Top Stories
Sector Update | Banking
The banking sector’s stats remained resilient in Jun 26 despite macro headwinds. Loan growth eased but leading indicators have rebounded strongly. Deposit growth accelerated while asset quality was stable. Maintain OVERWEIGHT.
Company Results | Fraser & Neave Holdings (FNH MK/BUY/RM27.90/Target: RM38.70)
Earnings were within our expectations but below consensus estimates. The Cambodia-Thailand border conflict outweighed growth in the key domestic markets. Margins were largely intact as Thailand was relatively resilient amid start-up costs arising from its new dairy plant in Cambodia. Maintain BUY and target price of RM38.70. F&N’s earnings are due to gradually recover against a backdrop of bargain valuations.
What’s Inside
Strategy | The Blue Wave Sweeps Negeri Sembilan State Election
Unsurprisingly, the BN (UMNO-led)-PN (Pas-led) combo gained majority state control (exceeding a two-third majority) by winning 25 seats, extending their combined pre-election of 17 out of 36 seats. Pakatan Harapan (PH) faced losses with prominent defeats of incumbent Chief Minister Aminuddin Hurun and federal Transport Minister Anthony Loke.
Company Update | Oxford Innotech (OXB MK/BUY/RM0.405/Target: RM0.530)
Deepening exposure to high value semiconductor precision engineering.
Market Spotlight
- Despite selling pressure, the FBMKLCI added 4.50pt to close at 1,724.90 last Friday on the back of rejuvenated buying interest.
- US stocks were higher after the close on Friday, as gains in the consumer services, oil & gas and telecommunications sectors led shares higher.
Technical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Globaltec Formation | GBLF MK
Trading Buy Range: RM0.90-0.925
JF Technology | JFTB MK
Trading Buy Range: RM0.67-0.675
JHM Consolidation | JHMC MK
Trading Buy Range: RM0.405-0.41
Top Stories
Sector Update | Banking
The banking sector’s stats remained resilient in Jun 26 despite macro headwinds. Loan growth eased but leading indicators have rebounded strongly. Deposit growth accelerated while asset quality was stable. Maintain OVERWEIGHT.
Company Results | Fraser & Neave Holdings (FNH MK/BUY/RM27.90/Target: RM38.70)
Earnings were within our expectations but below consensus estimates. The Cambodia-Thailand border conflict outweighed growth in the key domestic markets. Margins were largely intact as Thailand was relatively resilient amid start-up costs arising from its new dairy plant in Cambodia. Maintain BUY and target price of RM38.70. F&N’s earnings are due to gradually recover against a backdrop of bargain valuations.
What’s Inside
Strategy | The Blue Wave Sweeps Negeri Sembilan State Election
Unsurprisingly, the BN (UMNO-led)-PN (Pas-led) combo gained majority state control (exceeding a two-third majority) by winning 25 seats, extending their combined pre-election of 17 out of 36 seats. Pakatan Harapan (PH) faced losses with prominent defeats of incumbent Chief Minister Aminuddin Hurun and federal Transport Minister Anthony Loke.
Company Update | Oxford Innotech (OXB MK/BUY/RM0.405/Target: RM0.530)
Deepening exposure to high value semiconductor precision engineering.
Market Spotlight
- Despite selling pressure, the FBMKLCI added 4.50pt to close at 1,724.90 last Friday on the back of rejuvenated buying interest.
- US stocks were higher after the close on Friday, as gains in the consumer services, oil & gas and telecommunications sectors led shares higher.
Technical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Globaltec Formation | GBLF MK
Trading Buy Range: RM0.90-0.925
JF Technology | JFTB MK
Trading Buy Range: RM0.67-0.675
JHM Consolidation | JHMC MK
Trading Buy Range: RM0.405-0.41
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