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Showing posts from December, 2009

FBM KLCI technical outlook 30 Dec 09

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The FBM KLCI inched up by 2.49 points to close at 1,275.22. Its resistance areas at 1,278 and 1,288 will cap market gains, whilst the obvious support areas for the FBM KLCI are located at 1,259 and1,275. Despite the DJIA’s small decline of 1.67-points, we expect the FBM KLCI to see minor profit taking today ahead of the year-end in thin trading, with some window dressing activities.

We believe that the FBM KLCI peaked at 1,288.42 on 17 Nov 2009, and urge investors to liquidate all their stocks on any window dressing rally. The FBM KLCI’s Oscillator indicator turned negative recently. However, the CCI, DMI, MACD and Stochastic signals just turned positive, indicating a miniscule window-dressing rebound ahead. The market may have surged  late yesterday but we expect further profit taking ahead of the new year-end holidays at this weekend.
We especially love the gloves stocks like ADVENTA, HARTA,LATEXX, SUPERMX  and TOPGLOV. Other stocks that we favour are:- APM, D&O, DAIBOCHI…

Liquidate stock on any KLSE rally - Maybank research

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FBM KLCI would now embark on a major corrective phase, having risen from its March 2009 low of 836.51 to 1,288.42 in November this year without any meaningful correction, says analyst "We believe that the FBM KLCI peaked at 1,288.42 on Nov 17, and urge investors to liquidate all their stocks on any and every rally," Maybank head of retail research for equity markets Lee Cheng Hooi wrote in a note on Dec 28. Shares of financial services and PLANTATION entities lifted the Malaysian equity benchmark till midday Monday, Dec 28 amid substantial gains across regional stockmarkets, and rising commodity prices.

Analysts, however, cautioned that the FBM KLCI would now embark on a major corrective phase, having risen from its March 2009 low of 836.51 to 1,288.42 in November this year without any meaningful correction.

"The market may have rebounded late last week but we expect further profit-taking ahead of the new year-end holidays at this weekend.

"We believe th…

Bursa Malaysia Next Week : don't take up heavy positions?

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Share prices on Bursa Malaysia is likely to be mixed, next week, with investors refraining from taking up heavy positions ahead of another long weekend, dealers said.The market was closed on Dec 25 for Christmas and will be closed again next Friday, January 1, 2010 for the New Year.
However, dealers said sentiment is expected to be positive buoyed by the US stock market which closed Thursday at the year's high.It was supported by data showing a drop in initial jobless claims and growth in durable goods orders which suggested the economic recovery in the United States was picking up momentum.Accordingly, dealers expect the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) to head north and hover between the 1,270 and 1,290 points level next week.
"We foresee technical indicators to remain bullish over the longer-term, with the 1,300 points level as the ultimate target," one dealer said, adding the local bourse would be blessed by the weakening US dollar which wou…

Malaysia property player upbeat recovery for 2010

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PROPERTY developers are upbeat about their business outlook for 2010 as the Malaysian economy is set to recover. The economy is expected to contract by 3 per cent this year but has been forecast to expand by up to 3 per cent in 2010. Prime Minister Datuk Seri Najib Razak has said he wants to do better and aim for a 5 per cent growth.
Ireka Development Management Sdn Bhd president and chief executive officer Lai Voon Hon thinks the sector could be in for a "mini boom" if the global economy stabilises.
But the availability of attractive mortgage rates and a low-entry cost to home ownership will be key for the sector in 2010.
"Signs of recovery are beginning to surface, albeit slowly. Buyers or investors who were sitting on the side, waiting for prices to bottom out or looking for distressed opportunities, are now returning to the market," Lai told Business Times.
The implementation of a 4 per cent Goods and Services Tax in mid-2011 could also benefit the sector…

KLSE further selling expected: Maybank Investment

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Maybank Investment Bank Bhd Equity Research expects the FBM KLCI to see further selling and liquidation amidst some low volume trading on Wednesday, Dec 23 before the long Christmas weekend.
This, it said, was despite the minor overnight rise at Wall Street where the Dow Jones added 50.79 points yesterday.
The FBM KLCI rebounded by 4.76 points to close at 1,260.42 on Dec 22.

Maybank IB said the benchmark index's resistance areas at 1,261 and 1,275 will cap market gains, whilst the weaker support areas for the FBM KLCI are located at 1,248 and 1,258.

"We believe that the FBM KLCI peaked at 1,288.42 on Nov 17, and urge investors to liquidate all their stocks on any and every rally. The FBM KLCI's indicators (CCI, DMI, Stochastic, MACD and Oscillator) turned negative recently.

"The FBM KLCI will now embark on a major corrective phase, having risen from its March 2009 low of 836.51 to 1,288.42 (November 2009) without any meaningful correction. The market ma…

KLCI end of 2010 target raised to 1,400 pt

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RHB Research Institute Sdn Bhd raised its end-2010 target for Malaysia’s benchmark FTSE Bursa Malaysia KLCI Index to 1,400 points from 1,370 on hopes of improved corporate earnings.

The research house expects the 25 index stocks under its coverage to report average earnings growth of 15 per cent in 2010 and 14.1 per cent in 2011, after contracting 15.7 per cent this year.

It named CIMB Holdings Bhd, Tenaga Nasional Bhd, Genting Bhd, and Kuala Lumpur Kepong Bhd and Top Glove Bhd among its top stock picks for 2010. -- Bloomberg

Dayang - technical stock pick

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Bursa Malaysia stock : Main Board : stock code 5141 DayangChart wise : Highest high since 25/4/2008……………

Dayanghad on 21/12/2009 crossed
over the immediate high of RM1.50 to reach the highest
high of RM1.56 since 25/4/2008 before settled at RM1.58. 

Next Potential Upside Target : With the upside
violation of RM1.50 level, Dayang would thus be likely to
trade upward with next upside target at RM1.68. 
Entry Level  : Risk taking traders may establish buying
position at RM1.55.

Stop Loss Level : Once a buying position is being
established, a stop loss level at  RM1.42 level  must be
placed for risk capital protection purpose followed by
trailing stop loss strategy.source mercury research

LRT WORKS TO BENEFIT CONSTRUCTION STOCKS

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Gamuda (buy; target price: RM4.25), IJM Corp (buy; TP: RM6), WCT (fully valued; TP: RM2.25) and MRCB (buy; TP: RM1.80)
CONSTRUCTION  players such as GAMUDA BHD [ ], IJM CORPORATION BHD [ ], WCT BHD [ ] and MALAYSIAN RESOURCES CORP [ ]oration Bhd could be potential beneficiaries from the plan to complete the light rail transit (LRT) network by end-2012, said HwangDBS Vickers Research Sdn Bhd.

FBM KLCI expected today

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FBM KLCI Today’s Market expected direction
FBM KLCI would likely to trade below 1,265.58 level.
Market Buying Strength :  About 30% of total market volume on 17/12/2009 was on buying side compared to 45% in the preceding trading day.  
“Movement” in Strong Hands :  Strong hands were seen liquidating a portion of stock positions on 17/12/2009.  
Pivot Point Studies for Intra-Day :  For Monday, 1 resistance @ 1,269.7 & 2 resistance @ 1,272.5 ; 1 support @ 1,264.4 & 2 support @ 1,261.9. source; Mercuries research

Malaysia KL shares set to move in tight range

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Malaysian shares are likely to move in a tight range next week, with investors reluctant to actively trade ahead of the year-end holidays, dealers said.

"The market was completely in a holiday mood. Stocks were just moving up and down, amid thin trading, with no certain direction," a dealer said.

The dealer said any gains next week would encourage investors to lock in profits, as there is lack of catalyst to follow-through.