Market News Roundup

1⃣ Pestech has won a contract to install 3 substations for Severelectro JSC under an electricity supply accountability and reliability improvement project (ESARIP) for US$8.46m.

2⃣ WZ Satu has aborted its RM368m proposed acquisition of Silk SB, the operator of the Kajang Silk Highway, from SILK Hold.

3⃣ Kian Joo & Togo(HK) have entered into a MoU to manufacture and distribute aluminium cans and bottles beverages in several Asian countries.

4⃣ Yee Lee has secured the distribution rights of Japanese soft drink brand Suntory beverage for 3 years in Peninsular Malaysia.

5⃣ Affin said it has applied with BNM for an extension of time for negotiations to purchase a 16% stake in AXA Affin General Insurance from FGV.

6⃣ Seacera is planning to sell its remaining 51% stake in Seacera Land SB to OCR for RM25m. It had sold the other 49% interest to OCR for RM20m in March 2014.

7⃣ Top Glove is focusing on Thailand to boost its production capacity as shortages of workers and water at home disrupts its expansion spree.

Financial Result Highlight

SPB’s net profit for 3QFY16 slipped 3.7% to RM42.98m (12.51 sen/share), showed an expansion of loss before tax in its property development segment and lower profit before tax in investment holding.

NTPM’s net profit in 1QFY17 fell by 27.4% to RM9.38m (0.8 sen/share). The bottom line was pushed down by higher energy and labour cost from its operation in Vietnam.

Sources: theedgemarkets.com ; thestar.com


TheBursa Analyst:
Tuesday, 27 September 2016

Dear Traders,

The KLCI closed slightly lower -1.59 points at 1669.50, forming a doji. Market seems to lost its compass or is it Mostly affected by the bearishness of DJIA last Friday’s effect ?.

This time the bear caught the bull with its claws.
China A50, HIS, Indonesia IDX, Nikkei, KOSPI, Taiwan Weighted, German DAS all show sign of bearishness.

•  The USD opened WEAKENED against our MYR and opened at 4.1195.
•  Crude Oil prices rallied a little to 44.75. which is why we saw some oil and gas counter like PERISAI, BORNOIL were heavily traded. Hopefully the OPEC meeting around the corner will end with Freezing news.

The bearishness of DJIA continued to claw, opened lower at 18,217.76 and is currenly -100 points. This is due to many traders are unsure of the first presidential debate between Trump Taiko and Hilary Taikajie.

Moving Stocks to watch (27/ September) :

OKA: Very Bullish counter, Feeling like want to break new high.Well supported at Rm 1.32, cut if it closes 1.30 or lower.

PESTECH: Going to test the 1.64 resistance. Still healthy as long as it is above 1.6

Tuesday Trump will decide hair fall or hair UP !


Morning All

MACRO : Wall Street fell on Monday as Deutsche Bank (DE:DBKGn) weighed on financials and investors hunkered down for the first debate between U.S. presidential candidates Hillary Clinton and Donald Trump. (investing .com).

MICRO :  Market had a good run during the first session with metal counters taking lead. Later market retreated and metal counters fell.

WHAT TO EXPECT? : Market seems to have found it’s immediate resistant. Traders are adviced to be cautious today. Best strategy during times like this is to buy on weakness and sell on strength.

Below are my Watch list (27/09/2016)

EP : ABOVE 1.670
SL : BELOW 1.640
TP :  1.780

Happy trading.


M+ Online Morning Buzz – 27Sep16

Dow Jones: 18,094.83 pts (-166.62pts, -0.91%)
Wall Street dived for another session ahead of the presidential debate, coupled with selling pressure among banking stocks. The Dow may retrace back towards the 18,000 level.

FBM KLCI: 1,669.50 pts (-1.49pts, -0.09%)
The FBM KLCI pulled back below the 1,670 level as profit taking activities picked up in selected heavyweights and the broader market. Next support will be set around the 1,660 level.

Crude Palm Oil: RM2,715 (+RM39, +1.46%)
Crude palm oil price traded higher after India’s palm oil duty cut from 12.5% to 7.5%; CPO price may rally towards the RM2,750 level.

WTI Crude Oil: $45.93 (+$1.45, +3.24%)
Crude oil rebounded, but still ranging between the US$43-US$46 levels. Price may extend its sideways consolidation mode over the near term.

Gold: $1,337.95 (+$0.39, +0.03%)
Gold trended sideways between a thin range over the past few trading days. Based on the technicals, price may breakout above the US$1,350 level, targeting the US$1,375 level.

Economic Releases:
US – S&P Case-Shiller 20-House Price Index – 27Sep16, 9:00PM
US – Flash Services PMI – 27Sep16, 9:45PM

Bursa Malaysia Trade Statistics – 26Sep16
Institutions:  Net SELL 34.7 mln (63.0%)
Retail:  Net SELL 15.3 mln (20.0%)
Foreign:  Net BUY 50.0 mln (17.0%)

Potential Momentum Stocks – 27Sep16
Stock Name: ELSOFT (0090)
Entry: Buy above RM1.85
Target: RM2.00 (8.1%), RM2.10 (13.5%)
Stop: RM1.76 (-4.9%)
Shariah: Yes
Technical: Sideways consolidation mode

Stock Name: MMSV (0113)
Entry: Buy above RM0.69
Target: RM0.73 (5.8%), RM0.77 (11.6%)
Stop: RM0.665 (-3.6%)
Shariah: Yes
Technical: Potential short term breakout

Source: Bloomberg, M+ Online

*RHB♦Investment Bank

Dear My Value Clients,
Potential stocks to buy today:
Date/日期 : 27/09/2016

1) FIBON (0149)
Price/现价           : 0.62
Target price/目标价: 0.695
Cut loss/止损价   : 0.56
**Non Syariah
Sector/领域: Industrial Product

2) JTIASA (4383)
Price/现价           : 1.30
Target price/目标价: 1.40 / 1.47
Cut loss/止损价    : 1.20
Sector/领域: Industrial Product

3) LSTEEL (9881)
Price/现价           : 0.535
Target price/目标价: 0.61 / 0.665
Cut loss/止损价   : 0.48
**Non Syariah
Sector/领域: Industrial Product

4) TAANN  (5012)
Price/现价           : 3.59
Target price/目标价: 4.00
Cut loss/止损价   : 3.43
Sector/领域: Industrial Product


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