KLCI Technical Analysis Review & Market Forecast

Market Review for KLCI: The FTSE Bursa Malaysia Kuala Lumpur Composite index lost 4.10 points or 0.25% on Tuesday. The Finance Index fell 0.45% to 14189.02 points, the Properties Index up 0.24% to 1158.54 points and the Plantation Index down 0.15% to 6994.46 points. The market traded within a range of 13.17 points.

The KLCI closed down at 1635.37 points more than one-week low as Southeast Asian stock markets mostly fell. Market sentiment remained bearish after ringgit continues to slide and as crude oil prices dropped.

Market forecast for KLCI: The FBM KLCI index is expected to trade sideways as the investors sentiments can remain cautious after the FED officials comment on the interest rate hike, however if market finds fresh leads in coming session then it may give a positive movement.

KLCI COUNTER SPECIFIC NEWS :

• External pressures and not public debt are one of the issues that may cause rating agencies to rethink their ratings on Malaysia at present, said Fitch Ratings managing director and global head of sovereign and supranational group.
• The ringgit opened lower against a rejuvenated US dollar today.
• Oil markets have seesawed since the beginning of the week, torn between data that points towards a bottoming out of prices following an over 50 percent fall over the last year.
• Alliance Financial Group Bhd (AFG) is planning to raise RM4 billion from a bond issue for general banking and working capital requirements as well as to finance existing debt redemption.
• Berjaya Land Bhd saw its net profit for the first quarter ended July 31, 2015 drop 74% to RM9.91 million, from RM37.66 million a year ago, mainly due to higher prize payout coupled with the absorption of Goods and Services Tax (GST) expense, lower revenue from hotels and resorts business and higher finance costs.
• Affin Hwang has downgraded FGV to Sell form Hold after the recent surge in the company's share price.

GLOBAL FACTORS AND WORLD INDICES:

• Shares in Hong Kong rose Tuesday following gains in New York after top Federal Reserve officials moved to reassure dealers about the US economy after being spooked by last week's decision to hold interest rates. The Hang Seng Index climbed 0.18 per cent, or 39.65 points, to close at 21,796.58.
• China stocks rebounded for the second day on Tuesday, in a further sign of improving investor sentiment that may help the market gradually stabilise after the rout since mid-June.
• Asian shares rose on Tuesday and the dollar held steady as US markets bounced back and the European Central Bank said it was prepared to ease monetary policy further.
• Taiwan stocks rose on Tuesday mostly following overseas markets and some bargain hunting after the previous day's losses, but further gains were capped due to uncertainties ahead of the central bank's policy meeting.
• The introduction of a new accounting standard for financial instruments will be challenging for the banking industry, especially when it comes to modeling for expected losses, the European Central Bank's supervisory chief said on Tuesday.
• The dollar advanced against the euro and other leading currencies Monday on comments from US central bankers who continue to eye a 2015 interest rate increase.
• US home resales fell more than expected in August, a cautionary sign for the US housing market which has recently looked on stronger footing. The National Association of Realtors said on Monday existing home sales dropped 4.8 per cent to an annual rate of 5.31 million units.
• Gold steadied below a near three-week high on Tuesday, retaining overnight losses as Asian equities and the dollar edged higher and as investors worried over the possibility of a US interest rate hike later this year.
• Oil prices rebounded on Monday , looked like a technical correction from heavy losses last week as the basic global oversupply picture remained intact.

KLCI Weekly Technical Analysis Outlook

The week started with bullish movement and ended the week on a positive note on Friday. On weekly basis KLCI moved within the range of 1600.70 to 1691.93 and ended the week in a range bound phase, closed 65.85 points positive. On Friday KLCI extended its midday losses by ending lower at 1669.45 points as investors were taking profit after the index’s rally in the past three days. The performance of our local bourse was bogged down by selling in heavy weight counters such as Sime Darby, CIMB and YTL Corp.

The FBM KLCI index lost 12.09 points or 0.72% on Friday. The Finance Index increased 0.00% to 14556.72 points, the Properties Index up 0.07% to 1160.27 points and the Plantation Index down 1.04% to 7108.62 points. The market traded within a range of 22.84 points between an intra-day high of 1684.40 and a low of 1661.56 during the session.

Market Forecast for week ahead:

We are expecting that market will continue its positive movement in coming week supported by the positive measures taken by the local government and the decision to hold on the interest rates hike by the US central bank. The market can take support at the level of 1660 and starts the positive movement from there.
Technical indicators:

RSI for this week is 44.406 with CCI at -54.943. Besides, difference line of MACD -46.884 below its signal line at -40.222.

Global factors and world Indices

• The Federal Reserve held its key interest rate locked at zero Thursday, citing worries about how the slowdown in China will hit the US economy.
• Malaysia's inflation in August likely cooled to 3.0 per cent on lower fuel prices and after the Muslim Eid al-Fitr celebrations, a Reuters poll showed on Friday.
• Ringgit was set to snap the longest run of weekly declines in more than four decades after the US refrained from raising interest rates and a rally in the price of Brent crude improved prospects for the net oil exporter.
• Malaysia's trade with China, already past the USD100 billion level, can be expanded further by looking at new products and industries, Minister of International Trade and Industry II Datuk Seri Ong Ka Chuan said.
• Malaysia construction sector is going to be hit hard if the government does not extend the status of migrant workers under the 6P programme, which will expire end of the year
• Hong Kong equities traced most Asian markets higher Friday as traders welcomed the Federal Reserve's decision to keep interest rates at record lows, while Shanghai ended another volatile week on a positive note. Hang Seng Index added 0.30 per cent, or 66.20 points, to close at 21,920.83
• China stocks ended a volatile week slightly higher on Friday, after the US Federal Reserve held off from raising interest rates citing concerns about a weak world economy. Index of the largest listed companies in Shanghai and Shenzhen rose 0.4 per cent, to 3,251.27, but was down 2.9 per cent for the week.
• The Nikkei 225 index at the Tokyo Stock Exchange dropped 1.96 per cent, or 362.06 points, to close at 18,070.21, while the broader Topic index of all first-section shares was down 1.98 per cent, or 29.53 points, at 1,462.38.
• US central bank's decision to hold off hiking interest rates sent emerging market currencies and most Asian markets advancing on Friday, as concerns eased over an outflow of cash as the global economy suffers a painful slowdown.
• Australian shares ended higher on Friday, shaking off a negative lead from Wall Street after the head of the central bank made reassuring comments about the economy.
• Bank of Japan policy makers agreed that emerging economies had suffered from weak growth but were likely to improve from a longer-term perspective, minutes of the central bank's August policy meeting.
• Gold dropped from a two-week high on Friday, giving back some of the sharp gains from the last two days, as the Federal Reserve's decision to hold US interest rates steady this week added to uncertainty over the timing of an eventual rate hike.
• Oil markets were weak on Friday as fresh signs Opec will continue to value market share over prices outweighed expectations of a lift when the United States kept interest rates at historic lows.

Malaysian Palm Oil Price Down on Stronger Ringgit

KUALA LUMPUR: Malaysian palm oil futures dropped on Thursday due to market corrections and a strengthening ringgit.

The benchmark December palm oil contract on the Bursa Malaysia Derivatives Exchange closed 2.9 percent lower on Thursday at 2,128 ringgit ($500.71) a tonne, after seeing consecutive rises in the last two weeks.

Traded volume stood at 66,318 lots of 25 tonnes each, well above the average 35,000 lots usually traded in a day.

The ringgit gaining against the dollar is the main factor for the downtrend, said a trader based in Kuala Lumpur, but traders are also taking profit after the market went up in the last ten days.

"It was a bit of an expected correction as the market run up was too fast," he said. "Prices should find support again at 2,100 ringgit."

The ringgit strengthened against the dollar on Thursday by 0.7 percent, reaching 4.2500 per dollar on Thursday. It is emerging Asia's worst performing currency, having lost about 18 percent so far this year. A weaker ringgit usually lends some support to palm prices.

Palm oil may drop to 2,068 ringgit per tonne as it has broken a support at 2,132 ringgit, said Reuters market analyst Wang Tao.

In other vegetable oil markets, the most active January soybean oil contract on the Dalian Commodity Exchange was down 0.15 percent, while the U.S. December soyoil contract lost 0.9 percent.

Oil prices fell below $50 a barrel on Thursday on weak Japanese data, drawing concerns on global growth prospects and outweighing the impact of declining U.S. crude oil stocks.

Palm oil often takes price direction from crude oil, as vegetable oils are increasingly used in making renewable fuels.

Palm, soy and crude oil prices at 1016 GMT
                                                                    
  Contract        Month     Last   Change     Low    High  Volume
  MY PALM OIL      OCT5    2055   -52.00    2050    2095     385
  MY PALM OIL      NOV5    2095   -53.00    2091    2135   16040
  MY PALM OIL      DEC5    2128   -64.00    2125    2178   32158
  CHINA PALM OLEIN JAN6    4276    -8.00    4270    4328 1018844
  CHINA SOYOIL     JAN6    5384    -8.00    5382    5430  527706
  CBOT SOY OIL     DEC5   26.64    +0.00   26.60   26.91    5658
  INDIA PALM OIL   SEP5    0.00    +0.00    0.00    0.00       0
  INDIA SOYOIL     OCT5    0.00    +0.00    0.00    0.00       0
  NYMEX CRUDE      OCT5   46.51    -0.64   46.33   47.57   32931
                                                                    
  Palm oil prices in Malaysian ringgit per tonne
  CBOT soy oil in U.S. cents per pound
  Dalian soy oil and RBD palm olein in Chinese yuan per tonne
  India soy oil in Indian rupee per 10 kg
  Crude in U.S. dollars per barrel

($1 = 4.2500 ringgit)
($1 = 66.1500 Indian rupees)
($1 = 6.3645 Chinese yuan)
- Reuters

Source : The Star
- See more at: http://www.mpoc.org.my/Malaysian_palm_oil_price_down_on_stronger_ringgit.aspx#sthash.dhVUdc8B.dpuf

KUALA LUMPUR: Malaysian palm oil futures dropped on Thursday due to market corrections and a strengthening ringgit.

The benchmark December palm oil contract on the Bursa Malaysia Derivatives Exchange closed 2.9 percent lower on Thursday at 2,128 ringgit ($500.71) a tonne, after seeing consecutive rises in the last two weeks. 

Traded volume stood at 66,318 lots of 25 tonnes each, well above the average 35,000 lots usually traded in a day.

The ringgit gaining against the dollar is the main factor for the downtrend, said a trader based in Kuala Lumpur, but traders are also taking profit after the market went up in the last ten days.

"It was a bit of an expected correction as the market run up was too fast," he said. "Prices should find support again at 2,100 ringgit."

The ringgit strengthened against the dollar on Thursday by 0.7 percent, reaching 4.2500 per dollar on Thursday. It is emerging Asia's worst performing currency, having lost about 18 percent so far this year. A weaker ringgit usually lends some support to palm prices.

Palm oil may drop to 2,068 ringgit per tonne as it has broken a support at 2,132 ringgit, said Reuters market analyst Wang Tao.

In other vegetable oil markets, the most active January soybean oil contract on the Dalian Commodity Exchange was down 0.15 percent, while the U.S. December soyoil contract lost 0.9 percent.

Oil prices fell below $50 a barrel on Thursday on weak Japanese data, drawing concerns on global growth prospects and outweighing the impact of declining U.S. crude oil stocks.

Palm oil often takes price direction from crude oil, as vegetable oils are increasingly used in making renewable fuels.

Palm, soy and crude oil prices at 1016 GMT
                                                                     
  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      OCT5    2055   -52.00    2050    2095     385
  MY PALM OIL      NOV5    2095   -53.00    2091    2135   16040
  MY PALM OIL      DEC5    2128   -64.00    2125    2178   32158
  CHINA PALM OLEIN JAN6    4276    -8.00    4270    4328 1018844
  CHINA SOYOIL     JAN6    5384    -8.00    5382    5430  527706
  CBOT SOY OIL     DEC5   26.64    +0.00   26.60   26.91    5658
  INDIA PALM OIL   SEP5    0.00    +0.00    0.00    0.00       0
  INDIA SOYOIL     OCT5    0.00    +0.00    0.00    0.00       0
  NYMEX CRUDE      OCT5   46.51    -0.64   46.33   47.57   32931
                                                                     
  Palm oil prices in Malaysian ringgit per tonne
  CBOT soy oil in U.S. cents per pound
  Dalian soy oil and RBD palm olein in Chinese yuan per tonne
  India soy oil in Indian rupee per 10 kg
  Crude in U.S. dollars per barrel

($1 = 4.2500 ringgit)
($1 = 66.1500 Indian rupees)
($1 = 6.3645 Chinese yuan)
- Reuters
Source : The Star
- See more at: http://www.mpoc.org.my/Malaysian_palm_oil_price_down_on_stronger_ringgit.aspx#sthash.dhVUdc8B.dpuf

KUALA LUMPUR: Malaysian palm oil futures dropped on Thursday due to market corrections and a strengthening ringgit.

The benchmark December palm oil contract on the Bursa Malaysia Derivatives Exchange closed 2.9 percent lower on Thursday at 2,128 ringgit ($500.71) a tonne, after seeing consecutive rises in the last two weeks. 

Traded volume stood at 66,318 lots of 25 tonnes each, well above the average 35,000 lots usually traded in a day.

The ringgit gaining against the dollar is the main factor for the downtrend, said a trader based in Kuala Lumpur, but traders are also taking profit after the market went up in the last ten days.

"It was a bit of an expected correction as the market run up was too fast," he said. "Prices should find support again at 2,100 ringgit."

The ringgit strengthened against the dollar on Thursday by 0.7 percent, reaching 4.2500 per dollar on Thursday. It is emerging Asia's worst performing currency, having lost about 18 percent so far this year. A weaker ringgit usually lends some support to palm prices.

Palm oil may drop to 2,068 ringgit per tonne as it has broken a support at 2,132 ringgit, said Reuters market analyst Wang Tao.

In other vegetable oil markets, the most active January soybean oil contract on the Dalian Commodity Exchange was down 0.15 percent, while the U.S. December soyoil contract lost 0.9 percent.

Oil prices fell below $50 a barrel on Thursday on weak Japanese data, drawing concerns on global growth prospects and outweighing the impact of declining U.S. crude oil stocks.

Palm oil often takes price direction from crude oil, as vegetable oils are increasingly used in making renewable fuels.

Palm, soy and crude oil prices at 1016 GMT
                                                                     
  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      OCT5    2055   -52.00    2050    2095     385
  MY PALM OIL      NOV5    2095   -53.00    2091    2135   16040
  MY PALM OIL      DEC5    2128   -64.00    2125    2178   32158
  CHINA PALM OLEIN JAN6    4276    -8.00    4270    4328 1018844
  CHINA SOYOIL     JAN6    5384    -8.00    5382    5430  527706
  CBOT SOY OIL     DEC5   26.64    +0.00   26.60   26.91    5658
  INDIA PALM OIL   SEP5    0.00    +0.00    0.00    0.00       0
  INDIA SOYOIL     OCT5    0.00    +0.00    0.00    0.00       0
  NYMEX CRUDE      OCT5   46.51    -0.64   46.33   47.57   32931
                                                                     
  Palm oil prices in Malaysian ringgit per tonne
  CBOT soy oil in U.S. cents per pound
  Dalian soy oil and RBD palm olein in Chinese yuan per tonne
  India soy oil in Indian rupee per 10 kg
  Crude in U.S. dollars per barrel

($1 = 4.2500 ringgit)
($1 = 66.1500 Indian rupees)
($1 = 6.3645 Chinese yuan)
- Reuters
Source : The Star
- See more at: http://www.mpoc.org.my/Malaysian_palm_oil_price_down_on_stronger_ringgit.aspx#sthash.dhVUdc8B.dpuf

KUALA LUMPUR: Malaysian palm oil futures dropped on Thursday due to market corrections and a strengthening ringgit.

The benchmark December palm oil contract on the Bursa Malaysia Derivatives Exchange closed 2.9 percent lower on Thursday at 2,128 ringgit ($500.71) a tonne, after seeing consecutive rises in the last two weeks. 

Traded volume stood at 66,318 lots of 25 tonnes each, well above the average 35,000 lots usually traded in a day.

The ringgit gaining against the dollar is the main factor for the downtrend, said a trader based in Kuala Lumpur, but traders are also taking profit after the market went up in the last ten days.

"It was a bit of an expected correction as the market run up was too fast," he said. "Prices should find support again at 2,100 ringgit."

The ringgit strengthened against the dollar on Thursday by 0.7 percent, reaching 4.2500 per dollar on Thursday. It is emerging Asia's worst performing currency, having lost about 18 percent so far this year. A weaker ringgit usually lends some support to palm prices.

Palm oil may drop to 2,068 ringgit per tonne as it has broken a support at 2,132 ringgit, said Reuters market analyst Wang Tao.

In other vegetable oil markets, the most active January soybean oil contract on the Dalian Commodity Exchange was down 0.15 percent, while the U.S. December soyoil contract lost 0.9 percent.

Oil prices fell below $50 a barrel on Thursday on weak Japanese data, drawing concerns on global growth prospects and outweighing the impact of declining U.S. crude oil stocks.

Palm oil often takes price direction from crude oil, as vegetable oils are increasingly used in making renewable fuels.

Palm, soy and crude oil prices at 1016 GMT
                                                                     
  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      OCT5    2055   -52.00    2050    2095     385
  MY PALM OIL      NOV5    2095   -53.00    2091    2135   16040
  MY PALM OIL      DEC5    2128   -64.00    2125    2178   32158
  CHINA PALM OLEIN JAN6    4276    -8.00    4270    4328 1018844
  CHINA SOYOIL     JAN6    5384    -8.00    5382    5430  527706
  CBOT SOY OIL     DEC5   26.64    +0.00   26.60   26.91    5658
  INDIA PALM OIL   SEP5    0.00    +0.00    0.00    0.00       0
  INDIA SOYOIL     OCT5    0.00    +0.00    0.00    0.00       0
  NYMEX CRUDE      OCT5   46.51    -0.64   46.33   47.57   32931
                                                                     
  Palm oil prices in Malaysian ringgit per tonne
  CBOT soy oil in U.S. cents per pound
  Dalian soy oil and RBD palm olein in Chinese yuan per tonne
  India soy oil in Indian rupee per 10 kg
  Crude in U.S. dollars per barrel

($1 = 4.2500 ringgit)
($1 = 66.1500 Indian rupees)
($1 = 6.3645 Chinese yuan)
- Reuters
Source : The Star
- See more at: http://www.mpoc.org.my/Malaysian_palm_oil_price_down_on_stronger_ringgit.aspx#sthash.dhVUdc8B.dpuf

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Malaysian Intraday Stock Picks
Duration	Actual Price	Discounted Price
Quarterly	700 SGD	629 SGD
Half yearly	1300 SGD	999 SGD
Yearly	2300 SGD	1799 SGD

  

Malaysian Positional Stock Picks
Duration	Actual Price	Discounted Price
Quarterly	1200SGD	999 SGD
Half yearly	2000 SGD	1699 SGD
Yearly	3500 SGD	2499 SGD

Shariah Compliant Stock Picks
Duration	Actual Price	Discounted Price
Quarterly	700 SGD	629 SGD
Half yearly	1300 SGD	999 SGD
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Duration	Actual Price	Discounted Price
Quarterly	600 USD	549 USD
Half yearly	1100 USD	999 USD
Yearly	2000 USD	1799 USD

Happy Malaysia Day - 16 Sept 2015

 Malaysia Day is celebrated on September 16 as the Malaysian federation is established on September 16 of 1963. When East Malaysian states of Sabah & Sarawak and the former British territory of Singapore united the Federation of Malaya, they created the Malaysian Federation. The Singapore only remained in the federation for two years, which had leaved on August 9 1965.

The date august 9 was decided for June 1 1963, but it was delayed; as the date August 31 had coincided with an older national day and also delayed again to allow referendums to take place in certain regions.

Malaysia Day has considered as a National holiday since 2010. On this day, there are several activities are involved that encourages the spirit of Malaysia. The activities are celebrated with formal events such as a parade to celebrate the historical moment. In addition, the day reminds them about their struggle period to achieve independence.

Malaysia day is all about celebrating the moment of independence. The day encourages the people to celebrate the event with complete freedom.
Wishing You a Pleasant Malaysia Day

Weekly Technical View on KLCI - Bursa Malaysia

The week started bearish with heavy loss with dropping 46.26 points on Tuesday and traded sideways with mixed sentiments throughout the week and made a weekly loss of 23.58 points. On weekly basis KLCI moved within the range of 1660.22 to 1583.63 and ended the week on a negative note, closed lower at 1589.16 points as investors await non-farm report to provide the last major clue on U.S.’s economy before the Federal Reserve next meets. The performance of our local bourse was in tandem with most of our regional peers.

The FBM KLCI index lost 13.59 points or 0.85% on Friday. The Finance Index fell 1.19% to 13924.63 points, the Properties Index up 0.09% to 1107.93 points and the Plantation Index down 0.38% to 6813.29 points. The market traded within a range of 14.71 points between an intra-day high of 1602.32 and a low of 1587.61 during the session.

FBMKLCI Week's Performance
Open	1655.47
High	1660.22
Low	1583.63
Close	1589.16
Change (Points)	-23.58
% Change	-1.46%

Market Forecast for week ahead:

The KLCI index can trade sideways in coming week as the investors sentiments are still cautious which can bound the market to give some good movement, technically if the market breaks the level of 1580 then it can go further down.

Support 1	Support 2	Support 3	Resistance 1	Resistance 2	Resistance 3
1580	1500	1430	1660	1720	1773

Technical indicators:

RSI for this week is 28.764 with CCI at -133.072. Besides, difference line of MACD -50.702 below its signal line at -35.236.

Global factors and world Indices

• Malaysia saw exports in July increase 3.5 per cent from a year earlier as demand for electrical and electronic goods surged, government data showed on Friday.
• Hong Kong shares ended 0.45 per cent lower on Friday, bringing an end to another painful week for the Hang Seng Index, owing to ongoing concerns about the Chinese economy.
• AUTHORITIES in Singapore, Malaysia and Thailand have published a handbook to guide companies that hope to offer securities across borders through a streamlined review framework.
• UOL Group, Yangzijiang Shipbuilding and SATS will replace Jardine Matheson, Jardine Strategic and Olam International as constituents of the Straits Times Index (STI). This comes after the conclusion of the semi-annual review.
• Japanese stocks slipped to seven-month lows, with the Nikkei posting its biggest weekly fall in almost a year and a half with speculators dumping futures while investors stayed risk-averse ahead of the release of a key U.S. jobs report later in the day.
• Swiss consumer prices fell in August by the most in 56 years, the strongest indication yet of the pricing pressure from Switzerland's strong currency and low oil prices.
• Andy Hall, one of the best-known oil traders who's bullish on prices, said the decline in the oil market isn't a repeat of 1998 or 2008. The absence of "extreme contango," which occurs when commodities prices close to delivery are cheaper than those to be delivered at later dates, suggests that "the world, whilst moderately oversupplied, is not awash in oil.
• Gold held declines from a two-day losing streak on Friday, ahead of a crucial US jobs report as traders waited for clues about the timing of a Federal Reserve rate hike.
• Oil prices eased in Asian trade on Friday as investors turned cautious ahead of US jobs data later in the day that is expected to play into the Federal Reserve's decision on the timing of any US rate hike.

SECTOR ALLOCATION

SECTOR	CHANGE	%CHANGE	HIGH	LOW
FINANCE	-167.03	-1.19	14,072.54	13,922.36
TRAD/SERV	-1.28	-0.61	211.08	208.99
INDUSTRIAL	-13.51	-0.44	3,095.28	3,062.33
PLANTATION	-25.96	-0.38	6,823.54	6,790.83
IND-PROD	-0.34	-0.26	132.4	131.53
CONSUMER	-1.21	-0.22	560.24	557.51
PROPERTIES	1.02	0.09	1,111.84	1,103.19
TECHNOLOGY	0.03	0.15	20.13	19.86
CONSTRUCTN	0.87	0.34	254.26	253.15
MINING	12.16	2.56	486.34	474.18