KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Maintain buy with a lower target price (TP) of RM6.50 Top Glove Remains the industry’s most profitable player 2QFY8/16 results were sequentially weaker but still solid, being Top Glove’s historically second most profitable quarter. For 3QFY8/16, we think earnings could be flattish QoQ as sales volume growth could compensate for the stronger MYR/USD and higher latex cost. We maintain our earnings forecasts and BUY call. However, given the volatility in external factors, we lower our target 2017 PER to 19x (+1SD to mean PER, from 25x) to derive our new TP of MYR6.50 (-22%). Within expectations 2QFY8/16 core net profit was MYR105m (-15% QoQ, +87% YoY), bringing 6MFY8/16 core net profit to MYR228m (+118% YoY) - 57% of our and street’s full-year forecasts. The comparative preceeding quarter’s core net profit excludes gains from the disposal of US bonds. No dividend was declared, as expected. Seasonally weaker; Margins remained strong The weaker QoQ earnings was due lowe...