KLCI Technical Analysis - 16 Sept, 2015

Market Review for KLCI

• The FTSE Bursa Malaysia Kuala Lumpur Composite index gained 7.52 points or 0.46% on Tuesday.

• The Finance Index increased 0.50% to 14310.03 points, the Properties Index up 0.65% to 1147.67 points and the Plantation Index rose 0.63% to 7106.69 points. The market traded within a range of 16.11 points.

• The KLCI maintained in positive territory following yesterday's surged after Prime Minister Najib Razak unveiled a RM20 bil package to boost Malaysian market and closed higher at 1647.15 points. 

• The performances of our regional peers were relatively poor as investors await US Federal Reserve's meeting starting this Wednesday.

Market Forecast for KLCI

The FBM KLCI index is expected to trade positive in coming session and can reach to the level of 1660 supported by the uplift market sentiments.

Market Highlights

• JAKS Resources Bhd expects to clinch more packages in the Langat 2 water treatment plant project once the water restructuring process in the state is concluded.

• Sapura Kencana Petroleum Bhd saw its net profit for the second quarter ended July 31, 2015, plunge 76.65% to RM104.08 million, from RM445.8 million in the previous corresponding quarter, primarily due to its oil and gas (O&G) asset impairment provision. 

• Damansara Realty Bhd is planning to set up a joint venture (JV) company with Japan’s Sumitomo Warehouse Co Ltd (SWC) to participate in downstream oil and gas operation in Pengerang Integrated Petroleum Complex (PIPC).

•  Maybank Investment Bank (MaybankIB) believes that the repatriation of overseas profits and capital, as well as the reactivation of ValueCap will boost investors’ confidence on the local stock market.

• Fututech Bhd, which is acquiring two construction firms for RM458 million, is looking to raise some RM150 million from a proposed private placement of 100 million new Fututech shares.

• The Malaysian Palm Oil Board (MPOB) is focusing on promoting palm oil application in non-food products and health benefits in China to further support the growth of the Malaysian palm oil industry.

• Sunway Holdings Sdn Bhd (SunHoldings), a unit of Sunway Bhd, has entered into a second supplemental agreement to buy hardware and household product trader Winstar Trading Sdn Bhd (WTSB) for RM130.95mil.