JF APEX SECURITIES BERHAD (47680-X) KDN PP13226/04/2013 (032022)

JF Apex Securities Berhad Newsletter

Daily
As Highlights 22 July 2020

Malaysia News & Highlights FBM KLCI

Index Change Closed
 Malaysia, Singapore to ink RTS deal on July 30, price tag to rise at least RM500m ↑ FBM KLCI 6.48 0.41% 1,595.93
↑ FBM ACE 176.58 2.37% 7,622.13
 SC introduces enhanced IPO framework, to take effect in January 2021 ↑ FBMT100 38.21 0.34% 11,150.91
↑ FBM70 20.36 0.14% 14,172.06
 Malaysia’s aviation industry heading for RM13b loss this year — Wee
↑ FBM SCAP 271.08 2.17% 12,772.28
 CIMB Thai 2Q net profit up 52% y-o-y to 306 million baht KLCI Top Movers
Leading Change Closed
 CMMT 2Q NPI falls on significant rental waivers for tenants affected by MCO ↑ HART 0.54 3.09% 18.00
↑ NESTLE 2.70 1.94% 142.00
 Comintel's counter to be suspended today, pending material announcement
↑ PBBANK 0.34 1.93% 17.98
 Ministry confirms Top Glove HQ raided, cleared of forced labour violations ↑ IHH 0.10 1.87% 5.46
↑ CIMB 0.06 1.70% 3.59
 Prestariang founder to take up 15% stake in the company Lagging Change Closed
↓ MISC -0.24 -3.04% 7.66
 Sime Darby Plantation plans to fully use GenomeSelect seeds for oil palm replanting from
↓ AXIATA -0.07 -2.12% 3.23
2023
↓ SIME -0.04 -1.85% 2.12
 Puncak Niaga Kuantan sewage treatment plant contact sum cut by RM57m to RM432m ↓ DIGI -0.08 -1.85% 4.25
↓ KLK -0.38 -1.67% 22.42
 TNB commences legal proceedings against IRB for RM1.81b tax assessment KLCI Top Volume
Stocks Change Closed
 TAS Offshore to lose RM70m for contract cancellation
↔ PWORTH 0.000 0.00% 0.025
 Sime Darby Plantation holds on to Merlimau land following ‘amicable settlement’ on ↓ XOX -0.005 -2.78% 0.175
judicial review bid ↑ VC 0.015 23.08% 0.080
↔ LAMBO 0.000 0.00% 0.045
 Marine & General sells 40% stake in unit to Muhibbah to settle outstanding sum ↓ DAYA -0.010 -40.00% 0.015
↑ BIOHLDG 0.035 25.00% 0.175
 Komarkcorp to diversify into manufacture and sale of face masks
↔ NEXGRAM 0.000 0.00% 0.045
 AirAsia, AAX withdraw appeal against High Court's dismissal of judicial review bid ↑ SAPNRG 0.010 11.11% 0.100
↑ VELESTO 0.005 3.45% 0.150
 SBC Corp delays annual report until August, citing pandemic ↑ ICON 0.010 8.70% 0.125
U.S.Markets
Foreign News Index Change Closed
↑ DJIA 159.53 0.60% 26,840.40
 Dow pulls out 150-point gain as Big Tech leaders drag Nasdaq down S&P 500 5.46 0.17% 3,257.30
↑
↓ NASDAQ -86.73 -0.81% 10,680.36
 European markets close higher after EU leaders reach recovery fund deal
Foreign Markets
 Oil jumps nearly 3% to highest level since March on vaccine hopes, EU deal (Overnight Index Change Closed
Closing) ↑ FTSE100 8.21 0.13% 6,269.73
↑ NIKKEI 225 166.74 0.73% 22,884.22
 Global economy on track to recover by 4Q20, barring Covid-19 spike before flu season — FSSTI 13.15 0.50% 2,629.45
↑
Morgan Stanley HSI 577.67 2.31% 25,635.66
↑
↑ AS200 154.73 2.58% 6,156.30
 Apple says its supply chain and products will be 100% carbon neutral by 2030
↑ SET 18.71 1.38% 1,377.00

FBM KLCI Daily Chart ↑

↑
JCI
Kospi
63.60
30.63
1.26%
1.39%
5,114.71
2,228.83
↑ Shanghai 6.75 0.20% 3,320.90
Foreign Exchange
Currency Change Closed
↓ RM-USD 0.00 -0.02% 4.26
↓ RM-EUR -0.01 -0.18% 4.87
↓ RM-YEN -0.01 -0.19% 3.97
Commodity Futures
Comm. Change Closed
↑ Brent crude(brl)(US$) 0.78 1.81% 43.96
↓ CPO(ton)(RM) -21.00 -0.76% 2,735.00
↓ Soybean(bu)(US$) -6.50 -0.72% 893.50
↑ Gold(oz)(Us$) 24.20 1.33% 1,843.20

Closing: 1595.93 Support: 1550 Resistance: 1615

Please read carefully the important disclosures at end of this publication
22 July 2020 Daily Highlights JF APEX SECURITIES

Market Thoughts

US markets were mixed with the Dow and S&P rising but the Nasdaq declined amid corporate earnings.
European stocks advanced after EU leaders agreed on a 750 billion euro coronavirus recovery fund.

On the local market, the FBM KLCI rose 6.48 points to 1595.93 points. Following the mixed performances in the
US and Europe, the FBM KLCI could continue to hover below the resistance of 1615 points.

Among stocks to watch are: The Ministry of Human Resources said that the headquarters of Top Glove in
Meru, Klang was raided by enforcement officials last Monday to investigate matters relating to breach of
Movement Control Order (MCO) rules and cramped quarters provided to foreign workers. The minister,
however, said no offences involving elements of forced labour were found. In a separate statement, Top Glove
said it was recently accorded an "A" rating during a social audit by Amfori, a leading global business association
for open and sustainable trade; Komarkcorp has set up Komark Mask (M) Sdn Bhd to carry out the
manufacture and sale of face masks. It also anticipates the face mask venture to contribute to 25% or more of
the net profit of the group through manufacturing the commonly used three-ply surgical face masks and KN95
masks; CIMB's 94.83% indirectly held subsidiary CIMB Thai Bank PCL reported a 52.44% yoy rise in its 2QFY20
net profit, helped by a rise in net interest income and gains on financial instruments; CMMT's 2QFY20 net
property income fell 61.5% yoy as impacted by significant rental waivers and rebates to tenants affected by
phases of lockdown; TAS Offshore is expected to lose RM70 million for cancelling two contracts with two
shipbuilders, namely Guangzhou Hangtong Shipbuilding and Shipping Co Ltd as well as Jiangmen Hangtong
Shipbuilding Co Ltd, in China to build 16 units of offshore support vessels; Sime Darby Plantation has
managed to retain ownership of its 75ha land in Merlimau from being a compulsory acquisition by Taiwan-
controlled company GI A Resources Sdn Bhd, which claimed it was acting in the interest of former Yang di-
Pertuan Agong cum current Sultan of Kelantan Sultan Muhammad V, for a below-market-value price of
RM35.282 million; Puncak Niaga said its Kuantan regional sewage treatment plant contract sum has been
revised downwards by about RM57.28 million to RM432.65 million from RM489.93 million; Marine & General
has sold its 40% stake in wholly-owned subsidiary M&G Sutera 8 Sdn Bhd (MGS8) to Muhibbah Engineering
for RM21.84 million, to settle the remaining outstanding sum owed to Muhibbah Engineering for the
construction of a chemical tanker, JM Sutera 8.

Malaysia News & Highlights

Economics

Malaysia, Singapore to ink RTS deal on July 30, price tag to rise at least RM500m
Malaysia and Singapore are set to sign the agreements for the Johor-Bahru-Singapore Rapid Transit System
(RTS) on July 30, with the price tag to see an upward revision of at least RM500 million from the earlier
projected RM3.16 billion, according to Transport Minister Datuk Seri Wee Ka Siong. The cost revision is due to
specification changes that include the setting up of a new depot, Wee told lawmakers in Parliament today. Wee
is also the Barisan Nasional member of parliament for Ayer Hitam. Besides that, the project, which was
previously based on the Mass Rapid Transit (MRT) system, has been switched to the Light Rail Transit (LRT)
system. (Source: The Edge)

SC introduces enhanced IPO framework, to take effect in January 2021

The Securities Commission Malaysia (SC) is introducing an enhanced initial public offering (IPO) framework
which will take effect on Jan 1, 2021. The enhanced framework, which is also applicable for Reverse Takeover
(RTO) submissions, is to promote greater shared responsibility among key stakeholders involved in the
submission of an IPO for listing on the Main Market of Bursa Malaysia, the capital markets regulator said in a
statement today. One of the key features of the new framework is the introduction of a mandatory pre-
submission holistic consultation between the SC and key stakeholders including the applicant, principal advisers,
lawyers, reporting accountants and valuers. (Source: The Edge)
22 July 2020 Daily Highlights JF APEX SECURITIES

Malaysia’s aviation industry heading for RM13b loss this year — Wee
The Malaysian aviation industry is projected to lose RM13 billion this year as air travel plummeted in the face of
the Covid-19 pandemic and international travel restrictions that are still in place, said Transport Minister Datuk
Seri Wee Ka Siong. This includes a RM10.9 billion loss from Malaysia-based airlines — Malaysia Airlines Bhd,
AirAsia Group Bhd and Malindo Airways Sdn Bhd, he told a press conference at Parliament lobby today. Airport
operators, meanwhile, are seen losing RM2.1 billion this year, Wee added. Malaysia Airports Holdings Bhd
manages 39 airports in the country, while Senai Airport Terminal Services Sdn Bhd runs the Senai International
Airport in Johor. (Source: The Edge)

Quarterly Results

CIMB Thai 2Q net profit up 52% y-o-y to 306 million baht

CIMB Group Holdings Bhd’s 94.83% indirectly held subsidiary CIMB Thai Bank PCL reported today a 52.44% rise
in second-quarter net profit to 306.04 million baht (about RM41.14 million), from 200.76 million baht a year
earlier, as net interest income rose and as CIMB Thai registered gains on financial instruments. According to
CIMB Thai’s financial statements and press release, which were atttached to CIMB Group’s Bursa Malaysia filing
today, CIMB Thai’s net interest income rose to 2.92 billion baht for the second quarter ended June 30, 2020
(2QFY20) from 2.86 billion baht. In the financial statements, CIMB Thai said gains on financial instruments
measured at fair value through profit or loss stood at 80.64 million baht versus a loss of 38.69 million baht a
year earlier. (Source: The Edge)

CMMT 2Q NPI falls on significant rental waivers for tenants affected by MCO
CapitaLand Malaysia Mall Trust's (CMMT) net property income (NPI) fell 61.5% to RM19.36 million for the
second quarter ended June 30, 2020 (2QFY20) against RM50.33 million a year ago, as it gave significant rental
waivers and rebates to tenants affected by the various phases of the Movement Control Order (MCO) imposed
to combat the Covid-19 pandemic. Income from its car park plunged 83.8% year-on-year (y-o-y) to RM930,000
from RM5.74 million while its marcom revenue and utilities recovery also declined during the MCO, it said in a
bourse filing. Meanwhile, gross rental income fell 35.1% to RM42.85 million from RM66.05 million a year ago.
Revenue for the quarter also decreased 41.2% y-o-y to RM49.88 million from RM84.85 million. (Source: The
Edge)

Company Development and Outlook

Comintel's counter to be suspended today, pending material announcement

Trading of shares in Comintel Corp Bhd will be suspended today with effect from 9am, pending a material
announcement. The Practice Note 17 (PN17) company is involved in turnkey engineering design and
integration, programme management, installation and commissioning with comprehensive aftersales service
support (collectively known as System Integration and Maintenance Services Segment or SIMS Segment). Apart
from that, it offers green waste management and waste-to-energy solution, as well as renewal and green
technology products and other energy-efficient solutions. (Source: The Edge)

Ministry confirms Top Glove HQ raided, cleared of forced labour violations

The Ministry of Human Resources today confirmed that the headquarters of Top Glove Corp Bhd in Meru, Klang
was raided by enforcement officials last Monday. However, no offences involving elements of forced labour
were found, the ministry said in a statement today. It said the raid was carried out because the glove
manufacturer had breached Movement Control Order rules and provided cramped quarters for foreign workers.
(Source: The Edge)

Prestariang founder to take up 15% stake in the company

Prestariang Bhd has entered into a heads of agreement with Dr Abu Hasan Ismail, president cum group chief
executive officer of the company, for the latter to subscribe to 79.58 million new ordinary shares or a 15%
stake in the company at 35 sen per subscription share on a willing buyer-willing seller basis. Based on the
subscription price, the group is expected to raise RM27.85 million. The subscription price was arrived after
taking consideration of the historical market prices of the company for the past six months, during which the
highest and lowest share prices of Prestariang were traded between 59 sen and 10 sen, said the company in a
22 July 2020 Daily Highlights JF APEX SECURITIES

filing with Bursa Malaysia. The proceeds "will enable the group to restore and strengthen its equity capital whilst
rebuilding a stable footing for the group's business following the termination of the SKIN contract", it said.
(Source: The Edge)

Sime Darby Plantation plans to fully use GenomeSelect seeds for oil palm replanting from 2023
Sime Darby Plantation Bhd plans to use its GenomeSelect oil palm seeds for all replanting activities starting
2023. The group has replanted up to 1,000ha of its mature crop areas a year, said Sime Darby Plantation head
of biotechnology and breeding Dr David Appleton. "Within three years we hope to have enough capacity to
replant and to sell GenomeSelect to other parties," Appleton said in a dialogue entitled "Why is innovation in
yield is critical to the future of the palm oil industry". (Source: The Edge)

Puncak Niaga Kuantan sewage treatment plant contact sum cut by RM57m to RM432m
Puncak Niaga Holdings Bhd said its Kuantan regional sewage treatment plant contract sum has been revised
downwards by about RM57.28 million to RM432.65 million from RM489.93 million. In a filing with Bursa
Malaysia today, Puncak Niaga said the contract amount was revised downwards by the main contractor, Jalur
Cahaya Sdn Bhd, and the client, the Sewerage Services Department. Back in May 2018, Puncak Niaga bagged
the sewage treatment plant project via its wholly-owned subsidiary Puncak Niaga Construction Sdn Bhd
(PNCSB) that had entered into a principal subcontract agreement with Jalur Cahaya. (Source: The Edge)

TNB commences legal proceedings against IRB for RM1.81b tax assessment
Tenaga Nasional Bhd (TNB) says today it has commenced legal proceedings against the Inland Revenue Board
(IRB) over a RM1.81 billion tax assessment dispute between the two parties. This follows a notice of additional
assessment for 2018 amounting to RM1.81 billion, which TNB received from the IRB last Monday (July 13), the
utility company said in a bourse filing today. In its previous filing, TNB said the notice was similar to the notices
it had received in past years. (Source: The Edge)

TAS Offshore to lose RM70m for contract cancellation

TAS Offshore Bhd is expected to lose RM70 million for cancelling two contracts with two shipbuilders in China to
build 16 units of offshore support vessels (OSVs). In a bourse filing today, TAS Offshore said its wholly-owned
subsidiary TA Ventures (L) Ltd earlier entered into the shipbuilding contracts with Guangzhou Hangtong
Shipbuilding and Shipping Co Ltd as well as Jiangmen Hangtong Shipbuilding Co Ltd for the 16 vessels.
However, TA Ventures subsequently signed the supplementary agreements and addendums with the
shipbuilders to postpone the delivery dates and suspend the shipbuilding progress due to low oil prices and
subdued demand for OSVs. The contract sum for each vessel ranged from US$10.38 million (RM44.24 million)
to US$39.38 million per vessel, depending on the size and specification of the vessel. The shipbuilding contracts
were executed during 2013 to 2015, with the OSVs scheduled to be delivered between 2014 and 2017. (Source:
The Edge)

Sime Darby Plantation holds on to Merlimau land following ‘amicable settlement’ on judicial
review bid
After a year-long arduous legal battle, Sime Darby Plantation Bhd (SDP) has managed to retain ownership of its
75ha land in Merlimau from being compulsory acquired by Taiwan-controlled company GI A Resources Sdn Bhd,
which claimed it was acting in the interest of former Yang di-Pertuan Agong cum current Sultan of Kelantan
Sultan Muhammad V, for a below-market-value price of RM35.282 million. In a statement today, SDP said it had
reached an "amicable settlement" with the parties involved in relation to the judicial review application made by
SDP against the director of Melaka’s Lands and Mines Department, Jasin district land administrator, Melaka state
government and GI A Resources. Following the settlement, SDP said the parties today recorded a consent order
in the High Court, which entailed the withdrawal of the compulsory acquisition order by the director, land
administrator and state government. (Source: The Edge)

Marine & General sells 40% stake in unit to Muhibbah to settle outstanding sum
Marine & General Bhd (M&G) has sold its 40% stake in wholly-owned subsidiary M&G Sutera 8 Sdn Bhd (MGS8)
to Muhibbah Engineering (M) Bhd for RM21.84 million, to settle the remaining outstanding sum owed to
Muhibbah Engineering for the construction of a chemical tanker, JM Sutera 8 (JMS8). In a bourse filing today,
M&G said its wholly-owned subsidiary M&G Marine Logistics Holdings Sdn Bhd has signed a subscription
22 July 2020 Daily Highlights JF APEX SECURITIES

agreement with Muhibbah Engineering for the disposal. Upon completion of the deal, M&G still owns a 60%
equity interest in MGS8. MGS8 is principally involved in the transport of freight overseas and coastal waters and
other service activities incidental to water transportation. (Source: The Edge)

Komarkcorp to diversify into manufacture and sale of face masks

Komarkcorp Bhd is set to diversify into the manufacture and sale of face masks, given the current market
environment. In a circular to shareholders today, Komarkcorp said it had on June 15 incorporated its unit
Komark Mask (M) Sdn Bhd to carry out a new business which it said is anticipated to contribute 25% or more of
the net profits of the group through manufacturing the commonly used three-ply surgical face masks and KN95
masks. It said the new business will be led by an executive director of the company as well as its group chief
operating officer Koh Chie Jooi. (Source: The Edge)

AirAsia, AAX withdraw appeal against High Court's dismissal of judicial review bid
AirAsia Group Bhd, together with AirAsia X Bhd (AAX), have withdrawn their appeal against the High Court's
dismissal of their judicial review application against the Malaysian Aviation Commission (Mavcom). The judicial
review application was pertaining to Mavcom's purported refusal to mediate an ongoing dispute between the
budget airline group and Malaysia Airports (Sepang) Sdn Bhd (MASSB), a subsidiary of Malaysia Airports
Holdings Bhd (MAHB). Today was set as the Court of Appeal's hearing date for the appeal against the High
Court's decision, but AirAsia withdrew the appeal before the hearing. (Source: The Edge)

SBC Corp delays annual report until August, citing pandemic

SBC Corp Bhd says it will delay filing its annual report for the financial year ended March 31, 2020 (FY20) by
another one month to Aug 31, after having considered the challenges facing the group during the movement
control order (MCO) period and the current situation. The construction and property development company was
due to issue the annual report by July 31. In a bourse filing today, SBC said, however, it plans to utilise the
extension of time granted by Bursa Malaysia Securities Bhd for issuance of the FY20 annual report by Aug 31.
(Source: The Edge)

Zecon gets shareholder nod for rights issue

Zecon Bhd has received approval from its shareholders for its proposed rights issue to address its current
funding requirements to meet its short-term obligations and liabilities, as well as strengthen its financial
position. The Sarawak-based construction and property firm had announced on Feb 28 that it was planning to
raise between RM19.4 million and RM46.1 million via a renounceable rights issue of up to 576.4 million of
irredeemable convertible preference shares (ICPS) at an issue price of 8 sen each and a conversion rate of 16
sen. Under the corporate exercise, each shareholder who already owns one Zecon share will receive four ICPS
shares. (Source: The Edge)

Iris Corp aims to be leading player in trusted identity space

Iris Corporation Bhd (Iris Corp) is refocusing and establishing itself in the trusted identity (ID) verification
solutions space, with direct clients across the globe, while also providing technical input, consultation and advice
for a number of others. In a statement, chief executive officer Shaiful Subhan said the tech company wants to
be known as a leading player in the trusted ID space both domestically and internationally, “a company with
strong fundamentals, known for a solid delivery record and providing value to all our stakeholders." He is
confident that this target is achievable with the firm's "Innovative, Relevant, Intelligent & Secure (IRIS)" mantra
and continued achievements, evidenced by a range of patents and other global certifications and awards.
(Source: The Edge)

Changes in Boardroom and Management

APFT CEO will step down end-July

APFT Bhd, a Practice Note 17 company, says today its group chief executive officer Siva Kumar Kalugasalam is
stepping down effective July 30. In a bourse filing today, the loss-making flight education and training service
provider said Siva Kumar, 50, has tendered his resignation to pursue his other personal interest. According to
APFT's Annual Report 2019, Siva Kumar was appointed to his current post in the middle of April last year. He
started his career with the group in 2016 where he was appointed as the finance manager. In 2017, he was
22 July 2020 Daily Highlights JF APEX SECURITIES

appointed as the senior finance manager and then became the head of finance and administration in February
2018. In August that year, he was appointed as the chief operating officer. (Source: The Edge)

Foreign News
Dow pulls out 150-point gain as Big Tech leaders drag Nasdaq down
The Dow Jones Industrial Average and S&P 500 closed higher on Tuesday as traders booked profits from the
major tech names and added to positions in the more beaten-down value stocks. The 30-stock Dow gained
159.53 points, or 0.6%, to close at 26,840.40. The S&P 500 climbed 0.2% to 3,257.30. Both the Dow and S&P
500 cut their gains in the final 30 minutes of trading. The Nasdaq Composite, meanwhile, dropped 0.8% to
10,680.36 after hitting an intraday record earlier in the day.

European markets close higher after EU leaders reach recovery fund deal
European stocks advanced on Tuesday after European Union leaders reached a deal on a 750 billion euro ($862
billion) recovery fund to help the region recover from the coronavirus crisis. The pan-European Stoxx 600 closed
0.3% higher provisionally, paring back gains somewhat from earlier in the session. Most sectors and major
bourses were in positive territory by the market close.

Oil jumps nearly 3% to highest level since March on vaccine hopes, EU deal (Overnight Closing)
Oil rose on Tuesday, helped by positive news about vaccine trials and an EU stimulus deal, taking prices to
levels last seen when an oil price war erupted in early March between Russia and Saudi Arabia. Benchmark
Brent crude was up $1.37, or 3.17%, at $44.65, on track for its biggest daily rise since mid-June. West Texas
Intermediate crude gained 2.82%, or $1.15, to settle at $41.96 per barrel, the highest level since March.

Global economy on track to recover by 4Q20, barring Covid-19 spike before flu season — Morgan
Stanley
The global economy is expected to return to pre-Covid-19 levels by the fourth quarter of 2020 (4Q20), with
developed markets (DMs) recovering by 4Q21, said Morgan Stanley analysts in a July 15 report. The report
comes on the back of an embattled US, where Covid-19 infections have reached record highs over consecutive
days. Six months after the pandemic first reached the US, over 3,754,000 cases have been reported, with at
least 137,000 deaths. That said, the American investment bank remains upbeat on the economy’s resilience.
“The status of Covid-19 in the US today differs from the early days of the outbreak. (Source: The Edge)

Apple says its supply chain and products will be 100% carbon neutral by 2030
Apple announced Tuesday it aims to become entirely carbon neutral by 2030. Apple’s global corporate
operations are already carbon neutral, so the announcement means that Apple will extend that goal to its
manufacturing supply chain and product life cycle. It’s in Apple’s best interest to get its partners to help fight
climate change. Apple said in a filing in 2019, for example, that severe weather caused by global warming could
“cause a temporary disruption in production or the availability of component parts or finished products, in the
availability of a data center, or in the availability or productivity of our workforce.” A delay it parts would mean
Apple might not be able to ship products on time, which could hurt the company’s sales.

(Source: CNBC)

Futures Kuala Lumpur Composite Index Futures Crude Palm Oil

CHANGE JUL AUG SEP OCT AUG SEP OCT NOV
CHANGE 10 12 10 9 CHANGE -21 -29 -23 -20
OPEN 1,590 1,588 1,586 1,571 OPEN 2,729 2,676 2,630 2,615
High 1,605 1,598 1,589 1,578 High 2,770 2,732 2,692 2,657
Low 1,587 1,583 1,580 1,571 Low 2,706 2,669 2,627 2,597
Settle 1,602 1,598 1,589 1,575 Settle 2,733 2,681 2,641 2,611
Volume 8,982 229 39 31 Volume 269 4,071 25,004 9,288
O.I. 28,451 640 991 378 O.I. 6,681 22,571 45,078 32,019
*As at 8.00am 22 July 2020
22 July 2020 Daily Highlights JF APEX SECURITIES

gadang
Daily Technical Outlook
FBM KLCI

Closed: 1595.93 Technical outlook:

Support: (S1) 1550 / (S2) 1515 The FBM KLCI gained 6.48 points to 1595.93 points.
Resistance: (R1) 1615 / (R2) 1650 Technical indicators are mixed with the RSI hovering
below overbought zone while the MACD trended
sideways above its signal line.

After the selldown in March, the FBM KLCI hit the

lowest since May 2010 but staged a sharp rebound.
This month’s surge reclaimed the 200-day moving
average. Last week, the index failed to break the
resistance of 1615 points and hover below this
threshold.
22 July 2020 Daily Highlights JF APEX SECURITIES

gadang
Daily Technical Outlook
KLCI Spot Month Futures

Technical outlook:
Closing: 1601.50 The spot month KLCI futures rose 10 points to
Support: (S1) 1550 / (S2) 1480 1601.50 points. The contract’s premium to the cash
Resistance: (R1) 1615 / (R2) 1700
market was 5.57 points as compared to 2.05 points
premium to the previous trading day.

Technical indicators are mixed with the RSI hovering

below towards the overbought zone while the MACD is
trending sideways above its signal line.

After last month’s sideways trend, the contract

reclaimed the 200-day moving average this month.
Last week, the contract tested the resistance of 1615
points and could hover below this threshold.
22 July 2020 Daily Highlights JF APEX SECURITIES

gadang
Daily Technical Outlook
FCPO 3rd month futures

Closed: RM2640 Technical outlook:

Support: (S1) RM2465/ (S2) RM2345
The 3rd month CPO futures lost RM21 to RM2640.
Resistance: (R1) RM2660 / (R2) RM2690
Technical indicators are mixed with the MACD crossing
above its signal line while the RSI hovered below the
overbought zone.

Last week, the contract gapped-up to break the 200-day

moving average. On Monday, the contract gapped-up and
could take a breather below the resistance of RM2660.
22 July 2020 Daily Highlights JF APEX SECURITIES

JF APEX SECURITIES BERHAD – CONTACT LIST

JF APEX SECURITIES BHD DEALING TEAM RESEARCH TEAM

Head Office: Head Office: Head Office:

6th Floor, Menara Apex Kong Ming Ming (ext 3237) Lee Chung Cheng (ext 758)
Off Jalan Semenyih Shirley Chang (ext 3211) Lee Cherng Wee (ext 759)
Bukit Mewah Norisam Bojo (ext 3233) Nursuhaiza Hashim (ext 752)
43000 Kajang How Chi Hoong (ext 754)
Selangor Darul Ehsan
Malaysia Institutional Dealing Team:
Zairul Azman (ext 746)
General Line: (603) 8736 1118 Nur Nadia (ext 741)
Facsimile: (603) 8737 4532 Siti Nur Nadhirah (ext 743)

PJ Office: PJ Office:
15th Floor, Menara Choy Fook On Mervyn Wong (ext 363)
No. 1B, Jalan Yong Shook Lin Azfar Bin Abdul Aziz (Ext 822)
46050 Petaling Jaya Joanne Tan Hui Bin (Ext 111)
Selangor Darul Ehsan
Malaysia

General Line: (603) 7620 1118

Facsimile: (603) 7620 6388

JF APEX SECURITIES BERHAD - DISCLAIMER

Disclaimer: The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written
consent of JF Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to
be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report.

Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of JF
Apex Securities Berhad and are subject to change without notice. JF Apex Securities Berhad has no obligation to update, modify or amend this report
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changes or subsequently becomes inaccurate.

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