[12/21, 7:36 AM] Rosdi maybank: Reuters- The Dow and Nasdaq Composite rose to record highs on Tuesday in a rally fueled by optimism about U.S. President-elect Donald Trump’s policies.

The Dow Jones industrial average ended just 25 points shy of 20,000, a level it has never breached, helped by a 1.68 percent gain in Goldman Sachs (GS.N).

U.S. stocks have been on a tear since the Nov. 8 presidential election, with the Dow up 9 percent and the S&P 500 gaining 6 percent on bets that Trump’s plans for deregulation and infrastructure spending will boost the economy.

“The market is focused on the Trump agenda, which is tax cuts, infrastructure spending and deregulation,” said Jeff Zipper, managing director for investments at Private Client Reserve at U.S. Bank in Palm Beach, Florida.

Some investors believe stocks have become expensive. The S&P 500 is trading at about 17 times expected earnings, well above its 10-year average of 14, according to Thomson Reuters Datastream.

The Dow’s 20,000 mark represents a major milestone on Wall Street and some investors believe that piercing that level would signal the recent rally may continue. The Dow first hit 10,000 in 1999.
[12/21, 7:54 AM] Rosdi maybank: Maybank Kim Eng Daily Kopi (20 December 2016)
Dow 19974.62 0.46%
S&P 2270.76 0.36%
Nasdaq 5483.944 0.49%
VIX 11.45 -2.22%
Nikkei 19494.53 0.53%
KOSPI 2041.94 0.17%
SSE 3102.88 -0.49%
TWSE 9242.41 0.03%
HSI 21729.06 -0.47%
STI 2911.31 -0.06%
KLCI 1634.52 0.01%
USD/MYR 4.4797 -0.03%
EUR/MYR 4.6512 0.79%
GBP/MYR 5.5419 0.95%
AUD/MYR 3.2443 0.75%
SGD/MYR 3.0958 0.08%
JPY/MYR 3.8017 0.60%

(+/- Chg refers to MYR relative perf)

Top U.S. Market News:
o Santa rally’ takes stocks to records, but Dow fails hit the 20,000 mark
o Dow came within 13 points of hitting the milestone mark, before closing 90 points higher, after hitting a new intraday high, with Goldman Sachs contributing the most gains. The Dow ended 25 points away.
o Stocks narrowed their gains after rushing out of the gate to highs of the day. There was no economic data and volume was lighter than usual
o S&P 500 rose 0.3%, with financials rising more than 1%. The Nasdaq Comp advanced 0.5%, also reaching a new all-time high earlier in the session.
o Saudi Arabia reportedly mulling increase in retail fuel prices
o comScore: US holiday season-to-date e-commerce desktop spending at $55.2B, +13% y/y Comments: “This final full week of online holiday shopping before Christmas saw an uptick in desktop spending, finishing off the season on a high note and bringing the season-to-date growth rate to 13%
o Pres. Obama, as expected, moves to indefinitely block oil and gas drilling in vast areas of the Atlantic and Arctic oceans by invoking a little used provision in a 1953 law normally used to preserve coral reefs

Stock News
o Bank stocks were the strongest of the day, with the S&P financial sector up 1.1%. The industry has been a strong performer since the election
o Among the biggest movers, Bank of America (BAC) rose 1% while Goldman Sachs (GS), one of the biggest postelection gainers -advanced 1.7%.
o Consumer discretionary (+0.8%) and industrials (+0.6%) also notching solid gains and tech (+0.3%) staying even with the S&P 500.
o The energy sector (-0.2%) finished in the red even as U.S. crude oil rose
o Apple (AAPL +0.25%) Said to have discussed moving Mac Pro production to Asia and explore standalone keyboard with touch bar for new Macbook – financial press
o Apple also in talks to manufacture in India. Making iPhones locally would allow APPL to open its own stores in India, helping build its brand in a country where it has just a tiny slice – less than 5%
o Alphabet (GOOGL +0.3%) Indonesia to Start Tax Investigation Into Google Next Year- Google must meet Dec. 31 deadline to settle its tax dispute or govt will start preliminary investigation into the co
o Nvidia (NVDA +3.5%): PT Raised 40% to $129 at Goldman- Adds to conviction Buy List- Price Target raised to $115 from $80 at Mizuho, reiterates Buy rating – firm continues to see strength in AI and DL for NVDA
o TripAdvisor (TRIP +5% ) takes off after Instant Booking deal with Expedia
o FedEx (FDX): FQ2 EPS of $2.80 misses by $0.10. Revenue of $14.9B (+19.2% Y/Y) misses by $20M. FDX shares down 3% after-hours
o Nike (NKE): FQ2 EPS of $0.50 beats by $0.07. Revenue of $8.18B (+6.4% Y/Y) beats by $90M. NKE shares +2% after-hours

Notable ADR News:
o Alibaba (BABA +1%) is actively suing brushing websites in China. It took down Shatui.com, which allegedly links merchants with people willing to falsify purchases and reviews, through a joint effort with authorities. The offices of Shatui were raided and accounting books were taken away, reported by Xinhua news.
o Bona Film, which left the U.S. stock market in April after completing privatization, has raised 2.5 billion yuan in first domestic funding round led by Alibaba Pictures and Tencent
o JD.com (JD +0.5%) Evercore ISI Initiates with Buy, PT: $33 Attractive fundamentals, macro uncertainty and China share weakness create a buying opportunity for Chinese internet stocks, Baidu (BIDU) Evercore ISI initiates Hold and $200 PT and Tencent (TCEHY) Evercore ISI initiates Buy and HK$240
o TSMC (TSM +0.15%) Mediatek Denies press report that it halved TSMC orders due to weak high end phone demand
o Macau: Aegis Initiates Coverage on MGM Resorts (MGM -0.15%) with a Buy, $35 PT

* VIX: -2.2% to 11.45

* Volume 6.2B, 15% below 3-month daily avg

* Treasury prices weakened, pushing yields higher, a day after bonds had their strongest one-day gain since August following deadly attacks in Turkey and Germany. 10-year yield gained 2bps to 2.562%

30-year -0.27%. 10-yr -0.11%. 5-yr -0.07%.

European Equity Highlights
STOXX 600 +0.48% 361.32
DAX +0.33% 11464.74
FTSE +0.38% 7043.96
CAC +0.56% 4849.89

* European markets moved mostly higher, with Italian banks among the biggest gainers after news the country’s government is preparing a bailout package for struggling lenders. Stoxx Europe 600 closes at 2016 high

Forex
DXY +0.14% 103.28
Euro -0.12% vs. dollar. Yen +0.6%. Pound +0.29%.

* US dollar hits nearly 14 year-year high against euro, as parity looms. Euro weakened to $103.50 after deadly terrorist attacks in Germany and Turkey. Euro did recover this afternoon as USD faded but remains below 104. USDJPY weakens to ¥117.80after trading above ¥118 overnight after BoJ stands pat.

* MYR: ringgit end lower vs USD in line with other currencies globally. The Fed’s rate hike, coupled with Trump’s new policies’ expectations keeping pressure on ringgit

Commodities:
CPO: -49 -1.59% 3093

* Palm oil fall 1.6% on weaker exports from Malaysia. Shipments -17% to 606,937 tons. Market concerned about demand outlook as higher Malaysian crude palm oil export tax in Jan. may curb purchases.

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
[12/21, 9:00 AM] Rosdi maybank: PR Traders Admin Akif Zainal:
Salam and Morning All

MACRO : Consumer and financial stocks powered today’s rally on the Dow Jones Industrial Average (DJIA), as the index closes in on the 20,000.00 milestone mark. Several trillion dollars in wealth have been created on the financial markets since the election of Donald Trump seven weeks ago, one analyst noted (investing. com).

MICRO : Market remained active yesterday despite sluggish index. Index managed to close green just before closing time. Ringgit is slowly depreciating. The sooner ‘they’ realised that they cannot fight the market force, the better. Let it take its’ natural course.

WHAT TO EXPECT? : Counters are active as we are approaching year end. Trending counters may continue until year end while some counters that just broke consolidation pattern should be in main focus. In addition, USD related companies should be your close list.

Below are my Watch List for SWING counters (21/12/2016)

MBL
EP : ABOVE 1.010
SL : BELOW 0.960
TP : 1.130/1.240
[12/21, 9:08 AM] Rosdi maybank: TENG TW:
Malaysia Oil & Gas – Upgrade to POSITIVE
Author: kltrader | Publish date: Mon, 19 Dec 2016, 09:55 AM

Positioning ahead of a cyclical recovery

We upgrade the sector to POSITIVE, ahead of its cyclical recovery, on an improving risk-reward outlook. In our view, the sector has bottomed. We see two major catalysts. Firstly, OPEC and non-OPEC’s move to cut output will accelerate the demand-supply rebalancing of the oil market and spur capex/activities growth. Secondly, we foresee multiple benefits to Malaysia’s O&G operations should Saudi Aram co’s plan to invest a 50% stake in PETRONAS’ RAPID project materialize. For that, we lift earnings multiple peg to 12x (from 10x), resulting in TP/call upgrades. Key BUYs are Yinson, SAKP, Icon and KNM.

OPEC and non-OPEC’s slick move

The joint agreement by members of the OPEC (1.2m bpd) and several non-OPEC producers (0.6m bpd), a first since 2001, to cut oil output by 1.8m bpd from Jan 2017 for 6 months (to Jun 2017), reflects a major statement to a stabilizing oil market that will lead to a start of a cyclical recovery. The cut, which equates to 1.5 years of global consumption growth, if executed well, will: (i) accelerate the rebalancing of the demand-supply equation of the crude oil market, (ii) kick-start capex growth and (iii) support firmer oil prices. Our house view for crude oil price is an average USD55/bbl in 2017.

Saudi Aramco’s wild card

Talks of Saudi Aramco taking a 50% stake in PETRONAS’ RAPID project for an estimated USD21b, if it materializes, would be a major positive. For PETRONAS, it means: (i) the ability to realise value from its RAPID investment, (ii) the new capital can be deployed to jump-start its capex programs (i.e. upstream E&P), that have been affected by the cyclical downturn and (iii) its commitment and ability to pay dividends to the Government would remain intact. A higher capex program by PETRONAS translates into higher activity, eventually benefiting the upstream players and service providers.

Raised optimism for the next 6 months

We take the view that the sector has bottomed and is en route to a cyclical recovery. Operationally, day rates, asset utilization and order backlogs are at a trough. Cost cuts and cash flow preservation have been intense over the past 24 months. Enquiries are on the rise while the tender pipeline has been growing. Much of the negatives have been priced in and sector will re-rate as oil price continues to strengthen. With most stocks having de-rated and much of their values lost, it is, in our view, an opportune time to bottom-fish with much trading opportunities for a sector that has been sidelined and under-owned for a while. We have lifted earnings multiple peg to 12x, from 10x, leading to: (i) raised TPs on five stocks, (ii) two recommendation upgrades (to HOLDs).

Source: Maybank Research – 19 Dec 2016
[12/21, 9:09 AM] Rosdi maybank: FAt TA:
M+ Online Morning Buzz – 21Dec16

Dow Jones: 19,974.62 pts (+91.56pts, +0.46%)
U.S. stockmarkets extended their gains as the Dow added 0.5% to close marginally below the 20,000 psychological level, on prospects over increased government spending in the country.

FBM KLCI: 1,634.52 pts (+0.22pts, +0.01%)
The FBM KLCI was traded in a choppy manner yesterday but last minute buying support amongst selective oil & gas and telco heavyweights sent the key index marginally higher. The immediate support level is located around the 1,630 level.

Crude Palm Oil: RM3,093 (-RM49, -1.56%)
Tracking the weakness in soybean oil prices, crude palm oil prices extended its losses for the third straight session. The RM3,200 level will serve as the immediate resistance level.

WTI Crude Oil: $53.30 (+$1.18, +2.27%)
Crude oil prices advanced for the third consecutive session after U.S. crude stockpiles declined last week. Crude oil prices might trend towards the US$55-US$60 levels.

Gold: $1,132.35 (-$5.86, -0.51%)
Gold prices erased all its previous session gains, dragged down by the strength in U.S. Dollar. The US1,100 will serve as the immediate support level.

Economic Releases:
EU – Eurozone’s Consumer Confidence – 21Dec16, 11.00PM
US – US Existing Home Sales – 21Dec16, 11.00PM

Bursa Malaysia Trade Statistics – 20Dec16
Institutions: Net BUY 5.3 mln (64.2%)
Retail: Net BUY 13.0 mln (14.9%)
Foreign: Net SELL 18.3 mln (20.9%)

Potential Momentum Stocks – 21Dec16
Stock Name: GHLSYS (0021)
Entry: Buy above RM0.84
Target: RM0.915 (8.9%), RM0.99 (17.9%)
Stop: RM0.795 (-5.4%)
Shariah: Yes
Technical: Short-term consolidation breakout

Stock Name: WILLOW (0008)
Entry: Buy above RM0.75
Target: RM0.78 (4.0%), RM0.81 (8.0%)
Stop: RM0.72 (-4.0%)
Shariah: Yes
Technical: Monitor for breakout

Source: Bloomberg, M+ Online

 

Logic Trading Analysis Channel:
BURSA MALAYSIA MARKET IDEAS WEDNESDAY (21/12/2016):

FBMKLCI HOLIDAY MOOD BUT JUST GORENG

Dear All,

The FBMKLCI closed higher at +0.22 point or +0.01% to close at 1634.52.

FBMKLCI remain sideways not much movement,holiday mood. However still got some stock manage to Meletup.

DJIA remain sideways correction at peak near 20000, expecting it will break by this week without a single doubt. Market remain bullish even after rate hike.

SALUTE MELETUP ! Technically breakout nicely and expecting to post better result due to Christmas Sales.

And many more strong live call at:
https://telegram.me/ltachannel !

Like branches on a tree we all grow in different directions yet our roots remain as one this Wednesday !

“Goreng Tetap Goreng”

Yours Sincerely,
Logic Trading Analysis

±++++++++++++++++

TradetheHotstocks:
21st December, 2016 Markets Roundup

US MARKET
DJIA : 19,974.62 (+91.56)
S&P500 : 2,270.76 (+8.23)
NASDAQ : 5,483.94 (+26.50)
VIX : 11.45 (-0.26)
US stocks climbed as investors bought financial companies, extending the group’s advance to 22% since the presidential election. The dollar rose to its highest level in 14 years.

EUROPE/UK MARKET
FTSE : 7,043.96 (+26.80)
DAX : 11,464.74 (+38.04)
CAC 40 : 4,849.89 (+27.12)
European shares rose slightly, helped by a busy year-end for corporate deal making and more signs that Italy is making progress on stabilising its wobbly banking sector.

CHINA/HK MARKET
SHANGHAI : 3,102.48 (-15.61)
HSI : 21,729.06 (-103.62)
China stocks slid, as the authorities tightened regulations to prevent financial risks and asset bubbles.

JAPAN MARKET
Nikkei : 19,494.53 (+102.93)
Nikkei share average rose after the market digested the BoJ’s decision to maintain current monetary policy, while the yen’s fall versus the dollar lifted overall sentiment.

M’SIA MARKET
KLCI : 1,634.52 (+0.22)
Blue chips closed a tad higher, underpinned by late buying of telcos including Maxis & Axiata while Petronas stocks got a boost from the firmer crude oil prices.
⬆348⬇360↔381

OIL
WTI : 53.52
Brent : 55.50
Oil prices edged higher on forecasts of a steep draw in US crude oil stocks that could indicate a global oversupply is starting to shrink.

GOLD
GOLD : 1,133.50
Gold fell as the dollar rose and investors sold on expectations of stronger global economic growth and higher US interest rates.

FX & BONDS
USD/MYR : 4.4795
EUR/MYR : 4.6555
GBP/MYR : 5.5412
AUD/MYR : 3.2531
HKD/MYR : 0.5768
SGD/MYR : 3.0985
USD/JPY : 117.89
Msia 10 yr Bond Yield : 4.296%
US 10 yr Bond Yield : 2.561%

20/12 BURSA TRADE STAT
Retail (14.9%) – net BUY RM13.05M
Institution (64.2%) – net BUY RM5.26M
Foreign (20.9%) – net SELL RM18.31M
Total traded value RM1.411B
By SARA H’NG/ALAN TAN

Sources: investing.com, cnbc.com, reuters.com, bloomberg.com, barrons.com, klsescreener.com, theedgemarkets.com & thestar.com

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

BursaKakis Channel :
BKs Technical Ideas 21/12/2016

1) Arank
2) Frontkn
3) Lkl
4) Vis

Kindly refer to our charts posted in BKs Channel.

Our Telegram Link: telegram.me/bursakakis

Our Facebook Link : https://www.facebook.com/groups/192414771167397/

DISCLAIMER: The comments here are for sharing and learning purposes and do not represent a recommendation to buy or sell. Kindly consult your remisiers or dealers before you take any action. Thank you.

CS Lee Daily Top Pick, 21 Dec 2016

Yeelee, 5584
Close, 2.36
Breakout, 2.37
Buy TP, 2.44, 2.60
Support, 2.28
SL, 2.27

Time Frame, 2 Weeks to 2 Months

Homeriz, 5160
Close, 0.93
Breakout, 0.935
Buy, TP, 0.985, 1.04
Support, 0.895
SL, 0.89
Time frame 2 weeks to 2 months

Malaysia Oil & Gas – Upgrade to POSITIVE
Author: kltrader | Publish date: Mon, 19 Dec 2016, 09:55 AM

Positioning ahead of a cyclical recovery

We upgrade the sector to POSITIVE, ahead of its cyclical recovery, on an improving risk-reward outlook. In our view, the sector has bottomed. We see two major catalysts. Firstly, OPEC and non-OPEC’s move to cut output will accelerate the demand-supply rebalancing of the oil market and spur capex/activities growth. Secondly, we foresee multiple benefits to Malaysia’s O&G operations should Saudi Aram co’s plan to invest a 50% stake in PETRONAS’ RAPID project materialize. For that, we lift earnings multiple peg to 12x (from 10x), resulting in TP/call upgrades. Key BUYs are Yinson, SAKP, Icon and KNM.

OPEC and non-OPEC’s slick move

The joint agreement by members of the OPEC (1.2m bpd) and several non-OPEC producers (0.6m bpd), a first since 2001, to cut oil output by 1.8m bpd from Jan 2017 for 6 months (to Jun 2017), reflects a major statement to a stabilizing oil market that will lead to a start of a cyclical recovery. The cut, which equates to 1.5 years of global consumption growth, if executed well, will: (i) accelerate the rebalancing of the demand-supply equation of the crude oil market, (ii) kick-start capex growth and (iii) support firmer oil prices. Our house view for crude oil price is an average USD55/bbl in 2017.

Saudi Aramco’s wild card

Talks of Saudi Aramco taking a 50% stake in PETRONAS’ RAPID project for an estimated USD21b, if it materializes, would be a major positive. For PETRONAS, it means: (i) the ability to realise value from its RAPID investment, (ii) the new capital can be deployed to jump-start its capex programs (i.e. upstream E&P), that have been affected by the cyclical downturn and (iii) its commitment and ability to pay dividends to the Government would remain intact. A higher capex program by PETRONAS translates into higher activity, eventually benefiting the upstream players and service providers.

Raised optimism for the next 6 months

We take the view that the sector has bottomed and is en route to a cyclical recovery. Operationally, day rates, asset utilization and order backlogs are at a trough. Cost cuts and cash flow preservation have been intense over the past 24 months. Enquiries are on the rise while the tender pipeline has been growing. Much of the negatives have been priced in and sector will re-rate as oil price continues to strengthen. With most stocks having de-rated and much of their values lost, it is, in our view, an opportune time to bottom-fish with much trading opportunities for a sector that has been sidelined and under-owned for a while. We have lifted earnings multiple peg to 12x, from 10x, leading to: (i) raised TPs on five stocks, (ii) two recommendation upgrades (to HOLDs).

Source: Maybank Research – 19 Dec 2016

M+ Online Morning Buzz – 21Dec16

Dow Jones: 19,974.62 pts (+91.56pts, +0.46%)
U.S. stockmarkets extended their gains as the Dow added 0.5% to close marginally below the 20,000 psychological level, on prospects over increased government spending in the country.

FBM KLCI: 1,634.52 pts (+0.22pts, +0.01%)
The FBM KLCI was traded in a choppy manner yesterday but last minute buying support amongst selective oil & gas and telco heavyweights sent the key index marginally higher. The immediate support level is located around the 1,630 level.

Crude Palm Oil: RM3,093 (-RM49, -1.56%)
Tracking the weakness in soybean oil prices, crude palm oil prices extended its losses for the third straight session. The RM3,200 level will serve as the immediate resistance level.

WTI Crude Oil: $53.30 (+$1.18, +2.27%)
Crude oil prices advanced for the third consecutive session after U.S. crude stockpiles declined last week. Crude oil prices might trend towards the US$55-US$60 levels.

Gold: $1,132.35 (-$5.86, -0.51%)
Gold prices erased all its previous session gains, dragged down by the strength in U.S. Dollar. The US1,100 will serve as the immediate support level.

Economic Releases:
EU – Eurozone’s Consumer Confidence – 21Dec16, 11.00PM
US – US Existing Home Sales – 21Dec16, 11.00PM

Bursa Malaysia Trade Statistics – 20Dec16
Institutions: Net BUY 5.3 mln (64.2%)
Retail: Net BUY 13.0 mln (14.9%)
Foreign: Net SELL 18.3 mln (20.9%)

Potential Momentum Stocks – 21Dec16
Stock Name: GHLSYS (0021)
Entry: Buy above RM0.84
Target: RM0.915 (8.9%), RM0.99 (17.9%)
Stop: RM0.795 (-5.4%)
Shariah: Yes
Technical: Short-term consolidation breakout

Stock Name: WILLOW (0008)
Entry: Buy above RM0.75
Target: RM0.78 (4.0%), RM0.81 (8.0%)
Stop: RM0.72 (-4.0%)
Shariah: Yes
Technical: Monitor for breakout

Source: Bloomberg, M+ Online

Views – 537

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