Posted by moneySIFU > 2016-09-26 11:39 | Report Abuse

Haha, breaking 1.0 today is possible?

Posted by moneySIFU > 2016-09-26 11:40 | Report Abuse

Fly fly fly, all fly no matter what today

Posted by probability > 2016-09-26 11:40 | Report Abuse

it just broke...moneysifu! he he..

Posted by tftey > 2016-09-26 11:46 | Report Abuse

Good show. Mycron, Masteel, LEONFB etc more to come.

Posted by 2016v > 2016-09-26 11:48 | Report Abuse

TP? 1.20?

Posted by 8wpwtmt8 > 2016-09-26 13:59 | Report Abuse

Hope market will continue to goreng Mycron/Melewar in the 2nd session.

Posted by probability > 2016-09-26 14:07 | Report Abuse

I dont like the word 'goreng'...'price driven upward by strong value vs price differential'...that sounds better.

Posted by mamatede > 2016-09-26 14:10 | Report Abuse

Goreng = bullish = rally = chao kueh tiaw ... definition seems similar..hahaha

Posted by Jack888 > 2016-09-26 14:11 | Report Abuse

Very strong uptrend now...SMA...RSI ....all good.

Posted by Mohd Fahmi Bin Jaes > 2016-09-26 14:13 | Report Abuse

:)

Posted by 8wpwtmt8 > 2016-09-26 16:02 | Report Abuse

T + 3 selling.

Posted by bing > 2016-09-26 16:30 | Report Abuse

Good for later on.

Posted by 8wpwtmt8 > 2016-09-26 17:25 | Report Abuse

Mycron could just managed to touch RM1 and close tumbling down at RM0.95. Masteel pierced through RM1 easily to RM1.06 but profit taking make it closed at RM1.

Posted by probability > 2016-09-26 18:06 | Report Abuse

wouldnt be surprised to see Mycron's price higher than Masteel soon

Posted by kelly89 > 2016-09-26 18:48 | Report Abuse

To be honest, market now is really soft..i thought today price can hang at 0.97 or above..2moro not sure how it will be..

Posted by 8wpwtmt8 > 2016-09-26 20:25 | Report Abuse

Posted by probability > Sep 26, 2016 06:06 PM | Report Abuse

Wouldn't be surprised to see Mycron's price higher than Masteel soon.
=======================================================================

That means the probability (kebarangkalian) of Mycron surging above RM1.00 is very high, close to 1.

Posted by hewiester > 2016-09-26 20:30 | Report Abuse

World market sentiment is weak and VERY red - so keep a WATCHFUL eye. Price will surge tmrw..

Posted by William Tan > 2016-09-27 07:49 | Report Abuse

how is mycron today?

Posted by Mohd Fahmi Bin Jaes > 2016-09-27 07:56 | Report Abuse

Dow Jones 18,094.83 -166.62 0.91%

Posted by Jack888 > 2016-09-27 08:13 | Report Abuse

Try to retest 1.00 and above... uptrend.

Posted by William Tan > 2016-09-27 08:51 | Report Abuse

hopefully can reach RM1 by today

Posted by bing > 2016-09-27 10:20 | Report Abuse

correction mode, will up anytime.

Posted by Jeff Lee > 2016-09-27 10:45 | Report Abuse

Steel players’ momentum could be short-lived

Author: Tan KW | Publish date: Tue, 27 Sep 2016, 09:45 AM

By Billy Toh / The Edge Financial Daily | September 27, 2016 : 8:37 AM MYT





This article first appeared in The Edge Financial Daily, on September 27, 2016.



KUALA LUMPUR: Steel counters are back in the limelight after the government announced provisional safeguard measures in the form of duties of 13.9% for steel coils and 13.4% for steel rebars imported into Malaysia. Earlier this month, the counters had also rallied in active trade on expectation that Megasteel Sdn Bhd’s suspension of its operation will benefit smaller players.

However, some analysts feel that the momentum could be short-lived as they are not convinced that the recovery in steel prices is sustainable.

The head of research at a local fund house said the steel price hike is likely to be temporary and has more to do with sentimental play than a change in its fundamentals.

“The steel prices have been going up, but is that sustainable amid the lack of economic growth globally and low oil prices,” he asked. “These protection measures proposed by the government do not guarantee the survival of the steel players. While some of these measures could help, it’s going to be temporary.”

The research head added that the mass rapid transit (MRT) projects will not be enough to spur the steel market, pointing out that MRT Line 1 has not been able to boost the sector.

“A lot of these recent hikes are due to sentiment play. Steel is a very cyclical sector and I don’t think any of that has changed,” he said.

Mercury Securities head of research Edmund Tham also thinks that the protection measures proposed by the government will not be beneficial to all parties.

“The fact that so many of the steel counters move, I think they don’t know what they are doing,” said Tham. “It’s not so straightforward that all these steel players will benefit from the safeguard measures proposed. I don’t see any sustainable movement at the moment.”

Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew said the increase in steel prices is mainly due to China’s move to cut its steel production capacity, but there is no certainty that this will last.

Pong noted that the construction projects in the country have not been able to help the steel players until China cuts its production. “We realise that steel prices have rebounded, but we are not very certain how long it will last,” he said.

Benny Lee, chief market strategist at Jupiter Securities, however, feels that steel players might benefit from the good growth in the construction sector as well as the weaker ringgit. He said steel prices could be sustainable in the next few quarters.

Lum Joe Shen of Kenanga Research has issued a report on Ann Joo Resources Bhd, switching the valuation to “outperform” with a higher target price of RM2.24. He said the research house is positive on the steel sector as steel prices are expected to remain stable despite the prolonged overcapacity issue in China.

Lum said China’s depleting steel inventory indicates rising domestic demand, closure of loss-making steel mills in the country, and Beijing’s strong commitment in reducing steel production capacity through consolidation of steel groups coupled with financial support of 100 billion yuan (RM61.9 billion) for worker retrenchment schemes.

Lum is also positive of the provisional safeguard measures issued by Putrajaya, saying it would boost Ann Joo’s steel rebars.

Looking at the technical indicators, the rise in the share prices of steel players has also been overdone. Malacca Securities Sdn Bhd technical analyst Loui Low shared that profit-taking activity is likely to be coming in the next couple of days, citing that the chart is a bit “overheated”, indicating an overbought signal.

“For me, I’ll look at the nine-day EMA (exponential moving average) line as the first defence. Once it drops below that line, you should take profit,” he said.

Most steel counters have risen sharply in the last three months, with Mycron Steel Bhd up by 123.53%, Ann Joo by 95.33%, YKGI Holdings Bhd by 95%, Malaysia Steel Works (KL) Bhd by 94.17%, Melewar Industrial Group Bhd by 86.15% and CSC Steel Holdings Bhd by 50.74%.

http://www.theedgemarkets.com/en/article/steel-players%E2%80%99-momentum-could-be-short-lived
27/09/2016 10:43

Posted by probability > 2016-09-27 11:50 | Report Abuse

Did the management seek removal / provision of anti-dumping duties as highlighted in every single annual report for nothing?

Did the recent qtrly results showing improving profitability means no change in fundamental?

I think the word 'Mycron' does not fit to be included on the above article. For rebar & wire rod producers related to MRT is a different scenario...

Posted by moneySIFU > 2016-09-27 15:22 | Report Abuse

Hi probability, all keep assuming all steel producers will benefit from closure of megasteel. In fact, only CRC producers will benefit the most.

Now, The Government of Malaysia (GOM) has initiated two (2) safeguard investigations......

safeguard what? investigations of what? then selling everything without knowing what are going on.

Posted by moneySIFU > 2016-09-27 15:25 | Report Abuse

The problem is everyone think safeguard/imposition of extra import duties will surely increase the price of protected steel products.

It is totally wrong concept

Posted by moneySIFU > 2016-09-27 15:26 | Report Abuse

Look at the price of CRC, it didn't go up after the imposition of anti-dumping duties, it went up because of China's CRC went up.

Posted by moneySIFU > 2016-09-27 15:27 | Report Abuse

The increased margin was because of saving in raw materials (HRC) due to closure of megasteel & all CRC mills can sourced from oversea which are much cheaper.

Posted by moneySIFU > 2016-09-27 15:33 | Report Abuse

Who said HRC has been imposed extra duties? Please read carefully below:

The Government of Malaysia (GOM) has initiated two (2) safeguard investigations on
imports of Steel Concrete Reinforcing Bar (REBAR) and Steel Wire Rod (SWR) &
Deformed-Bar-in-Coil (DBIC) based on petitions filed by the Malaysia Steel Association,
on behalf of the domestic industry producing REBAR and SWR & DBIC. The Petition
alleged that importations of REBAR and SWR & DBIC into Malaysia have increased
from 1 October 2012 to 30 September 2015 in absolute and relative terms which have
caused serious injury to the domestic industry in Malaysia.

http://www.miti.gov.my/miti/resources/Media%20Release/PR-ENG-PD_REBAR_SWR_vF.pdf

Posted by 2016v > 2016-09-27 15:40 | Report Abuse

is megasteel closed for good or just temporary? anyone

Posted by moneySIFU > 2016-09-27 15:49 | Report Abuse

Huge debts 3.2billion
Losses last 3 years 2.4billion
I will say = NO HOPE

Even senior staff said need miracle to revive

Posted by probability > 2016-09-27 15:50 | Report Abuse

Thank you $$-Sifu...

2016v...looking at Megasteel's manufacturing technology (EAF - electric arc furnace) instead of BOF - Basic Oxygen Furnace as used by China manufacturers.. its very unlikely it will be revived.

Government is unlikely to change the electricity tariff...and EAF technology which relies on electricity instead of fuel (natural gas) as it is for BOF, will remain not competitive...

Posted by moneySIFU > 2016-09-27 15:51 | Report Abuse

Haha, I look at business point of view & probability look at operational point of view, both said the same thing

Posted by moneySIFU > 2016-09-27 15:52 | Report Abuse

Sorry, should be both pointed at the same direction :)

Posted by probability > 2016-09-27 15:54 | Report Abuse

ha ha..i wrote that before seeing your msges $$-sifu..he he

Posted by moneySIFU > 2016-09-27 16:17 | Report Abuse

hehe

Posted by connie > 2016-09-27 16:26 | Report Abuse

the gentlemen (probability & moneySIFU) here have amazing knowledge .. read in awe :)

Posted by probability > 2016-09-27 16:37 | Report Abuse

connie...$$-sifu is the brain..im just a background music...

Posted by moneySIFU > 2016-09-27 16:37 | Report Abuse

Thank you very much for your praise, connie

Posted by moneySIFU > 2016-09-27 16:41 | Report Abuse

probability, you have something that I don't have, so we all learn each others :)

Posted by connie > 2016-09-27 16:43 | Report Abuse

don't care who is brain and music ... but i will trail both of you to absorb some knowledge :) intellectually stimulating !!!

Posted by William Tan > 2016-09-28 08:00 | Report Abuse

how mycron today?any sifu comment ?

Posted by William Tan > 2016-09-28 09:59 | Report Abuse

drop!!!!

Posted by Goodiinvestor > 2016-09-28 10:18 | Report Abuse

0.91 is bottom . I accumulate since morning . Afternoon fdi will flow in.
Buy now

Posted by William Tan > 2016-09-28 10:27 | Report Abuse

Goodiinvestor :How u think about Mycron?All steel down still got hope bo

Posted by William Tan > 2016-09-28 11:31 | Report Abuse

today so silent here

Posted by moneySIFU > 2016-09-28 11:34 | Report Abuse

This forum is always quiet, most of the time only few people exchanging opinions.

Posted by moneySIFU > 2016-09-28 11:34 | Report Abuse

It was even quiet when price was around RM0.45.

Posted by William Tan > 2016-09-28 11:42 | Report Abuse

moneySIFU ....today all steel counter big drop.still got hope or not steel counter

Posted by probability > 2016-09-28 12:05 | Report Abuse

william..a better question would be ...any reason for next qtr gross profit to be lesser than the latest?

Do the maths...it gives a more convincing answer than a verbal yes / no. Coz yes / no...only gives the expected direction up/down....but would not give u a feel on the strength (magnitude) of the direction...