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.

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.

Forex And Comex Report - 24th Sept 2015

EUR/USD

EURUSD rallied during the day and slightly rose on Wednesday. It seems that the pair has changed its trend and is making a bullish candle. On the daily chart with the trend reversal we feel that the market will head up to 1.1295 level and once this level is cleared we can possibly reach near to 1.14 level. With no other thought, buyers have enter into this market and so the next daily candle will again be bullish.

GBP/USD

GBPUSD fell during the day slicing down to 1.5258 level. The pair is in the longer term down trend so we feel that we are still sellers in this market. The pair will touch 1.5180 level, but after that it may reverse and buyers can be seen in this market. If the major support of 1.5160 is broken then we can move much down to 1.49 level. The next daily candle is expected to change the current trend of the pair.

AUD/USD

AUDUSD fell during the day on Wednesday. The Australian Dollar is in the longer term down trend so we do not see potential for buying in this market at the moment. If we break down below 0.6900 level, the pair will make a new low and we may land to 0.67 or possible 0.66 level down there.

NZD/USD

NZDUSD rallied during the day, but we may get to see some major movements in the pair as the US market opens. New Zealand is in a longer term down trend and we are waiting for a candle that would break the major support of 0.6230 level. On this is cleared we can move down to 0.60 level and probably to 0.58 in the near future.

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.