Market Research, Tuesday
US Market :
U.S. equities closed slightly higher on Monday amid dealmaking news, but a decline in General Electric shares, coupled with worries about tax reform, capped gains in the major indexes. The Nasdaq composite finished 0.2 percent higher at 6,757.60, with Facebook, Amazon and Netflix rising, while Apple and biotech stocks declined.
Europe Market :
The pan-European STOXX 600 came off its session lows, to close provisionally down 0.66 percent. Almost all sectors ended the day lower. The pound fell on growing concerns over the future of Theresa May as U.K. prime minister
Precious Metal Gold :
Gold recouped some of the previous session’s hefty losses on Monday as the U.S. dollar steadied and uncertainty over a U.S. tax reform plan stoked risk aversion, pulling equities from their recent record highs. Prices remained stuck in a narrow range, however, as investors awaited more clues on the path of U.S. interest rates.
Crude Oil :
Oil prices held steady in a tight range Monday, with support from Middle East tensions and record long bets by fund managers balanced by rising U.S. production. OPEC forecast higher demand for its oil in 2018 and said its production-cutting deal with rival producers was reducing excess oil in storage, pointing to an even tighter global market next year.
Indices & Commodities :
DJIA: 23,439.70 (+17.49)
S&P500: 2,584.84 (+2.54)
NASDAQ: 6,757.60 (+6.66)
DAX: 13,074.42 (-53.05)
FTSE: 7,415.18 (-17.81)
EuroStoxx50: 3,578.29 (-15.47)
Comex Gold: 1278.9 (+4.7)
Comex Copper: 3.1165 (+0.0405)
WTI Crude Oil: 56.76 (+0.02)
Brent Crude Oil: 63.16 (-0.36)
BMD FKLI: 1736.50 (-2.00)
BMD FCPO: 2761.00 (-37.00)
Economic Events :
08:30am –AUD NAB Business Confidence(Oct)
10:00am – CNY Fixed Asset Investment(YoY)(Oct), Industrial Production(YoY)(Oct)
02:30pm – INR WPI Inflation(YoY)(Oct)
03:00pm – EUR German CPI, GDP
04:00pm – EUR Spanish CPI,HICP
04:15pm – CHF PPI(MoM)(Oct)
05:30pm – GBP CPI, PPI input
06:00pm – EUR Italian CPI
06:00pm – EUR German ZEW Current Conditions(Nov), German ZEW Economic Sentiment(Nov)
06:00pm – EUR GDP, Industrial Production
07:00pm – BRL Retail sales
09:30pm – USD Core PPI,PPI
01:30am – GBP BoE MPC Member Cunliffe Speaks
02:05am – FOMC Member Bostic Speaks
05:30am – API Weekly Crude Oil Stock
FX & Bonds :
USD/MYR – 4.191
EUR/USD – 1.166
GBP/MYR – 5.497
AUD/MYR – 3.192
SGD/MYR – 3.077
Msia 10 yr Bond Yield – 4.08%
13/11/2017 Bursa Trade Stat :
Retail – net BUY 21.5mil
Institution – net SELL 21.5mil
Foreign – net 0.0mil
Total traded value 2239.6mil
• Guan Chong Bhd’s net profit for 3QFY17 leapt 92% to RM29.7 million, from RM15.48 million recorded in the same quarter last year, mainly due to lower cocoa bean prices.
• United Plantations Bhd’s net profit 3QFY17 rose 18.8% to RM98.76 million, from RM83.14 million a year ago, thanks to higher revenue incurred in the quarter by both its plantations and refinery segments.
• KLCCP Stapled Group Bhd’s net profit was almost flat at RM177.7 million for 3QFY17 due to higher operating expenses and lower interest income.
• Trive Property Group Bhd signed a joint venture agreement (JVA) with Jiangxi Fujing New Energy Technology Co Ltd for a planned collaboration in the manufacturing and sale of solar energy products, including solar cells and panels.
• Tadmax Resources Bhd has announced today that its combined cycle gas turbine (CCGT) power plant project in Pulau Indah will be jointly developed with South Korea’s state-owned utility company, Korea Electric Power Corporation (KEPCO).
• Rohas Tecnic Bhd has been awarded a turnkey contract to install new power transmission lines and reinforce existing ones in Bangladesh for about RM54 million.
• Dataprep Holdings Bhd shareholders have been told to reject the takeover bid launched by businessman Tan Sri Muhammad Ikmal Opat Abdullah, which has been termed “not fair and not reasonable” by independent adviser Mercury Securities Sdn Bhd.
• Scicom (MSC) Bhd said the expiry of a 5-year tax incentive granted on its statutory business process outsourcing (BPO) income derived in Malaysia is not expected to significantly impact the group’s bottom line or its dividend payout ratio.
• My E.G. Services Bhd group managing director Wong Thean Soon said he is not planning to acquire diversified entity Malayan United Industries Bhd (MUI).
• Dutch Lady Milk Industries Bhd has appointed Tarang Gupta as its new managing director with effect from Jan 1, 2018.
Source from: www.theedgemarkets.com
KLSE OUTLOOK FOR 14-11-2017 (TUESDAY): THERE ARE ONLY A HANDFUL OF STOCKS IN A GENERALLY SOFT KLSE MARKET – FRED TAM
The KLCI was lower by 4.79 points or 0.28% to close at 1737.49 and losers beat gainers by 594 to 319 while 921 counters were unchanged.
There were a lot more losers than gainers yesterday and this situation has been almost the same for six months, or maybe even longer. In a soft market like this, you can imagine how hard it is to make money.
One has to be pretty accurate to pick the “right” stocks to be able to make money. And “right” stocks are not easy to come by. Thank goodness technical analysis has helped us identify the right stocks to enter and to exit.
Yesterday oil and gas stocks – again – provided some cheer. HENGYUAN especially, broke through its day before yesterday’s high of 10.20 triggering a “buy on breakout” signal.
Those who followed this “B.O.B.” (Buy On Breakout) call would have been better off by another 0.40 sen as HY closed at 10.60.
How about today? Once again, note yesterday’s high of 10.94. If this can be exceeded, look for further rallies as our new targets are 11.20/11.80 and 12.30. But note from my detailed report that HENGYUAN’s 15-minute chart already triggered a “sell” signal. If you ask me, by yesterday evening our F1-TAD system have triggered a sell call. As such we would stay aside and watch for support before re-entering today.
HIBISCUS did well on opening bell, but during the day succumbed to sell pressure. But the “doji” close merely meant “uncertainty” and not weakness. Today it is possible for HIBISCUS to continue with its uptrend over-riding yesterday’s doji. HIBISCUS is both a fundamentally and technical strong stock and one that can be held on for the longer term.
Other stocks-to-watch that we expect to rally on Tuesday are: KGB, MASTEEL, SALCON, LIONIND (H), DIALOG, TMCLIFE, WTK, COASTAL. UCHITEC, GCB. The rest are “holds”.
A word of crude palm oil. FCPO fell and triggered our sell stop. We are now staying aside as it violated its 20-EMA. However, price is still above its 50-EMA support line of 2755. And until it closes below this 50-EMA line, we do not feel comfortable to short. Look for a rebound to re-enter long FCPO. It is still on the bullish side.
Have a great Tuesday and as always, good trading!