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.

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

Going To Bursa Malaysia Market For Trading, Keep This 3 Stock Picks

Trading in KLSE stock market requires strong analyzation & prediction about market trend. By recognizing daily stock moves, it’s easy to know the listed companies in stock market which can help traders to decide which stock to buy before making investment.

Despite of recognizing the stock movement, there may be risk factors which affect your investment. Therefore, to trade by balancing your position, traders need to follow a plan of action to trade profitably. Below are some static rules shared to follow by the traders & investors in KLSE stock market.

Have a Trading Concept:

Plan your investment by knowing your investment limit, so that your investment will have minimal risk of loss as you will know your financial limit. In addition, KLSE stock trading signal will be more helpful, in your financial limitation.

Monitor Stock chart:

While monitoring chart, ‘Buy point’ is an indication to follow the stocks. Further, if you find that stock movements take place beyond the spotted Buy point, it’s acceptable to buy it.

It’s recommended to monitoring stock chart as the indication of ‘Buy point’ will act as a profitable KLSE Stock picks.

Know Your Position:

Before you invest in stock market, it’s good to have list of your valuable assets. Acknowledge your incomes and expenditures; this way planning your budget will be beneficial for investing. The consequences of recognizing your assets will increase the probability of earning good profit potential.

Getting expertise in stock market should be priority while investing in stock market. And having perfect trading plan in a balanced way is the prior key, where trader must focus on. Further comes the trading skills to implement for being a successful trader.

Malaysia News Highlights and Technical Reports : 19th Nov 2015

• Bursa Malaysia edged up in early trade today in line with the uptrend at the regional markets.
  The FBM KLCI gained 2.62 points to 1,659.12.
   
• The DJIA rose 247.66 points, or 1.42%, to 17,737.16, the S&P 500 gained 33.14 points, or 1.62%, to 2,083.58 and the Nasdaq added 89.19 points, or 1.79%, to 5,075.20.
   
• The ringgit opened higher in early trade against the US dollar lifted by renewed buying support for the local unit.

• Oil palm plantation company Kuala Lumpur Kepong Bhd (KL Kepong) saw its net profit for the last quarter (Q4) ended Sept 30, 2015 jump 9.14% to RM186.3 million, compared with RM170.7 million in the previous corresponding quarter, on favourable fair value changes.
   
• CIMB Group Holdings Bhd yesterday entered into a strategic collaboration agreement with leading Philippines telecommunications company, Philippine Long Distance Telephone Company’s (PLDT), to offer digital financial offerings and solutions in the Philippines and across Asean.
   
• Lafarge Malaysia Bhd posted a 28.9% increase in net profit for its third quarter mainly due to higher sales revenue from the cement segment, improved plant performance and higher foreign exchange gains.
   
• PDZ Holdings Bhd posted a net loss of RM1.06 million in the first quarter ended Sep 30, 2015, compared with RM1.67 million in the previous corresponding quarter, on higher vessel running costs and foreign exchange losses.
   
• Amway (Malaysia) Holdings Bhd’s net profit for the third quarter ended Sept 30, 2015 fell 52.9% to RM11.78 million from RM25.02 million a year ago due to adjustments made to reflect higher incentive provisions as a result of higher sales.

Forex Today : 23rd Sept 2015

EUR/USD

EURUSD rallied during the day, just moving around 1.1145 to 1.1105 level. The currency pair is in the down trend and we believe it is only a matter of time that the trend may change at any time. The 1.1095 level is showing a major support so if we break this level we may move towards 1.1020 and then probably to 1.08 level. On the contrary, once we get above 1.1170 level we can see a trend change and we believe we would be buyers then. The next resistance seems to be somewhere near 1.13 level. With the next daily candle we feel buyers will enter into this market and so we may get to see a bullish candle.

GBP/USD

GBPUSD fell during the day slicing down to 1.52 level. The pair is in the longer term down trend so we feel that we may move down to 1.5190 level as the next support is seem to somewhere around this level. Up there, 1.5370 is the first resistance that can be seen in the daily chart so if we break this level we are buyers then and we can end up moving to 1.55 level. For now, we are surely sellers until we reach 1.5170 and then breaking this level can probably take the pair to 1.48 level.

AUD/USD

AUDUSD fell sharply after the China manufacturing survey pointed to weaker conditions with the currency. The pair is in the down trend so once we break below 0.7015 level we can reach 0.6965 level. It is only a matter of time that a fall can be seen with the currency pair. We do not see potential for buying this pair at all.

NZD/USD

NZDUSD fell as the china manufacturing survey effected the Australian Dollar. We believe we are standing on the major support at the moment so the next daily candle can change the trend in the market. But if we break below 0.6230 level then we are sure that the market may reach 0.60 level and then possibly move to 0.57 level. We have to wait for next daily candle and also for a major bearish candle that breaks the major support.

Forex Report Today

EUR/USD

EURUSD fell on Monday but managed to find support near the 1.13 level. With this we believe that we must look for some supportive candles in order to go long with this pair. We know that the interest-rate decision coming out above the Federal Reserve will be a major driver of this pair this week, but at the end of the day we believe that this market is going to go higher given enough time. We do not see potential for selling this pair.

GBP/USD

The GBPUSD pair fell significantly during the session on Monday, but turned back around to form a large hammer. With this, it looks like we are trying to break out to the upside but there is a significant amount of resistance at the 1.55 level. Once we break above this level we are very bullish. For now, with the yearly CPI release we believe this market may give some uneven movements.

AUD/USD

AUDUSD broke higher on Monday, clearing the shooting star made on Friday. With this we think market may go higher but there is a barrier at 0.72 level. In no time we think sellers will enter into this market. If we get below 0.71 level we may head to 0.69 level.

USD/CAD

USDCAD went back and forth during the course of the day on Monday. We believe that the market continues to grind its way slightly higher, as we will need some type of momentum to break out to the upside and start reaching towards the 1.35 level. We believe that any pull back from here will be supported all the way down to the 1.30 level. Though, the pair is consolidating a lot, but for longer term we can be surely bullish in this market.