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.

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.  

Malaysia News Highlights - 28th November 2015

• Bursa Malaysia KLCI (FBM KLCI) opened lower today, weighed down by selling activities in selected heavyweights.
  The FBM KLCI Index fell 3.28 points lower at 1,679.81, after opening 6.16 points easier at 1,676.93.
   
• The ringgit opened lower against the US dollar today on weak buying interest.
   
• European Stocks ended higher on thursday amid hopes for fresh stimulus. Euro rebounding & traded above $1.06 after hitting 7.5mths low amid reports on ECB officials are considering unconventional easing measures,  such as introducing 2 tiered deposit rate.
   
• Gold prices were little changed on thursday as comex floor trading scheduled to remain closed for thanksgiving.
   
• Oil prices fell on thursday amid uncertainty about how quickly the global glut of crude is set to shrink.
   
• M'sia palm oil futures ended 44pts higher on thursday on expected lower output.
   
• AirAsia Bhd sank into the red in its third quarter ended Sept 30, 2015 (3Q15) with a net loss of RM405.72 million, dragged down by a foreign exchange (forex) loss on borrowings and losses from the share of results of associates and jointly-controlled entities, as well as one-off costs related to the sale and leaseback of aircraft.

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.

How to Trade By Malaysia Hot Stock Market?

The Bursa Malaysia previously known as Kuala Lumpur Stock Exchange (KLSE) is a major stock market in Malaysia which monitors the performance of 30 largest companies through its market capitalization which is registered on main board of the Bursa Malaysia. When trading in Malaysia stock market, follow some below mentioned malaysia stock picks to get start.

Step 1: Know Your Market

Knowing about the listed companies in stock market and which stock to buy today is necessary before investing, as there are several stock markets around the world for trading. Depending on the movements in stock market and risk appetite, you can find such companies which are listed in Malaysia stock markets which will provide you more profits.

Step 2: Open the Central Depository System

Before investing in Malaysia share market, open a Central Depository Account System with Bursa Malaysia. A CDS is an electronically operated book entry system that record & maintain shares of owner with their transfers. It’s just like a saving your money in your bank account, you keep your particular share in this CDS account. You can open from the below mentioned two types of CDS account termed as “Nominee” & “Direct” account.

Nominee Account:

Your stock broker holds all your shares on your behalf in Nominee account. The main importance of this nominee accounts is that your stockbroker takes the responsibility of your administrative tasks or any paperwork work for you.

Direct Account:

It’s just an opposite of nominee accounts. In ‘Direct account, you have to handle all your activities & tasks related to your shares.

You can choose from the above account as per your requirements. If you can do administrative work by your own or if you can keep patience to handle these issues, you can surely choose ‘Direct account’.

Step 3: Select a Advisory

Once you’ve your CDS account, you’ve to get a broker or advisory firm which helps you for how to start stock trading in Malaysia. If you’re an investor in Malaysia share market, then you can get trustworthy Bursa Malaysia Stock Picks & advisory services offered by several financial institutions. You can also check out share trading comparison table for advisory services.

Step 4: Be a Best Practitioner

It’s not an easy task to earn money from trading your shares. It’s recommended that you have to do practice & have to be an expert by getting accurate klse stock recommendations for better returns. Practicing about the trading includes detailed research about the company’s business strategies, company’s relationship with customers & suppliers and where it is placed among its other competitors.

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 Update Today : 7th Oct 2015

• Bursa Malaysia opened lower today on profit-taking activities and in tandem with the downtrend among regional peers.
  The FTSE Bursa Malaysia Kuala Lumpur key index was down 3.49 points to 1,659.02, after opening 3.86 points lower at 1,658.65.
   
• The ringgit opened firmer against the US dollar in early trade Wednesday, supported by continued buying momentum amid weak sentiment for the greenback.
   

• Crude oil surged 5 percent on Tuesday after the United States cut output forecasts, while global equity markets mostly rose on expectations the Fed will not raise interest rates this year, though Wall Street fell on slumping biotech stocks.
   
• Malayan Banking Bhd (Maybank) remains confident of Indonesia’s long term economic outlook due to its strong fundamentals buoyed by stable fiscal and macro-economic policies.
   
• AirAsia was in focus on Wednesday on news that the founders were sounding out investors to take the company private in a management-led buyout while oil and gas stocks climbed following the overnight jump in crude oil prices.

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.

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.

Malaysia Update's : 17th Sept 2015

• Malaysian share prices opened higher in early trade today, jumping more than 37 points higher boosted by gains in Tenaga and select blue chips, in tandem with the stronger Asian equities.
  The FTSE Bursa Malaysia Kuala Lumpur Composite is at 37.49 points to 1,683.47.There were 377 gainers, 100 decliners and 174 counters unchanged.
   
• The ringgit extended its gain on Tuesday to open higher against the US dollar today on continuous buying momentum.
   
• Oil prices jumped on Wednesday, after the largest US crude drawdown in seven months at the key US delivery point eased worries about over supply, helping to boost battered energy stocks.
   
  
  
  
  
  
• AmResearch has initiated coverage on Inari Amertron Berhad with a Buy and a fair value of RM3.83 a share, based on a PE of 15 times FY16F earnings, due to surging growth and demand for its radio frequency (RF) chips.
   
• Government bonds or sovereign yields trended upwards across the entire maturity spectrum in August, amid a weak ringgit and subdued oil prices, which steepened Malaysian Government Securities (MGS) yield curves from a year ago.
   
• Inter-Pacific Research Sdn Bhd has assigned a “neutral” rating on Johor Corp’s new Islamic real estate investment trust (REIT) Al-Salam, with a target price of RM1.14, based on a discount rate of 7.6% and a dividend growth of 2%.