Bursa Malaysia (KLSE) Stock Investment Portal

Overall, we expect short term weakness over the holiday shorten session, but beyond that we believe there are positive factors to inspire more round of accumulation over the medium term with the local index holding a respectable 5.8% gain since early February. Strategy wise, given that the short term trend should turn positive after a quick consolidation near 1880, traders should prepare to buy into next sector leaders (Technology, Properties and Construction) with our Top Featured Stocks namely Pasukhas, MYEG, GTronic, Unisem, Willow, Sanichi, Pesona, KSL, Pintaras, Takaso, PMetal and Emico.

Dr Nazri Khan
First Vice President/Head of Retail Strategy Affin Investment Bank
@ President, Malaysian Association of Technical Analyst (MATA)

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Stock: [SUMATEC]: SUMATEC RESOURCES BHD

2014-09-01 21:20 | Report Abuse

MARKET LAGS BUT MAINTAINS BULLISH EDGE, FRESH UKRAINE WORRIES AND SMALL-CAP-STOCKS BREAKDOWN DRIVE MARKET LOWER, FBMKLCI TO STALL BEFORE GETS BETTER

Going forward, we expect local market to consolidate driven by lack of local leads, smaller cap stocks breather, overextended broad market rally, concerns over sluggish growth in Europe and renewed Ukraine/Russia tension. Escalating concerns over the situation in Ukraine reintroduced a short term element of risk aversion into the markets, but overall global market (MSCI All World and FTSE All World up 0.8% and 0.7% w-o-w) showed some resilience despite bulls disheartened from the sluggish Euro zone economic sentiment and German inflation readings. Contrary to signs recently that tensions in Ukraine were in the process of being lowered, the situation remains unpredictable and its potential for serious escalation is apparently significant. NATO claim that more than 1,000 Russian troops were operating inside Ukraine although denied by Moscow helped shift the market focus away from the prospect of further policy accommodation from the European Central Bank. In spite of the latest bout of geopolitical angst, the S&P 500 equity index slipped 1.2% from record close just above the 2,000 mark while China's Shanghai Composite dipped 2.1% and closed below the 2,200 level for the first time since August 8th, with some concern from data showing softer industrial profits, as well as an upcoming flurry of initial public offerings. European stocks took a bigger hit, reflecting concerns about the region’s much greater exposure to Russia, as well as their outperformance over the USA earlier this week. Major European stock indices were lower across the board (DAX, CAC and FTSE down 1.5%, 1.3% and 1.2% respectively w-o-w), with an added drag coming from lacklustre corporate earnings and ideas that the ECB could hold off on further easing measures at next week's meeting. Russian assets is the biggest loser, with the Micex stock index falling 2.3% w-o-w and the rouble currency (down 3.5% w-o-w) at a six-month low against the dollar suggesting a sharp return of risk aversion. We expect the pick-up in geopolitical risks to be a short term concern, especially in a technically overbought market and with month-end rotation happening around the corner. On the technical front, FBMKLCI has retreated from 1880 resistance level which is also the 50 day moving average. Equity market sentiment is showing a short term downturn, following weakness in Europe and growing geopolitical risks out of Ukraine. The higher beta indices especially FBMSmallCap which has dipped 4.5% over the last two weeks suggest leadership weakness. Although trading volume remain a respectable 3 bil shares worth RM2.2 bil, we note the most of the actively traded stocks are overextended small cap heroes which has led the market over the weeks which include Glotec, Sumatec, PDZ, IFCAMSC, Takaso and Olympia. The FBMKLCI may have stalled temporarily at 1880 level and should therefore move sideways amid absence of fresh market leads. Market breadth is negative despite the higher overnight close at Wall Street, as investment sentiment remained cautious. All of the major Bursa sector indices including Finance and Trading Services remained confined to a narrow range and total trading volume was once again relatively flat. Various momentum studies (MACD, RSI and Stochastics) have been trending higher and remain close to overbought levels which support a potential technical retreat near major resistance levels. We are pegging the immediate support at the psychological 1860 and 1840 (20 day and 200 day moving average) level while immediate resistance stands at 1890 (50-day moving average) and 1900, which is near the all-time record high. On the domestic front, several headline catalyst that could buzz corporate Malaysia interests including (1) IGB Corp to jointly develop large land project in Bangkok (2) Wilmar to pay RM50.0m for Kulim’s biodiesel refinery in Johor Bharu (3) I-Bhd rights issue to be price at 69 sen each (4) Elsoft Berhad to pay an annual dividend of 40.0% (5) Bumi Armada rights issue to be pegged at RM1.35 (6) OSK Property to sells Sg Petani land to PR1MA (7) Axis REIT value to breach RM2.0b mark with new acquisition of properties and finally (8) TA Global unit to acquire the Trump International Hotel and Canada Tower for RM293.7m cash. From a fundamental stand point, positive fundamentals remains intact with accommodative central bank monetary policy, huge international reserves, steady ringgit and relatively tame inflation should provide limited downside risk. The upcoming Budget 2015 in October with potential sweeteners such as pay rises for civil servants, incentives for affordable housing and income boosting measures (such as further rounds of Bantuan Rakyat 1Malaysia and the 1Malaysia People’s Housing Project) are likely to benefit consumer stocks and cushion further broad market selling.

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Stock: [INARI]: INARI AMERTRON BERHAD

2014-08-30 14:45 | Report Abuse

Bursa master. I got at 3.16. Still ok?

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Stock: [SUMATEC]: SUMATEC RESOURCES BHD

2014-08-30 01:16 | Report Abuse

Yes DQ. . Up gradually

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Stock: [SUMATEC]: SUMATEC RESOURCES BHD

2014-08-30 01:08 | Report Abuse

Eric, we pray the best for everyone doesn't matter u are in the suma train or in other counters. Good luck!

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