28/10/2016
Teknikal
value
Views – 313
28/10/2016
value
Technical BUY with +35.7% potential return
*Last: RM0.140 Target: RM0.190 RM0.235, Stop: RM0.095
*Timeframe: 2 weeks
Views – 316
Reuters-Strong growth data out of Britain prompted the biggest daily sell-off in government debt for months and pushed yields on the world’s benchmark bonds higher on Thursday, as expectations eased for a Bank of England interest rate cut.
The bond sell-off gained momentum in the United States after upbeat jobless claims data pointed to another robust nonfarm payrolls number next week.
Wall Street closed lower, dipping in a choppy session after the latest round of earnings reports. Losses in Comcast and consumer discretionary stocks offset gains in the healthcare sector, while European stocks slid and the U.S. dollar advanced against the Swedish crown and Japanese yen.
Official data showed that growth in Britain’s economy slowed only slightly in the three months after it voted to exit the European Union. It grew 0.5 percent between July and September, a touch less than the second quarter’s 0.7 percent, enough to temper fears about an immediate economic impact following the Brexit decision.
Britain’s 10-year gilt GB10YT=RR advanced to more than four-month highs, while German 10-year bund yields rose to five-month peaks DE10YT=RR, lifting U.S. Treasury yields in the process.
“The stronger (gross domestic data) print in the UK has given further weight to speculation that the BoE will not provide further stimulus any time soon,” said Rabobank strategist Richard McGuire.
In U.S. equity markets, investors took Qualcomm’s deal (QCOM.O) to buy NXP Semiconductors (NXPI.O) for about $47 billion as a sign of confidence, sending up shares of both.
Despite beating earnings estimates a day earlier, Comcast (CMCSA.O) pulled the S&P and Nasdaq lower, paring some losses after falling as much as 2.7 percent following price target cuts from Barclays and Deutsche Bank.
The Dow Jones industrial average .DJI fell 29.65 points, or 0.16 percent, to 18,169.68, the S&P 500 .SPX lost 6.39 points, or 0.3 percent, to 2,133.04 and the Nasdaq Composite .IXIC dropped 34.29 points, or 0.65 percent, to 5,215.97.
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The Bursa Analyst Channel:
Friday 28 October:
Sluggish market for Thursday. Oil prices seems to be rallying and trading around $50. Ringgit weakened against USD back to 4.2, we might see some export counters in play today.
Undecided market, just be careful when trading.
Stocks to watch:
Pesona: Support 0.45, TP 1: 0.48, TP 2: 0.55
Elsoft: Support 1.98 TP 2.10
OPCOM: Support at 0.6, TP is 0.65 Risk Reward ratio about 1:2
As mentioned, market is not very good, please trade with care !
Follow Your Trusted Bursa Analyst Channel for stockpicks and daily update.
https://telegram.me/TTrustedBA
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Logic Trading Analysis Channel:
BURSA MALAYSIA MARKET IDEAS FRIDAY (28/10/2016):
FBMKLCI BACK TO SIDEWAYS AND MIGHT WATERFALL
Dear All,
The FBMKLCI closed lower at -4.89 point or -0.29% to close at 1669.03.
FBMKLCI back to sideways range, which most probably due to upcoming many events in NOV. Market remain very slow and uncertain. Not suitable to trade for beginner.
DJIA already move big sideways range for one and half month, next month we will see the history making US President Election, either sides win should make the market movement have a better picture. We continue to wait.
Since market is not good, many company post poor result. Be extra careful.
Lets ready for some more goreng at our live channel:
https://telegram.me/ltachannel !
Don’t take people’s convenient and turn to complication for them this Friday !!
“Goreng Tetap Goreng” !
Yours Sincerely,
Logic Trading Analysis
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BursaKakis Channel :
Link: telegram.me/bursakakis
BKs Technical Ideas 28/10/2016
1) Ghl
2) Jaks
3) VIS (live call @ 0.235 on 27/10)
Jaks now @ 1.05, buying momentum & volume is building. Watch for breakout above 1.06 – BKs
GHL may breakout of the 0.86 resistance after closing up 0,025 @ 0.86 with high vol on 27/10/2016. Stochastic is now pointing up & MACD has crossed the zero line -BKs
VIS our medium term FA stock now @ 0.235 is set to breakout of the resistance of 0.235 – BKs
Kindly refer to charts posted in BKs Channel.
Our Link: telegram.me/bursakakis
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.
BursaKakis Channel :
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[28/10 09:45] Rosdi maybank: Market News Roundup
1⃣ Perisai’s subsidiary, SJR Marine (L) Ltd has defaulted on its financing facility of US$20.5m from OCBC Al-Amin.
2⃣ THHeavy & Destini entered into JV to pursue a shipbuilding contract entailing the supply of 3 offshore patrol vessels for the Malaysian Maritime Enforcement Agency.
3⃣ Yinson announced today that Datuk Yeow Kheng Chew has ceased to be a substantial shareholder after disposing of 101.77m shares representing some 9.33% in the company.
Financial Result Highlight
SUNREIT’s net property income (NPI) for 1QFY17 rose 6.8% y-o-y thanks to the resilient performance from its retail segment.It also proposed higher interim income distribution of 2.27 sen per unit.
Pav REIT posted an 11% increase in NPI to RM80.71m for 3QFY16, contributed by rental income from 2 new properties, Damen Mall and Intermark Mall.
Gadang saw its net profit fall by as much as 20% to RM16.62m (6.46 sen/share) for 1QFY17, mainly due to the completion of some projects.
Sources: theedgemarkets.com ; thestar.com
[28/10 09:46] Rosdi maybank: UOBKH Retail Market Monitor 28 October 2016
FBMKLCI 1,669.03 (-4.89,-0.29%)
Support: 1,648, 1,640
Resistance: 1,692, 1,700
Top Gainers: IHH Healthcare (+0.9%), Westports Holdings (+0.7%) and
RHB Bank (+0.6%)
Top Losers: Malayan Banking (-1.6%), SapuraKencana Petroleum (-1.2%)
and Genting Bhd (-1.2%)
US stocks closed lower Thursday, after a session of fluctuating
between slight gains and losses, as a jump in bond yields prompted a
selloff in defensive sectors such as real estate while investors
sifted through mixed earnings results and deal news.
Stocks to watch:
1) SUCCESS TRANSFORMER; Technical Buy with +17.6% potential return
*Last: RM1.82 Target: RM2.04, RM2.14 Stop: RM1.72
*Timeframe: 2 weeks to 2 months
2) HIL INDUSTRIES; Technical BUY with +14.3% potential return
*Last: RM0.910 Target: RM0.985, RM1.04, Stop: RM0.835
*Timeframe: 2 weeks to 1 months
3) TH HEAVY ENGINEERING; Technical BUY with +35.7% potential return
*Last: RM0.140 Target: RM0.190 RM0.235, Stop: RM0.095
*Timeframe: 2 weeks
[28/10 09:47] Rosdi maybank: Boon:
Reach EGM on Nov 4, 2016 & QA approval seems brighter.
Yield-seeking Investor, Credit Suisse Securities (Europe) Ltd ceased to be a substantial shareholder after divesting a 7.61% stake or an equivalent of 97.24 million shares on Oct 26, 2016. Post-disposal, Credit Suisse Securities’ stake is reduced to a mere 0.19% .
Last week MTD Capital Bhd bought out about 118m shares or 9.42% @ 0.76 a piece (5 cts above market) from PAG, another “yield-seeking” one.
Thus Reach could be a step closer to securing shareholders approval on Nov 4, 2016 for its maiden acquisition of an oil & gas (O&G) feild in Kazakhstan.
[28/10 09:47] Rosdi maybank: FAt TA:
M+ Online Morning Buzz – 28Oct16
Dow Jones: 18,169.68 pts (-29.65pts, -0.16%)
U.S. equities ended lower as traders continue to focus on corporate earnings, while some tech stocks like Apple Inc extended its pullback move for another session. The Dow’s support will be located around the 18,000 level.
FBM KLCI: 1,669.03 pts (-4.89pts, -0.29%)
The FBM KLCI ended lower led by selected banking heavyweights. If the FBM KLCI trips below 1,660, next support will be pegged around 1,645.
Crude Palm Oil: RM2,786 (-RM10, -0.36%)
Crude palm oil took a pause in tandem with Dalian markets, while soybean oil continues to decline. Buying interest should resume after a short consolidation phase.
WTI Crude Oil: $49.72 (+$0.54, +1.10%)
Crude oil rebounded as Saudi Arabia and its Gulf OPEC allies are willing to cut 4% from their peak oil output, but crude oil still ended below the US$50 per barrel mark.
Gold: $1,268.40 (+$1.30, +0.10%)
Gold continues to stay below the US$1,300 level on the back of stronger U.S. dollar. Gold’s support will be pegged around US$1,250.
Bursa Malaysia Trade Statistics – 27Oct16
Institutions: Net BUY 221.7 mln (63.0%)
Retail: Net SELL 1.7 mln (13.8%)
Foreign: Net SELL 220.0 mln (23.2%)
Potential Momentum Stocks – 28Oct16
Stock Name: ELSOFT (0090)
Entry: Buy above RM2.03
Target: RM2.20 (8.4%), RM2.40 (18.2%)
Stop: RM1.90 (-6.4%)
Shariah: Yes
Technical: Retesting the all-time-high zone
Stock Name: GHLSYS (0021)
Entry: Buy above RM0.85
Target: RM0.90 (5.9%), RM0.93 (9.4%)
Stop: RM0.82 (-3.5%)
Shariah: Yes
Technical: Flag formation breakout
Source: Bloomberg, M+ Online
[28/10 09:48] Rosdi maybank: Sapphire:
October 28, 2016
•••••••••••••••••••••••
Eco World, GuocoLand Set To Hold 27 % Stake Each In EWI’s IPO
Eco World Development Group Bhd (Eco World) and Singapore listed property developer, GuocoLand Ltd, Thursday announced they would join forces to anchor Eco World International Bhd’s (EWI) upcoming initial public offering (IPO).
The companies are each set to hold a 27 % stake.
Eco World Chairman Tan Sri Liew Kee Sin said EWI is scheduled to be listed on the main board of Bursa Malaysia by the first quarter 2017.
[28/10 09:49] Rosdi maybank: Fundamental report from RHB Research
28/10/16
1. *Tenaga* (current price : 14.32, TP : 18.60)
- Maintain Buy
- We view Tenaga 4QFY16 results to be broadly in line despite core earnings declining 45% YoY, mainly due to unfavourable sales mix and post adjustments for lump sum imbalance cost pass through charge in 4QFY15
2. *Pavreit* (current price : 1.74, TP : 1.90)
-Maintain Neutral
- While we believe Pavilion KL may be able to sustain its strong growth, we expect management to take longer than initially anticipated to lift occupancy rates at newly acquired Intermark Mall and Da men Mall to optimum levels, due to weak domestic consumer sentiment and influx of new malls in the Klang Valley
3. *Sunreit* (current price : 1.77, TP : 1.84)
- Maintain Neutral
- We are projecting stable growth for Sunreit in FY17, largely led by positive rental growth and stable occupancy rates at its retail segment
4. *Airport* (current price : 6.50, TP : 7.60)
- Maintain Buy
- Gradual recovery in Malaysian passenger traffic and a Malaysian passenger service charge rate hike should support strong growth in 2017
5. *Gadang* (current price : 3.29, TP : 3.50)
- Downgraded to Neutral
- We expect more progress billings and receipts from variation orders to be recognised for Gadang in the coming few quarters.
- However, we are view that the positive share price performance since our initiating coverage has mostly captured its underlying earnings catalyst
Views – 285
Reuters-Apple’s results weighed on U.S. stock prices on Wednesday after the technology giant posted its first annual revenue decline since 2001, while oil and gold prices slipped.
Apple, the world’s largest company by market capitalization, fell 2.2 percent after it acknowledged strong demand for its iPhone 7 Plus caught the company off-guard and it was struggling to keep up with demand.
The technology giant pulled down the S&P 500 stock index and Nasdaq, but gains in Boeing bouyed the price-weighted Dow Industrials.
Boeing shares were trading at their highest level this year, after the world’s largest planemaker reported a jump in quarterly profit despite slower sales.
The Dow Jones industrial average rose 30.06 points, or 0.17 percent, to 18,199.33, the S&P 500 lost 3.73 points, or 0.17 percent, to 2,139.43 and the Nasdaq Composite dropped 33.13 points, or 0.63 percent, to 5,250.27.
Disappointing results and forecasts from some other major U.S. companies weighed on European and Asian stocks.
Mixed results from Europe’s banking sector and declines in mining and energy shares helped push the pan-European STOXX 600 index down 0.38 percent.
+++++++=++++
Source:The Edge Market
SHARES in construction outfit Ekovest Bhd have been riding high in the past year, outperforming the company’s peers on the Kuala Lumpur Construction Index with a 133% return. Some analysts believe the stock still has room for growth as they view it as “deeply undervalued”.
Ekovest’s share price closed at a five-month high of RM2.08 last Thursday. It marked the first time the counter has traded above RM2 per share in about 16 years, according to adjusted prices from Bloomberg. The stock has been trading in a 52-week range of 86 sen to RM2.08.
It may be the latest signal yet that there is growing interest in Ekovest, which has almost doubled in price year to date. Trading volume this year in general has also been the highest in five years, according to Bloomberg data.
When contacted, Ekovest managing director Datuk Seri Lim Keng Cheng says the group’s fundamentals are largely intact. “It’s just that there seems to be more attention on Ekovest recently,” he tells The Edge via telephone.
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KLSE StockAlliance:
27/10/2016 Stock Picks
1. HIL / INNO / CEPAT
2. PANPAGE / IREKA / DOLPHIN
3. Follow us closely during trading hours.
Stock Alliance
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TheBursa Analyst:
Thursday 27 October:
Market sentiment is not very good as maybe the world is waiting for the presidential election to be over however I think it is still very early. Wait until November only stay sidelines. Anyway we have to respect that so trade cautiously.
Crude Oil prices slips on US inventory data and CPO prices fall slightly as well.
Stocks to watch:
CCB: can wait to fall further to enter as their Quarter result will be out soon either this Friday or Next Monday, and I am expecting good quarter result since the amount of Mercedes BENZi on the road have been increasing recently, maybe bad economy many people want to showoff they are doing well. Support is at 3.25 TP1: 3.48 TP2: 3.61.
OPCOM: Support at 0.6, TP is 0.65 Risk Reward ratio about 1:2
As mentioned, market is not very good, please trade with care !
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Market News Roundup
1⃣ BHS said it is in talks with potential investors to build a tissue paper factory, as part of the Phase 1 development of Pekan Green Technology Park in Pahang.
2⃣ MQREIT is planning to establish a 20-year medium term notes (MTN) programme by end-2016, according to its manager.
3⃣ Tek Seng’s net profit for 2QFY16 nearly quadrupled to RM16.23m, as a result of higher revenue and operating income.
4⃣ Yong Tai has sold en bloc RM461m worth of properties in Phase 1A of its RM5.4b Impression City mixed development in Melaka to Orient Venture Properties Bhd.
5⃣ SCable has secured a contract worth RM55.9m from Tenaga, to build two double circuit transmission lines.
6⃣ Sumatec today said its Miri-based associate Semado Maritime SB has defaulted on the repayment of RM165.21m having been due to Bank Pembangunan Malaysia Bhd.
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KLCI Index Futures (FKLI) 27/10/2016
Technical
Index futures ended higher with the spot month October futures discount to cash market by 4.5 point. The spot month October contract declined 6.5 points and settled at 1669.5. The underlying FBM KLCI index closed at 1673.92, fell by 3.51 points. In line with the weaker regional markets as they took cues from the lower close in US and EU markets earlier today. Total open interest increased to 48,394 contracts from 36,956 contracts, the previous trading day.
Market action saw prices retraced from the Bollinger upper band and fell towards to middle band. – neutral to negative
RSI momentum line at 52.5 – neutral
Next resistance target should cap at 1,674.5 and 1,678.0, further up at 1,685.5, while support at 1664.0, 1658.0 and further down at 1653.5.
Wall Street ended mixed, as Apple Inc retreated 2.3%, and Boeing Inc rose on robust earnings. Crude oil fell 1% on OPEC worry, offsetting U.S. inventory fall. We expect market to move on sideway bias downside, may take this opportunity to short at resistance, but cut loss have to be in place if it breaks the resistance.
Fundamental
Crude oil price fell 1.56% as investor doubts about whether OPEC meeting on Nov. 30 in Vienna manage to succeed in its planned production cut. A surprise from Energy Information Administration (EIA) reported U.S. Crude stockpiles fell by 553,000 barrels versus Reuters forecast of 1.7million barrels. –Neutral
U.S. stocks ended mixed as Apple Inc fell and pulled down the S&P 500 and Nasdaq, but gains in Boeing buoyed the price-weighted Dow Industrials. – Neutral
Source: Bloomberg
From Futures
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Logic Trading Analysis Channel:
BURSA MALAYSIA MARKET IDEAS THURSDAY (27/10/2016):
FBMKLCI FULL OF CHALLENGE
Dear All,
The FBMKLCI closed lower at -3.51 point or -0.21% to close at 1673.92.
FBMKLCI correction after push up, mostly will correction further, if DJIA fall further then will U-Turn and uptrend will cancel.
DJIA at the moment not looking good, hopefully will not suddenly big fall below 18000, once breaking this level definitely will make some panic happen
Yesterday, many our stock like AAX Big Meletup ! Been asking to focus for a few day already. TUNEPRO got little action as well. Still waiting AIRASIA to fly, since oil price drop again, possible to kick it fly soon.
Lets ready for some more goreng at our live channel:
https://telegram.me/ltachannel !
Joy is what happens to us when we allow ourselves to recognize how good things really are this Thursday !!
“Goreng Tetap Goreng” !
Yours Sincerely,
Logic Trading Analysis
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Views – 259
Analysis 31/10/2016
BURSAMASTER:
BURSAMASTER WATCHLIST
31 OCT TO 4 NOV 2016
1. TEKALA
2. SAMCHEM
3. VS
4. DSONIC
5. DNEX
6. DRBHICOM
7. PMETAL
8. LBALUM
9. PESONA
10.THHEAVY
HAPPY TRADING
BURSAMASTER:
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TheBursa Analyst:
Monday 31st October:
The world market is slightly bearish, awaiting for the United State presidential election which will be held on 4-November. Many investors and traders will be staying on the side line, waiting for the outcome of the election results. If Trump were to win, we shall expect a market correction on a global scale. If Hilary were to win the election, the market condition as I see it will get a light boost. Most commodities are bullish, maybe this is a sign ? haha.
The DJIA was slightly down, due to poor APPLE quarter report, however it was balanced by the bullish news of BOEING.
The ringgit weakened against the USD at 4.20.
The oil prices are fluctuating and was slightly bearish. Crude oil prices are trading below $50, due to uncertainties of the OPEC deal. And this has impacted the world market as well.
Friday we saw mostly Oil Palm stocks trading such as INNO, KWANTAS, SIME, GENP, HAPSENG, GLBHD.
THHEAVY and DESTINI joint venture, and both have been traded as well on Friday 28 October.
Long term stocks:
DKSH: support at 6.02, Target price 7.5
Mid term stocks:
PIE: Support 1.95, TP 2.38
Stocks to watch this week (31Oct – 4November) are:
PRESBHD (education) budget mentioned about PPP which are projects of PRESBHD, and on Friday we see some interesting movement as well. Support 2.20 Tp1: 2.38 Tp2: 2.46. Last week was a brutal washing happen. Now after washing it should be like rocket already, up up up up up up !
ECONBHD (construction): Support 1.79, TP 2.0
MMSV (LED and semicon in automotive inds): Support 0.64, Tp 0.705
TOMYPAK: Monitor for breakout at 1.65, more attention is at this counter already.
UEMS: (oversold) Support is at 1.08, TP 1.19
KIMLUN (construction): support 2.12, TP 2.26
REXIT (insurance): support 0.635, TP 0.745
ECS: support 1.51 , TP 1.6
MIECO: (export) support 1.0. TP:1.14, already break out with ok volume.
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: *CORPORATE NEWS*
*PERSTIM* net profit ⬇ 6% to RM13.25 million in 2QFY17, from RM14.08 million a year ago, due to lower profit margin.
Lembaga Tabung Haji (LTH) has emerged as a substantial shareholder in piling and engineering specialist *IKHMAS* after purchasing 26.9 million shares or 5.17% stake in the company.
*TMCLIFE* net profit doubled for the 4QFY16, standing at RM5.87 million from RM2.89 million a year earlier, due to better interest income, while the previous year saw higher corporate exercise cost.
*APM* has formed a 60:40 joint venture (JV) with Japan’s Delta Kogyo Co Ltd to develop automobile seating system for Mazda cars.
*PETRON* said its external auditors Messrs Baker Tilly Monteiro Heng have expressed a disclaimer opinion in the Practice Note 17 (PN17) company’s latest financial statements for the financial year ended June 30, 2016 (FY16).
*Tan Sri Lodin Wok Kamaruddin, 67, is stepping down as *AFFIN* deputy chairman with immediate effect, as his contract is not being renewed.
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U.S. equities closed mostly lower on Friday after the Federal Bureau of Investigation announced it is investigating new emails related to Democratic nominee Hillary Clinton. Earlier, the three major indexes had drifted higher following the release of better-than-expected U.S. GDP data, while investors continued to parse through a slew of corporate earnings results.
* Dow -8
* S&P -6
* Nasdaq -25
The U.S. economy grew at an annualized rate of 2.9% in the third quarter, marked the fastest economic growth in two years. Economists polled by Reuters had forecast GDP rising at a 2.5% annual rate in the third quarter.
⛽ Oil prices edged 2% lower on Friday on doubts about OPEC’s planned output cut.
* crude oil $48.70 (-0.91)
* Brent crude $49.78 (-0.69)
Japan’s Sep national CPI report of -0.5% y/y was unchanged from Aug and was in line with market expectations.
Japan’s Sep unemployment rate of 3.0% was down from Aug’s +3.1% and showed a slightly stronger labor market than market expectations of 3.1%.
Gold rose 1% to the highest level in nearly four weeks on Friday, extending gains late in the session after the FBI said it will further investigate Democratic presidential candidate Hillary Clinton’s use of a private email system. Now, $1277.50 (+2.00)
FCPO (RM2788, +2) closed marginally higher in range trading. Sentiment generally tracking external movement such as China Dalian futures which closed higher after trading lower in the morning session. Weaker ringgit had little effect. Seasonal drop in production after Oct and tightness in global vegetable oils supplies may see support continuing. However, lower Oct export, higher Oct productions and stocks may limit the upside.
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M+ Online Morning Buzz – 31Oct16*
*Dow Jones: 18,161.19 pts (-8.49pts, -0.05%)*
U.S. stockmarkets ended on a lower note after the FBI decided to re-look into Clinton e-mails. Also, sentiments were weak after crude oil extended another negative session.
*FBM KLCI: 1,670.27 pts (+1.24pts, +0.07%)*
The FBM KLCI rebounded to end marginally higher above the 1,670 level led by Tenaga Nasional. The FBM KLCI may retest the 1,680 level over the near term.
*Crude Palm Oil: RM2,788 (+RM2, +0.07%)*
Crude palm oil trended sideways near the RM2,800 level amid steadier US dollar. If the CPO surges above RM2,800, next target will be envisaged around RM2,900.
*WTI Crude Oil: $48.70 (-$1.02, -2.04%)*
Crude oil extended its retracement phase below the US$50 per barrel mark after failing to agree on production cuts during the OPEC meeting. Crude oil’s support will be set around the US$46 level.
*Gold: $1,275.47 (+$7.07, +0.56%)*
Gold gained some minor buying momentum ahead of the FOMC meeting that will be held this week. Upside potential will be set around the US$1,300 level.
*Economic Releases:*
Eurozone – Eurostat Eurozone CORE MUICP – 31Oct16, 6:00PM
US – MNI Chicago Business Barometer – 31Oct16, 9:45PM
US – Dallas Fed Manufacturing Outlook – 31Oct16, 10:30PM
*Bursa Malaysia Trade Statistics – 28Oct16*
Institutions: *Net BUY* 23.9 mln (63.6%)
Retail: *Net BUY* 7.5 mln (14.4%)
Foreign: *Net SELL* 31.4 mln (22.0%)
*Potential Momentum Stocks – 31Oct16*
*Stock Name: REXIT (0106)*
Entry: Buy above RM0.665
Target: RM0.725 (9.0%), RM0.75 (12.8%)
Stop: RM0.63 (-5.3%)
Shariah: Yes
Technical: Flag formation breakout
*Stock Name: RUBEREX (7803)*
Entry: Buy above RM0.83
Target: RM0.925 (11.4%), RM0.95 (14.5%)
Stop: RM0.825 (-0.6%)
Shariah: Yes
Technical: Supported above EMA9
_*Source: Bloomberg, M+ Online*_
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Source:The Edge Market
The market started on a bullish note last week after the tabling of the budget but failed to rally as global market performances were mixed and ringgit weakened against the US dollar.
Trading volume remained low and this indicates that market participants are staying in the sidelines. The reason could probably be the US presidential election which is going to be held in less than two weeks.
The FBM KLCI closed marginally higher from the previous week at 1,670.27 points last Friday after pulling back from a high of 1,677.8 points.
The average daily trading volume last week was firm as compared to the previous week at 1.6 billion shares. The average trading value was also firm at RM1.9 billion. This shows that the market participation remained weak. Total market valuation shrank RM1 billion from the previous week to RM1,703.6 billion last Friday.
Local institutions were net buyers last week as weaker ringgit hurt foreign institutions sentiment. Net buy from local institutions last week were RM4023 million and net sell from foreign institutions were RM397 million. The Malaysian ringgit weakened from RM4.18 per US dollar to RM4.19 last Friday.
The FBM KLCI broke above the immediate resistance level at 1,675 points last week but failed to stay above it and rally. This indicates that the market confidence remained weak. The index remained inside the triangle chart pattern range between 1,650 and 1,675 points. However, the index is able to stay above the short and long term 30 and 200 day moving averages when it pulled back. Furthermore, the index continued to stay inside the Ichimoku Cloud indicator. This indicates that there is still support in the market despite being directionless.
The RSI and Momentum Oscillator indicators stayed above the moving average. Furthermore, the MACD indicator stayed above its moving average and the FBM KLCI is is above the middle band of the Bollinger Bands indicator. This also indicates that the sentiment is slightly bullish as it is being supported.
The directionless performance of the market on week after the budget shows that there is not enough catalyst for the equities market. Furthermore, the US presidential candidate in less than two weeks time added the uncertainty. Expect the market to remain directionless in the next two weeks and the index to trade between 1,650 and 1,675 points.
Out of the general market uncertainty, metal and agricultural commodities continued to rally. Hence, plantation and steel producers sectors are currently bullish and are expected to last until the end of the year, especially if the US dollar remained strong.
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Logic Trading Analysis:
BURSA MALAYSIA MARKET IDEAS MONDAY (31/10/2016):
FBMKLCI WAITING US PRESIDENT RESULT on 8/11
Dear All,
The FBMKLCI closed higher at +1.24 point or +0.07% to close at 1670.27.
FBMKLCI moving sideways last whole week, not much big movement after spike up and correction down.
DJIA remain very volatile and stay above 18000, a level that may break and waterfall anytime. All eye on US President Election result, and expecting coming week market remain very volatile.
Because we need more time to get ready for any big direction, we already start to reduce and stay away until clearer sign show. Do not trade like barbarian now.
Never Stop Doing Your Best Just Because Someone Doesn’t Give You Credit This Monday ! !!
“Goreng Tetap Goreng” !
Yours Sincerely,
Logic Trading Analysis
+++++++++++
The Bursa Analyst Channel:
Monday 31st October:
The world market is slightly bearish, awaiting for the United State presidential election which will be held on 4-November. Many investors and traders will be staying on the side line, waiting for the outcome of the election results. If Trump were to win, we shall expect a market correction on a global scale. If Hilary were to win the election, the market condition as I see it will get a light boost. Most commodities are bullish, maybe this is a sign ? haha.
The DJIA was slightly down, due to poor APPLE quarter report, however it was balanced by the bullish news of BOEING.
The ringgit weakened against the USD at 4.20.
The oil prices are fluctuating and was slightly bearish. Crude oil prices are trading below $50, due to uncertainties of the OPEC deal. And this has impacted the world market as well.
Friday we saw mostly Oil Palm stocks trading such as INNO, KWANTAS, SIME, GENP, HAPSENG, GLBHD.
THHEAVY and DESTINI joint venture, and both have been traded as well on Friday 28 October.
Long term stocks:
DKSH: support at 6.02, Target price 7.5
Mid term stocks:
PIE: Support 1.95, TP 2.38
Stocks to watch this week (31Oct – 4November) are:
PRESBHD (education) budget mentioned about PPP which are projects of PRESBHD, and on Friday we see some interesting movement as well. Support 2.20 Tp1: 2.38 Tp2: 2.46. . Last week was a brutal washing happen. Now after washing it should be like rocket already, up up up up up up !
ECONBHD (construction): Support 1.79, TP 2.0
MMSV (LED and semicon in automotive inds): Support 0.64, Tp 0.705
TOMYPAK: Monitor for breakout at 1.65, more attention is at this counter already.
UEMS: (oversold) Support is at 1.08, TP 1.19
KIMLUN (construction): support 2.12, TP 2.26
REXIT (insurance): support 0.635, TP 0.745
ECS: support 1.51 , TP 1.6
MIECO: (export) support 1.0. TP:1.14, already break out with ok volume.
LET THIS WEEK BE A GOOD WEEK ! WE WAIT FOR TRUMP TO WIN !! MAKE AMERICA GREAT AGAIN ! MAKE THE MARKET SALES !
Follow The Bursa Analyst Channel for potential stockpicks and daily update.
https://telegram.me/TBAChannel
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BursaKakis Channel :
Presbhd may move higher after heavy volume to close up 0.11 @ 2.28 on 28/10/2016. Watch for breakout above 2.30. MACD line is touching the Golden Cross & Sochastic is pointing up – BKs
ECS may trend higher after broke above the downtrend line with high volume to close up 0.06 @ 1.54 on 28/10/2016. MACD has crossed the zero line – BKs
BKs Technical Ideas 31/10/2016
1) Presbhd
2) ECS
3) RceCap
Kindly refer to charts posted in BKs.
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.
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CIMB Trading Ideas 31/10/2016
1) SP Setia
2) Nylex
Kindly refer to charts posted in BKs.
Our Link: telegram.me/bursakakis
Kinsteel triggers PN17 criteria pursuant to listing requirements
http://www.thestar.com.my/business/business-news/2016/10/29/kinsteel-triggers-pn17-criteria-pursuant-to-listing-requirements/
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