Archive for December 30, 2014

The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) was up 0.93 of a point to 1,769.34 after opening 2.61 points lower at 1,765.8. Shares on Bursa Malaysia were almost flat in early morning trade today with year-end window dressing activities, interspersed with profit taking. Stocks To Pick
Index lost 1.58 points or 0.09% on Tuesday. Finance Index fell 0.04% to 15714.98 points, Properties Index dropped 0.45% to 1289.26 points and Plantation Index down 0.16% to 7838.12 points. Market traded within a range of 16.57 points between an intra-day high of 1770.52 and a low of 1753.95 during the session.
The day ended lower with the KLCI inched down 1.58 points at 1766.83, after being weighed down by blue chips, led by SapuraKencana and FGV. Meanwhile, market breadth was weaker, amid continuous concern over the decline in oil prices to the lowest level in more than five years coupled with political instability in Greece.
FBMKLCI Day Performance
Open: 1765.80
High: 1770.52
Low: 1753.95
Close: 1766.83
Change (in Points): -1.58
%Change: -0.09%
Volume: 1634.8M
Rise: 382
Fall: 402
Unch: 1827
Market forecast for KLCI: KLCI Trend is more in sideways, We are seeing light volume in Asian trading, oil prices have once again touched new lows over longer term concerns about US production levels. Investors winding down for the end of the year. Technically buyers & sellers challenge combined to form a Bearish Harami candlestick pattern which may reverse the trend.
Technical indicators: RSI stood below the center line at 52.629 with its CCI at 78.633. Difference line of MACD performed at -10.406 above its signal line which performed at -19.278.
KLCI LEVELS
Support 1: 1720
Support 2: 1700
Support 3: 1670
Resistance 1: 1748
Resistance 2: 1765
Resistance 3: 1790
ECONOMIC FACTORS:

  • The shipping industry is expected to see further merger and acquisition (M&A) activities in 2015, particularly with owners who are generally trampers in nature and with smaller fleets.
  • Asian markets slipped Tuesday following the previous day’s healthy gains, while the euro struggled against the dollar as Greece plunged back into crisis, rekindling fears of a possible exit from the euro zone.
  • The ringgit extended yesterday losses to open lower against the US dollar this morning on continued selling .
  • Bursa Malaysia posted its best weekly gain year-to-date last week, after its benchmark FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) rose 2.8%.
  • Solid Auto-motive Bhd’s net profit doubled to RM3.13 million in the Q2 ended October 31 from RM1.43 million a year ago on the back of lower finance costs. Its revenue surged 16.3% to RM36.4 million compared with RM31.31 million in the same period, driven by higher contribution from both domestic and export markets.
  • Malaysian Industrial Development Finance Bhd (MIDF) is offering a special financing scheme worth up to RM100,000 each under the SME Emergency Fund (SMEEF) for the flood-affected small and medium entreprises (SMEs).
  • The insurance industry is likely to be stable next year despite the uncertainties in the global economy affecting Malaysia.
  • Gunung Capital Bhd’s unit, GPB Corp Sdn Bhd, has secured a RM165 million service contract from the Defence Ministry to provide transportation services for the National Service (NS) trainee programme.
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Share prices opened flat with the Straits Times Index up 0.72 points to 3370.77. Asian shares got off to a lacklustre start, as a sharp sell off in commodities and political uncertainty in Greece made investors less willing to take risks in the final trading days of 2014. stiHigh of the day was 3373.93 and low was 3359.29. Stocks to Pick
STI Day Performance
Open: 3370.77
High: 3373.93
Low: 3359.29
Close: 3366.11
Change (in Points): -1.58
%Change: -0.5
Volume: 924.8M
Rise: 181
Fall: 174
Unch: 434
Market forecast for STI:
Asian stocks are falling down as oil hits risk sentiment, from last three days STI was in bullish so now it is in correction mode. We may expect STI will be in consolidation face.
Technical Indicators:
RSI is at 59 and CCI is at 115.
STRAITS TIME LEVELS
Support 1: 3340
Support 2: 3330
Support 3: 3320
Resistance 1: 3360
Resistance 2: 3370
Resistance 3: 3380
Macroeconomic factors:

  • Net demand for office space in Singapore in 2014 was slightly lower at 1.36 million square feet in 2014, as compared to 1.45 million sq ft for 2013.
  • A second ex-president of Singapore Technologies Marine Ltd (ST Marine) has been charged in court, in a corruption scandal that has implicated six of its former high level executives.
  • SBI Offshore has bagged a procurement contract for drilling equipment systems of a semi-submersible offshore rig to be built in China.
  • Oil prices have halved this year, dragging on firms involved in Asian energy projects as costs remain high amid dwindling revenues, yet equity analysts continue to have a largely positive industry outlook.
  • Gross domestic product was seen expanding 2.0 per cent in the fourth quarter from a year earlier, moderating from 2.8 per cent year-on-year growth in the third quarter, according to the median forecast in the poll of 12 economists.DBS Group
  • Holdings made a clean sweep of all three Singapore awards at the recent IFR Asia Awards 2014.