KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
Maintained Sell with unchanged Target Price (TP) of RM5.50 Highlights/ Comments UMW faces deteriorating market conditions for its automotive and O&G (including valued business) divisions. 51% owned Toyota has set a lower target of 87k sales (including 2k sales from Lexus) for FY16 as compared to FY15’s 95.9k sales (including 2.1k sales from Lexus). New launches for 2016 are Hilux (2Q16), Innova (3Q16), Fortuner (3Q16) and upgraded Vios (launch date unconfirmed). With the expected lower sales volume and continued competitive market, margins are likely to stay weak (despite increased prices) in FY16 for high marketing and distribution costs as well as full year impact from weaker RM against US$ (FY16 to be RM4.10/US$ vs. FY15’s effective RM3.90/US$). 38% owned Perodua is likely to perform weaker in FY16 (vs. circa RM410m in FY15) despite higher target of 216k sales (vs. FY15’s 213.3k sales), given lower revenue mix and full year impact from RM depreciation in FY16. Perod...