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.
Maintain Neutral with a higher target price of RM22.55 Petronas Gas Bhd PGas’ operating expenses are expected to remain elevated in FY16 amidst its ongoing plant rejuvenation and revamp (PRR) project. We mildly tweaked our FY16F earnings by -4.5% while keeping our FY17F earnings largely unchanged. Maintain NEUTRAL with a new TP of MYR22.55 (from MYR22.40, 0% upside) as we roll valuations forward. It is investing in a new MYR2.7bn regasification terminal at the Pengerang Deep Water Terminal, which would significantly boost FY18F earnings upon commissioning. However, this has been largely priced in. Maintain NEUTRAL. Despite Petronas Gas’ (PGas) higher-than-expected opex in FY15, we believe its stable earnings outlook remains largely intact. We like PGas for its defensive earnings and strong long-term fundamentals, which are backed by the continued industrialisation in Malaysia that should see a rising demand for gas. However, we believe there are limited catalysts for it...