Market Wrap
It was another weaker day. The Bursa Malaysia ended lower today ahead of the Budget 2022 announcement on this coming Friday. The benchmark FBMKLCI Index dipped 3.74 points to 1,584.20. Market breadth was still negative as well with losers outpacing gainers 589 to 419, while 444 counters were unchanged and 840 untraded. Sector-wise, construction and logistics players did well. On the contrary, Banking and Healthcare Equipment & Services sectors saw selling pressure.
As for the actives, it is observed that GUH Holdings (GUH, 3247) appearing in Pick@Stock’s “Today Keywords” advanced 8 sen to 72 sen and hit the highest in over three years despite in the absent of major corporate news. Chart-wise, the stock could have staged a price-and-volume breakout after it overcomes its previous major resistance levels at RM0.665-0.675, which have now turned into supports.
On a separate note, CTOS Digital (CTOS, 5301) did show some trading interest. Share price climbed 6 sen to RM1.98. It is also interesting to note that TrainYew’s Trading System has issued a “Positive Signal” which could suggest a potential retest towards its recent high of RM2.10. The only caveat is the lack of trading volume in today’s upswing. On the latest news, while CTOS is still pending to re-access to the CCRIS, it stated that the suspension should be lifted soon as there was no sign of data breach.
Source: https://www.theedgemarkets.com/article/ccris-suspension-ctos-submitted-assessment-report-oct-18-awaiting-bnm-review
With a weaker closing, TrainYew’s trading system has issued a “Negative Signal” on FBMKLCI’s Daily Charting. Hence, the underlying consolidation process of the FBMKLCI index could probably be taking a longer time. While there is no “Negative Signal” is observed and Pick@Stock’s COWI Sentiment Index at this juncture, further deterioration in the market breath will still trigger a “Negative Signal” eventually unless a quick recovery in trading sentiment is seen. Meanwhile, as oil prices reached multi-year highs on Monday as Brent crude futures reached a session high of USD86.70 per barrel, its highest level since October 2018, investors, traders in particular, could potentially see trading activities among the local oil and gas stocks. For instance, Petron Malaysia Refining & Marketing (PETRONM, 3042) is hovering near its previous support of RM4.65/60. While its technical picture is still weak, a convincing break above its recent pivotal highs of RM4.72 could signal an early reversal sign. Support area is seen at RM4.60/57.
DISCLAIMER:
THIS IS NOT AN ADVICE ON ANY INVESTMENT OR TO TIME THE MARKET. IT IS JUST SHARING FOR EDUCATION PURPOSES. PLEASE NOTE THAT ABOVE ANALYSIS ARE BASED ON BEST AVAILABLE INFORMATION ON PUBLIC PLATFORM. I WILL NOT ACCEPT ANY LIABILITY WHATSOEVER FOR ANY DIRECT OR CONSEQUENTIAL LOSS ARISING FROM ANY USE OF THIS INFORMATION.
Market Wrap
Bursa Malaysia ended lower today, amidst cautious trading ahead of the Budget 2022 announcement on this coming Friday. As a result, market breadth was negative as well with losers outpacing gainers 568 to 457, while 438 counters were unchanged, 829 untraded. Sector-wise, Banking sector did well while Oil & Gas sector, on the other hand, saw selling pressure probably due to profit taking.
Actively traded counters that appeared in Pick@Stock’s “Today Keywords” screen including Dagang Nexchange (DNEX, 4456), MY E.G. Services (MYEG, 0138) and Opcom Holdings (OPCOM, 0035). News flow wise, no major news was announced. However, DNEX did reply to Bursa’s queries on 14 Oct 2021 while MYEG also announced that they are in the midst of raising RM214.2 million from a share placement. The company will issue 210 million shares, or 2.9% of share capital, under the first tranche and the sale price has been set at RM1.02 per share. OPCOM is probably a classical case of “sell on news” after they reported forming a 60:40 joint venture with Global Forway (or known as Opcom Vision S/B) in a move to push into the 5G sector.
Genetec Technology (GENETEC, 0140) could also be in a situation of “sell on news”. Share price down 10 sen and went to the low of RM41.70 before closing at RM46.70. It announced a decent set of 2QFY22 results with net profit soars sixfold to RM16.3m and proposed a 12-for-one bonus issue. Technically speaking, it is trending up within a well-defined uptrend and the stock price is proven resilient at RM41.00. However, the RSI has formed a negative divergence and it remains in overbought territory.
Supermx Corporation (SUPERMX, 7106) fell below RM2.00-support for the first time since a year ago. The stock could have staged a “Downside Volatility Breakout” as its Bollinger Band has begun to expand. In fact, TrainYew’s Trading System has issued a “Negative Signal” on 21 October 2021. Today, SUPERMX warned for a potential ‘material effect’ on its financials if they are not able to diverse the sales from the existing US customers after the US Customs and Border Protection (CBP) issued a Withhold Release Order (WRO) against the company and its subsidiaries’ products on forced labour allegations. Downside supports are seen at RM1.65-RM1.40.
On the other hand, as Experian, an Anglo-Irish multinational consumer credit reporting company, has just announced that they are the first credit reporting agency to have CCRIS access reinstated by Bank Negara Malaysia, market participants may monitor CTOS Digital (CTOS, 5301) closely. Share price may react in anticipation for the reinstatement of its CCRIS access. Chart wise, no major sign of reversal is observed. However, the share prices are hovering above its Bollinger Lower Band (BLB) and is still well supported above TrainYew’s SuperTrend Line (at RM1.84 and rising). On a negative note, the share price seems to be tracing a “double top” pattern with a neckline at RM1.84. A break below the neckline could be hinting measurement target below RM1.70.
All in all, the underlying technical correction of the FBMKLCI index is not a surprise. The index is likely to continue with its consolidation above 1565 as the Bollinger Band is in the midst of contracting. Nonetheless, as no “Negative Signal” is observed and Pick@Stock’s COWI Sentiment Index still doing well, market should not see a major sell down for the time being.
DISCLAIMER:
THIS IS NOT AN ADVICE ON ANY INVESTMENT OR TO TIME THE MARKET. IT IS JUST SHARING FOR EDUCATION PURPOSES. PLEASE NOTE THAT ABOVE ANALYSIS ARE BASED ON BEST AVAILABLE INFORMATION ON PUBLIC PLATFORM. I WILL NOT ACCEPT ANY LIABILITY WHATSOEVER FOR ANY DIRECT OR CONSEQUENTIAL LOSS ARISING FROM ANY USE OF THIS INFORMATION.
Market Wrap
It was a profit-taking day. The benchmark index, FBMKLCI, lost 7.86 points to 1,592.52. There were only 453 gainers in contrast to a higher number of losers of 531 while 444 counters traded unchanged on the Bursa Malaysia.
Apart from the banking and Oil & Gas stocks, which were in the limelight of late, the recently surged counters such as AirAsia Group (AIRASIA, 5099), Opcom Holdings (OPCOM, 0035) and MY E.G. Services (MYEG, 0138) also saw heavy profit-taking activities. Among these stocks, both AIRASIA and OPCOM have shown “Negative Signals” as per our Trainyew Trading System. As their share prices are currently way above their respective SuperTrend Supports, these stocks may consolidate for the time being. AIRASIA’s supports are seen at RM1.16 and RM1.09. As for OPCOM, RM1.20 is its immediate support. Worth mentioning, one of the recent Top 10 traded counters, Theta Edge (THETA, 9075), also saw substantial sell-down. Based on Bursa Announcement (https://www.pickastock.info/transactions?symbol=THETA), some of its substantial shareholders and directors have been selling the stocks since 12 October 2021. Our Trainyew Trading System has also issued a “Negative Signal” with an immediate support at RM1.20.
On a positive note, Metal Commodities (i.e. Steel and Aluminum) related counters may continue to see strong interest and upside momentum as noticeable “Volatility Breakout” patterns are observed.
All in all, the underlying technical correction of the FBMKLCI index is not a surprise as it was in the midst of testing its strong resistance of 1,595/ 1,600. Having said that the immediate resistance-turned-support of 1,580 (or its “Double-Bottom” measurement target) is expected to lend a good support, as the “Positive Signal” of our Trainyew Trading System remains intact. This technical view is also well-supported by Pick@Stock’s COWI Sentiment Index, which has made a new high since June this year. Moreover, no sign of weakness is observed from its technical picture, at least at this juncture.
Market Wrap
Malaysian equity market advances for a seventh day, its longest winning streak since August. The momentum is in line with the strengthening trend in Ringgit, as foreign funds continue to pile into the nation’s equities. The benchmark index, FBMKLCI, has closed marginally above the 1,600-psychological level. Market breadth was positive as gainers out-numbered losers 563 to 449, while 436 counters were unchanged and 831 untraded.
Again, Banking Sector seems to be the chosen proxy for capitalizing on the economic recovery play. The Financial Services Index added 174.70 points to 15,717.50. Noticeable winners were Hong Leong Bank (HLBANK, 5819) and RHB Bank (RHBBANK, 1066), which advanced 26 sen and 17 sen, respectively, to RM18.82 and RM5.72.
Chart wise, RHBBANK seems to have staged an “Upside Volatility” breakout. A sustainable buying interest above RM5.65 will see the stock’s prices testing RM5.95/RM6.00 resistance area in the near future.
HLBANK, on the other hand, has yet to stage a “breakout” despite its strong closing today. In fact, as most of the banking stocks have staged a breakout, HLBANK is likely to follow suit. A convincing break above RM19.00 will reinforce this expectation and sending the stock price to RM20.00.
Sime Darby Plantation (SIMPLT, 5285) was also one of the Top Gainers and upped by 19 sen to RM4.45. Apart from the strong market sentiment, the strong price performance could also be fueled by a sudden surge in the most active palm oil futures contract on the Bursa Malaysia Derivatives, which has shot through the roof – RM5,000 per metric tonne for the first time.
Of the actives, MY EG Services (MYEG, 0138) and Brahims Holdings (BRAHIMS, 9474) had emerged in Pick@Stock’s today keywords screen.
MYEG just announced that it has signed a MoU for international extension of China’s blockchain network. A few days earlier, MYEG’s 40%-Philippines joint venture, I-Pay MYEG Philippines Inc (MYEG Philippines), also announced that it will roll out two e-government services in the Philippines — the online payment of income tax to their Bureau of Internal Revenue, and the payment of fees to the Philippine Economic Zone Authority (PEZA). It was also reported that the online income tax payment will be made available on MYEG Philippines’ online portal from October this year onwards.
BRAHIMS share price jumped to an intra-day high of 76.5 sen (+25 sen or 51.4% from yesterday’s close of 51.5 sen). However, it only managed to close 1 sen higher at 52.5 sen. Despite the volatility, market observers believe that the sudden interest in Brahim’s is likely due to the optimism from the relaxation of inter-state and international travel restrictions for the fully vaccinated travellers, which is expected to benefit airlines and eventually BRAHIM’s in-flight catering business services.
Based on “Heikin Ashi” charting, the FBMKLCI index is in the midst of testing its resistance area of 1,595/1,600. Despite another new “Positive Signal”, investors should not entirely rule out a potential profit-taking and seeing a mild pullback towards 1,560 in the near-term. It is also observed that Pick@Stock COWI Sentiment Index is also displaying a similar pattern. The Sentiment Index is also in the midst of testing its immediate resistance of 40-mark while flashing another “Positive Signal”.
DISCLAIMER:
THIS IS NOT AN ADVICE ON ANY INVESTMENT OR TO TIME THE MARKET. IT IS JUST SHARING FOR EDUCATION PURPOSES. PLEASE NOTE THAT ABOVE ANALYSIS ARE BASED ON BEST AVAILABLE INFORMATION ON PUBLIC PLATFORM. I WILL NOT ACCEPT ANY LIABILITY WHATSOEVER FOR ANY DIRECT OR CONSEQUENTIAL LOSS ARISING FROM ANY USE OF THIS INFORMATION.
Market Wrap
The theme play of economic recovery and the expectation of COVID-19 turning from pandemic to endemic continued to push the benchmark index, FBMKLCI higher. The index closed 13.09 points higher at 1,583.91, which was at its highest level since 9 Sept 21.
Among the 30 FBM KLCI constituents, 18 stocks were higher; 9 were lower while 3 traded flat. Notable winners were the bank and telecommunication counters.
Based on our TrainYew Trading System, Telekom Malaysia (TM, 4863) seems well supported above RM5.65. A convincing break above the RM5.95/RM6.00 resistance area will further reinforce this “Bottoming” Chart Pattern and flag a retest towards higher resistance at RM6.15/20.
The FBMKLCI index, on the other hand, is poised to retest its higher resistance at 1,595 and the psychological 1,600 resistance when the immediate resistance-turned-support of 1,580 (or its “Double-Bottom” measurement target) is proven supportive. Having said that investors should not entirely rule out a potential profit-taking and seeing a mild pullback towards 1,560 in the near-term.
This is because while gainers overwhelmed losers by 548 to 517 (456 counters were unchanged) on the broader market, the numbers of gainers has reduced (from 737 yesterday) and losers were higher (as opposed to 401 yesterday). Of course, it is still too early to draw a conclusion as the “Positive Signals” of Pick@Stock COWI Sentiment Index still remains intact.
Despite the banking and telco sectors, the market also observed rising of Glove and Healthcare players as well as selective Oil & Gas counters such as Hibiscus Petroleum (HIBISCS, 5199). However, as this counter has turned highly Overbought, investors should exercise extra caution on a potential sharp correction towards RM0.80, before a “Negative Signal” emerges.
DISCLAIMER:
THIS IS NOT AN ADVICE ON ANY INVESTMENT OR TO TIME THE MARKET. IT IS JUST SHARING FOR EDUCATION PURPOSES. PLEASE NOTE THAT ABOVE ANALYSIS ARE BASED ON BEST AVAILABLE INFORMATION ON PUBLIC PLATFORM. I WILL NOT ACCEPT ANY LIABILITY WHATSOEVER FOR ANY DIRECT OR CONSEQUENTIAL LOSS ARISING FROM ANY USE OF THIS INFORMATION.
Market Wrap
Stocks tied to economic reopening in Singapore and Malaysia jumped as governments in both countries pressed ahead with plans to ease travel restrictions. Stocks such as Airasia Group (AIRASIA, 5099) jumped 9 sen to RM1.28. Trading volume was impressive at 149.1 million shares, making it one of the Top 10 heavily Traded counters for the day.
Banking sector seems to welcoming such move as well with the expectation of economic recovery. The Financial Services Index firmed 140.90 points to 15,353.46. Broad market wise, gainers outperformed decliners by 737 to 401. 371 counters were unchanged and 749 counters were untraded. The benchmark index, FBMKLCI, on the other hand, edged up 6.92 points to 1,570.82, which is marginally above the previous resistance of 1,570. Further push will send the index to retest 1,595/1,600 major resistance. On the downside, the index is likely to be supported above the Bollinger Middle Band, which is recorded at 1,545 currently.
Market sentiment continues to improve. This is reinforced by the “Positive Signals” of Pick@Stock COWI Sentiment Index. In the immediate term, the COWI Index could be in the midst of testing its immediate resistance of 40-mark (the recent high). A convincing break of which should see the index swing further up to 45-mark, which is the underlying upper downtrend channel.
Among the active ones, CEKD (0238) continued to surge by another 10.5 sen to 90.5 sen. While Borneo Oil (BORNOIL, 7036) closed flat, it also saw substantial trading interest, probably inspired by a Bursa announcement that its director, Datuk Joseph Lee Yok Min @ Ambrose, had been acquiring 2 million shares of late. Opcom Holdings (OPCOM, 0035) moved up again by 4 sen to RM1.66 as one of its substantial shareholders, Dato’ Ong Choo Meng, continued to up its stake by another 5.1 million shares to a total of 44.3 million shares or 19.23% of the total share capital.
My EG Services (MYEG, 0138) rose 11.5 sen to RM1.06, higher than any close since 27 May 21, with significant surge in trading volume as well. Worth mentioning, the stock will also go “Ex” for its First Interim Dividend of RM0.0025 on 14 Oct 21. Chart wise, the stock seems to stage a Price-and-Volume Breakout. In fact, our TrainYew Trading System has issued “Positive Signals” on 6 Oct 21 and 8 Oct 21 respectively. Should the underlying momentum remain intact, the stock may retest its higher resistance at approximately RM1.10. Downside support is seen at 0.995/0.985-area.
Market Wrap
Fueled by short-term increase in U.S. Debt Ceiling (Want to know more about the implication? *Check out the link at the bottom of the post), the overnight Dow Jones Industrial Average continued its upward swing.
As a result, the local market continues to see positive trading sentiment. Gainers led decliners 610 to 452 while 439 counters were unchanged and 768 untraded. The benchmark index, FBMKLCI, another day higher at 1,563.90 added 2.61 points. In general, market observers reckon that the underlying strong commodity prices and growing optimism over economic recovery lifted the risk appetite for equities.
For instance, plantation stocks could remain on the radar for the time being given the high crude palm oil (CPO) prices. It was also reported that most analysts have not upgraded their CPO forecasts and the current CPO price is much higher than analysts’ current estimates. Therefore, the chances of plantation companies beating analyst forecasts in the coming quarters are very high. In fact, the price of CPO futures had set another new high today after Indonesian Palm Oil Association, also known as GAPKI, reported that stockpiles at the end of August fell to 3.43m tons, from 4.55m tons in July**.
On the other hand, Press Metal Aluminium Holdings (PMETAL, 8869) is also another beneficiary of commodities run. It was the biggest winner among the index-linked counters with a 3.22% jump and contributed a substantial 2.75 points to the composite index. Technically, the stock has penetrated its immediate resistance at RM5.95 today. Based on our TrainYew Trading System, it has triggered a continuation of upward momentum and the Bollinger Middle Band should serve as an immediate support.
Of the actives, SC Estate Builder (SCBUILD, 0109) trimmed 5 sen to 11.5 sen, Freight Management Holdings (FREIGHT, 7210) increased 20 sen to RM1.06, Opcom Holdings (OPCOM, 0035) increased 16 sen to RM1.62 and CEKD (0238) advanced 18 sen to 80 sen. Among these stocks, OPCOM was one of the top gainers yesterday.
FBMKLCI almost touched its immediate resistance of 1,570 with an intra-day high of 1,567.30. To reiterate, the earlier mentioned “Double-Bottom” pattern and “Positive Signal” of our TrainYew Trading System remains intact. Besides, the Pick@Stock’s sentiment index, COWI, has also issued a “Positive Signal”. However, as the index is fast approaching its resistance area, investors should not rule out a possibility of mild short-term pullback with a good immediate support at 1,550.
*https://www.cnbc.com/2021/10/07/what-the-deal-on-the-debt-ceiling-means-for-you.html
** https://www.admis.com/global-ag-news-for-oct-8th/
Market Wrap
Bursa Malaysia’s benchmark index, FBMKLCI, closed at 1561.29 – the intraday high by registering three consecutive days of gains in a row. This is spurred by buying of selected heavyweights, led by Dialog Group (DIALOG, 7277) gained 21 sen to RM2.90 and KLK added 40 sen to RM22.30. Key regional markets also ended higher following an overnight rally on Wall Street. The overall market breadth was positive with gainers beating losers 601 to 432, while 431 counters were unchanged and 805 untraded.
Other notable gainers, including Nextgreen Global (NGGB, 7241) increased 11 sen to 91.5 sen, touching an intra-day high of RM1.07, Opcom Holdings (OPCOM, 0035) gained 13 sen to RM1.46 and Theta Edge (THETA, 9075) surged 39 sen to RM2.04.
It is believed that the strong performance of OPCOM could be inspired by its substantial shareholder acquired more than 6 million shares from open market. On the other hand, no major news is observed in NGGB and THETA continued its upward momentum despite an unusual market activity (UMA) query by Bursa Malaysia.
Chart wise, the earlier mentioned “Double-Bottom” pattern and “Positive Signal” of our TrainYew Trading System remains intact.
Pick@Stock’s sentiment index, COWI, has yet to issue any meaningful signals, it has showed an early sign of turnaround. Nonetheless, investors should not rule out a possibility of mild pullback in the next 1 to 2 days. Nonetheless, 1,550 should act as a good support. Immediate resistance zone is seen at 1,570/80.
Market Wrap
Strong buying momentum for banking, plantation as well as oil and gas (O&G) stocks lifted Bursa Malaysia. Among the index-linked plantation and O&G counters, Sime Darby Plantation (SIMEPLT, 5285) soared 54 sen to RM4.20, IOI Corp (IOICORP, 1961) increased 31 sen to RM4.08, Kuala Lumpur Kepong (KLK, 2445) surged RM1.72 to RM21.90, Dialog Group (DIALOG, 7277) climbed 25 sen to RM2.69 and Petronas Chemicals Group (PCHEM, 5183) garnered 14 sen to RM8.83.
Gainers overwhelmed decliners 612 to 433, while 582 counters were unchanged. The benchmark index, FBMKLCI, rose 29.0 points or 1.9% to 1,559.42, almost at a one-month high. The strong market sentiment could be due to commodities run. Shares in Indonesia and the Philippines hit multi-month peaks.
The buying interest among banking stocks could be owing to investors’ positioning for Malaysia’s first interest-rate increase since 2018. It was reported that the rising vaccination rate enables the authorities to roll back curbs on the economy. Besides, as strong showing of both Crude Oil and Crude Palm Oil, plantation as well as O&G sectors saw persistent buying momentum. Palm oil jumped to a fresh record, buoyed by tight global vegetable oil supplies and strong demand. The benchmark CPO futures contract on Bursa Malaysia Derivatives reached RM5,000 per tonne for the first time yesterday and closed at an all-time high of RM4,738 a tonne, while crude oil price stood at above the US$82-per-barrel mark.
Chart wise, the FBMKLCI could have traced out a “Double-Bottom” pattern when it overcome its neckline resistance of 1,550. Besides, our TrainYew Trading System has reissued a “Positive Signal”. Should the buying momentum proven to be sustainable, the FBMKLCI could retest its measurement target of 1,580. Pick@Stock’s sentiment index, COWI, on the other hand, has yet to issue any meaningful signals.
Market Wrap
At the closing bell, there were 469 gainers, 515 losers and 465 counters traded unchanged on the Bursa Malaysia. Turnover was at 3.971 billion shares valued at RM2.691 billion. Sentiment is obviously better as opposed to yesterday, judging from the increase numbers of gainers. However, the broad market has yet to show a concrete sign of turnaround as per the Pick@Stock sentiment Index – COWI (refer to the following chart for details). The benchmark index, FBMKLCI, jumped 7.95 points to 1,530.42.
During today’s trading sessions, it is observed that Oil & Gas counters had been dominating the trading interest. Of the Top 10 active traded counters, 5 of them (KNM, SAPNRG,
HIBISCS, ARMADA and SERBADK) were Oil & Gas stocks. Worth mentioning, Yinson Holdings (YINSON, 7293) rose almost 10% to highest level since January 2021. In fact, the stock was the best performer among its peers. Apart from being a laggard play among Oil & Gas players, YINSON also saw renewed interest after Maybank IB Research published a research report and believes that YINSON has the capacity to take on 2 new jobs, consisting of mid-size floating, production, storage, offloading (FPSO) and one large-scale project, without going into systemic risk. It also said that the energy infrastructure and technology company is well entrenched to capitalize on the resurgence of the FPSO tenders pipeline over the next 12 months. Hibiscus Petroleum (HIBISCS, 5199) rose as much as 4.5 sen or 6.21% to 77 sen, its highest in over one and a half years, after announcing a final single-tier dividend of 1 sen per share.
Besides, the recovery in Glove stocks had also supported the FBMKLCI. Top Glove Corporation (TOPGLOV, 7113) saw positive interest after news reiterate that the US Customs and Border Protection (CBP) modified the finding on Top Glove. The modification of the finding enables us to turn a momentous corner which now permits TOPGLOV to resume exporting their disposable gloves to the US.
Hwa Tai Industries (HWATAI, 8478), on the other hand, surged 14.02% or 11.5 sen to 93.5sen amid active trade as its group’s Chief Executive Officer (CEO), Datuk Soo Chung Yee, increased his stake.
Chart wise, while the “Negative Signal” of our TrainYew Trading System remains intact, the index is somewhat well-supported above its immediate support of 1,520. Failure to sustain above this level may see the index retest the psychological support of 1,500. On the upside, the immediate resistance zone is seen around 1,540/50.
