Search All The Blogs Listed Below:

Bloggers Latest Updates

Bursa Malaysia - All Eyes On Budget 2017

Market review
  • Last Friday, the MSCI Asia Pacific Index (MXAP) inched up 0.24-pt to 138.16 (wow -1.73%) after recorded a 5th straight decline following a higher-than-expected China CPI, signaled surprising economic strength in the world's second largest economy. However, sentiment remained cautious ahead of the Janet Yellen's speech at the Boston Fed Conference on how close the Fed is towards a second rate hike in December.
  • Tracking profit taking on crude oil, China’s sluggish trade data and Singapore’s weakest GDP growth (since 2009), there were sparking fears of potential negative implications for Malaysia’s 2H16 economic outlook. KLCI lost 6.1 pts to 1659 and recorded a weekly decline of 6.4 pts.
  • Sparked by better-than-expected banks earnings and retail sales, the Dow rallied as much as 160 pts in the early session. However, profit taking reduced the gains to only 39 pts as investors brace for the key upcoming results this week, which include Intel, Microsoft, GE, Johnson & Johnson and Bank of America. Yellen’s comments that the Fed might want to let inflation run hotter for a while also helped to sooth investors’ concern on the aggressiveness of Fed rate hike.
Technical view
Negative after breaking 200-d SMA support
  • After breaking the key 200-d SMA support near 1666 last Friday, near term KLCI outlook may turn negative. Unless the index can swiftly reclaim above the 200-d SMA support-turned-resistance level, we may see KLCI to ease further to retest the 1640-1645 this week. A decisive breakout above may lift the index to test higher targets at 1670-1675 levels.
Market outlook
  • With the US Dec Fed rate hike probability largely priced in (Bloomberg poll: 68%), KLCI is likely to lock in range bound consolidation mode within 1640-1670 levels this week, awaiting major outcomes from the upcoming Budget 2017 (21 Oct) and the US Presidential election (8 Nov).
  • Portfolio. We took profit on AWC (6.4% gain) Friday after hitting our R1 target
Source: Hong Leong Investment Bank Research – 17/10/16

Bursa Malaysia - Caution With Focus on OPEC Meeting

Stocks fell on Tuesday, with most investors sidelined amid lack of local leads and attention focused on the first direct US Presidential debate. The KLCI slipped 4.78 points to end at 1,664.72, after ranging between high of 1,666.69 and low of 1,661.58, as losers beat gainers 426 to 338 on slower turnover of 1.48bn shares worth RM1.85bn.

Support at 1,655/1,648, Resistance at 1,678 Local market sentiment should remain cautious today, with investors to focus on the meeting of OPEC producers for leads. Immediate support for the index will be at the 100-day ma at 1,655, next at 1,648, the 3 Aug low, and recent low of 1,645, with stronger support seen at 1,616, the 50% retracement of the 1,503 low of August last year to the April high of 1,729. Immediate resistance is at 1,678, the 30-day moving average, with tougher resistance seen at the 1,700 psychological level and subsequently 1,729.

Buy on Weakness IHH & RHB Bank
Any further correction on IHH shares towards the 61.8%FR (RM6.22) would aggravate the oversold technical condition and encourage buying for rebound upside towards the 76.4%FR  RM6.44), with the mid (RM6.55) and upper (RM6.74) Bollinger bands as tougher resistance areas. Likewise, further dip on RHB Bank shares towards the lower Bollinger band (RM4.62) or stronger retracement support from the 76.4%FR (RM4.42) will be attractive to buy for oversold rebound before meeting resistance towards the 50-day moving average (RM4.97) or 50%FR (RM5.05).

Most Asian Markets Pared Loses as Hillary Edge Trump
Asian shares recovered from an early bout of nerves on Tuesday as investors awarded the first U.S. presidential debate to Democrat Hillary Clinton over Republican Donald Trump. Markets have tended to see Clinton as the candidate of the status quo, while few are sur what a Trump presidency might mean for U.S. foreign policy, international trade deals or the domestic economy. Japanese stocks rose on Tuesday in choppy trade, recovering from 7-1/2-week lows hit in the morning, as stocks were undr pressure earlier due to an overnight rise in the yen. The Nikkei share average ended 0.8 percent higher at 16,683.93, recovering from an early morning low of 16,285.41, the weakest since Aug. 5.

China stocks also ended modestly higher but trade was thin, with many investors reluctant to stake out fresh positions ahead of a week-long holiday despite a surge in August industrial profits. Both the blue-chip CSI 300 index and the Shanghai Composite Index rose 0.6 percent,
to 3,240.75 and 2,998.17 points, respectively, helpby a late afternoon rally, but turnover remained low. Meanwhile, Australia's ASX 200 closed down 25.52 points, or 0.47 percent, at 5,405.90, after paring some of its 1 percent losses from early trade. The heavily-weighted financial sector closed down 0.79 percent, while the energy sector was lower by 0.75 percent.

Consumer and Tech Lift Wall Street Higher
Consumer and technology stocks led gains on Wall Street on Tuesday, despite a sharp fall in oil prices. Equities climbed after data showing U.S. consumer confidence rose to the highest since 2007 bolstered optimism around the world’s largest economy. While stocks struggled to find direction in early trading, polls showing Clinton outperformed Trump in the debate were also cited as a reason for relief. However, a fall in oil prices weighed on energy shares as investors remained skeptical major producers could reach a deal to limit production. The Organization of the Petroleum Exporting Countries planned to discuss a proposal that would cut almost 1 million barrels a day of the cartel’s production over one year. Iran’s oil minister said later in the day that he has met with Saudi Arabia and Russia and hasn’t received an official proposal. West Texas Intermediate oil for November delivery dropped 2.7 percent to USD44.67 a barrel. Shares of travel companies rallied, with Carnival, Royal Caribbean Cruises, Expedia and TripAdvisor among the biggest gainers. Inc. also jumped to a record, while Microsoft Corp. was up 1.9 percent to pace the rally. The Dow Jones industrial average rose 133.47 points, or 0.74 percent to end at 18,228.3 points and the S&P 500 gained 13.83 points, or 0.64 pe

source: TA Securities – 28/09/2016