Investment

Market Wrap

Trading sentiment of Bursa Malaysia remains mixed. The benchmark FBMKLCI has dipped (1.89 points) below the 1,520-support and closed at 1,518.85. Broad market wise, number of gainers and losers were about equal with a ratio of 447:499 while 418 counters stayed flat. From Pick@Stock’s Market Summary page, it is noticed that Financial Services, Transportation & Logistics, REIT and Property sectors were in green.

As for the individual stock, Tafi Industries (TAFI, 7211) has finally staged a correction after recording an all-time high at RM4.03 this morning. It swung to the low of RM3.31 before registering a close of RM3.76 (down 4 sen). Chart wise, the furniture manufacturer could be in the midst of correcting its “Extreme Overbought” condition. Nonetheless, more concrete reversal signs are needed to reinforce the afore-mention anticipation.

CEKD Berhad (CEKD, 0238) is one of the counters that appeared in Pick@Stock’s “Today Keywords”. While it only advanced 1 sen to RM0.945, it did record an intraday high of RM1.02.  In fact, based on TrainYew’s Trading System, CEKD has shown a “Positive Signal”. Immediate resistance is seen at RM1.09/11.

In the absent of price catalysts, the FBMKLCI index continues drifting lower. After the 1,520-support gave way, the index could slide further towards the 1,500-psychological support. At the same time, the Pick@Stock’s COWI Sentiment Index remains weak. Both FBMKLCI and COWI Index have entered into their respective “Oversold” territory.

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

Trading sentiment in Bursa Malaysia remains lackluster. The benchmark FBMKLCI index was hovering marginally above the 1,520-support. The index dipped 3.29 points and closed at 1,520.74. While broad market saw improvement with lower numbers of losers, the gainer-to-loser ratio of 428:502 is still unfavorable. Nonetheless, there were more sectoral indices showing positive daily change. From Pick@Stock’s Market Summary page, it is clearly seen that Energy, Construction, Utilities and Industrial Product sectors were in green.

Individual stock wise, Tafi Industries (TAFI, 7211) continued to surge and making an all-time high at RM3.84 after responding to Bursa Malaysia’s Unusual Market Activity (UMA) query. The furniture manufacturer said it was in the midst of deliberating on a corporate transaction, which many market participants expect this will be a Bonus Issue, to enhance the tradability of its shares. Nonetheless, this piece of “good news” could have well-reflected in its swift run as its Relative Strength Index (RSI) has entered into a heavy “Overbought” territory.

Another counter that appeared in Pick@Stock’s “Today Keywords” is Solution Group (SOLUTN, 0093) despite absent of price catalyst. However, it is believed that the surge of 20½ sen to 63 sen could be due to its previously “Extreme Oversold” technical condition. Prior to this strong rebound, the RSI reading of the stock was recorded marginally above 10. In fact, TrainYew’s Trading System has issued a “Positive Signal” a days ago. A surge above the TrainYew SuperTrend resistance of RM0.665 will suggest a trend reversal (from the underlying downtrend). Immediate support is seen at RM0.555/50.

It is also believed that the surge (+36 sen to RM1.88) of Malaysian Genomics Resource Centre (MGRC, 0155) could also due to its “Extreme Oversold” technical condition as the stock price plunged from its high of RM2.71 since 1 November 2021.

EP Manufacturing (EPMB, 7773), on the other hand, saw profit-taking pressure after its strong move yesterday. This is not a surprise, as the stock has been trading in an “Extreme Overbought” technical condition. Today, it was reported that EPMB and Malaysia Automotive Robotics and IoT Institute (MARii) have signed a memorandum of understanding (MoU) to explore plans to produce and localise two-wheel and four-wheel electric vehicles (EVs).

In the absent of clear reversal signal, the FBMKLCI index continues drifting lower and putting 1,520-support at risk. A convincing break will see the index sliding further to the 1,500-psychological support. At the same time, the Pick@Stock’s COWI Sentiment Index has also issued a “Negative Signal” and pierced below SuperTrend support line.

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 closed much lower today, in cautious trading, ahead of third quarter gross domestic product (GDP) data release on this coming Friday. The benchmark FBMKLCI index closed 11.38 points lower at 1,524.03, which is at its lowest closing since Oct 1. The FBMKLCI component stocks were overwhelmingly in the negative, with 24 losers, 5 gainers and 1 closed unchanged. Broad market wise, market breadth is obviously negative with losers overshadowing the gainers on a ratio of 653-to-311 stocks. From Pick@Stock’s Market Summary page, it is clearly seen that Energy (or Oil & Gas) sector was the only sector in green while other sectors were all in the red.

Despite all these negatives, Tafi Industries (TAFI, 7211) continued its uptrend and overcome its previous resistances of RM2.75-RM2.95 before closing at its “limit-up” level of RM3.58, surged 81 sen higher despite lacking of fresh news. Support area is now seen at RM3.05-RM2.95.

Another counter that appeared in Pick@Stock’s “Today Keywords” is Wong Engineering Corporation (WONG, 7050). The stock closed 14 sen higher at RM1.84. The Company has recently announced a 6-for-5 bonus issue. Chart-wise, the stock could have staged an upside volatility breakout with the sign of Bollinger Band expansion. In fact, TrainYew’s Trading has issued a “Positive Signal” a few days ago. A surge above the TrainYew SuperTrend resistance of RM1.85 will reinforce this technical picture. Higher resistance is seen at RM2.15/17.

EP Manufacturing (EPMB, 7773) was another stock under “Today Keywords”. The stock closed 19½  sen higher at RM1.14.  The Company has recently announced that it has just completed a private placement following the listing of and quotation for 24,766,000 Placement Shares on the Main Market of Bursa Securities on 3 November 2021. Technically speaking, while the stock is trending up well above TrainYew’s SuperTrend, it is somewhat “Overbought” with high RSI reading.

In short, no clear reversal signal is seen at the moment. The FBMKLCI index is struggling around the 1,525/20-support area. A convincing break will put 1,500-psychological support level at risk. Nonetheless, it is still hopeful to see a quick rebound from here as the index and the Pick2Stock’s COWI Sentiment Index are hovering near their respective “Oversold” territory. The COWI Index is currently hovering at SuperTrend support line.

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 mixed today with 451 gainers as opposed to 571 losers while 427 counters unchanged and 876 untraded. The benchmark FBMKLCI index closed marginally higher (or 3.68 points) at 1,535.41. Sector-wise, Consumer Products and Energy (or Oil & Gas) sectors were the top performers despite such lackluster market. Yet, some of the counters were under the limelight.

For instance, Tafi Industries (TAFI, 7211) climbed 42 sen to close at its day high of RM2.73 despite lacking fresh news. Recall that in end-September 2021, it was reported that TAFI targeted to turnaround through new business strategies in FY2021. Could the strong upswing hint its coming quarterly results? We have no clue, but chart-wise, TAFI is in the midst of testing its immediate resistance of RM2.75. A breach of which could see further upside to RM2.95, the upper Channel resistance line. Support is seen at RM2.35/30, its underlying Regression Line.

Hibiscus Petroleum (HIBISCS, 5199) and Ecomate Holdings (ECOMATE,) also appeared in Pick@Stock’s “Today Keywords”. However, there is no meaningful “Technical Signal” as per TrainYew’s Trading System. Nonetheless, a strong push above the Parabolic Stop-and-Reverse (PSAR) may flag an uptrend resumption. As for ECOMATE, a Muar-base ready-to-assemble (RTA) home furniture player, it was its first day of listing. The stock surged 15½ sen from its Initial Public Offering (IPO) price of RM0.330 despite a less than RM0.400 target price assigned by a research analyst in town.

In short, market could be in the midst of consolidating despite the showing of “Negative Signal” by TrainYew’s Trading System. This is because the FBMKLCI is still supported above the Bollinger Lower Band and the Band is unlikely to stage a volatility breakout in the near term. Hence, a rebound from here is still likely especially the RSI is hovering marginally above the Oversold-zone. If this anticipation materializes, the index could retest its resistance of 1,570/75. On the downside, the immediate support is seen at 1,525/20.

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

Post the bloodbath Monday, the local benchmark index, FBMKLCI, experienced a short-lived of upwards upon the opening of market by surging 13 points in the first 30 minutes to a high of 1,544.00. It was then slipped to 1,537.63 and closed 6.71 points higher as compared to Monday. From charting perspective, the stock could be well-supported above TrainYew’s SuperTrend. While the upward momentum could be weakening as per the lower peaks of Relative Strength Index (RSI), a rebound towards 1,570/75 is still likely should the FBMKLCI prove able to climb and stay above 1,545/40-support convincingly.

Broad market wise, the market breath is better with gainers outpacing losers (629 vs 404). There were 434 counters unchanged while 809 counters untraded. Improvement was seen across the board except for utilities, consumer products & services and health care.

The top performance sector led by technology, plantation, and energy. Technology sector has seen a broad-based rebound with the top mover of HONGSENG (0041), DNEX (4456), and IRIS (0010). DNEX has no major development while IRIS continued to see its insider accumulating its position since 22 Oct 2021. As for HONGSENG, a newly restructured segmentation from information technology and search and advertising to healthcare businesses, it has been on the radar for sometimes. Via its subsidiary, HONGSENG will invest RM3 billion in Kedah Rubber City (KRC) to build the world’s largest glove factory starting next year and it is expected to be completed in 2024 with a full production capacity of 960 kilo-tonnes of gloves a year. At a press conference after the symbolic ground-breaking ceremony for the nitrile butadiene rubber (NBL) manufacturing plant construction project, its Group Managing Director Datuk Seri Teoh Hai Hin said the plant was expected to attract additional investment of RM5 billion through the support industry and the nitrile rubber industry value chain.

Chart-wise, while the stock could have staged a Volatility Breakout and our TrainYew’s Trading System has issued a “Positive Signal”, investors should be aware that the momentum oscillator such as RSI is in the midst of tracing out a “Bearish Divergence”. Hence, sudden pullback is still likely. Nonetheless, the stock is trending up nicely above the TrainYew SuperTrend support. Immediate support is seen at RM3.65/60 and RM3.30 next.

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 bloodbath day as far as the local benchmark index, FBMKLCI, is concerned. The index fell over 30 points to close below the 1,545/40-support at 1,530.92.  Broad market wise, there were only 178 gainers which is a far lower number in contrast to 995 losers. At the same time, there were 327 counters unchanged while 819 counters untraded. The broad base sell-down of the local equity market (especially the heavy weights like banks, telcos, plantations, etc) could be owing to (i) the proposal of one-off “Cukai Makmur” for companies that generate over RM100 million taxable income for FY2022 and (ii) the hike of stamp duty (from 0.10% to 0.15%) and the removal of RM200-ceiling for share purchase.

Chart-wise, FBMKLCI is in the midst of testing TrainYew’s SuperTrend support. A break of which will see lower support coming in at 1,525/20. Despite today’s sell-down, the RSI of FBMKLCI has yet to turn “oversold”.  As such, investors should stay cautious until a clear-cut reversal signal is seen. Besides, it is also observed that Pick@Stock’s COWI Sentiment Index has shown a “Bearish Divergence” while it has yet to issue any concrete reversal signals. Nonetheless, the divergence could suggest that general trading sentiment could be turning lacklustre in the near future.

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.

Special Highlight: – Budget 2022

Budget 2022 was announced on 29 October 2021, last Friday. As the Budget Proposal was formulated to rebuild the economy with major themes including recovery, resilience, and reform. It will involve the country’s largest ever allocation of RM332.1 billion, leading to a budget deficit of 6% of Gross Domestic Product (GDP) based on Ministry of Finance’s (MoF) projection. Small Medium Enterprises (SMEs) as well as especially the B40-group and financially challenged were the main recipients of cash handouts and wage subsidies. As for the general investors, what’s in store for them?

Probably, may not be good with the introduction of a 33% marginal income tax bracket for companies on chargeable income of more than RM100 million (despite for a year of assessment 2022 only). Moreover, stamp duty on contract notes to be increased from 0.1% to 0.15% from 1 January 2022. Besides, the existing RM200 cap for each contract note will be removed. While this increase in stamp duty will be offset by exemption of service tax on brokerage activities, the transaction cost to investors, especially high net worth investors, will increase substantially.

Some market intelligences reckon that the one-off hike in corporate tax (or known as “Cukai Makmur”) could weight down the heavy weights. Hike in stamp duty, on the other hand, could discourage trading activities as well. As such, the equity market could further sell-down in the foreseeable future towards 1,545/40.

Apart from the big cap index FBMKLCI, some property counters, especially those that had performed strongly ahead of budget, such as Eco World Development Group (ECOWLD, 8206) and SP Setia (SPSETIA, 8664); may see more profit-taking activities as the “budget goodies” may not seem exciting.

In the proposed Budget 2022, the government has allocated RM2 billion Housing Credit Guarantee Scheme to facilitate loans for those without proof of steady income as well as the real Property Gain Tax (RPGT) waiver for property disposal on the sixth year onwards. Many market observers and tax consultants reckon that these benefits will not inspire corporate earnings substantially.

Having talked about all negatives, Healthcare and Digital sectors may benefit from the proposed budget. Healthcare players such as Pharmaniaga (PHARMA, 7081) could benefit from the expanded healthcare spending and expanded tax relief. Chart-wise, a convincing break above RM0.860 could suggest an Upside Volatility Breakout.

Under the Digital Ecosystem Acceleration Scheme, an income tax rate in the range of 0% to 10% is applicable for up to 10 years for new companies which are digital technology providers or 10% for up to 10 years for existing companies. For digital infrastructure providers, investment tax allowance of up to 100% on qualifying capital expenditure for up to 10 years is allowed whereby applications must be received by MIDA between 30 October 2021 and 31 December 2025. Potential beneficiaries to these incentives could be GHL System (GHLSYS, 0021) and revenue Group (REVENUE, 0200) as installers of a digital payment ecosystem.

Technically speaking, GHLSYS may stage an Uptrend Resumption should its immediate and next resistances of RM2.01 and RM2.05, respectively, are violated connivingly. The upside resistance levels of REVENUE are RM1.84 and RM2.00/02. Similarly to GHL, a convincing surge above RM2.00/02 will suggest an Upside Volatility Breakout.

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 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.