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.

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 - 21st Oct 2015

• Bursa Malaysia opened slightly lower on weaker buying demand in selected heavyweights, however, the benchmark index managed to hold above the 1,700 points level.There were 161 gainers, 193 loosers while 214 counters were unchanged, 1,258 untraded and 32 others were suspended.
  The FTSE Bursa Malaysia Kuala Lumpur key index down 3.84 points, after opening 2.32 points weaker at 1,715.88.
   
• The ringgit opened easier against the US dollar as it failed to arrest its continuing decline against the greenback.
   
• WCT Bhd has won a major infrastructure package at the Tun Razak Exchange (TRX), valued at RM754.8 million.

• Affin Islamic Bank Bhd, Bank Islam Malaysia Bhd, Bank Muamalat Malaysia Bhd and Maybank Islamic Bhd have jointly established a consortium named Raeed Holdings Sdn Bhd to develop a multibank platform to market investment account products.
   
• Glomac Bhd is appealing to Bank Negara Malaysia, the central bank, to be more flexible in providing end financing for prospective home buyers, as the rejection rate for home loans in the industry for the first six months this year is more than 50%, which is a worrying trend.
   
• IOI Properties Group Bhd is buying land that is expected to generate an indicative gross development value (GDV) of RM20 billion within IOI City Resort from its major shareholders for RM1.58 billion.
   
• Hong Leong Bank Bhd and Hong Leong Islamic Bank Bhd have become the latest in the growing list of banks offering severance packages to its employees in an effort to reduce operational costs through a mutual separation scheme (MSS).
   
• BIMB Securities Research has maintained its “buy” call on WCT Holdings Bhd with a target price of RM1.75, 25.9% higher than the stock’s close of RM1.39 yesterday, after the company announced on Monday that it has secured a RM755 million infrastructure and roadway contract at the Tun Razak Exchange (TRX) in Kuala Lumpur.
   
• Amcorp Properties Bhd (AmProp), co-investment partnership with Grosvenor Asia Pacific Ltd and Nan Fung, has acquired 14 office and three retail units totalling about 39,000 sq ft comprising about 8% of net rentable area in a 44-storey residential cum commercial high rise building in Tokyo.

Malaysia News Highlights- 28th Sept 2015

• Bursa Malaysia opened lower today on poor buying sentiment after a long weekend with investors still cautious on global growth outlook
  The FTSE Bursa Malaysia Kuala Lumpur Composite was 1.85 points lower to 1,613.16 after opening 2.49 points easier at 1,612.52.
   
• The ringgit continued its decline in early trade today, as the greenback strengthened amid the possibility for an increase in interest rates this year.
   
• Foreign funds sold down their shareholdings in Malaysian equities in the week ended Sept 24 with net selling at RM1.268bil.
   
• Tadmax Resources Bhd has received Bursa Malaysia's approval for a further extension of six months to complete its private placement exercise.
   
• Mieco Chipboard is selling its unit Mieco Wood Products Sdn Bhd, which is mainly involved in reforestation, for RM35mil cash to repay borrowings and for additional working capital.
   
• SYF’s net profit for the fourth quarter ended July 31, 2015 almost doubled to RM10.13mil following contribution from its property development segment.

Market Review for KLCI

Market Review for KLCI

The FTSE Bursa Malaysia Kuala Lumpur Composite index lost 4.10 points or 0.25% on Tuesday. The Finance Index fell
0.45% to 14189.02 points, the Properties Index up 0.24% to 1158.54 points and the Plantation Index down 0.15% to
6994.46 points. The market traded within a range of 13.17 points.
The KLCI closed down at 1635.37 points more than one-week low as Southeast Asian stock markets mostly fell. Market
sentiment remained bearish after ringgit continues to slide and as crude oil prices dropped.

Market forecast for KLCI

The FBM KLCI index is expected to trade with bearish sentiments and can take support at 1604 as the investors sentiment
can continue to remain negative on the back of the Chines economic slowdown.

KLCI COUNTER SPECIFIC NEWS

- 1Malaysia Development Bhd has expressed disappointment with Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz who apparently singled out the strategic development company for the ringgit's weakness.
- Foreign selling of Malaysian equities continued for the second day Tuesday with net selling at –RM185.5mil while the market was supported by local funds with local retailers nibbling.
- Iris Corp Bhd expects to see better performance for its financial year ending March 31, 2016 , mainly driven by its trusted identification division, housing project in Papua New Guinea and waste to energy incinerator plant in Phuket, Thailand.
- 1Malaysia Development Bhd has expressed disappointment with Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz who apparently singled out the strategic development company for the ringgit's weakness.
- Foreign selling of Malaysian equities continued for the second day Tuesday with net selling at –RM185.5mil while the market was supported by local funds with local retailers nibbling.
- JAKS Resources Bhd has secured US$1.402 billion (RM5.82 billion) in financing to partly fund the construction of a coal-fired thermal power plant project (IPP project) in Hai Duong province, Vietnam.
- Eco World Development Group Bhd has proposed to buy 2,198.4 acres of leasehold land in Ijok, Kuala Selangor for RM1.181bil.



GLOBAL FACTORS AND WORLD INDICES

* Hong Kong and Shanghai stocks tumbled Wednesday after a gauge of Chinese manufacturing activity for September hit a six-and-a-half-year low, adding to worries about the world's number two economy. Hang Seng Index sank 2.26 per cent, or 493.67 points, to close at 21,302.91.
* Australian shares tumbled to their lowest close in more than two years on Wednesday as concerns about the economic outlook for top trading partner China sent commodity prices lower, hitting sentiment across the board.
* A plunge in a gauge of Chinese factory activity stoked fresh fears about the world's number two economy and the global outlook Wednesday, sending Asian markets tumbling after a heavy sell-off in New York and Europe.
* Taiwan stocks fell on Wednesday after a survey showed factory activity in China - one of the island's biggest trading partners - contracted for the seventh straight month.
* French private-sector activity rebounded in September from its summer torpor, as manufacturing output swung back to growth after two consecutive months f decline, according to a widely watched survey of businesses released on Wednesday.
* Greek banks' capital shortfall may reach the upper end of a 10-25 billion euro (S$16-40 billion) range set out in the country's third bailout.
* Malaysia's consumer price index in August edged up to 3.1 per cent from a year earlier due to sustained price increases in household expenses despite lower fuel
costs, data showed on Wednesday.
* Malaysia's ringgit slid along with stocks and bonds as a measure of factory output in China added to signs Asia's largest economy slowing, spurring demand for the relative safety of the dollar.
* Gold struggled on Wednesday to recover from its losses over the previous two sessions, as the dollar hit its highest in nearly three weeks on expectations the Federal Reserve would hike US interest rates this year.
* Oil prices dipped on Wednesday, reversing early gains, as weak economic data from China weighed on commodities and added to the woes of an oversupplied market that has seen prices more than halve since June 2014.

Market Review for KLCI- 22nd Sept 2015

The FTSE Bursa Malaysia Kuala Lumpur Composite index lost 4.10 points or 0.25% on Tuesday. The Finance Index fell 0.45% to 14189.02 points, the Properties Index up 0.24% to 1158.54 points and the Plantation Index down 0.15% to 6994.46 points. The market traded within a range of 13.17 points.

The KLCI closed down at 1635.37 points more than one-week low as Southeast Asian stock markets mostly fell. Market sentiment remained bearish after ringgit continues to slide and as crude oil prices dropped.

Market forecast for KLCI:

The FBM KLCI index is expected to trade sideways as the investors sentiments can remain cautious after the FED officials comment on the interest rate hike, however if market finds fresh leads in coming session then it may give a positive movement.

KLCI COUNTER SPECIFIC NEWS :

• External pressures and not public debt are one of the issues that may cause rating agencies to rethink their ratings on Malaysia at present, said Fitch Ratings managing director and global head of sovereign and supranational group.
• The ringgit opened lower against a rejuvenated US dollar today.
• Oil markets have seesawed since the beginning of the week, torn between data that points towards a bottoming out of prices following an over 50 percent fall over the last year.
• Alliance Financial Group Bhd (AFG) is planning to raise RM4 billion from a bond issue for general banking and working capital requirements as well as to finance existing debt redemption.
• Berjaya Land Bhd saw its net profit for the first quarter ended July 31, 2015 drop 74% to RM9.91 million, from RM37.66 million a year ago, mainly due to higher prize payout coupled with the absorption of Goods and Services Tax (GST) expense, lower revenue from hotels and resorts business and higher finance costs.
• Affin Hwang has downgraded FGV to Sell form Hold after the recent surge in the company's share price.

GLOBAL FACTORS AND WORLD INDICES:

• Shares in Hong Kong rose Tuesday following gains in New York after top Federal Reserve officials moved to reassure dealers about the US economy after being spooked by last week's decision to hold interest rates. The Hang Seng Index climbed 0.18 per cent, or 39.65 points, to close at 21,796.58.
• China stocks rebounded for the second day on Tuesday, in a further sign of improving investor sentiment that may help the market gradually stabilise after the rout since mid-June.
• Asian shares rose on Tuesday and the dollar held steady as US markets bounced back and the European Central Bank said it was prepared to ease monetary policy further.
• Taiwan stocks rose on Tuesday mostly following overseas markets and some bargain hunting after the previous day's losses, but further gains were capped due to uncertainties ahead of the central bank's policy meeting.
• The introduction of a new accounting standard for financial instruments will be challenging for the banking industry, especially when it comes to modeling for expected losses, the European Central Bank's supervisory chief said on Tuesday.
• The dollar advanced against the euro and other leading currencies Monday on comments from US central bankers who continue to eye a 2015 interest rate increase.
• US home resales fell more than expected in August, a cautionary sign for the US housing market which has recently looked on stronger footing. The National Association of Realtors said on Monday existing home sales dropped 4.8 per cent to an annual rate of 5.31 million units.
• Gold steadied below a near three-week high on Tuesday, retaining overnight losses as Asian equities and the dollar edged higher and as investors worried over the possibility of a US interest rate hike later this year.
• Oil prices rebounded on Monday , looked like a technical correction from heavy losses last week as the basic global oversupply picture remained intact.