HOLDINGS BHD 0.560 27.95 26.15 20.38 0.555
COASTAL CONTRACTS BHD 2.070 28.73 23.97 12.78 2.040
MBM RESOURCES BERHAD 3.310 28.75 18.82 4.47 3.240
SKP RESOURCES BHD 1.280 29.68 28.43 17.28 1.280
LUXCHEM CORP BHD 0.480 29.88 28.12 27.49 0.475
BP PLASTICS HOLDING BHD 1.150 29.89 26.03 11.60 1.150
*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 HIGH 30D
HARRISONS HOLDINGS MALAYSIA 8.370 81.30 84.88 93.37 8.500
POH KONG HOLDINGS BHD 0.975 76.48 81.98 92.23 1.000
PIE INDUSTRIAL BHD 3.500 73.74 72.35 81.84 3.560
FGV HOLDINGS BHD 1.600 73.15 75.03 79.63 1.620
AIRASIA X BHD 1.480 73.13 71.57 58.28 1.820
HARTALEGA HOLDINGS BHD 1.920 72.61 80.82 96.63 1.950
*Only for stocks with market cap >RM300m
Source: Bloomberg

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

LAST EXPIRY
NAME RSI_14D RSI_9D RSI_3D LOW 30D
PRICE DATE
COMPUTER FORMS MALAYSIA BHD-WA 0.055 9.39 4.96 0.67 0.055 22/12/2025
CLASSIC SCENIC BHD-WA 0.280 11.66 7.02 1.04 0.280 8/8/2026
BSL CORP BHD-WA 0.010 19.14 12.80 2.14 0.010 11/11/2024
GENTING MALAYSIA BHD-W 0.025 20.14 17.08 26.29 0.025 28/4/2023
HANG SENG INDEX-LN 0.075 25.89 19.88 4.38 0.075 27/4/2023
HANG SENG INDEX-LI 0.025 27.08 21.85 10.99 0.020 30/3/2023
HANG SENG INDEX-L4 0.135 28.50 29.38 24.55 0.125 28/7/2023
MELEWAR INDUSTRIAL GROUP BHD-WB 0.015 29.23 25.65 9.11 0.015 18/8/2023
Source: Bloomberg

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

NAME LAST PRICE RSI_14D RSI_9D RSI_3D HIGH 30D EXPIRY DATE
NICHE CAPITAL EMAS HOLDINGS BHD-
0.140 75.16 83.20 95.34 0.155 22/1/2024
WB
Source: Bloomberg

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 Kenanga Today
21 March 2023

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 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: research@kenanga.com.my

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