Reuters – U.S. stocks fell on Wednesday, with healthcare and real estate shares losing ground a day after the Nasdaq Composite and the Dow Jones Industrial Average hit record highs.

The Dow briefly rose to within 15 points of 20,000, a level it has never reached, but relinquished that gain and spent most of the session at a loss.

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

Some investors worry that the so-called Trump rally has made stocks expensive and are concerned that legislators may resist strong tax cuts and other policies that could widen the federal deficit. The S&P 500 is trading at about 17 times expected 12-month earnings, well above the 10-year average of 14, according to Thomson Reuters Datastream.

“People are taking a pause and they want to see what’s going to happen,” said Chris Zaccarelli, chief investment officer for Cornerstone Financial Partners. “In his first 100 days in office, it will be interesting to see what legislation they can get through Congress and what regulations they will repeal.”

Providing the market with a degree of support this week, expectations of lower capital gains tax rates under Trump gave investors an incentive to not sell stocks until January, according to Zaccarelli as well as to Randy Frederick, vice president of trading & derivatives at Charles Schwab.

“If you can hold back on capital gains for two weeks, why not?” Frederick said. “There’s just no incentive to sell right now.”

So far in 2016, the S&P 500 has risen 11 percent, topping the 8 percent gain for the year that strategists predicted on average in a Reuters poll 12 months ago.

The Dow Jones Industrial Average .DJI dipped 0.16 percent on Wednesday to end at 19,941.96 points and the S&P 500 .SPX lost 0.25 percent to 2,265.18.
[12/22, 8:48 AM] Rosdi maybank: Maybank Kim Eng Daily Kopi (21 December 2016)
Dow 19941.96 -0.16%
S&P 2265.18 -0.25%
Nasdaq 5471.433 -0.23%
VIX 11.27 -1.57%
Nikkei 19444.49 -0.26%
KOSPI 2037.96 -0.19%
SSE 3137.43 1.11%
TWSE 9204.26 -0.41%
HSI 21809.8 0.37%
STI 2901.7 -0.33%
KLCI 1629.59 -0.30%
USD/MYR 4.4792 0.01%
EUR/MYR 4.6593 -0.17%
GBP/MYR 5.5251 0.30%
AUD/MYR 3.2457 -0.04%
SGD/MYR 3.1008 -0.16%
JPY/MYR 3.811 -0.26%

(+/- Chg refers to MYR relative perf)

Top U.S. Market News:
o U.S. stocks end with slight losses; Dow falls short of 20,000 yet again and pulls further away.
o All three major indices opened a bit higher then dropped later in the morning and ultimately finished in the red.
o Existing home sales rose to their best level since the financial crisis.
o European stocks close off 2016 high as banks lose ground. Pressure on Italian, Spanish and other European bank shares pulled the market away from its highest level of the year.
o Banca Monte dei Paschi dropped 12% in a rough session for the stock. The shares were pressured after Italy’s parliament approved a government request for a rescue loan of up to 20 billion euros ($20.81 billion). The bank said its liquidity could be wiped out in four months, compared with its previous projection of 11 months.

Stock News
o Among the losing sector were health care (-0.6%), weighed by weakness in biotech, and industrials (-0.4%), as FedEx reported disappointing results.
o FedEx (FDX) shares fall over 3% after profits drag from rising investment in ground delivery business.
o Yelp shares rise as RBC’s make it their top small-cap Internet pick for 2017
o Twilio (TWLO +4.9%) rallied on unconfirmed reports of expanded Amazon partnership circulating.
o Tesla (TSLA) China govt may reduce protectionist measures against foreign electric car makers – Electrek- Cites National Development and Reform Commission (NDRC)
o Nokia (NOK) announced that it has filed a number of complaints against Apple (AAPL) in Germany and the US, alleging that Apple products infringe a number of Nokia patents.
o Trump met with CEO’s of Lockheed Martin (LMT) and Boeing (BA) today. BA CEO: we talked about range of topics including Air Force One – post Trump meeting- Will get the project done for less than $4B and committed to working together
o Micron Technology (MU) reports after the close: FQ1 EPS of $0.32 beats by $0.04. Revenue of $3.97B (+18.5% Y/Y) beats by $20M. MU shares +7% after-hours

Notable ADR News:
o Alibaba (BABA) Ant financial said that they will be pushing for rural finance in the next 3 years. It recorded 150m, 130m and 33m rural users across its payment, insurance and credit services in 2016 respectively. BONA film investment led by Alibaba and Tencent values the company at $2.15B- more than 2x the value when the company took itself private and de-listed from Nasdaq
o Wynn (WYNN +1%) PT raised to $79 from $77 at Nomura, rates reduce
o 58. com (WUBA +0.15%) CLSA lowers PT to $33 from $37, maintains underperform. “Recent survey of real estate agencies reported a 22% decline during the Oct-Nov period compared to Aug-Sep. 24% of potential buyers had cancelled or postponed their purchase plans. ”

* VIX: -1.57% to 11.27

* Volume 5.4B, 25% below 3-month daily avg

* Treasury yields inch lower as investors lose appetite for risky assets. 10-year yield dropped 2.2 bps to 2.544%

30-year +0.28%. 10-yr +0.11%. 5-yr +0.05%.

European Equity Highlights
STOXX 600 -0.21% 360.56
DAX +0.03% 11468.64
FTSE -0.04% 7041.42
CAC -0.33% 4833.82

* European stocks close off 2016 high as banks lose ground. Pressure on Italian, Spanish and other European bank shares pulled the market away from its highest level of the year.
* Banca Monte dei Paschi dropped 12% in a rough session for the stock. The shares were pressured after Italy’s parliament approved a government request for a rescue loan of up to 20 billion euros ($20.81 billion). The bank said its liquidity could be wiped out in four months, compared with its previous projection of 11 months.

Forex
DXY -0.28% 102.99
Euro +0.39% vs. dollar. Yen -0.26%. Pound +0.07%.

* US Dollar was moderately lower against the yen and the euro, with investors taking profits after recent gains

* MYR: ringgit was barely higher vs USD and slightly lower vs Singapore dollar and yen. USD/MYR seems to be running into resistance at 4.48 in the past few days near 18-year lows.

Commodities:
CPO: +21 +0.65% 3114

* Palm oil futures prices snapped three sessions of losses to close firmer today, lifted by improved demand and sentiment in the market. Expectations of lower stockpiles in Indonesia supported prices.
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

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

BursaKakis Channel :
BKs Technical Ideas 22/12/2016

1) Dayang
2) Skpetro
3) RceCap
4) YeeLee

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, 22 Dec 2016

Karyon, 0054
Close, 0.19
Breakout, 0.20
Buy TP, 0.22, 0.23
Support, 0.18
SL, 0.175

Time Frame, 2 Weeks to 2 Months

Bornoil, 7036
Close, 0.165
Breakout, 0.17
Buy, TP, 0.19, 0.20
Support, 0.155
SL, 0.15
Time frame 2 weeks to 2 months

M+ Online Morning Buzz – 22Dec16

Dow Jones: 19,941.96 pts (-32.66pts, -0.16%)
Despite the stronger-than-expected existing home sales data, U.S. stockmarkets retreated as the Dow declined 0.2% on weakness in crude oil prices.

FBM KLCI: 1,629.59 pts (-4.93pts, -0.30%)
Despite opening higher at the start of the trading bell, the FBM KLCI violated the 1,630 support level on profit taking activities ahead of the festive season break. The next support level is located around the 1,610 level.

Crude Palm Oil: RM3,114 (+RM21, +0.68%)
Crude palm oil prices snapped a three consecutive sessions of decline on lower Indonesia stockpiles. The RM3,200 level will serve as the immediate resistance level.

WTI Crude Oil: $52.49 (+$0.26, +0.50%)
Crude oil prices extended its gains for the fourth straight session but came off its intraday highs on unexpected rise in U.S. crude inventory. Crude oil prices might trend towards the US$55-US$60 levels.

Gold: $1,131.61 (-$0.74, -0.07%)
Gold prices edged marginally lower ahead of the year-end break. The US1,100 will serve as the immediate support level.

Economic Releases:
US – US Durable Goods Orders – 22Dec16, 9.30PM
US – US 3Q2016 GDP Growth Rate – 22Dec16, 9.30PM

Bursa Malaysia Trade Statistics – 21Dec16
Institutions: Net BUY 84.8 mln (63.2%)
Retail: Net BUY 5.6 mln (12.9%)
Foreign: Net SELL 90.4 mln (23.9%)

Potential Momentum Stocks – 22Dec16
Stock Name: SSTEEL (5665)
Entry: Buy above RM1.25
Target: RM1.34 (7.2%), RM1.43 (14.4%)
Stop: RM1.19 (-4.8%)
Shariah: No
Technical: Monitor for breakout

Stock Name: DRBHCOM (1619)
Entry: Buy above RM1.26
Target: RM1.36 (7.9%), RM1.44 (14.3%)
Stop: RM1.18 (-6.3%)
Shariah: Yes
Technical: Monitor for breakout

Source: Bloomberg, M+ Online

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

TradetheHotstocks:
Market News Roundup

1⃣ GBGAQRS accepted a delayed Letter of Award from the Pahang State Government for the construction of the state’s new administrative complex at a project cost of RM392m & contract value of RM415.5m.

2⃣ HAI-O, has proposed a one-for-two bonus issuance and the establishment of an employees share option scheme (ESOS).

3⃣ AMPROP is planning to venture into the Hong Kong property market via a tie-up with Grosvenor Asia Pacific Ltd.

4⃣ MITRA has bagged a RM159.39m contract to undertake superstructure works for an office tower development at Bandar Medini, Iskandar Malaysia, Johor.

5⃣ HSL, its MD Datuk Paul Yu Chee Hoe and three other directors have been served with an originating summons on issues of disclosure to the relevant authorities in relation to the acquisition and disposal of shares in the holding company of HSL.

6⃣ BPLANT is disposing of its equity interest in Boustead Sedili SB for RM60m as part of its ongoing drive to unlock value.

7⃣ MBSB received the green light from Bank Negara Malaysia to commence talks with Asian Finance Bank (AFB) on a potential M&A deal.

Sources: theedgemarkets.com ; thestar.com

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

Logic Trading Analysis Channel:
BURSA MALAYSIA MARKET IDEAS THURSDAY (22/12/2016):

FBMKLCI WAY TOO SLOW BUT JUST GORENG

Dear All,

The FBMKLCI closed lower at -4.93 point or -0.3% to close 1629.59.

FBMKLCI remain sideways not much movement, if no push up for window dressing, I expect that January might be doing better if whole world remain steady

DJIA can break 20000 today? Hopefully DJIA can sustain the beat and don’t start big correction after breaking it. Hopefully Trump can create a real strong power for the market.

Stock watch for today are like: KARYON, VIS, DSONIC

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

You will not success when you put too much worry into an action this Thursday!

“Goreng Tetap Goreng”
Yours Sincerely,
Logic Trading Analysis

Views – 4921

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