OSK Research: Flonic may trade higher, price target 19 sen

KUALA LUMPUR (Jan 25): OSK Retail Research said Flonics’s share may trade higher after the firm close last Friday.

It said on Wednesday that after it highlighted the stock’s weakness in mid-December, the stock has declined sharply. It even broke below the 17 sen support level, which reduces the possibility of upward continuation.

OSK Research said nonetheless, Flonic found support at 11 sen, at the low of August and October 2011.

“After consolidating in a tight sideways range for two weeks, the strong “White” candle move last Friday likely signals the start of a rebound, with the high buying volume lending credence to the move,” it said.

The research house said traders should look for it to trade higher and a position can be taken at the current level, or if possible, on pullback towards the stop loss at 11 sen.

“Given the low possibility of upward continuation, the price target is 19 sen, the low of mid-November, which represents a 38% regain on the November-January decline,” it said.

OSK Research said this was provided that the stock can break above the 17 sen resistance level, which was the high of July and September 2011.

“The trade will not pan out on a close below 11 sen, and the stock should continue its downward move instead,” it said.



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Market Commentary

The FBM KLCI index gained 0.99 points or 0.07% on Thursday. The Finance Index increased 0.14% to 13078.38 points, the Properties Index up 0.71% to 957.45 points and the Plantation Index rose 0.11% to 7906.09 points. The market traded within a range of 15.98 points between an intra-day high of 1464.52 and a low of 1448.54 during the session.

Actively traded stocks include JCY-CD, MBSB-CA, JCY, KULIM-CB, SANICHI, KFC-CB, FLONIC, AFFIN-CE, PROTON-CH and BIMB-CB. Trading volume increased to 1564.71 mil shares worth RM1251.16 mil as compared to Wednesday’s 1494.84 mil shares worth RM1084.68 mil.

Leading Movers were CIMB (+7 sen to RM6.92), UMW (+34 sen to RM6.84), IOICORP (+6 sen to RM5.15), AXIATA (+3 sen to RM4.90) and MAXIS (+4 sen to RM5.49). Lagging Movers were KLK (-48 sen to RM22.12), DIGI (-4 sen to RM3.62), GENTING (-8 sen to RM10.34), MISC (-8 sen to RM5.39) and GAM (-6 sen to RM3.03). Market breadth was negative with 346 gainers as compared to 380 losers. -- JF Apex Securities Bhd



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KL shares lower at mid-afternoon

KUALA LUMPUR: Share prices on Bursa Malaysia were lower at mid-afternoon today, reflecting the gloomy sentiment in regional markets as lingering concerns about the impact of escalating eurozone debt crisis affected investor confidence, dealers said.

They said the bearish statement made by China's Vice Premier, Wang Qishan, that the global economic outlook remained grim, also affected the market.

As at 3.26pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 13.07 points to 1,441.37 after opening 2.64 points lower at 1,451.76.

The Finance Index lost 100.51 points to 12,888.28, Plantation Index shed 39.78 points to 7,574.86 and the Industrial Index declined 42.61 points to 2,630.57.

The FBM Emas Index slid 94 points to 9,891.55, FBM70 Index fell 102.931 points to 10,825.39, the FBM Top 100 Index dipped 88.64 points to 9,696.67 and the FBM ACE Index declined 65.67 points to 4,130.25.

Decliners led advancers by 630 to 118 while 207 counters were unchanged, 526 untraded and 26 others suspended.

Total volume stood at 911.6 million shares worth RM673.4 million.

For the actives, Compugates Holdings was unchanged at eight sen, Fast Track Solution was unchanged at 10.5 sen and DPS Resources slipped three sen to 19.5 sen.

Flonic Hi-Tech added three sen to 30 sen.

Among heavyweights, Maybank lost two sen to RM8.23, CIMB eased seven sen to RM6.80 and Sime Darby lost 10 sen to RM8.80.

RHB Capital, however, gained 12 sen to RM7.41. - Bernama



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KL shares lower at midday

Share prices on Bursa Malaysia at midday today extended the downtrend, as the market succumbed to selling pressure in tandem with losses on regional markets over continuing concerns that the eurozone debt crisis may spread to more countries in the 27-member European Union, dealers said.

The FTSE Bursa Malaysia KLCI (FBM KLCI) fell 14.47 points to 1,439.93 after opening 2.64 points lower at 1,451.76. The Finance Index lost 98.88 points to 12,889.91, the Plantation Index shed 74.15 points to 7,540.49 and the Industrial Index declined 47.98 points to 2,625.20.

The FBM Emas Index slid 100.09 points to 9,885.46, the FBM70 Index fell 100.33 points to 10,827.99, the FBM Top 100 Index dipped 95.75 points to 9,689.56 and the FBM ACE Index declined 52.81 points to 4,143.11.

Decliners led advancers 582 to 110 while 194 counters were unchanged, 595 untraded and 26 others suspended. Total volume stood at 707.766 million shares worth RM491.986 million.

For the actives, Compugates Holdings was unchanged at eight sen, Fast Track Solution also remained unchanged at 10.5 sen and DPS Resources slipped three sen to 19.5 sen, but Flonic Hi-Tech added three sen to 30 sen.

Among heavyweights, Maybank lost two sen to RM8.23, CIMB eased seven sen to RM6.80 and Sime Darby lost 10 sen to RM8.80 but RHB Capital gained 11 sen to RM7.40. -- Bernama



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KL shares easier in early trade

Share prices on Bursa Malaysia opened lower in early trading today in tandem with losses in regional markets on continuing concerns the euro zone debt crisis may spread to more countries in the 27-member European Union, dealers said.

However, penny stocks shares bucked the weak market sentiments on strong buying support.

As at 9.15am, the FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 3.19 points to 1,451.21 after opening 2.64 points lower at 1,451.76.

The Finance Index lost 14.31 points to 12,974.48, the Plantation Index shed 14.05 points to 7,600.59 and the Industrial Index declined 8.63 points to 2,664.55.

The FBM Emas Index slid 18.28 points to 9,967.27, the FBM70 Index fell 3.53 points to 10,924.79, the FBM Top 100 Index dwindled 17.479 points to 9,767.83 but the FBM ACE Index rose 23.04 points to 4,218.96.

Decliners led advancers 138 to 91 while 140 counters were unchanged, 1,112 untraded and 36 others suspended. Total volume stood at 119.758 million shares worth RM47.090 million.

Actives, Compugates Holdings earned half a sen to 8.5 sen, Fast Track Solution also gained half a sen to 11 sen, Flonic Hi-Tech added 2.5 sen to 29.5 sen and Extol MSC was up half a sen to 26 sen.

Heavyweights, Maybank lost one sen to RM8.24, CIMB eased one sen to RM6.86, Sime Darby lost six sen to RM8.84 but RHB Capital gained three sen to RM7.32. -- Bernama



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Near two-year record in UMA

KUALA LUMPUR: With penny stock spurts resulting in nine queries in half a month, November is turning out to be a record month for so-called unusual market activity (UMA) queries.

With three queries issued yesterday to SYF Resources Bhd, DPS Resources Bhd and Flonic Hi-Tech Bhd, it is now one query away from the record 10 Bursa Malaysia issued for October 2009, filings show.

Yesterday’s fifth most actively traded stock, SYF saw over 102.6 million shares, a whopping 60% of its share base, traded on the open market, even as investors chased the stock to its highest level in over five years.

In its reply to the stock exchange, SYF, which manufactures rubberwood furniture, said it is in the final stages of negotiations for the joint development of properties with “landowners who are mainly related parties”.

The company — which on Oct 25 was lifted from Practice Note 1 status following a cash call and debt restructuring exercise — also cited a recent media report that a son of a senior government official will soon be joining its board, which it did not confirm or deny.

Closing at 92 sen yesterday, the loss-making furniture maker gained 25 sen or 37.31% for the day, but was off an intra-day high of 97 sen. Its warrants, SYF-WA, made it to the eighth spot on the top gainers’ list yesterday, after gaining 30 sen to close at 65 sen.

Another usually quiet counter -- another rubberwood furniture maker -- DPS Resources Bhd was also queried after the closing bell yesterday.

More than 100% of its share base changed hands yesterday, making it the most actively traded counter with over 266 million shares transacted.

The stock surged as much as 19.5 sen or 144.4% to 33 sen intra-day yesterday before settling at 31 sen. That was still more than double last Friday’s 13.5 sen close, with a more than 10 times jump in volume yesterday, though trading interest has gone up since last Thursday.

On Sept 27, DPS welcomed to its boardroom Datuk Tahir Hassan, 62, who has 32 years experience in the civil service.

He is currently a member of the Melaka state legislative assembly. Executive director Datin Chu Kim Guek sold 1.21 million shares at 13.5 sen apiece on Nov 11, filings dated Nov 14 showed. She is the wife of DPS chairman and managing director Datuk Sow Chin Chuan.

DPS and Flonic had yet to reply to the query at the time of writing.

Closing at 28 sen yesterday, Flonic, which began seeing increased trading interest on Nov 3, has gained 87% over seven market days from its 15 sen close on Nov 2. Its volume of 35.3 million shares yesterday was about 25% its share base.

Flonic is a manufacturer of precision cleaning systems for hard disk drives and other industries.

Harvest Court Industries Bhd, meanwhile, in which investors have been warned to exercise care when trading its shares, continued to climb yesterday to reach its highest since May 2000.

Gaining 29% or 48 sen to close at RM2.13, Harvest Court, which was still a penny stock just a week ago, is already 28 times the 7.5 sen it closed at seven weeks ago on Sept 27.

Stoking interest was the emergence of a new shareholder and director, Datuk Raymond Chan, the controlling shareholder of Sagajuta (Sabah) Sdn Bhd, which is awarding projects to the company. Chan was appointed to Harvest’s board on the same day as 28-year old Mohd Nazifuddin Najib, the prime minister’s second son.

Others that have been queried so far this month are Emico Holdings Bhd, Hibiscus Petroleum Bhd, Sanichi Technology Bhd, GPRO Technologies Bhd and Maxbiz Corp Bhd.


This article appeared in The Edge Financial Daily, November 15, 2011.



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Flonic suspended after responding to UMA query

KUALA LUMPUR (Nov 15): Trading in the shares of Flonic Hi-Tech Bhd was suspended from 11.24am on Tuesday and will resume at 2pm after it responded to a query about the sharp rise in price and high volume recently.

The company said the board of directors was not aware of any factors which might have contributed to the unusual market activity.

It said that its recent corporate announcements were about the proposed renounceable rights issue with warrants announced on Nov 3, 4 and 8.

Its share price fell two sen to 26 sen with 3.80 million shares done before the suspension.



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Stocks to watch: Maybank, Malton, SYF, DPS, Flonic

KUALA LUMPUR (Nov 15): The FBM KLCI may come under some pressure to sustain its gains on Tuesday as the uncertainties in Europe pushed Wall street lower while at Bursa Malaysia, stocks which ran up in active trade and volume recently could see a pullback.

In a stern warning to speculators, Bursa Malaysia Securities declared the securities of Harvest Court Industries as designated counters with effect from Nov 15, Wednesday, due to excessive speculation. It said in a statement late Monday the imposition of this ruling will be under further notice. This will be for the shares and the warrants.

In US, stocks fell on Monday as rising bond yields in Italy and other euro-zone countries reminded investors that despite changes in governments, the region's debt crisis could still spin out of control.

The Dow Jones industrial average dropped 74.70 points, or 0.61 percent, at 12,078.98. The Standard & Poor's 500 Index fell 12.07 points, or 0.96 percent, at 1,251.78. The Nasdaq Composite Index lost 21.53 points, or 0.80 percent, at 2,657.22.

On Bursa Malaysia, stocks with fresh corporate developments and could be in focus include MALAYAN BANKING BHD [], MALTON BHD [] and SYF Resources.

Maybank’s net profit for the three months ended Sept 30, 2011 rose 25.1% to RM1.286 billion from RM1.028 billion a year earlier, while its revenue for the quarter rose to RM6.07 billion from RM5 billion in 2010. Earnings per share were 17.20 sen compared to 14.53 sen in 2010, while net asset per share was RM4.41.

On its outlook, Maybank said the loans growth in Malaysia was expected to be mainly driven by the rollout of the Economic Transformation Programme projects and domestic consumption.

Meanwhile, Malton is acquiring 56.05 acres in Ulu Kelang for RM105 million for a residential project with an estimated gross development value of RM500 million.

Malton’s unit Gapadu Harta Sdn Bhd had entered into a sale and purchase agreement with Ukay Spring Development Sdn Bhd to acquire the land. The proposed development would comprise residential bungalows, semi-detached houses, medium cost apartments, low medium cost apartments and low cost apartments.

SYF Resources is in the final stage of negotiation to develop PROPERTIES [] on a joint venture (JV) basis, which it said may have accounted for the unusual market activity (UMA) involving its securities on Monday. The company had in a reply to an UMA query from Bursa Malaysia Securities Bhd said the landowners it was in talks with were mainly related parties.

It said on Nov 14 that details of the JV would be released immediately upon conclusion of the negotiations and the execution of the JV agreement.

Other stocks that could be in focus include DPS RESOURCES BHD [] and FLONIC HI-TEC BHD [] that were also queried by Bursa Malaysia over the sharp price increase in the companies’ respective shares and high trading volume.



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