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.

Frequent Mistakes Committed By Investors Post Bursa Malaysia Hot Intraday Tips Analysis

Investing in stock market is always lucrative and preferred by many risk takers in the world today. In Malaysia there are many people have the analytical skills to understand the trade and stock turns and use the experienced knowledge for investing. Also, there are people who just depend on the Bursa Malaysia Intraday Tips and various klse stock recommendations in order to invest in the stock markets. Investing in the stock market is also dependent on the luck factor according to some people. But which way will give you the profitable return is a million dollar question.

In Malaysia Traders have the common practice of studying Malaysia hot stock, or bursa malysia intraday tips or klse recommendations and then after proper analysis they decide where to invest and how much to invest and also where not to invest.

But still they commit some tiny mistakes which can lead them to face huge losses. Here are few of them:

1.  Always Gazing For Profits:

Traders focus on always fetching the profits and that’s why look at bursa Malaysia Intraday tips and don’t do proper homework on their trading strategies. With profits as the only goal they start investing in waste and unwanted stocks and at the end lose their money.

So you must understand that:

• Take the profits once it reaches at its peak.
  
• Keep hold of quality stocks only and stop holding waste or unfruitful stocks.
  

• Make complete balance between stop loss and profit maximizing strategy.

2. Never Prepared To Take Risks And Bear Losses:

It is rightly said that “one who cannot take a risk cannot expect for profits” and the savvy investors only play for profits rather than understanding the importance of bearing risk and sometimes paying for losses as well.

Investors feel scared of selling the stocks which they know will never return the profits and thus try to keep themselves away from the losses. This practice is extremely wrong and committed by many of the traders and investors.

3. Weak Strategies And Faulty Goals:

nvesting in stock markets is not a matter of fun. It requires planned strategy and figurative goals and a correct methodology to achieve it. If any of these is missing, then the boat will surely go in a wrong direction.

Investors always get confused between the investment stocks and trading stocks and thus fail to plan the strategies for beneficial returns. The grape wine methodology leads many of the investors to buy wrong stocks and in the end losses are ascertained. Also, investors think to intentionally buy the lowest grade stocks for quick profits and at the end the stock touches ground. Also investors fail to keep patience for long term investment stocks and sell them before the actual outputs.

4. Try To Buy At Peak And Sell At Peak Only:

Investors are never interested in buying the stocks when they are at low rates. They only target the peak buying and selling of the stocks as they think it will give them the maximum benefits. And the fools who buy at peek search for various other fools to sell at peek and eventually they get many such fools as well.

So Better Channelize Where And When To Invest. It Will Return You Better Results.

“Precaution Is Always Better Than Cure”

Malaysian News Highlights - 7th Dec 2015

• Bursa Malaysia opened lower today due to lack of buying support.The FBMKLCI index fell 5.73 points to 1,666.27 after opening 2.33 points weaker at 1,669.67.There were 222 gainers and 171 losers with 210 counters unchanged, 1,159.
   
• The ringgit opened lower against US dollar.
   
• DowJones dropped 177 pts last nite. Bursa Malaysia might start with a negative undertones but may improves over the the trading day.
   
• 
  
• SapuraKencana Petroleum group has netted engineering and construction contracts, including contract extensions, with a combined value of US$72mil (RM305mil).
   
• CAB Cakaran said it is in the midst of discussions with Indonesia’s Salim Group in relation to the investment by Salim Group in the company. It also plans to set up a fully integrated poultry business in Indonesia and has signed a memorandum of understanding (MoU) with the Salim Group.
   
• Eastern & Oriental Bhd’s subsidiary has secured up to RM1.084bil in syndicated banking facilities for the 760-acre Seri Tanjung Pinang Phase 2 reclamation project in Penang.

Before Investing In KLSE Stock Market Follow These 4 Fundamental Analyses

When it comes to invest in KLSE stock market, incorporating the fundamental analysis is one of the important methodologies. While investment in stock market, fundamental analysis is a base for investing with different strength & weakness. In fact, if you are investing in financial market without performing fundamental analysis; it’s worthless.

The fundamental analysis involves the assets, revenues, liabilities & other financial terms of company. The analysis is all about gaining insights of company’s performance. In addition, here is some fundamental analysis strategies shared to follow:

Earnings per Share:

EPS is generally used as a performance indicator of the company for long period of time. In fact, there are several ways for calculating the EPS of particular company depending on investor’s objective. To predict the future stock price, fundamental analysis works as an effective stock investment picksto analyze the company’s value, thereby calculating EPS of company.

Book Value per Share:

Book value is implemented to measure the net worth of company. The net worth of the company is termed as liquidation value of company. The book value per share analyzes the present market value of company’s assets.

Net Return on Equity:

ROE is implemented to measure the company’s generated return, invested by shareholders. The generated return is a percentage of shareholders return on equity. It’s recommended to have KLSE stock picks before investing in the market. The ROE is expressed in percentage & calculated by

Return on Assets:

Net Income/Total Assets

Malaysia Daily News Update : 2nd December 2015

• Bursa Malaysia edged up in early trade today despite the stuttering regional markets, lifted by select index-linked blue chip stocks.
  The FBM KLCI index gained 1.28 points to 1,683.65.
   
• US stocks rallied into the close to end up nearly 1% amid weak manufacturing data. The S&P 500 breached the psychologically key level of 2,100 with the rising of healthcare sector.
   
• Protasco Bhd’s subsidiary Protasco Development Sdn Bhd has been awarded a RM300.5 million job by Perbadanan Putrajaya, to construct 1,100 units houses in the Federal Territory of Putrajaya under the 1Malaysia Civil Servants Housing Programme.

• Bank Negara Malaysia (BNM) will consider increasing its holdings of the yuan in its international reserves following the inclusion of the Chinese currency in the International Monetary Fund’s (IMF) currency basket, known as Special Drawing Rights (SDR).
   
• Felda Global Ventures Bhd’s (FGV) attempt to find a new investment mode in Indonesia’s PT Eagle High Plantations Tbk, citing unattractive valuations in anticipation of the improvement in crude palm oil (CPO) prices in 2016.

• AirAsia Bhd has announced a slew of changes in executive leadership for its unit AirAsia Japan, bringing in executives from Skymark Airlines.
   
• PRG announced that its executive director Datuk Seri Yeoh Soo Ann has stepped down from his post.

2 Stock Trading Picks for KLSE Stock Market Investment You Should Follow

The KLSE share market is a trading platform for investors and traders to trade with company’s shares. In Malaysia, the main share exchange market is “Bursa Malaysia”. The Bursa Malaysia previously known as (Kuala Lumpur stock exchange) is a major share market index which monitors the performance of 30 largest organizations via complete market capitalization which is listed on the main board of the Bursa Malaysia.

Here some KLSE Stock picks are shared to when invest in Bursa Malaysia stock market.

1- Know Your Position in Market:

Have a list of your assets before investing in KLSE market. In addition, do analyze your financial investment limits & expenditures; thereby formulating a budget plan for yourself. By knowing position in this way, you can get a better idea about how to invest your assets in a better way to get substantial gain anyhow.

2- Apply Correct Investment Methodology:

However, there is no magic rule to get rich instantly in KLSE stock market. Therefore, it’s recommended to apply those correct investments that includes long term track record with long term growth. For this, you need to have effective Stock trading picks so that the investment methodology will provide good returns.