Archive for the ‘Stock Tips’ Category

Trade Wisely


Gold prices are facing resistance almost in the same as the January highs of 1,113 whereas a better than expected Chinese trade data gave a support near the 10-day Moving Average at 1,085. Gold prices climbed higher due to the US stocks moving lower and the investors running towards the yellow metal to take cover. MACD(Moving Average Convergence Divergence) indicator is suggesting positive momentum. Trading Signal Trial
The Silver markets on Wednesday climbed up but were still within the same range which they have not left for some time. We have a resistance at $14.60 level, but with people rushing towards gold suddenly has brought massive buying buying pressure in gold. Hence, silver too might get some taste. we have hopes that the market might garner some short term gains in the immediate future. Any pullback from this level, might see a support at the $13.80 level.
Crude Oil
Crude Oil prices remained stationary and consolidated in the same range, despite of decline in inventories if heating oil and gasoline. We have a resistance in the vicinity of 10-day Moving Average at 33.86 and a support near the January low at 29.93. The Relative Strength Index(RSI) showed an oversold level. In any case, if we fall any more; the downward move would only gain speed whereas any upward rallies should be exploited.
The GBP/USD pair took a dive on Wednesday under the negative market pressure. The pair somehow managed to form a hammer and gives some hope of a residual resilience left. Any type of rally initiating in this area has the potential to be exploited as a short position. Even a breach below the lows from the past few days would serve the same purpose. Long positions at the moment are not comfortable to enter at the moment.
The EUR/USD after having found a jumping base at 1.08 level had a roller coast ride on Wednesday moving to and fro for the entire duration. The majority negative sentiment that is prevalent at the moment is dense enough to keep us on the sidelines for the moment. For the time being, best move is to exploit short positions on short term rallies.
The AUD/USD kept fluctuating around the 0.70 level which led to the pair slipping on Wednesday. The present scenario signals that it might go even lower. An up trend line was noticed to have been breached which can be considered to be a shift in the momentum and the rallies are also observed to be under selling pressure. Our expectations are around 0.65 level being reached given sufficient time.
The USD/JPY saw massive resistance at 118.50 level and dropped on Wednesday. The present scenario also suggest that the drop might continue. The main point of this pair is that ii is very sensitive to risk aversion and hence would see a large majority returning to sell US dollars.Long positions are only to be entered in case the 119 level is breached.

Gold markets, once again to check the depths breaking below the $1090 level on Tuesday. We have a support at the $1080 level, which might be tested if it breaks the current level. Current scenario shows the US dollar to be relatively stronger than precious metals. Short positions would be our choice once we breach the$1080 level and a likely target might be $1060 level. Long positions are not to be entered without confirmation of sorts in the form of a supportive candle. Live Trial Signals
Silver markets dipped again on Tuesday, breaching the $13.80 level.Due to a support below, we are sceptical there might a break in this fall in the near future. At present the comfortable move to take would be a short position. There happens to be resistance extending to the $14.00 level and we believe any attempt to rally might turn into consolidation. 
Crude Oil 
Crude Oil went on quite a ride on Tuesday, making a low of $29.93 per barrel which happens to be a two year low and later came back to $30.57 per barrel. Expectations are that the prices might recover to some extent in light of larger than expected draw as stated by the American Petroleum Institute. We see a resistance near the 10-day Moving Average at 34.60 level and the MACD(Moving Average Convergence Divergence) is signaling a negative momentum.
USDCAD is having potential to move upto the level of 1.5100 but the next trigger would be CRUDE OIL Prices (below $30, WTI/NYMEX)
Important FOREX Counters for 2016
The GBP/USD pair dipped below on Tuesday, touching the depths around 1.45 level. At the moment, short positions are the ones that are more comfortable to enter in.Our suggestion would be to short any rally that shows signs of exhaustion below the 1.45 level. Due to the new low, it seems the current down trend might continue for the moment. Relatively it seems it US dollar will continue to strengthen.
The EUR/USD pair seemed to be in a hurry to reach the 1.08 level as it slipped on Tuesday. The present picture suggests it might check the 1.07 level which has a history of being quite a turbulent seems the pair is going to attract more buyers in the immediate future, however the 1.08 level might have more supportive characteristics than being assumed.The present outlook does suggest the overall bearishness might prevail for some time.
The AUD/USD pair went for a roller coast ride on Tuesday as it continued to fluctuate in the 0.70 level. The overwhelming fears of the gold markets falling and the softness in the Australian dollars is what has clouded this pair. Our interest in the short positions is due to a recent trend line breakout. Long positions at the moment are not comfortable to enter in.
The USD/JPY made an attempt to rally on Tuesday, however the sellers returned and formed a star like candle. This forces us to believe that the pair will continue to fall and we still have a chance of sellers returning after a short term rally. We might enter into long positions but only when we breach above the 119 level, which doesn’t look like it will happen in nearby future.

Market Review for KLCI:
The FBM KLCI index lost 39.14 points or 2.31% on Monday. The Finance Index fell 1.82% to 13902.09 points, the Properties Index dropped 1.69% to 1167.5 points and the Plantation Index down 1.53% to 7503.42 points. The market traded within a range of 34.52 points between an intra-day high of 1687.89 and a low of 1653.37 during the session. 3 Days Free Trial Signals
The KLCI extended its midday losses by ending lower 1653.37 points amid overnight losses in Wall Street. The performance of our local bourse was in tandem with most of our regional peers.
Market forecast for KLCI:
The KLCI market is expected to trade sideways in coming session, however if it breaks the level of 1650 with strong bearish sentiments followed by the dropping market volume then it may test the level of 1630 in near term.

  • SKB Shutters Corp Bhd is projecting growth for the 2017 fiscal year, driven by its new insulated fire shutter and insulated fire rated steel door products.
  • Penang’s construction industry is expected to stay flat this year with a value of about RM6.8bil, which is almost the same as in 2014.
  • Ekovest gained six sen to RM1.13. It is linked to Tan Sri Lim Kang Hoo since his brainchild Iskandar Waterfront Holdings (IWH) makes up part of the consortium that won the Bandar Malaysia bid from 1Malaysia Development Bhd (1MDB).
  • Petronas Dagangan fell 20 sen to RM24.66 with 400 shares done while Petronas Chemicals was down 11 sen to RM7.16 with 200 shares traded.
  • CIMB Equities Research said integrated environmental engineering and technology provider Cypark Resources core net profit for the financial year ended Oct 31, 2015 made up 96% of its full-year forecast.


  • Asian stock markets tumbled while safe haven assets and oil prices jumped Monday in the first full day’s trade of 2016 as a flare-up in tensions between Iran and Saudi Arabia raised concerns about the volatile Middle East.
  • China’s benchmark CSI300 share index tumbled 7 per cent on the first session of 2016 on Monday, prompting the stock exchange to halt trading for the rest of the day.The “circuit breaker” suspension mechanism first came into effect on Monday.Stocks slumped after weak factory activity surveys soured hopes that the world’s second-largest economy will enter the new year on better footing, and selling intensified throughout the day.
  • Hong Kong stocks posted their biggest fall in three months on Monday, marking a gloomy start for 2016, pulled lower by slumping mainland shares and weak global markets.The Hang Seng index fell 2.7 per cent, to 21,327.12, registering its biggest one-day per centage fall since Sept. 29.
  • Australian shares fell on the first trading day of 2016 as a sell off in Chinese equities dampened risk sentiment, though gains in energy and healthcare shares capped losses.The S&P/ASX 200 index dipped 0.3 per cent or 16.85 points to 5,279.0 , on disappointing factory activity surveys in China.
  • The Singapore economy grew at a better-than-expected 2.0 per cent on a year-on-year basis in the last quarter of 2015, advanced estimates show, and is expected to register a full-year growth of 2.1 per cent in 2015.The growth was a clip faster than the third quarter’s 1.8 per cent, and on a quarter-on-quarter seasonally adjusted annualised basis, the economy expanded at a faster pace of 5.7 per cent compared to the 1.7 per cent growth in the preceding quarter.
  • China’s factory activity contracted for the 10th straight month in December, and at a sharper pace than in November, a private survey showed, dampening hopes that the world’s second-largest economy will enter 2016 on steadier footing.The Caixin/Markit China Manufacturing Purchasing Managers’ Index (PMI) slipped to 48.2 in December, below market expectations for a slight pick-up to 49.0 and down from November’s 48.6.
  • China’s yuan weakened against the dollar at its open on Monday after the central bank set the guidance rate at a more than 4-1/2-year low.Prior to market open, the People’s Bank of China set the yuan midpoint rate at 6.5032 per dollar – its lowest level since May 2011, 0.15 per cent weaker than the previous fix of 6.4936.
  • Oil prices jumped over 2 per cent in the first trading hours of 2016 as relations between Middle Eastern rivals Saudi Arabia and Iran deteriorated following Riyadh’s execution of a prominent Shi’ite Muslim cleric.Global oil benchmark Brent climbed over 2.5 per cent and more than a dollar.
  • Gold and silver climbed on the first trading day of 2016 as rising tension between Saudi Arabia and Iran spurred a return to haven assets.Bullion for immediate delivery rose as much as 0.9 per cent, for its biggest gain since Dec 21. The metal lost 10 per cent in 2015 for a third annual drop, the longest slump since 2000.

Straits Times Index (STI) opened lower at 2832.44 on Monday and ended higher to this week by recovering the gap down at the week start by closing at 2852.84. 3 Days Free Trial Signals
STI came off from its weekly peak of 2857.39 and low of 2831.10 this week and it keep on rising in 4 consecutive working days in this week which brought which recovered the fall on the opening at the starting of this week on Monday. Wall Street’s sudden slump on Thursday suggests that markets are still locked in monetary expansion mode, preferring rates to remain depressed. the impact here was rises for the Straits Times Index before and immediately after the FOMC meeting.
STI is expected to be in positive sentiment next week. STI has taken support near 2757 and expected to maintain this support next week as well. It has its resistance at 2941. If it breaks this resistance than it might go up to 2950.

  • MM-2 Asia has entered into an agreement to acquire a majority stake in Millinillion, a tech start-up developing interactive solutions for digital users globally.Millinillion is a company specializing in developing Business to Consumer (B2C) mobile applications and digital interactive solutions for clients.MM-2 and Millinillion will jointly develop a series of mobile applications in data-based marketing, music and industry talent pool management.
  • Marine fabrication and engineering firm Triyards seems keen to divorce from the embattled oil & gas industry this year.The company has won contracts worth US$45.5 million ($64.5 million) to build vessels that have nothing to do with oil & gas, an industry suffering falling commodity prices and order cancellations.Other firms in the sector, such as SembCorp Marine and Keppel Corp have seen their share prices suffer this year amid falling demand for their rigs and vessels.
  • Q&M Dental Group (Singapore) plans to restructure its stake in Qinhuangdao Aidite High Technical Ceramic Co ahead of a possible listing of the China-based manufacturing subsidiary.As part of the restructuring, Aidite will reduce its equity capital to 23.97 million yuan from 47 million yuan.
  • Golden Land Property Development shareholders have approved Frasers Centrepoint’s (FCL’s) proposed acquisition of 29.5% of its enlarged share capital through a 4.97 billion baht ($196 million) new capital injection.Golden Land is one of the country’s leading real estate developers engaged in residential and commercial property development, as well as property management and property advisory services.
  • Mencast Holdings says its energy services division has renewed its service contract with the Asian headquarter of an oil supermajor for environmental remediation services for another three years.The contract also includes the option for an extension for a further two years.Another exiting long-term contract with the same client has also been revised to include additional services and increased volumes for the remainder of its term.
  • CMC Infocomm expects to report a net loss for 1H2016.The net loss was primarily due to substantial one-off professional fees incurred in relation to the initial public offering exercise when after the company was listed on the Catalist board .In addition, the group recorded an increase in overhead expenses, mainly payroll expenses due to additional headcount to support the execution of the group’s expansion into new and complementary businesses in Singapore and Malaysia.Shares in CMC Infocomm closed flat at 15.1 cents.


  • Asian shares took their cue from Wall Street and slipped on Friday, and Japanese stocks slumped after briefly jumping on the central bank’s statement that it would expand parts of its stimulus programme.

  • China stocks held nearly steady on Friday, capping a dramatic week that witnessed a strong relief rally in the previous session following an expected rise in US interest rates.Investors are now refocusing on economic fundamentals, with a key central government economic meeting that starts on Friday likely to offer the market fresh cues for directions.The blue-chip CSI300 index rose 0.3 per cent, to 3,767.91.

  • Japanese stocks fell on Friday in a session that turned volatile after the Bank of Japan announced it would maintain its massive stimulus programme’s base money target while expanding the types of assets it purchases.The benchmark index was down 1.9 per cent to 18,986.80, and had lost 1.3 per cent for the week.

  • Hong Kong stocks ended Friday slightly lower, as many sectors corrected after the previous session’s relief rally following the long-expected US interest rate hike.The Hang Seng index fell 0.5 per cent, to 21,755.56, while the China Enterprises Index lost 0.3 per cent, to 9,634.41 points.

  • European stock markets slid at the start of trading on Friday as a rally inspired by the US interest rate hike petered out heading into the weekend break.London’s benchmark FTSE 100 index dropped 0.8 per cent to 6,056.9 points.

  • China’s ravenous appetite for overseas assets is powering a record year for Asian dealmaking, with deal volumes in the region surpassing the US$1 trillion mark annually for the first time.Acquisitions involving companies in the Asia Pacific region rose 55 per cent in 2015 to US$1.2 trillion.Chinese buyers snapped up premier assets, ranging from the world’s biggest luggage handler to Italian tire brand Pirelli & C SpA, and accounted for about half the deals from the region.

  • Singdollar projected to decline most in 2016 amongst Asian currencies as the growth in Asia’s developing economies will slow to 6.4 per cent next year from 6.5 per cent in 2015, with China’s expansion decelerating to 6.3 per cent from 6.8 per cent. That means Asian central banks will need to further cut interest rates while the Fed gradually tightens, resulting in outflows and weaker currencies.

  • The US dollar pushed higher against other major currencies on increasingly bullish sentiment about the greenback following the Federal Reserve’s historic decision to lift US interest rates.

  • Crude prices sank deeper in Asian trading on Friday after the US oil benchmark closed at its lowest level since February 2009 on worsening oversupply concerns and a stronger dollar.West Texas Intermediate (WTI) for January delivery was trading at US$34.77 per barrel, 18 cents off its close of US$34.95 in New York.

  • Gold steadied on Friday but largely kept losses made a day earlier when the metal suffered its biggest slide in five months after U.S. interest rates were raised for the first time in nearly a decade and the dollar surged.Spot gold ticked up 0.3 percent to $1,054.40 an ounce by 0327 GMT, following a 2 percent slide in the previous session, its biggest one day slide since July. The metal is down nearly 2 percent for the week in its worst performance in six weeks.

Singapore’s benchmark Straits Times Index (STI) opened 3.43 points higher or 0.12% on Thursday morning after the US Federal Reserve raised its short term interest after 7 years and the market ended higher to 20.26 points or 0.71 percentage higher at 2861.18. STI came off from its intra-day peak of 2868.27 and low of 2833.57. Market breadth was positive. Excluding warrants, gainers outnumber decliners 200 to 165. Get Free Trial of Trading Signals
Non-oil domestic exports fell 3.3% y-o-y in November after flat growth in October.On a m-o-m, seasonally adjusted basis, NODX slipped 3.8% after October’s 0.3% dip.Both the y-o-y and m-o-m figures for October have been revised: the former was earlier reported to be a 0.5% decline and the latter was a 1.1% rise.Non-oil re-exports continued to increase in November, but eased from 6.1% in October to 5.1% y-o-y,due to an expansion in both electronic and non-electronic NORX.
STI is expected to consolidate with positive sentiment in its next trading session. Also the market has responded positively towards the interest rate hike by Federal Reserve for the first time in nearly a decade on Wednesday. It has its support at 2829 and resistance at 2876. Investors are cautious as Singapore non-oil domestic exports fell in November but the market is expected to move with positive sentiments.

  • IPC Corporation is proposing a capital reduction move to return $136.467 million in cash to shareholders, or $1.60 per share.The existing cash hoard of the company came from sale of seven hotels in Japan for around JPY14.94 billion, or some $172.22 million.

  • The Trendlines Group has established two new portfolio companies, Tandem Technologies and Zeev Implants, via its unit Trendlines Medical.The two new companies bring the total number of Trendlines portfolio companies to 47.Tandem Technologies aims to make the process of removing and retrieving colon polyps much more efficient and accurate, with the goal of a near 100% retrieval rate.

  • EZRA Holdings has agreed to buy subsidiary EMAS Offshore’s entire 12.13 per cent stake in Malaysia-listed Perisai Petroleum Teknologi for US$56 million, a 500 per cent premium to the share market value.The agreed price of US$56 million is based on the cost of EMAS’s investment at inception.


  • Asian stock markets jumped on Thursday as investors chose to take an historic hike in US interest rates as a mark of confidence in the world’s largest economy, lifting the dollar and piling on the pain for oil prices.China also allowed its currency slip for a 10th straight session to hit its lowest since June 2011. The steady decline in turn puts pressure on other Asian currencies to depreciate to stay competitive.

  • The Federal Reserve hiked interest rates for the first time in nearly a decade signaling faith that the US economy had largely overcome the wounds of the 2007-2009 financial crisis.The US central bank’s policy-setting committee raised the range of its benchmark interest rate by a quarter of a percentage point to between 0.25% and 0.50%, ending a lengthy debate about whether the economy was strong enough to withstand higher borrowing costs.

  • China stocks rallied on Thursday as risk appetite improved after the Federal Reserve raised rates for the first time in nearly a decade, as expected, removing a major source of uncertainty about the US central bank’s policy.The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 1.9 per cent, to 3,755.89.

  • The People’s Bank of China set its official midpoint rate at 6.4757 per dollar, its weakest level since June 2011, and 0.2 per cent weaker than the previous fix of 6.4626.The sharply weaker yuan midpoint reflected the dollar’s strength in global markets after the US Federal Reserve raised its policy interest rate overnight, traders said.

  • Tokyo stocks jumped on Thursday after the US Federal Reserve hiked interest rates for the first time in nearly a decade, underscoring its confidence in the health of the world’s top economy.The benchmark Nikkei 225 index at the Tokyo Stock Exchange gained 1.59 percent, or 303.65 points, to finish at 19,353.56.

  • Australian shares rose 1.46 per cent on Thursday, joining a global equities rally as investors piled back into the markets after a US interest rate hike signalled confidence in the world’s largest economy.The S&P/ASX 200 index rose 73.55 points to 5,102 at the close of trade, after reaching a high of 5,129.1 earlier in the session.

  • Japan’s exports in November fell at the fastest pace in almost three years as shipments to Asia declined in a worrying sign that weakness in overseas demand could curb economic growth. Data showed that exports fell 3.3 per cent in November from a year earlier, more than the median estimate for a 1.5 per cent annual decline.

  • The US dollar rose slightly against the euro and the yen on Wednesday after the US Federal Reserve’s historic move to raise interest rates for the first time in nine years.The dollar rose to US$1.0911 per euro around 2200 GMT from US$1.0930 at the same time on Tuesday. The greenback was up 0.5 per cent at 122.26 yen.

  • Gold slipped on Thursday to give back some of its overnight gains, with trading choppy as the dollar surged after the Federal Reserve hiked US interest rates for the first time in nearly a decade.Gold has slumped nearly 10% this year, largely on uncertainty around the timing of the rate rise and on fears that higher rates would hit demand for the non-interest-paying metal. It had fallen to a near-six-year low earlier this month.

  • Crude prices extended losses in Asia Thursday after another report showing a further increase in US stockpiles added to fears about a global glut.The under-pressure commodity suffered fresh selling on Wednesday after the US Department of Energy showed that supplies rose 4.8 million barrels.

The FTSE Bursa Malaysia (FBM) KLCI plummeted during the final minutes of trading after remaining flat for most of the day. 3 Days Free Trial Signals
The benchmark index closed down 7.12 points to an intraday low of 1,622.84 points as at 5pm, which also represents a new two-month low for the KLCI. Turnover for the day was 1.43 billion shares worth RM1.6bil. The broader market was mixed with 387 gainers, 386 losers and 389 stocks unchanged.
The declines were attributed to several component stocks of the KLCI which hit intraday lows upon market close, including Tenaga Nasional Bhd and British American Tobacco.
Key Asian markets were mostly positive at market close, while European bourses opened strongly on Tuesday as investors await what will probably be the first interest rate hike by the US Federal Reserve in a decade this week.
The Federal Open Market Committee (FOMC) will meet in Washington on Dec 16 to vote on whether to raise interest rates after a decade of close to zero borrowing costs.
Among the biggest gainers in Europe were the Stoxx Europe 600 Index which gained 1.2% in early morning trading. Similarly, Germany’s DAX advanced 1.6%.
Bloomberg reported that despite the advances, markets remain jittery due to the Fed meeting, plummeting crude oil prices as well as recent losses in high-yield credit markets .
The ringgit was recovered slightly and was last traded at RM4.3025 as at 5pm against the dollar, compared to RM4.3265 earlier this morning.
Brent crude recovered slightly to US$37.98 per barrel, while US crude rose to US$36.37.
Crude palm oil for third month delivery fell by RM69 to RM2,406 per tonne, having hit RM2,500 on Dec 11.
Westports led the decliners in the KLCI after falling 14 sen to close at RM3.85.Astro fell 9 sen to RM2.53.
Among the plantation counters in the KLCI, PPB Group rose 2 sen to close at RM15.38. Sime Darby fell 10 sen to RM7.29 while Kuala Lumpur Kepong closed flat at RM22.14.
Petronas Chemicals led the gainers after rising 15 sen to close at RM6.80. Petronas Gas fell 4 sen to RM22.10 while SapuraKencana Petroleum fell one sen to RM1.86.
Among the banks, Hong Leong Bank closed up 12 sen to RM13.40. Maybank fell 7 sen to RM8.18 while CIMB was flat at RM4.40.
AmBank fell 5 sen to RM4.31 while Public Bank was down 2 sen to RM18.24.
As for telcos, Maxis fell 3 sen to RM6.51 while DiGi closed flat at RM5.03. Axiata rose two sen to RM6 while TM fell two sen to RM6.43.
Glovemakers were among the top gainers in the broader market. Top Glove Corp closed at a new all-time high of RM11.86 after gaining 86 sen today on the back of strong quarterly earnings. Meanwhile, Supermax rose 15 sen to close at RM2.91.
Among the key regional markets:
Japan’s Nikkei 225 fell 1.68% to 18,565.90;
Hong Kong’s Hang Seng Index fell 0.17% to 21,274.37;
The Shanghai Composite Index fell 0.29% to 3,510.35;
CSI 300 fell 0.46% to 3,694.39;
Taiwan’s Taiex rose 0.41% to 8,073.35;
South Korea’s Kospi rose 0.27% to 1,932.27 and
Singapore’s Straits Times Index gained 0.19% to 2,820.34.
Spot gold fell US$3.02 to US$1,062.89 per troy ounce.