Stocks With Momentum

Carimin, Hubline, Icon, Alam, Bright, Frontken, SHL

theedgemarkets.com highlighted seven stocks with momentum at Bursa Malaysia’s afternoon market close today. It showed three with positive momentum and four with negative momentum.

Stocks with positive momentum were:

Carimin Petroleum Bhd – up three sen at 58 sen

Hubline Group Bhd – up 0.5 sen at 10.5 sen

Icon Offshore Bhd – up one sen at 31.5 sen

Stocks with negative momentum were:

Alam Maritim Resources Bhd – down 0.5 sen at 22.5 sen

Bright Packaging Industry Bhd – up 0.5 sen at 27.5 sen

Frontken Corp Bhd – up two sen at 41.5 sen

SHL Consolidated Bhd – down two sen at RM2.82

The list of stocks with momentum is generated using a proprietary mathematical algorithm highlighting stocks with a build-up in trading volume and price. The algorithm differentiates between stocks that exhibit positive (+ve) momentum and negative (-ve) momentum. 

This list is not a buy or sell recommendation. It merely tells you which stocks are seeing higher than normal volume and price movements. 

The share price may move up or down from this point. But the “+ve” (suggesting a rising price trend on volume) and “-ve” (suggesting a falling price trend on volume) indicators should give readers a better idea of what the market is buying and when to sell.  Note also that momentum generally only persists for a short period of time.

However, each stock has an accompanying fundamental score and valuation score to help readers evaluate the attractiveness of the stocks, if they want to ride the momentum.

Bursa Malaysia: Weekly Technical Trading Analysis and Forecast for week ahead

Weekly wrap of KLCI: The week started with opening 7.13 points positive, performed with buying sentiments in the beginning and maintained a mixed movement throughout and ended in a positive note. 

The FBM KLCI index gained 16.50 points or 0.89% on Friday. The Finance Index increased 0.65% to 16422.79 points, the Properties Index up 0.21% to 1337.95 points and the Plantation Index rose 1.11% to 7749.53 points. The market traded within a range of 12.87 points between an intra-day high of 1862.58 and a low of 1849.71 during the session.
The KLCI ended the week on a positive note, closing at 1862.58 points. The performance of our benchmark index was in line with overnight gains in US market as positive corporate earnings and rise in crude oil prices overshadowed the weaker performance in US new home sales data in March.
FBM KLCI Week's Performance
Open: 1862.58
High: 1862.58
Low: 1849.71
Close: 1862.58
Change (Points): 16.72
% Change: 0.90%
Market Forecast for week ahead: Market is moving by taking correction on weekly basis it is forcasted to be on positive note next week. As Malaysian government expecting economy to grow between 4.5% and 5.5% this year on the back of strong economic fundamentals. And if Malaysia achieved its fiscal target for 2015, it would be a record of six consecutive years of fiscal deficits.
Weekly Technical view on KLCI
Support 1: 1832
Support 2: 1815
Support 3: 1789
Resistance 1: 1856
Resistance 2: 1880
Resistance 3: 1890
Technical indicators: RSI for this week is 60.649 with CCI at 129.338. Besides, difference line of MACD 8.942 and crossed its signal line -1.022.
ECONOMIC FACTORS:

• Bank Negara governor Tan Sri Zeti Akhtar Aziz said any changes in Malaysia's monetary policy will be based on domestic consideration while stressing that the economy is still staying on a steady growth path. It is anticipated that the central bank may start to cut the overnight policy rate by 25 to 50 basis points.
• Interest rates hike by the United States Federal Reserve (Fed) must happen this year as the uncertainty on the timing of the hike is causing volatility in regional markets.
• The ringgit’s decline is more influenced by non-economic factors and an over-reliance on oil and gas revenue, as well as political issues.
• Moody’s Investors Service today assigned a definitive A3 senior unsecured rating to the US dollar trust certificates (sukuk) issued by Malaysia Sovereign Sukuk Bhd, a special purpose vehicle established by the Malaysian government.An aggregate interest of over US$9 billion (RM32.67 billion) drawn from the issuance of Malaysia's US$1.5 billion sukuk recently signalled foreign investors' confidence in the country's long-term economy fundamentals, a treasury official said.
• Bank of America Merrill Lynch (BofAML) expects Bank Negara Malaysia (BNM) to cut the overnight policy rate (OPR) by 25bps in the second half of the year, due to weaker consumer spending, investments and exports that would lead to significantly slower growth.