Maybank Kim Eng: Before the bell (20 Sep 2016)

US economic indicators:
Housing starts for Aug (est: 1.190m, prior: 1.211m)
Building permits for Aug (est: 1.165m, prior: 1.144m)

Key earnings releases:
Lennar Corp, Adobe Systems, FedEx

What to watch:
Key Asian markets closed on a slight downbeat note, as investors braced for key monetary policy decisions from BoJ and the Fed in mid-week. The Nikkei 225 (-0.2%), Shanghai Composite (-0.1%) and Hang Seng Index (-0.1%) ended a tad lower.

Meanwhile in Europe, the Stoxx 600 reversed early losses to trade flat, defying negative sentiment from a retreat in oil prices amid comments from Venezuela’s Oil Minister, which suggested that the global crude market is oversupplied by 10%.

As for US, index futures are pointing for market to head north at the opening bell.

Corporate news:
*General Electric: Plans to invest US$10b in Argentina over the next 10 years by building seven power plants totalling 1GW in capacity. This follows recent ventures with local partners to construct thermal power plants (US$900m) and finance aircraft purchases (US$280m).

*Unilever: Acquiring Seventh Generation, a sustainable cleaning products maker, for a reported US$700m. The target has sales in excess of US$200m in 2015. This is part of an attempt by the group to win market share from millennials who tend to seek out environmental friendly brands.

*FedEx: Announced plans to raise shipping rates by about 3.9-4.9% next year. The logistics group will be releasing 1QFY17 earnings after market, with the street forecasting EPS of US$2.78 (+14.9%) and revenue of US$13.81b (+12.5%), mainly driven by growth in the e-commerce sector.

Pre-market movers:
Winners: Chesapeake Energy, Murphy Oil, Wynn Resorts, Micron Technology
Losers: NextEra Energy, FirstEnergy, Delta Air Lines, Kinder Morgan

For stock ideas and market flows, access Market Insight on Maybank Investment Bank http://bit.ly/1dsTxV9 and Maybank KE Trade SG mobile apps https://appsto.re/us/OY-Kw.i. Download from Apple Store and Google Play now.

Stay Ahead, Trade Smart

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The Trusted Bursa Analyst:
Wednesday, 21 September 2016

ATTN: ALL Bursa Traders,

The FBMKLCI closed higher, recovering after lunch at 1655.78 (+4.07 or +0.25%). However do not be fooled by the index as the climb are mostly due to Petronas linked counters which I think will not be sustainable.

Meanwhile, our neighbouring market outlook for the day are:

• Australia S&P/ASX200 closed higher at 5,244.38 (+8.75 or +0.17%)
• China A50 closed lower at 9,595.83 (-25.9 or -0.27%)
• Hong Kong HSI closed lower at 23,530.86 (-19.59 or -0.08%)
• Indonesia’s IDX Composite closed lower at 5,302.49 (-19.35 or -0.36%)
• Japan’s Nikkei Closed higher at 16,492.15 (-27.14 or -0.16%)
• South Korea KOSPI closed higher at 2,025.71 (+9.93 or +0.49%)
• Taiwan Weighted closed higher at 9,161.58 (+8.70 or + 0.17%)

• The USD STRENGHTEN against our MYR at 4.1432 (+0.0118 or +0.29%)
• Crude Oil prices closed at 43.37 (-0.49 or -1.12%)

DJIA closed slightly at 18,120.17 (-3.63 or -0.02%). The DJIA seems to be supported above level 18,004 after the big drop from previous level during 8 September 2016.

Also bear in mind the FOMC rate decision is around the corner and the outcome of the meeting will greatly affect the market sentiments ! most traders are on the sideline due to this reason ! !

Stocks to watch are:

AirAsia: Bigfall today, I am convinced that they will fall until RM 2.66 before rebound back to RM2.77.

Salute: is on a uptrend and today’s closing price despite seller heavier than buyer, but it did not break the most recent support of RM 1.32. Well rested on the support, might consolidate for a few days before continuing climbing mount Everest ! ! !

VS: Close high today. Watch for breakout of RM1.4 and will fill previous gap to RM1.42. Cut if close RM 1.37 or lower.

I am bullish on iqgroup, first day washing start already. Wait until all the weak shareholders are being kickoff the boat then we shall set sail !
IQGROUP: Possible to reach RM 2.5. Monitor these few days to wait for possible pullbacks only enter.
best entry point at :Support 1: RM 2.25, Support 2: RM2.15

PWF: A Healthy Correction ! Drop to Support at 0.735-0.730 level then Can start collecting at this level.
Get your information right to avoid being fooled by the market !

Follow Your Trusted Bursa Analyst Channel for stockpicks and daily update.
https://telegram.me/Trusted based

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BURSA MALAYSIA MARKET IDEAS WEDNESDAY (21/09/2016):

FBMKLCI READY FOR A REBOUND

Dear All,

The FBMKLCI closed higher at +4.07 point or +0.25% to close at 165.78.

Yesterday our FBMKLCI finally stop falling and turn green at closing with a long hammer. It’s a good sign for rebound.

DJIA tonight remain positive and so far doing well after last few week big drop. As long as maintain did not fall lower, we see our market will get more alive.

Congratulation on MYEG as one of the stock picks Meletup big yesterday.

As for today We are looking at PENSONI that just breakout and seem ready to up up all the way. So Monitor Closely.

—————————————————————-

[21/09 08:51] Rosdi maybank: Global Closing @ 20/9/16

Dow. 18,130 +9.79 0.05%
NASD 5,241 +6.33 0.12%
S&P 2,140 +0.64 0.03%

Gold 1,318
WTI 44.05
Brent 46.12

USDMYR 4.135
EURUSD 1.115
GBPUSD 1.299
GBPMYR 5.372
AUDMYR 3.126
SGDMYR 3.038

FTSE 6,831 +17.24 0.25%
DAX 10,394 +19.99 0.19%
CAC 4,389 -5.59 0.13%

Nikkei 16,492 -27.14 0.16%
HSI. 23,531 -19.59 0.08%
SSE 3,023 -3.05 0.10%
STI 2,855 +2.55 0.09%
KLCI 1,655.78 +4.07 0.25%

World stock indexes were flat on Tuesday as investors awaited the outcomes of Federal Reserve and Bank of Japan policy meetings that will conclude on Wednesday.

*****************
CORPORATE NEWS

~*PMETAL* is teaming up with China-based Sunstone Development Co Ltd to jointly invest in a joint venture company (JVCo) to be incorporated in China.

~*DNEX*, the service provider for the Royal Malaysian Customs Department’s National Single Window for trade facilitation, has secured from the Malaysian government a two-year extension to its contract for managing the service.

~*KESM* fourth quarter net profit ⬇ 23% to RM8.05 million or 18.7 sen per share, from RM10.45 million or 24.3 sen per share a year earlier, due to higher staff costs and other expenses.

~*CLIQ* major shareholder, Best Oracle Sdn Bhd, has agreed to discontinue its appeal against the High Court’s decision to dismiss its application to strike out CLIQ’s liquidation application.

~*EKOVEST* said it has today requested the suspension of its share trade tomorrow, pending a material announcement.
[21/09 08:53] Rosdi maybank: KLSE OUTLOOK FOR 21-09-2016: OUR MARKET IS EXPECTED TO REMAIN SLUGGISH UNTIL AFTER YELLEN’S PRESS CONFERENCE – BY FRED TAM

Dear all,

Our FBM-KLCI closed higher by 4.07 points or 0.05% at 1655.78. Losers beat gainers by 418 to 344.

This was the KLCI’s first bullish close after a 5-day losing streak but overall market breadth is still negative.

Funds are still reluctant to commit ahead of the Federal Reserve Committee meeting set for two days on Tuesday, culminating in an announcement, forecasts and press conference from Fed Chair Janet Yellen on Wednesday afternoon, New York time.

The chances of the Fed raising rates in September have fallen since more bearish data came out of the U.S. last night. Housing construction fell below estimates in August as recovery in the housing sector came in fits and starts. Housing starts fell 5.8% from July, coming in at a seasonally adjusted annual pace of 1.14 million, according to the Commerce Department.

Our market is expected to remain sluggish until after Yellen’s press conference. However, our TAD system had managed to pick out some winners even in this bear market.

New and existing stocks to watch for today are: available in our detailed newsletter These two stocks should be watched closely as they already triggered TAD buy signals. Note their targets based on technical analysis.

FCPO gapped up to close higher by 48, at 2690. We saw a “breakaway” gap yesterday. This suggests a powerful up-move in the coming days and weeks. Be ready.

FKLCI remained bearish but has formed a triple doji at the bottom, signaling a possible bullish reversal.

Attached herein is a list of stocks with EMA 50 and EMA 100 support lines. Please note that these are your estimated stop loss levels. Should price of your stock goes below its 50 EMA or 100 EMA, be careful-these are your cut loss areas. Note that when a stock is climbing up “Mount Kinabalu” these EMA 50/EMA 100 support lines cannot function effectively. You will need to shift to 1,2 cha cha cha rule to handle these climbs.

All the best for a fantastic Wednesday, and as always happy trading.

P.S. congrats to all our students who had passed Paper 1 of the STA exams! We scored a 78% success rate.

Best regards,

Fred Tam+++++++++++++++++++++++++++++++

[21/09 08:53] Rosdi maybank: Source: Theedgemarket Press Metal Bhd is teaming up with China-based Sunstone Development Co Ltd to jointly invest in a joint venture company (JVCo) to be incorporated in China.

The JVCo shall be known as Shandong Sunstone & PMB Carbon Ltd, and Press Metal will hold a 20% stake with the remainder to be controlled by Sunstone Development.

Press Metal said the JVCo shall principally engage in the manufacturing of pre-baked carbon anodes, which will be supplied to Press Metal’s units, Press Metal Sarawak Sdn Bhd and Press Metal Bintulu Sdn Bhd, its bourse filing revealed.

Dagang NeXchange Bhd (DNeX), the service provider for the Royal Malaysian Customs Department’s National Single Window for trade facilitation, has secured from the Malaysian government a two-year extension to its contract for managing the service.

The two-year extension, which starts from Sept 25 this year and ends on Sept 24, 2018, was secured via its wholly-owned subsidiary Dagang Net Technologies Sdn Bhd.

Under the contract extension, the service charge to be imposed by DNeX will remain unchanged at 75 sen per kilobyte for government agencies, 80 sen per kilobyte for the private sector, and RM5 per approved permit and certificate of origin application, DNeX said in a statement.

KESM Industries Bhd’s fourth quarter net profit fell 23% to RM8.05 million or 18.7 sen per share, from RM10.45 million or 24.3 sen per share a year earlier, due to higher staff costs and other expenses.

Revenue for the quarter ended July 31, 2016 (4QFY16) rose 8.1% to RM74.53 million from RM68.94 million, driven by higher demand for burn-in and test services.

The electronic component testing specialist group, in a filing to Bursa Malaysia, proposed a three sen dividend amounting to RM1.29 million.

CLIQ Energy Bhd’s major shareholder, Best Oracle Sdn Bhd, has agreed to discontinue its appeal against the High Court’s decision to dismiss its application to strike out CLIQ’s liquidation application.

“After hearing both parties, the Deputy Registrar ordered the appeal (to) be discontinued with no order as to cost,” CLIQ said in a bourse filing.

Separately, the High Court fixed Sept 26 for a decision on the petition to wind up CLIQ, after hearing arguments from lawyers for CLIQ and Best Oracle.

Best Oracle had in April filed a judicial review to prevent the special purpose acquisition company from being liquidated. It named the Securities Commission Malaysia and CLIQ as respondents.

Trading in construction outfit Ekovest Bhdwill be suspended tomorrow.

In a filing with Bursa Malaysia, Ekovest said it has today requested the suspension of its share trade tomorrow, pending a material announcement.

+++++++++++++++++++==

Brief background of PTB
New IPO Price RM0.15

Perak Transit Group is principally involved in the operations of the Terminal AmanJaya integrated public transport terminal and the provision of public bus services.

The group also operates four petrol stations comprising two Shell petrol stations in Lahat and Tanjung Rambutan, a BHP petrol station located at Terminal AmanJaya and a Petron petrol station in Lubok Merbau.

Located in Bandar Meru Raya, Ipoh, Terminal AmanJaya is a three-storey complex that has bus platforms, bus holding bays, ticketing counters, retail space, office space, promotional space, a budget hotel, as well as a lobby and basement car park.

The group’s major operations within the terminal include ticketing sales, bus and passenger traffic control, travel information counters, rental of retail, commercial space and promotional facilities, indoor and outdoor advertising, project facilitation, petrol station, security services and car park facilities.

Terminal AmanJaya is the only gazetted express bus terminal in Ipoh.

++++++++++++++++++

House of Technical Idea (21/09/2016)

FBMKLCI 1655.78 (+4.07, +0.25%)
Support: 1650
Resistance:  1660, 1700, 1730

Market Overview:
Market is volatile ranging from 1650-1680.

1) Stock Name: MBL
Entry:  ABOVE RM1.060
Target: RM1.150
Stop:  BELOW RM1.030

2) Stock Name: RCECAP
Entry:  ABOVE RM1.210
Target: RM1.380
Stop:  BELOW RM1.180

+++++++++++++++++++++++=====

[09:24, 9/21/2016] Rosdi maybank: KLSE StockAlliance:
21/9/2016 Stock Picks
1. SUNSURIA / HAIO / PESTECH
2. PENSONIC / MBL / FLBHD
3. HEXZA / MMODE / CLIQ
[09:37, 9/21/2016] Rosdi maybank: Dzulhilman M+ WM PR Traders:
Salam and Morning All

MACRO :  Wall Street ended little changed on Tuesday as healthcare gains countered declines in energy shares, a day before highly anticipated outcomes of monetary policy meetings in the United States and Japan (investing. com).

MICRO :  Ringgit is hovering at 4.130 area while awaiting monetary policy which we will know on Thursday. Index rebounded slightly yesterday as expected.

WHAT TO EXPECT? : Market seems to continue short term rebound. Traders might want to put on short trading cap as volatility plays in the market. Buy on weakness and sell on strength always work well during market condition like this.

Below are my Watch list (21/09/2016)

OKA
EP : ABOVE 1.340
SL : BELOW 1.320
TP :  1.450

HSSEB
EP : ABOVE 0.575
SL : BELOW 0.560
TP :

++++++++++++++++++

[09:38, 9/21/2016] Rosdi maybank: BURSAMASTER:
BURSAMASTER:
Counters to monitor 21 Sep 2016

1.  EATEACH
2.  VS & VS -WA
3.  DNEX & DNEX-WA
4.  GTRONIC
5.  SAMCHEM
6.  FGV &  CALL WARRANTS
7.  POS &  CALL WARRANTS

+++++++++++++++++++++

Dear trader,
Potential stock to buy today:
21/9/2016

1) PENTA (7160)
Price now: 1.27
Target price: 1.40
Cut loss: 1.14
***syariah
TECHNOLOGY

2) MRCB(1651)
Price now : 1.34
Target price: 1.48
Cut loss: 1.22
* syariah
PROPERTY

3) GKENT(3204)
Price now : 2.43
Target price: 2.70
Cut loss: 2.13
* **Syariah
TRADING/SERVICES
EX-DATE for bonus 1:4 on 19/9/2016

4) DRBHCOM(1619)
Price now: 1.43
Target Price: 1.55 / 1.68
Cut loss: 1.31
* Syariah
INDUSTRIAL PRODUCT

5) INSAS(3379)
Price now: 0.73
Target price: 0.79 / 0.825
Cut loss: 0.68
**non-syariah
FINANCE

6) FLBHD(5197)
Price now: 1.62
Target price: 1.79
Cut loss: 1.44
**non-syariah
INDUSTRIAL PRODUCT

 

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