Monthly Archives: October 2016

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Reuters-Stocks on Wall Street rose Wednesday led by the energy sector as oil prices rallied and as financials gained on the increasing likelihood of an interest rate hike after strong economic data.

Activity in the U.S. services sector hit an 11-month high in September, an encouraging sign for economic growth that may nudge the Federal Reserve toward an interest rate increase before the year ends.

Banks .SPXBK, seen benefiting from an eventual rate hike, gained 2 percent as a group -the most for any day in two months.

“We’re taking a little victory lap today after the surprisingly good economic data,” said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.

She said expectations are rising for a pickup in corporate earnings and “there are good signs in the economy.”

Traders priced in a near 65 percent chance of a Fed rate hike in December after the services data, according to the CME Group’s FedWatch tool. The chances had dipped earlier in the day after data showed the U.S. private sector added slightly fewer jobs than expected last month.

The higher chance of a Fed rate hike hurt rate-sensitive sectors like real estate .SPLRCR, which fell 1.9 percent.

“Looks as if we may have a rate increase some time in 2016 or early 2017,” Forrest said. “The recent rise in the 10-year yield tells you that if you’ve been buying some dividend-paying stocks for yield alone, you may be in trouble.”

The yield on the benchmark Treasury note US10YT=RR touched 1.73 percent after having dipped under 1.54 percent on Friday.

The energy sector of the S&P 500 .SPNY added 1.4 percent as both Brent LCOc1 and U.S. crude CLc1 oil rose to multi-month highs after data showed a bigger-than-expected draw in U.S. inventories.

The Dow Jones industrial average .DJI rose 112.58 points, or 0.62 percent, to 18,281.03, the S&P 500 .SPX gained 9.24 points, or 0.43 percent, to 2,159.73 and the Nasdaq Composite .IXIC added 26.36 points, or 0.5 percent, to 5,316.02.

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TheBursa Analyst:
Thursday, 6 October 2016 (6102016)

Dear Retailers,

KLCI up +1.67 to close higher at 1,662.92, DJIA is bull and is currently at 18,293. Crude oil broke 50 resistance and is trading at 51.9. USD strengthen agains MYR and is currently at 4.1497.

OIL up, USD up, KLCI UP, DJIA UP, Thursday can monitor export stocks and oil and gas stocks. Please choose those with good FA only.

Thursday 06/10/2016 market ideas:
HOHOHO good good market this Thursday !

1.  WCT: mainly playing on budget announcement. Strongly supported at 1.64. can monitor or put into your watchlist.
2.  HEVEA: It is trading at its resistance of 1.27, which will determine whether it will break out or not. You can que lower , or you can buy at breakout 1.28. Cut loss if it goes below 1.24.
3.  TALIWRK (monitor this, super fishy !) I smell announcement soon! Breakout with volume! good for FIFO play. Support 1 is at RM 1.50, and cut if it closes RM 1.49 or lower
4.  OWG : bullish signs appear, OWG cut if below 2.24.
5.  SKPETRO and DIALOG to rally along with oil. SKPETRO cut if below 1.59 and DIALOG close below 1.5 then cut loss.

Continue to follow:
1.  Kimlun (midterm): First highlighted two days ago when price was 2.14. any pull back is a good chance to enter and remain TP of 2.50.

2.  IQGROUP (midterm): highlighted two weeks ago, but due to sell down for no reason. I see potential in this stock due to their business nature which is the next IN thing Internet Of Things. Investors alike are collecting and this is a good level to enter.

3.  OCNCASH (midterm / contra) both also can. As long as it stay above the 0.4 line, it will have chance to shoot up.

The oracle tells a good Thursday!

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Dzulhilman M+ WM PR Traders:
Salam and Morning All

MACRO : Wall Street rose after two days of losses on Wednesday after strong economic data boosted financial stocks and a surge in oil prices helped the energy sector (investing .com).

MICRO :  KLCI was positive despite market seems to be quite yesterday. However, expect market to be active today as confidence is coming back into the market and KLCI support holds.

WHAT TO EXPECT? : Concentrate on fresh consolidation breakouts and counters that has build up in terms of daily volume compared to 2-3 days ago. Contra players might want to start eyeing for weakness for market rebound and sell them on strength.

Below are my Watch list (06/10/2016)

AJIYA
EP : ABOVE 0.805
SL : BELOW 0.795
TP :  0.960

BONIA
EP : ABOVE 0.615
SL : BELOW 0.605
TP :  0.690

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Markets News Roundup

1⃣ Kossan is tying up with the Malaysian Rubber Board to develop rubber products for civil engineering and construction for commercial evaluation.

2⃣ The Inland Revenue Board has sent notices to MFCB’s unit for additional taxes and penalties totalling RM22.8m.

3⃣ BJCorp is disposing of RM166.5m worth of unsecured subordinated notes in Toronto-listed Taiga Building to Singapore-listed UPP Holdings for a combined RM206.37m cash.

4⃣ Tien Wah plans to buy BAT Indonesia’s printing business, PT Bintang Pesona Jagat, for RM97m.

5⃣ Pintaras has received a contract worth RM24.5m for construction works in relation to a mixed development project at Bandar Baru Sri Petaling.

6⃣ Ho Hup has been awarded a subcontract worth RM32.4m to construct immigration quarters in Pengkalan Hulu, Perak.

7⃣ BLD Plant has aborted its plan to acquire Pekan Semangat SB from multiple vendors for RM155.22m cash.

8⃣ Multi Sports’s shareholders have approved the appointment of 6 independent directors to oversee and revamp the shoe manufacturer’s operations.

9⃣ MUH’s application to delay its AGM to Dec 31, 2016 has been rejected by the Companies Commission of Malaysia (CCM).

Sources: theedgemarkets.com ; thestar.com

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U.S. stocks closed higher, led by energy and financials, as investors parsed through a slew of economic data while watching surging oil prices.
* Dow +112
* S&P +9
* Nasdaq +26

U.S. trade deficit widened to $40.7 billion in August, while weekly mortgage applications rose 2.9 percent last week. Factory orders and ISM non-manufacturing both came in better than expected

Chicago Fed President Evans said Tuesday evening that he expects the Fed to increase interest rates once by the end of the year and that a Fed rate hike “would most likely be the December” FOMC meeting, but “could be the earlier meeting.”

€ European stocks closed lower. The prospects for tighter central bank policies are undercutting equity prices after people familiar with the matter on Tuesday said the ECB will begin to taper bond purchases before it ends QE.  .

⛽ Oil prices hit session highs, rising to their highest since June, supported by a bullish inventories data. The Energy Information Administration said Wednesday that U.S. crude inventories decreased by 3 million barrels, marking the fifth straight week of declines.
* Crude oil $49.83 (+1.14)
* Brent crude $51.76 (+0.89)

Japan’s Nikkei Stock Index closed up +0.50% at a 1-month high, led by a rally in exporting stocks, as USD/JPY rose +0.22% to a 4-week high.

Gold was little changed as the dollar pared gains, after bullion inched down to the lowest in more than three months following the previous day’s sharp sell-off and a technical break well below the key $1,300-an-ounce level.

FCPO (RM2556, -44) closed sharply lower, at its lowest level in 2 weeks. Selling dominated as there was lack of bullish factors and lower Soyoil as expectation of a bumper crop. Talks of poor soybean exports in the month of October also added pressure. Current trend is down. A break below 2550 will see market may test 2500. However, oversold stochastic may bring some rebound in prices.

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UOBKH Retail Market Monitor 6 October 2016

FBMKLCI 1,662.92 (+1.67,+0.10%)
Support: 1,648, 1,640
Resistance: 1,692, 1,700

The index closed marginally higher after eking out only a 1.67pt gain
on last-minute buying interest in index stocks.

Top Gainers: Sime Darby (+2.6%), Hong Leong Financial Group (+1.4%)
and SapuraKencana Petroleum (+1.2%)
Top Losers: AMMB Holdings (-2.7%), IOI Corporation (-2.2%) and Genting
Malaysia (-1.5%)

Stocks to watch:
1) PANPAGES; Technical Buy with +30.6% potential return
*Last: RM0.300 Target: RM0.355, RM0.405 Stop: RM0.260
*Timeframe: 2 weeks to 2 months

2) WCE HOLDINGS; Technical BUY with +16.6% potential return
*Last: RM0.930 Target: RM1.04, RM1.09, Stop: RM0.885
*Timeframe: 2 weeks to 2 months

3) CAN-ONE; Technical BUY with +20.6% potential return
*Last: RM3.50 Target: RM3.91 RM4.22, Stop: RM3.29
*Timeframe: 2 weeks to 3 months
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BURSAMASTER:
BURSAMASTER’S WATCHLIST  6 OCT 16
POSSIBLE UPTREND COUNTERS :

1. DESTINI
2. APPASIA & APPASIA-WA
3. DRBHICOM
4. HEVEA
5. TEKSENG
HAPPY TRADING

Bursamaster Golden STOCK PICK

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Trading Ideas Bursa Malaysia:
Kenanga Today 06-10-2016

Market Commentary

The FBMKLCI traded with volatility within the range of 1,656.28-1,664.25 on low trading volume, as investors digested a stronger Crude oil price performance and negative news that the World Bank had slashed Malaysia’s growth forecast citing a weak global economy. At the closing bell, the local bourse inched up 1.67pts or 0.1% to close at 1,662.92. Despite closing in the black, market breadth was sluggish with 477 bears outpacing 288 bulls.

The underlying technical of the benchmark index is still weak at this juncture, where the key index is still trapped on its sideways consolidation play. With the absence of key catalyst in the market, we reaffirm our view that the FBMKLCI will trade downside-bias within 1,643-1,670 this week. Overhead levels are spotted at 1,670 (R1) followed by 1,680 (R2), while downside support remain tied at 1,650 (S1) and 1,643 (S2).

Radar Stocks

MQREIT (TB; FV: RM1.35) for its superior gross yield of 6.5%

MYEG (TB; FV: RM2.80) which could benefit from the Budget 2017

PWROOT (TB; FV: RM2.56)

Shahrul Azami Aniddin
Head of Dealing
Kenanga Investment Bank Bhd

Views – 69

Reuters – U.S. stocks dropped on Tuesday as investors fretted about Britain’s exit from the European Union and the prospect of a Federal Reserve interest rate hike in coming months.

It was the second straight session of losses on Wall Street, where investors were already on edge due to the uncertainty of a tight race ahead of the Nov. 8 presidential election.

Sterling GBP= slid to its lowest in more than three decades after British Prime Minister Theresa May said the country’s divorce from the EU will not be “plain sailing” and that there would be “bumps in the road.”

While the weaker pound sent UK stocks surging, it raised worries among U.S. investors.

“Clearly there has been some reverberation from across the pond in terms of the prospect for a slightly more disorderly UK separation from the EU,” said Bill Northey, chief investment officer for the private client group at U.S. Bank in Helena, Montana.

Angst about future interest rate hikes also returned to the fore after Richmond Federal Reserve President Jeffrey Lacker said he would have voted in favor of an increase at the latest policy meeting had he been able to do so.

Traders have priced in a 63 percent chance of the Fed raising rates in December, according to the CME Group’s FedWatch tool.

Meanwhile, the International Monetary Fund lowered its 2016 growth forecast for the U.S. economy to 1.6 percent from 2.2 percent and painted a gloomy picture of the global economy.

Ten of the 11 major S&P 500 indexes fell, with the high dividend-paying utilities sector .SPLRCU slumping 2.17 percent and telecom services .SPLRCL down 1.67 percent.

The Dow Jones industrial average .DJI fell 0.47 percent to end at 18,168.45 and the S&P 500 .SPX lost 0.5 percent to 2,150.49.

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Dzulhilman M+ WM PR Traders:
Salam and Morning All

MACRO : U.S. stocks dropped on Tuesday as investors fretted about Britain’s exit from the European Union and the prospect of a Federal Reserve interest rate hike in coming months (investing .com).

MICRO : KLCI moved higher yesterday however generally market remains quite. KLCI is showing weakness.

WHAT TO EXPECT? : Market remains volatile. Best strategy is to buy on weakness and sell on strength and do more short term tradings.

Below are my Watch list (05/09/2016)

MBMR
EP : ABOVE 2.610
SL : BELOW 2.580

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KLSE StockAlliance:
5/10/2016 Stock Picks
1. PESTECH / ECONBHD / KPJ
2. WCEHB / IREKA / EWEIN
3. GOODWAY / ENCORP / WILLOW
4. Follow closely our channel during trading hours.
Stock Alliance
The information contained in this channel is for general information purposes only. Any reliance you place on such information is therefore strictly at your own risk.
We hope to bring profit to everyone as we did in today.

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TheBursa Analyst:
Wednesday, 5 October 2016

Dear Retailers,

KLCI bullish and closed at 1661.25 however the market was rather and volume traded less than normal.

Market around us are showing bullish signs as the S&P/ASX Australian200, China A50, Hongkong HSI, Indonesia IDX, Japan Nikkei, Korea KOSPI, Taiwan Weighted, and the German DAX ALL ARE BULLISH !

• The USD/ MYR strengthened and closed at 4.1488. (today might see some export counters rally).
• Crude oil price is currently at 49.18, touching and testing the 50 resistance soon.
DJIA is still well supported above the 18,000 and closed lower at 18,165 as the market awaits the Fed’s announcement for job numbers are around the corner.

Wednesday 5 October 2016 market ideas :

1. ECONBHD: Forming a N-pattern with candle stick, along with bullish news, I see this stock going higher.

2. WASEONG: Bullish, cut if close below RM0.87.

3. TEKSENG: Will tekseng rebound again ? monitor closely.

Follow up stocks:

4. Kimlun with a TP of RM 2.40-2.50

Lets make today a WINNER WEDNESDAY for everyone !

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UOBKH Retail Market Monitor 5 October 2016

FBMKLCI 1,661.25 (+8.70)
Support: 1,648, 1,640
Resistance: 1,692, 1,700

Asian stocks rose, with Japanese shares rallying as the yen weakened, after data showing expansion in US manufacturing boosted optimism over the health of the world’s largest economy.

Top Gainers: SapuraKencana Petroleum (+2.6%), IHH Healthcare (+1.9%) and Astro Malaysia Holdings (+1.8%)
Top Losers: Sime Darby (-0.5%), Telekom Malaysia (-0.3%) and PPB Group (-0.3%)

Stocks to watch:
1) ENCORP; Technical Buy with +35.4% potential return
*Last: RM0.735 Target: RM0.895, RM0.995 Stop: RM0.635
*Timeframe: 2 weeks to 2 months

2) MALAYSIA MARINE AND HEAVY ENGINEERING HOLDINGS; Technical BUY with +20.6% potential return
*Last: RM1.03 Target: RM1.22, RM1.29, Stop: RM0.965
*Timeframe: 2 weeks to 3 months

3) DAIMAN DEVELOPMENT; Technical BUY with +12.2% potential return
*Last: RM2.22 Target: RM2.34, RM2.49, Stop: RM2.14
*Timeframe: 2 weeks to 3 months

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*♦RHBIB

Dear My Value Client,
Potential stock to buy today:
Date/日期 : 05/10/2016

1) *OWG (5260)*
Price/现价 : 2.27
Target price/目标价: 2.50,2.75
Cut loss/止损价 : 2.11
** Non syariah
Sector/领域: trading/services

2) *SKPETRO (5218)*
Price/现价 : 1.61
Target price/目标价: 1.77,1.87
Cut loss/止损价 : 1.50
** syariah
Sector/领域: Trading/Services

3) *TITIJYA (5239)*
Price/现价 : 1.64
Target price/目标价: 1.80
Cut loss/止损价 : 1.48
** syariah
Sector/领域: properties

Views – 76

Reuters – The fourth quarter got off to a weak start for U.S. stock investors on Monday, with financials, consumer staples and utilities pulling the S&P 500 lower.

Major indexes have bounced between gains and losses in the past few days, with investors nervous about the outcome of a tight race for the White House ahead of the Nov. 8 election.

Big banks extended recent declines as investors worried about the stability of Deutsche Bank (DBKGn.DE) and also Wells Fargo & Co’s (WFC.N) handling of sales abuses.

U.S-listed shares of Deutsche slipped 0.85 percent as hopes faded of a swift deal with U.S. authorities over a multi-billion dollar penalty for mis-selling mortgage-backed securities.

“The feeling is there will be a negotiation lowering that penalty but it’s certainly a bit of an overhang on the overall market,” said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York.

The S&P 500 financial index .SPSY declined 0.43 percent as Wells Fargo (WFC.N) slid 1.02 percent to its lowest since December 2013.

Also weighing on investor sentiment was a plan announced by Britain on Sunday to start its separation from the European Union by March.

With yields on U.S. Treasury bonds up following stronger-than-expected U.S. manufacturing data for September, the interest-rate sensitive utility sector .SPLRCU fell 1.35 percent.

The consumer staples index declined 0.6 percent, with Procter & Gamble (PG.N) falling 1.21 percent.

The Dow Jones industrial average .DJI fell 0.3 percent to end the session at 18,253.85 points and the S&P 500 .SPX lost 0.33 percent to 2,161.2.

The Nasdaq Composite .IXIC slipped 0.21 percent.

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TheBursa Analyst:
Tuesday, 4 October 2016

Dear Retailers,

Last Friday, out KLCI was bearish, closing -17.09 or -1.02% lower at 1652.55 points.
We missed the DJIA rebound on Friday which should be a good Monday. Regardless,

The other market on Monday was pretty bullish with the China A50, Australian S&P/ASX, HONG KONG HSI, Indonesia IDX Composite, Japan Nikkei, Korea Kospi, Taiwan weighted and even the German DAX to rebound strongly. Previously the German’s Deutshce Bank was in a little panic however after the news of the settlement of $5.4Billion instead of $14Billion cause the share price to rebound strongly.

• The USD/ MYR and closed at a low of 4.1278.
• Crude Oil prices rallied at OPEC’s agreement and is currently at 48.03, the brent crude oil broke touched the 50 resistance and seems to be demolishing the wall !
DJIA was very bull on Friday, however seems to be falling on Monday and opened lower at 18,279.

Don’t expect big giveaways on the upcoming 2017 Budget, the full link can be read from the stars here:

http://www.nst.com.my/news/2016/09/174901/2017-budget-dont-expect-big-giveaways-says-uob-malaysia

This Tuesday will be Turn-Up and LIT !

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$$ Trade:
Tech trader watchlist (October)-swing

1. Vivocom
2. Melewar
3. Ocncash
4. Appasia
5. Ykgi
6. Kub
7. Opensys
8. Asiaply
9. D&O

Simpanan
1. Hiaptek
2. Lionind
3. Knm
4. Nwp
5. Komark
6. Biohldg
7. Syf
8. Anzo

Long term kaunter (jual sblm p/raya)
1.Myeg
2.Takaful

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FAt TA:
M+ Online Morning Buzz – 4Oct16

Dow Jones: 18,253.85 pts (-54.30pts, -0.30%)
U.S. stockmarkets retreated overnight as the Dow reversed most of its previous session gains after the stronger-than-expected manufacturing data boosted the odds of interest rate hike. The immediate support on the Dow will be located around the 18,000 level.

FBM KLCI: 1,652.55 pts (-17.09pts, -1.02%)
After the FBMKLCI endured a round of heavy selling pressure on last Friday, the key index could experience further profit taking activities due to the global economy uncertainty. Downside risk is pegged to the 1,640 level.

Crude Palm Oil: RM2,636 (+RM20, +0.76%)
Crude palm oil price rebounded off the 2,600 psychological level on weaker inventory data. The immediate support is pegged near the RM2,500 level over the near term.

WTI Crude Oil: $48.81 (+$0.70, +1.45%)
Crude oil rose for the fourth straight session, buoyed by optimism over OPEC agreement to curb production output. Crude oil may head towards the US$50 level.

Gold: $1,311.60 (-$2.98, -0.23%)
Gold retreated for the fifth straight session after major gold miners in Mexico closed production.

Economic Releases:
Japan – Consumer Confidence – 4Oct16, 1.00PM
Eurozone – Eurozone’s August PPI Index – 4Oct16, 5.00 PM

Bursa Malaysia Trade Statistics – 3Oct16
Institutions: Net BUY 231.7 mln (57.9%)
Retail: Net BUY 34.5 mln (13.2%)
Foreign: Net SELL 266.2 mln (28.9%)

Potential Momentum Stocks – 4Oct16
Stock Name: RUBEREX (7803)
Entry: Buy above RM0.80
Target: RM0.835 (4.4%), RM0.865 (8.1%)
Stop: RM0.785 (-1.9%)
Shariah: Yes
Technical: Potential sideways consolidation breakout

Stock Name: CBIP (7076)
Entry: Buy above RM2.05
Target: RM2.18 (6.3%), RM2.34 (14.1%)
Stop: RM1.98 (-3.4%)
Shariah: Yes
Technical: Sideways consolidation breakout

Source: Bloomberg, M+ Online

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Trading Ideas Bursa Malaysia:
Market News Roundup

1⃣ Genting has finalised its proposed disposal of its stakes in Genting HK Ltd to Golden Hope Ltd for about RM1.7b in cash.

2⃣ Titijaya is proposing to acquire property development company NPO Builders SB from its vendors Titi Kaya SB, Lee Eng Wah & Lim Wen Yeh for RM115.6m, by issuing new shares.

3⃣ IWCity is buying 2 parcels of freehold land in Pulai, Johor, for RM90m, for which it plans to develop a mixed project.

4⃣ Salutica is seeking a transfer from the ACE market to the main market of Bursa.

5⃣ SK Petro said it secured 3 offshore oil and gas support-service contracts, with a combined value of about RM889m in Malaysia, Brunei & India.

Financial Result Highlight

BJCorp posted a net loss of RM62.68m in 1QFY17, partly due to exceptional items, including loss on disposal of associated company, and non-cash impairments.

Astino’s net profit for 4QFY16 expanded 17.7x to RM8.4m (3.08 sen/ share), due to an increase in revenue and profit margin.

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Trading Ideas Bursa Malaysia:
4th October 2016 Markets Roundup

US MARKET
DJIA : 18,253.85 (-54.30)
S&P500 : 2,161.20 (-7.07)
NASDAQ : 5,300.87 (-11.13)
VIX : 13.57 (+0.28)
US stocks closed lower as concerns over Deutsche Bank’s financial condition and the UK’s plan for exiting the EU outweighed stronger-than-expected manufacturing data.

EUROPE/UK MARKET
FTSE : 6,983.52 (+84.19)
DAX : Closed
CAC 40 : 4,453.56 (+5.30)
Britain’s megacaps rose to their highest level in more than 16 months as a weaker pound boosted exporters after Prime Minister Theresa May said the country will begin to exit the EU next year.

CHINA/HK MARKET
SHANGHAI : Closed
HSI : 23,572.38 (+275.23)
HK stocks rose more than 1%, lifted by casino shares such as Galaxy Entertainment, after the world’s biggest casino hub of Macau posted a better than expected rise in gambling revenue in Sept.

JAPAN MARKET
Nikkei : 16,598.67 (+148.83)
Japanese stocks rose as global risk asset markets took heart from easing concerns over the health of Deutsche Bank, triggering a relief bounce in financial sector shares.

M’SIA MARKET
KLCI : 1,652.55 (-17.09)
Blue chips ended the 3Q on a downbeat note on Friday as market sentiment in Europe and Asia was buffetted by worries about Germany’s Deutsche Bank and a confluence of negative news.
⬆230⬇586↔375

OIL
WTI 48.74
Brent 50.84
Oil prices were up about 1% after comments by Iran’s leader exhorting the need for other oil producers to join OPEC in supporting the market.

GOLD
GOLD 1,314.95
Gold edged higher in response to Britain’s decision to set a March deadline to start divorce proceedings from the EU.

FX & BONDS
USD/MYR – 4.1085
EUR/MYR – 4.6065
GBP/MYR – 5.2774
AUD/MYR – 3.1565
HKD/MYR – 0.5297
SGD/MYR – 3.0101
USD/JPY – 101.62
Msia 10 yr Bond Yield – 3.561%
US 10 yr Bond Yield – 1.627%

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: This week will focus on:
(1) U.S. politics with only five weeks left until the Nov 8 election,
(2) whether this Friday’s U.S. Sep payroll report meets market expectations of +170,000 and thereby supports market expectations for a rate hike by year end,
(3) concern about the European banking sector as Deutsche Bank continues to try to fend off questions about its financial health,
(4) a heavy dose of Fedspeak with seven appearances this week by various Fed officials,
(5) Thursday’s G-20 meeting of finance ministers and central bank chiefs in Washington,
(6)Brexit will be in the news this week with the U.K. Conservative Party holding its annual conference this week.
(7)The Chinese markets are closed all this week for the National Day holiday.

In its bi-monthly Global Economic Outlook, Fitch Ratings’ cut its U.S. 2016 GDP estimate to 1.4% from a 1.8% estimate in Jul due to oil sector adjustments, weak external demand and as dollar appreciation takes its toll on industrial demand

⛽ Oil prices were up about 1% after comments by Iran’s leader exhorting the need for other oil producers to join OPEC in supporting the market.
* Crude oil $48.81 (+0.57)
* Brent crude $50.81 (+0.62)

U.S. stocks closed lower as investors digested key economic news and kept an eye on oil prices.
* Dow -54
* S&P -7
* Nasdaq -11

The September Markit Manufacturing PMI came in at 51.5, a three-month low.

€ European stocks closed mostly flat as investors kept an eye on Deutsche Bank and the U.K. process to leave the European Union.

Japan’s Nikkei Stock Index closed up +0.90% as European banking concerns eased and on signs of strength in Japanese manufacturing activity after the Japan Sep Nikkei manufacturing PMI was revised upward to an 8-month high.

The Japan Q3 Tankan large manufacturing business conditions was unch at 6, weaker than expectations of +1 to 7.

Japan Sep Nikkei manufacturing PMI was revised upward to 50.4 from 50.3, the fastest pace of expansion in 8 months.

China Sep manufacturing PMI was unchanged at 50.4, weaker than expectations of +0.1 to 50.5. The Sep non-manufacturing PMI rose +0.2 to 53.7.

Gold edged higher on Monday in response to Britain’s decision to set a March deadline to start divorce proceedings from the European Union. Now, RM1310.65 (-1.18)

FCPO (RM2636, +20) closed slightly higher on Friday. Short covering after recent sharp losses and profit taking for the long weekend helped market rebound to positive territory late in the session. The sharply lower China Dalian futures was followed in the morning without any excessive sell down. The rebound in the afternoon showed that market may been overdone on the downside. Market is consolidating between 2550 – 2700 while awaiting fresh new factors to surface.

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UOBKH Retail Market Monitor 4 October 2016

FBMKLCI 1,669.64 (+4.68,+0.30%)
Support: 1,648, 1,640
Resistance: 1,692, 1,700

The index declined last Friday weighed down by selling pressure in
selected heavyweights and index-linked counters.

Top Gainers: were Petronas Dagangan (+0.2%) and Hong Leong Bank (+0.1%)
Top Losers: GeRHB Bank (-4.1%), Axiata Group (-3.7%) and Astro
Malaysia Holdings (-3.5%)

Stocks to watch:
1) YLI HOLDINGS; Technical Buy with +19.4% potential return
*Last: RM0.540 Target: RM0.605, RM0.645 Stop: RM0.475
*Timeframe: 2 weeks to 2 months

2) RUBBEREX CORPORATION (M); Technical BUY with +16.5% potential return
*Last: RM0.800 Target: RM0.915, RM0.955, Stop: RM0.745
*Timeframe: 2 weeks to 2 months

3) IREKA CORPORATION; Technical BUY with +28.4% potential return
*Last: RM0.535 Target: RM0.695 RM0.745, Stop: RM0.475
*Timeframe: 2 weeks to 2 months

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Trading Ideas Bursa Malaysia:
Kenanga Today 04-10-2016
The FBMKLCI has broken down from its support-turned-resistance level of 1,660 (R1) last week, underpinned by the lack of domestic catalyst and concerns over the Deutsche Bank crisis.

Chart-wise, the key index is currently in a vulnerable position as it currently hovers right above its key immediate support level of 1,650 (S1). The underlying outlook is downside-bias for the immediate, showcased by the bearish movement seen by MACD histogram, RSI and Stochastic. Coupled with the tapering Crude oil prices and weaker Ringgit against the Greenback as of recent, outlook for the week remain gloomy. From here, we view that the FBMKLCI will trade downside-bias within 1,643-1,670 during this shortened trading week. Resistance level are capped at 1,670 (R1)/1,680 (R2), while support levels are seen at 1,650 (S1)/1,643 (S2).

Radar Stocks

4Q16 Top Picks:-

(i) GKENT (TB; FV: RM2.80),
(ii) KIMLUN (OP; TP: RM2.51),
(iii) KOSSAN (OP; TP: RM7.30),
(iv) MATRIX (OP; TP: RM2.65),
(v) MYEG (TB; TP: RM2.80),
(vi) PWROOT (TB; FV: RM2.56),
(vii) SCGM (OP; TP: RM3.81),
(viii) SCIENTX (OP; TP: RM7.57),
(ix) SLP (OP; TP: RM3.11)
(x) SKPRES (OP; TP: RM1.48).
(xi) MQREIT (TB; FV: RM1.35),
(xii) RCECAP (TB; FV: RM1.50)
(xiii) SUNCON (OP; TP: RM1.81).

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