KLCI Technical Analysis - 31 March, 2015

Market Review for KLCI

• The FBM KLCI index gained 8.46 points or 0.47% on Monday.

• Finance Index increased 0.30% to 16128.35 points, Properties Index up 0.06% to 1311.71 points and Plantation Index down 0.52% to 7743.63 points. 

• Market traded within a range of 10.74 points between an intra-day high of 1825.76 and a low of 1815.02 during the session.

Market Forecast for KLCI

Share prices on Bursa Malaysia opened higher with active buying throughout
the day. It did not put much impact on the movement as it only compensated the
bearish activity of last weekend's 2 sessions.

Technical Indicators

• RSI stood below the center line at 59.803 with its CCI at 97.185.

• Difference line of MACD performed at 5.147 crossed its signal line which performed at 2.891.

Economic Factors

• Disruption of oil routes due to tensions in West Asia with Saudi Arabia sending war planes into Yemen in clashes with Iran would be positive to the local stock exchange. Overall, FBM KLCI, which showed relative strength to settle above its multi-month resistance level of 1,800, should continue its winning streak on the back of a stronger oil and currency movements.FBM KLCI weekly ended with gains 9.72 points to 1,813.37 from 1,803.65.

• The Malaysian Automotive Association (MAA) said the depreciation of the ringgit will play a more significant role in determining car prices in the future, than the implementation of Goods & Services Tax (GST) in April.

• The Ministry of Finance, in its capacity as the 100% shareholder of 1Malaysia Development Bhd (1MDB), has created a special task force to help ensure the successful implementation of the company's strategic review.

• Mercury Industries Bhd, a paints products manufacturer, is planning to buy a 70% stake in construction outfit Paramount Bounty Sdn Bhd for RM42 million, marking its entry into the construction industry.

• AmMetLife Insurance Bhd is looking to achieve a compound annual growth rate of 24% over the next four years to help the company break into the top five of the country's life insurance companies by 2019.

• Major shareholder Amin Halim Rasip is enticing Integrax Bhd shareholders to hold off making a decision on accepting Tenaga Nasional Bhd's RM3.25 offer, with a promised RM1.2 billion voluntary general offer to be launched by himself and "other business entrepreneurs".

• AirAsia X Bhd, whose shareholders approved its RM395 million rights issue last Friday, is confident of achieving improvements this year despite the widened net loss last year and the QZ8501 incident early this year.

• Berjaya Corp Bhd, which acquired a 10.53% stake in REDtone International Bhd last Friday, has launched a takeover bid for the telecommunication company at 80 sen per share.

• Faber Group Bhd, which received shareholders' nod for the change of name to UEM Edgenta Bhd last Friday, believes new business entities Opus Group Bhd and Projek Penyelenggaraan Lebuhraya Bhd (Propel) will help mitigate the challenging outlook for its hospital support services (HSS) division.

• The ringgit is expected to be volatile against the US dollar this week amid the upbeat outlook for Malaysia's economic fundamentals versus favourable sentiment skewed towards US economy.

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Malaysian Stock Market News - 31 March, 2015

• Malaysia share prices opened higher on Tuesday with the FTSE Bursa Malaysia Kuala Lumpur Composite Index up 8.29 points to 1,830.12

• The government has no plan to peg the ringgit against the US dollar to address its depreciation.

• Tenaga Nasional Bhd (TNB) takeover offer for Integrax Bhd has crossed the 50% threshold, making its revised offer at RM3.25 a piece in the port operator unconditional.

• Astro Malaysia Holdings Bhd, which saw its earnings before interest, taxes, depreciation and amortisation (ebitda) and revenue increase 12% and 9% respectively for the financial year ended Jan 31, 2015 (FY15), expects to see a similar trajectory in FY16.

• XOX Bhd, the only listed mobile virtual network operator in Malaysia, aims to increase its subscriber base by 800,000 more prepaid users within six months from the 500,000 active subscribers it currently has.

• The Chinese business community is more pessimistic about the economic outlook for 2015 and 2016, but expects to see an improvement in 2017, according to a survey by the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM).

• Amcorp Properties Bhd has entered into a joint venture with Temasek, Hotel Properties Ltd and UK developer, Native Land to jointly develop Sampson House and Ludgate House property in London's South Bank, along River Thames into a mixed development with a gross development value of RM5.5 billion.

• Public Bank Bhd is targeting a gross loan growth of 9-10% for 2015, ahead of the projected industry loan growth of below 8%.

• Shareholders of MMC Corp Bhd unanimously approved the listing of its power unit Malakoff Corp Bhd at an EGM yesterday, paving the way for what could be the country's largest initial public offering (IPO) in May this year.

• Credit Suisse Group has acquired a substantial 5% stake in Sona Petroleum Bhd, the country' largest special purpose acquisition company

• The Netting of Financial Agreements Act 2015, which provides a legal framework governing close-out netting for financial transactions in Malaysia, came into force yesterday.

• Boustead Heavy Industries Corporation Bhd (BHIC) has secured an additional contract from the federal government in relation to the in-service support (ISS) for two units of the Scorpene submarines for the navy worth RM531.2 million.

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Malaysia Stock News - 30 March, 2015

• Malaysia share prices opened higher on Monday with the FTSE Bursa Malaysia Kuala Lumpur Composite Index up 2.38 points to 1,815.75.

• Disruption of oil routes due to tensions in West Asia with Saudi Arabia sending war planes into Yemen in clashes with Iran would be positive to the local stock exchange.
  Overall, FBM KLCI, which showed relative strength to settle above its multi-month resistance level of 1,800, should continue its winning streak on the back of a stronger oil and currency movements.
  FBM KLCI weekly ended with gains 9.72 points to 1,813.37 from 1,803.65.

• The ringgit is expected to be volatile against the US dollar this week amid the upbeat outlook for Malaysia's economic fundamentals versus favourable sentiment skewed towards US economy.

• The Malaysian Automotive Association (MAA) said the depreciation of the ringgit will play a more significant role in determining car prices in the future, than the implementation of Goods & Services Tax (GST) in April.

• The Ministry of Finance, in its capacity as the 100% shareholder of 1Malaysia Development Bhd (1MDB), has created a special task force to help ensure the successful implementation of the company's strategic review.

• Mercury Industries Bhd, a paints products manufacturer, is planning to buy a 70% stake in construction outfit Paramount Bounty Sdn Bhd for RM42 million, marking its entry into the construction industry.

• AmMetLife Insurance Bhd is looking to achieve a compound annual growth rate of 24% over the next four years to help the company break into the top five of the country's life insurance companies by 2019.

• Major shareholder Amin Halim Rasip is enticing Integrax Bhd shareholders to hold off making a decision on accepting Tenaga Nasional Bhd's RM3.25 offer, with a promised RM1.2 billion voluntary general offer to be launched by himself and "other business entrepreneurs".

• AirAsia X Bhd, whose shareholders approved its RM395 million rights issue last Friday, is confident of achieving improvements this year despite the widened net loss last year and the QZ8501 incident early this year.

• Berjaya Corp Bhd, which acquired a 10.53% stake in REDtone International Bhd last Friday, has launched a takeover bid for the telecommunication company at 80 sen per share.

• Faber Group Bhd, which received shareholders' nod for the change of name to UEM Edgenta Bhd last Friday, believes new business entities Opus Group Bhd and Projek Penyelenggaraan Lebuhraya Bhd (Propel) will help mitigate the challenging outlook for its hospital support services (HSS) division.

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Malaysia Stock News - 26 March, 2015

• Share prices opened higher on Thursday with the FTSE Bursa Malaysia Kuala Lumpur Composite Index up 0.64 points to 1,819.74 

• Tanjung Offshore Bhd has withdrawn its civil suit against director Tan Sri Tan Kean Soon and five others.

• Automotive parts manufacturer Sapura Industrial Bhd's net profit for its fourth quarter ended Jan 31, 2014 (Q4'FY14) plunged 80% from a year earlier as it registered lower turnover.

• Fordington Pte Ltd (offeror) has received enough valid acceptances in respect of the unconditional take-over offer for Yokohama Industries Bhd for more than 90% in the group.

• Prinsiptek Corp Bhd, which expects stable financial performance in 2015, aims to expand its property business into other Asian countries, especially Indonesia.

Malaysia Stock Picks

• DGB Asia Bhd, formerly known as DSC Solutions Bhd, is looking to ramp up its operations in Vietnam and Thailand, as part of its plan to increase overseas revenue contribution to 50% within a year from the current 30%.

•  Intergrax Bhd's major shareholder Amin Halim Rasip is taking legal action against Perak Corp Bhd (PCB) after it turned down his offer for their 5% stake in the port operator in favour of Tenaga Nasional Bhd's (TNB) "superior" offer.

• The government is considering an Ar-Rahnu Act to regulate the Islamic pawn broking industry in Malaysia, which has grown to almost RM5 billion a year, said Malaysia Gold Association (MGA) president.

• It is anticipated that Gamuda Bhd is slated for several re-rating catalysts that will further underpin the construction firm's share price performance in the coming months.

• Progressive Impact Corp Bhd has secured an extension of concession agreement for an interim period of one year worth RM22 million from the Ministry of Natural Resources and Environment (NRE).

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Malaysia Stock Market Updates - 25 March,2015

• Share prices on Bursa Malaysia opened firmer today riding on Tuesday’s uptrend momentum.  The benchmark FTSE Bursa Malaysia KLCI stood at 1,820.7, up 6.66 points after opening 1.61 points lower at 1,812.43. 

• The slump in crude oil prices and the weaker global economy are expected to weigh down on Malaysia’s export growth.

• Fajarbaru Builder Group Bhd has got a RM109 million Kelana Jaya line extension project job from Prasarana Malaysia Bhd.  Which is expected to affect the Group’s earnings and net assets in a positive manner.

• The State Bank of Vietnam (SBV) has allowed Malaysia's Public Bank Bhd to acquire all stakes owned by Vietnamese lender BIDV in their $62.6 million joint venture VID Public Bank.

• Kenanga Investment Bank Bhd is issuing 8 new European style cash-settled call warrants (CW) over ordinary shares of Bumi Armada Bhd (Armada), Astro Malaysia Holdings Bhd (Astro),  CIMB Group Holdings Bhd (CIMB), Datasonic Group Bhd (Dsonic), Inari Amertron Bhd (Inari), Mah Sing Group Bhd (MahSing), Pos Malaysia Bhd (Pos) and UOA Development Bhd (UoaDev).  The warrants will be listed tomorrow at the structured warrants board of Bursa Malaysia with an issue size of up to 100 million each. The main focus is on the trading/services, properties and technology sector.  The new call warrants are priced at 15 sen each with effective gearing ranging from 2.66 times to 4.58 times.

• Sime Darby Bhd which had secured 98.8% of NBPOL will compulsorily acquire all the remaining New Britain Palm Oil Ltd (NBPOL) shares under the proposed privatisation of the in UK and Papua New Guinea-listed company.

• Berjaya Land Bhd's (BLand) third quarter ended Jan 31, 2015 (Q3) pre-tax profit shows an increased by 7.8% to RM81.3 million from RM75.4 million due to higher profit from its principal subsidiary,  Berjaya Sports Toto Bhd (BToto) and a RM18 million refund after the aborted listing of Sports Toto Malaysia Trust on the Singapore Exchange Securities Trading Limited. 

• Minister of International Trade and Industry, Datuk Seri Mustapa Mohamed mentioned that Malaysia expects growth in the export of electrical & electronics (E&E) products to almost halve this year to between 4% and 5%,  compared with the 8.1% achieved in 2014,  

• Integrax Bhd's major shareholder and co-founder Amin Halim Rasip is continuing his campaign against Tenaga Nasional Bhd's offer for Integrax, urging Perak Corp Bhd (PCB)  to reconsider its recommendation for the acceptance of TNB's RM3.25 a share offer at an extraordinary general meeting (EGM) to be held this Friday.

• Motor insurer Pacific & Orient Bhd (P&O) is cautious on its business outlook for the financial year ending Sept 30, 2015 in view of the uncertainties in the global economy.
  

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Weekly Technical Analysis Report On KLCI - 20 March, 2015

Weekly Wrap Of KLCI

• The week started with gap down opening. The FBM KLCI index lost 5.48 points or 0.30% on Friday. 

• The Finance Index fell 0.40% to 15968.45 points, the Properties Index up 0.00% to 1303.7 points and the Plantation Index down 0.11% to 7802.05 points. 

• The market traded within a range of 8.16 points between an intra-day high of 1806.90 and a low of 1798.74 during the session.

• The KLCI dropped 5.48 points to end at 1803.65 points, taking cue from lower overnight closing in Wall Street. The performance of our benchmark index was dragged down by selling in banking counters.

FBMKLCI Week's Performance

• Open - 1803.56

• High - 1806.90

• Low - 1798.74

• Close - 1803.65

• Change (Points) - -18

• Change % - -1.01

Market Forecast For The Week Ahead

• As per the technicality of the KLCI Index, it is expected to go up till 1820. An increase in the crude prices will lead our index to go further up, possibly till 1840 level.

Economic Factors

• The ringgit is expected to to depreciate further to 3.95 against the dollar by September, before ending the year at RM3.82, boosting exports and trade surplus.
  
  
• Fitch Ratings' likely downgrade of Malaysia's rating does not reflect the country's true economic fundamentals, says Minister in the Prime Minister's Department.
  
  
• Foreign investors remain optimistic about the country's economic and business prospects despite Fitch Ratings’ possible downgrade of Malaysia’s sovereign rating.
  
  
• Kian Joo Can Factory Bhd and Aspire Insight Sdn Bhd have agreed to extend the deadline for the fulfillment of all conditions in regards to Kian Joo's plan to dispose of entire business to Aspire Insight.
  
  
• Crest Builder Holdings Bhd's subsidiary Crest Builder Sdn Bhd has clinched a RM197.82 million contract from UDA Holdings Bhd for the construction of super-structure works of a 30-storey serviced apartments in Kuala Lumpur.
  
  
  
  
  
  
  
  
  
  
  
• Malaysia Airports Holdings Bhd (MAHB) has signed a long-term concession agreement with National Aerospace and Defence Industries to support the government's initiative to enhance the development of aerospace industry in Malaysia.
  
  
• Petron Malaysia is expected to invest over US$1 billion (RM3.7 billion) over the next few years in the country.

• Property developer KSL Holdings Bhd has set a dividend policy of paying a minimum of 40% of annual core net profit from operations, excluding fair value gains, to shareholders with effect from the financial year ending Dec 31, 2015.
  
  
• Asia Brands Bhd has proposed to raise RM100 million through the issuance of 15-year Islamic notes. In a filing with Bursa Malaysia, it said proceeds will be used for syariah-compliant purposes only, including financing investments, capital expenditure, working capital and other corporate purposes.
  
  
• IJM Corp Bhd has appointed Datuk Soam Heng Choon as its CEO and managing director effective April 6, 2015, replacing current CEO and managing director.
  
  
• A joint initiative between the Construction Industry Development Board (CIDB) and Germany-based Bayer MaterialScience for affordable housing solutions will see lower prices for properties.
  
  
  
  
  Sector Allocation Chart
  
  

  SECTOR	CHANGE	%CHANGE	HIGH	LOW
  IND-PROD	-0.83	-0.62	133.11	132.39
  FINANCE	-64.69	-0.4	16,008.85	15,933.80
  INDUSTRIAL	-6	-0.18	3,338.42	3,302.19
  TRAD/SERV	-0.28	-0.12	237.98	236.65
  PLANTATION	-8.71	-0.11	7,802.05	7,737.31
  CONSTRUCTN	0.07	0.02	296.29	293.39
  CONSUMER	1.6	0.27	596.34	591.89
  TECHNOLOGY	0.1	0.48	21.11	20.9
  MINING	4.05	0.71	571.45	567.4
  PROPERTIES	0.01	-	1,306.35	1,298.58

  
  

Market News Updates - 19 March, 2015

• Malaysia share prices opened higher on Thursday with the FTSE Bursa Malaysia Kuala Lumpur Composite Index up 6.21 points to 1798.22.

• Compugates Holdings Bhd (CHB) is proposing a renounceable rights issue of up to 304.9 million redeemable preferance shares (RPS) together with up to 304.9 million free detachable warrants to raise up to RM30.49 million.

• Kian Joo Can Factory Bhd and Aspire Insight Sdn Bhd have agreed to extend the deadline for the fulfillment of all conditions in regards to Kian Joo's plan to dispose of entire business to Aspire Insight.

• Top Glove Corp Bhd is on the lookout for potential mergers and acquisitions (M&As) in rubber glove-related businesses, as part of its plans to expand its business to meet the strong demand in natural rubber gloves.

• The Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) seized goods worth RM436,568.70 in its anti-profiteering operation from Jan 15 to March 17.

• Crest Builder Holdings Bhd's subsidiary Crest Builder Sdn Bhd has clinched a RM197.82 million contract from UDA Holdings Bhd for the construction of super-structure works of a 30-storey serviced apartments in Kuala Lumpur.

• Tanjung Offshore Bhd's non-independent, non-executive director Tan Sri Tan Kean Soon, who has called for an EGM to remove three directors, plans to carry a forensic audit on all the deals in the group after the EGM.

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Malaysia Market Updates - 17 March, 2015

Market Review for KLCI

• The FBM KLCI index lost 1.21 points or 0.07% on Monday. Finance Index fell 0.03% to 15853.76 points, Properties Index dropped 0.86% to 1297.29 points and Plantation Index down 0.22% to 7753.45 points. 

• Market Traded within a range of 12.99 points between an intraday high of 1787.29 and a low of 1774.30 during the session.

• The KLCI ended in red by finishing 1.21 points lower at 1780.54, amid cautious sentiment resulted from subdued oil prices, weakening ringgit coupled with this concerns on week's Federal Reserve meeting.

Market Forecast for KLCI

It is anticipated that our index may come down till 1763 level and on the upper

side it is expected to go till 1800 level.

Technical Indicators

RSI stood below the center line at 46.226 with its CCI at -7.116. Difference line of MACD performed at -7.383 above its signal line which performed at -11.754.

Economic Factors 

• Malaysian Resources Corporation Bhd (MRCB) has obtained the Securities Commission's (SC) approval for exemption from making a mandatory takeover offer for the rest of Quill Capita Trust (QCT).

• Malton Bhd's Rentak Sejati Sdn Bhd has terminated a RM83.67 million deal to dispose of its land in Shah Alam, Selangor.

• WCT Holdings Bhd is eyeing to derive 20% of the group's net profit from its investment and management division by 2016, from 10% currently.

• BIMB Holdings Bhd's net profit for the fourth quarter ended Dec 31, 2014 leaped more than two fold to RM153.91 million from RM60.15 million a year ago, on the back of a 4.4% revenue jump to RM761.5 million from RM729.5 million.

• KNM Group Bhd plans to enhance its participation in Thailand's renewable energy sector and provide recurring income for the group in the long term by buying two Thai companies for US$24 million (RM88.49 million).

• Ho Hup Construction Company Bhd has entered into a shareholders' agreement (SHA) with Kiara Komposit Sdn Bhd and Daiman Kapital Sdn Bhd, to contribute further capital to their joint entity H2Advance Builders Sdn Bhd, formerly known as Nippon Awantech Sdn Bhd.

• IHH Healthcare Bhd announced that its sale and purchase agreement with Fortis Healthcare Singapore Pte Ltd to acquire Radlink-Asia Pte Ltd expired and ceased to be effective last Friday, due to the non-satisfaction of certain terms and conditions.

• A slower growth pace in household indebtedness, personal loans and credit card debt is a credit positive for Malaysian banks most exposed to household borrowers.

• UMW Oil and Gas Corporation Bhd's share price gained one sen to RM2.15 with 1.84 million shares changing hands despite the company's expectation of a tough year in the drilling market.

• A1' rating has been assigned to the three tranches of senior unsecured notes totalling US$3.75 billion issued by Petronas Capital Ltd and guaranteed by Petroliam Nasional Bhd (Petronas, A1 stable), drawn down from its existing US$15 billion multi-currency global medium term note (MTN) programme.

• KSL Holdings Bhd has set a dividend policy of paying a minimum of 40 per cent of its annual net profit from operations excluding fair value gains, with effect from the 2015 financial year.

• Eversendai Corp Bhd, has been awarded two new contracts worth RM246 million in Saudi Arabia.

• Malaysia will impose a 4.5 per cent export duty on CPO for April 2015, after seven months of exports of duty-free crude palm oil (CPO) since September 2014.

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