Tuesday, 4 October 2016

Dear Retailers,

Last Friday, out KLCI was bearish, closing -17.09 or -1.02% lower at 1652.55 points.

We missed the DJIA rebound on Friday which should be a good Monday. Regardless,

The other market on Monday was pretty bullish with the China A50, Australian S&P/ASX, HONG KONG HSI, Indonesia IDX Composite, Japan Nikkei, Korea Kospi, Taiwan weighted and even the German DAX to rebound strongly. Previously the German’s Deutshce Bank was in a little panic however after the news of the settlement of $5.4Billion instead of $14Billion cause the share price to rebound strongly.

·        The USD/ MYR and closed at a low of 4.1278.

·        Crude Oil prices rallied at OPEC’s agreement and is currently at 48.03, the brent crude oil broke touched the 50 resistance and seems to be demolishing the wall !

DJIA was very bull on Friday, however seems to be falling on Monday and opened lower at 18,279.  

Don’t expect big giveaways on the upcoming 2017 Budget, the full link can be read from the stars here:

http://www.nst.com.my/news/2016/09/174901/2017-budget-dont-expect-big-giveaways-says-uob-malaysia

This Tuesday will be Turn-Up and LIT !

Stocks to watch on this Turn-up Tuesday are:

1.      Astino: this stock don’t benefit from the close down of Megasteel however it might be surfing on the aftermath of steel/metal wave. Good management and has been recovering. Technical analysis also very nice chart formed. Entry points are buy on breakout of RM0.81, cut if close below RM 0.78.

2.      Kimlun: a slight pullback. Good entry is at support of RM 2.11, and cut if it breaks the secondary RM 2.06 support line.

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