Weekly Technical view on KLCI

Weekly Wrap of KLCI



The week saw some action as compared to the preceding weeks with the majority of action confined to the middle three days and again the weekly closing was bearish. The highest level during the high action days was 1652 and the lowest level was 1614.
The KLCI ended the week on a negative note, closed lower at 1628.26 points amid overnight mixed performance in Wall Street. The performance of KLCI was restricted owing to the selling interest in heavy weights counters.



Market Forecast for week ahead:



The KlCI index in the coming week is expected to trade higher, on account of traders resuming their trading activities based on the trading action they saw during the week. However, we reserve our bullish expectations above the level of 1645 for the weekly opening. The market is expected to be sluggish on Monday due to traders waiting to see how the market performs due to past performance on weekly openings.

Technical indicators:



RSI for this week is 39.989 with CCI at -113.68. Besides, difference line of MACD -1.276.

Counter-Specific News:

• Bank Negara Malaysia has been informed that 1Malaysia Development Bhd (1MDB) will use the US$1.83 billion it was supposed to be repatriating back to the country to restructure its debt, according to new central bank governor Datuk Muhammad Ibrahim.
• Felda Global Ventures Holdings Bhd (FGV), through its unit, Felda Transport Services Sdn Bhd (FTSSB), plans to explore opportunities in the aerospace and aviation logistics industry in the quest to achieve sustainable growth.
• Tan Chong Motor Holdings Bhd's (TCM) share price closed at RM2.05, its lowest since September 2009 after posting a surprise core net loss of RM10.2mil in the first-quarter ended March 31, 2015.
• Handal Resources Bhd reported a 60.1% fall in earnings to RM212,000 in the first quarter ended March 31, 2016, due to lower contributions from its crane fabrication and work over divisions.
• Malaysia’s US$170 billion pension fund plans to sell its stake in British American Tobacco Malaysia Bhd, as it focuses on investing in assets deemed socially and environmentally responsible, Chief Executive Officer Shahril Ridza Ridzuan said.

Malaysian News Highlights - 2nd Feb 2016

Malaysian Benchmark:

The FBM KLCI opened lower today in line with the wobbly regional markets.
At 9am, the FBM KLCI fell 4.63 points to 1,663.17.

Counter-Specific News:

• Shares of Puncak Niaga Holdings Bhd rose in early trade today after Puncak's wholly owned subsidiary Puncak Niaga Construction Sdn Bhd secured the tender for the maintenance of a water treatment plant in Beaufort, Sabah.

• Celcom and Maxis may have to possibly pay RM1.7bil each for their spectrums under the Malaysian Communications and Multimedia Commission’s (MCMC) reallocation, says CIMB Equities Research.

• Asia’s online grocery business is set for double-digit growth worth S$19 billion (RM55.3 billion) by 2020 as supermarkets and hypermarkets in the region integrate online delivery service into their business model to provide convenience to tech-savvy, time-crunched consumers.

•  Shell Overseas Holdings Ltd, a wholly-owned unit of Royal Dutch Shell plc, has agreed to sell its 51% stake in Shell Refining Co (Federation of Malaya) Bhd to Malaysia Hengyuan International Ltd (MHIL) - the local unit of a private Chinese refiner - for US$66.3 million.

• Hai-O hopes to shed its “conservative” image and will soon embark on several plans that include exploring new projects and strengthening its multilevel marketing business in the Asean region.

• Poultry firm CAB Cakaran Corp Bhd is eyeing to hit RM1 billion in revenue for the current financial year ending Sept 30, 2016, after missing the target in FY15.

• Indonesian mobile operator PT XL Axiata Tbk, controlled by Malaysia's Axiata Group Bhd, is planning to conduct a rights issue to repay its US$500 million (RM2.08 billion) shareholder's loan.