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.

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 : 23rd Nov 2015

Bursa Malaysia was higher in the early session today on the back of active buying momentum in selected heavyweights and lower-liners.
The FBM KLCI index rose 1.34 points to 1,663.23, after opening 0.3 point lower at 1,661.59.
 

The ringgit opened easier against the US dollar early Monday on weak demand for the local note.
 

Crude oil futures lost ground on Monday in early Asian trading, as the global supply surplus pressured prices, but a cut in the number of U.S. oil rigs for an 11th week in the last 12 limited the falls.
 

Nexgram Holdings Bhd has launched a conditional takeover offer for Ire-Tex Corp Bhd that will see it venture into the manufacturing and industrial automation businesses.
 

Malaysian Rating Corp Bhd (MARC) has assigned a final rating of AA-IS with a stable outlook to Jimah East Power Sdn Bhd's (JEP) sukuk Murabahah of up to RM10 billion.
 

Evergreen Fibreboard's 3QFY15 net profit almost tripled to RM27.59mil due to the stronger US dollar, lower cost of glue, higher operational efficiency and cost savings.
 

Bintai Kinden, it secured a US$15.15mil (RM66mil) contract to provide mechanical, electrical and plumbing works for the Rosewood Hotel in Phnom Penh, Cambodia.
 

Ikhmas Jaya won a RM161.12mil contract for the substructure works of a mixed development at Persiaran Barat, Section 52, Petaling Jaya.

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 can you Trade Strategically in Market?

When it comes to ‘day trading’, Day trading is speculation in securities, specifically buying and selling financial instruments within the same trading day. Strictly, day trading is trading only within a day, such that all positions are closed before the market closes for the trading day. Many traders may not be so strict or may have day trading as one component of an overall strategy. Traders who participate in day trading are called day traders.

Here are some common day trading strategies which will be beneficial in this volatile market:

HAVE PROPER ENTRY AND EXIT

Liquidity and volatility are the major aspect, which the day trader looks for, whereas liquidity helps to get enter and exit a particular stock at a good price. On the other hand, volatility is used to determine the expected price on daily basis. Also, increased volatility tends to high profit or loss. After purchasing the stocks which you require, you need to determine the possible entry points. Therefore, here are some tools which you must implement.

INTRADAY CANDLESTICK CHART:

Intraday candles are the best Stock Picks which will equip you a rough analysis about pricing action.

REAL TIME NEWS SERVICE:

Get Real Time News, as this will provide you update information about stock movement.

DETERMINING A STOP LOSS

During marginal trading, the chances of getting vulnerable are more as compared to regular traders. Therefore, implementing stop loss strategy is important during intraday trading. The two stop loss strategies to implement are as follows:

• A physical stop-loss order that is positioned at particular pricing level should match your risk tolerance.
  
• The mental stop-loss is positioned where your entry criteria get violated, which means that if the trade gets against your expectation, you have to exit your position immediately.
  
  
  
  
  

EVALUATING THE PERFORMANCE
Many beginners step into the intraday trading to generate maximum returns on daily basis but in fact, traders lose their hardly earned capital. However, by implementing accurate stock trading signal with well defined strategy, it’s possible to make the most of intraday trading.