Market Briefing, Tuesday
US Market :
The Dow Jones industrial average notched a record closing high on Monday after the Senate narrowly passed a major tax bill over the weekend. Senate Republicans managed to narrowly pass a bill to revamp the country’s tax system on Saturday.
Europe Market :
European markets closed higher Monday afternoon as investors digested news that the U.S. Senate narrowly passed a major tax bill over the weekend.
Precious Metal Gold :
Gold prices fell on Monday toward the four-week lows hit last week as the U.S. dollar strengthened after the U.S. Senate approved a major tax overhaul and the market looked ahead to a meeting of the Federal Reserve later this month.
Crude Oil :
Oil prices tumbled on Monday on profit-taking as the market eyed signs of rising U.S. production, though futures remained close to recent mid-2015 highs thanks to last week’s decision by OPEC and other producers to extend output cuts.
Indices & Commodities :
DJIA: 24,290.05 (+58.46)
S&P500: 2,639.44 (-2.78)
NASDAQ: 6,775.37 (-72.22)
DAX: 13,058.55 (+197.06)
FTSE: 7,338.97 (+38.48)
EuroStoxx50: 3,574.06 (+46.51)
Comex Gold: 1,277.7 (-4.6)
Comex Copper: 3.0900 (-.0025)
WTI Crude Oil: 57.47 (-.89)
Brent Crude Oil: 62.45 (-1.28)
BMD FKLI: 1710.5 (-11.0)
BMD FCPO: 2583 (-20)
Economic Events :
8.30AM – AUD Retail Sales (MoM) (Oct)
11.30AM – AUD RBA Interest Rate Decision (Dec), RBA Rate Statement
5.30PM – GBP Services PMI (Nov)
11.00PM – USD ISM Non-Manufacturing PMI (Nov)
FX & Bonds :
USD/MYR – 4.066
EUR/USD – 1.184
GBP/MYR – 5.496
AUD/MYR – 3.089
SGD/MYR – 3.014
Msia 10 yr Bond Yield – 3.85%
4/12/2017 Bursa Trade Stat :
Retail (15.21%) – net BUY 5.28mil
Institution (54.57%) – net SELL 94.83mil
Foreign (30.22%) – net BUY 89.55mil
Total traded value 2572.67mil
• Handal Resources Bhd has partnered with China-based Harbin Jingwei Advanced Composite Material and Engineering Corp to jointly develop innovations and advanced material applications for the oil and gas industry in Malaysia and the region.
• IOI Corp Bhd sees strong support for crude palm oil (CPO) prices at RM2,500 to RM2,650 per tonne in the next two months which is about 7% higher compared with current CPO prices.
• KKB Engineering Bhd has won three contracts worth a combined RM16.8 million for projects in Sarawak.
• Kronologi Asia Bhd sees its new partnership with a member of Temasek Holdings to provide data backup services as one that will open up avenues for the group to do business with the public sector.
• Al-Salam Real Estate Investment Trust is acquiring 22 properties located across Malaysia for a combined RM115 million in a related party transaction.
• The major shareholders of Hovid Bhd have extended the closing date to accept their takeover offer to Dec 29, after their shareholding rose to only 61.45% as of the cut-off date today below the 75% acceptance level they were seeking.
• UOA Development Bhd is buying a further 35% stake in Everise Project Sdn Bhd from Kaginic Assets Holdings Sdn Bhd for RM159.54 million, which would bring its total shareholding in the property development company to 74%.
• Ireka Corp Bhd has teamed up with the world’s largest manufacturer of rolling stock and rail-related products and systems CRRC Urban Traffic (Europe) Co Ltd (CRRC UT) for the collaboration in rail, urban traffic solution, tourism and infrastructure projects in Malaysia and Southeast Asia.
• Cypark Resources Bhd announced its wholly-owned Cypark Renewable Energy Sdn Bhd (CRE) had received a Letter of Acceptance of Offer from the Energy Commission, for the development of its 30 MWac solar plant in Negeri Sembilan.
• UMW Oil & Gas Corp Bhd has bagged a US$6.8 (RM27.64) million contract to provide a jack-up drilling rig for ConocoPhillips Sarawak Ltd.
• IJM Corp Bhd said its wholly-owned IJM Construction Sdn Bhd has entered into a pre-bid agreement with three companies to participate in the tender for the Kuala Lumpur-Singapore High-Speed Rail project.
The agreement was signed with Sunway Construction Sdn Bhd, a unit of Sunway Construction Group Bhd, Jalinan Rejang Sdn Bhd and Maltimur Resources Sdn Bhd, with a consortium set up on an equal shareholding of 25% each.
Source from: www.theedgemarkets.com
KLSE OUTLOOK FOR 05-12-2017 (TUESDAY): SOFT MARKET CONTINUES AS STRONGER RINGGIT FAIL TO LIFT STOCKS.- FRED TAM
The KLCI was lower by 4.73 points or 0.28% to close at 1713.13 and losers led gainers by 659 to 286 while 891 counters remained unchanged.
Yes, our stocks were down for another day. This has been going on almost everyday, and traders are hoping against hope for a rebound – that never came.
Market breadth was negative most days, triggering the KLCI with TAD sell signals on 28 June 2017 at 1771 and another sell signal on 27 Sept 2017 at 1764. It is so clear cut that our KLCI is on a bear trend as it has crossed below all moving averages (from 50, 100 to 200 EMA).
Now, this bearish sentiment has rubbed off onto small cap stocks as evidenced by the EMAS index, small cap index, MiDS small and mid cap index, ACE index. Only the Technology index is still mildly bullish.
If you follow technical principles, then a market or stocks is considered bearish if it closes and trade below its moving averages. Short medium term is defined by the 50-EMA, medium term defined by the 100-EMa and the long term by the 200-EMA.
Now, our Malaysian indices as mentioned above are now below these averages. You still like to hold? As chartists it is our duty to highlight to you the seriousness of these signals. But as this report is for information and discussion purposes, of course the right to buy or sell is your own.
If you are holding onto stocks, note that you will have to check your stock’s moving averages. Not all are tracking below its averages. If they are still above, they are still classified as bullish.
Stocks like INARI, PMETAL, PMETAL-WC, LBS, GKENT, PENTA, SERBADK, VS, VS-WA, UMWOG, HENGYUAN, HIBISCUS, WASEONG, HSSEB, UCHITEC, KKB, SIGGAS, TENAGA, DIALOG are still holds.
There are many others too and the above is not an exhaustive list. If you do a scan using Share Investor Station you will know what other stocks is a hold or a sell.
So, do not panic and sell everything just because an index is bearish. You will still have to double check with your stock’s averages.
HENGYUAN did very well after results were announced. It gapped up and closed up 0.90, at 11.42. Note yesterday’s low and high, especially its low of 11.24. Any close below 11.24 may be a good take profit (exit) level.
Target is at 12.30. Ant penetration above 12.30 will be a rounding bottom breakout, which may even mean higher prices. It is up to you if you are willing to take the risk and hold as it cross the 12.30 barrier. A stronger risk appetite player may do so, but always remember to have a stop loss in place in case the stock reverses. You won’t want to give back your hard earned profits.
As the market is weak, we have no stocks to watch for Tuesday.
FCPO triggered a short signal with buy stop at 2607 OH..
Have a great Tuesday but be vigilant as our market is currently soft. If need be, reduce positions if stops are hit.