On Our Technical Watch

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Brianna Doyle
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By the Kenanga Research Team l research@kenanga.com.my Figure 1: Daily Charting FBMKLCI Index Basic Data 52-week High 1,729.13 (in Million) 52-week Low 1,600.92 KLCI Vol 199.37 Current Level 1,662.

1 By the Kenanga Research Team l research@kenanga.com.my Figure 1: Daily Charting FBMKLCI Index Basic Data 52-week High 1, (in Million) 52-week Low 1, KLCI Vol Current Level 1, Bursa Vol Intraday High 1, Bursa Val Intraday Low 1, Technical Ratings Resistance 2 1,680 MACD Neutral Resistance 1 1,670 Stochastic Neutral Current Level 1, RSI (14) Neutral Support 1 1,650 Support 2 1,643 Outlook Neutral Another lethargic session The FBMKLCI traded volatily within the range of 1, , on low trading volume, as investors digested a stronger Crude oil price performance and negative news that the World Bank had slashed Malaysia s growth forecast citing a weak global economy. At the closing bell, the local bourse inched up 1.67 points (0.1%) to close at 1, Despite closing in the black, market breadth was sluggish with 477 bears outpacing 288 bulls. The underlying technical of the benchmark index is still weak at this juncture, where the key index is still trapped on its sideways consolidation play. With the absence of key catalyst in the market, we reaffirm our view that the FBMKLCI will trade downside-bias within 1,643-1,670 this week. Overhead levels are spotted at 1,670 (R1) followed by 1,680 (R2), while downside supports remain tied at 1,650 (S1) and 1,643 (S2). US stocks lifted by gains in Crude oil price Bolstered mainly by gains seen in energy counters after a climb in Crude oil price to USD51.86/bbl and positive economic data report, the Dow rose points (0.62%) to close at 18, Chart-wise, the Dow is still trading back and forth within the 18,000-18,500 level, while the key moving averages are narrowing further to suggest that the current consolidation play could prolong further. MACD histogram is still hovering below its zero-line with an absence of any major movements coming from RSI, reinforcing the persistent consolidation outlook. At this point, any closure above the 18,300 (R1) level would offer a chance for the Dow to climb to towards its next resistance level of 18,500 (R1). Conversely, failure to sustain its position above key psychological support level of 18,000 (S1) level would send the key index towards its next support of 17,800 (S2). Daily technical highlights - (XINHWA, AT) XINHWA (Not Rated). XINHWA had shown some rekindled buying interest, after inching up 1.0 sen (0.85%) to close above its resistanceturned-support level of RM1.17 (S1) on increased trading volume. With the MACD histogram staging a bullish crossover above its signal line, the underlying outlook is encouraging given that the stock is setting a higher high above all its up trending moving averages. From here, we reckon that follow-through buying could lead the share price towards RM1.20 (R1) and possibly the completion of its rounding bottom chart pattern at RM1.32 (R2) in the near-to-mid term. Support levels are envisaged at RM1.17 (S1) followed by RM1.07 (S2). AT (Not Rated). AT rose to the highest price March on high trading volume of 59.0m shares. At the closing bell, the share price finished at RM0.075, up by 1.0 sen (15.4%) for the day. Chart-wise, the share price has been on a downtrend since early last year. However, the share price has been seeing strong buying interest over the past month, resulting in a downtrend breakout recently. At the same time, the key momentum indicators have also been trending higher over the past 6 months, potentially signalling that the share price may have bottomed out. From here, the share price is biased to the upside, with near-term resistances to look out for at RM0.09 (R1) and RM0.10 (R2) further up. Downside support levels are RM0.06 (S1) and RM0.045 (S2) below. PP7004/02/2013(031762) Page 1 of 5

Figure 2: Daily Charting Dow Jones Industrial Average (INDU) Figure 3: Daily Charting Xin Hwa Holdings Berhad (Not Rated) About the stock: Shariah Compliant : Yes Name : Xin Hwa

KLCI : - Key Support & Resistance Level Resistance : RM 1.20 (R1) RM 1.32 (R2) Support : RM 1.17 (S1) RM 1.

2 Figure 2: Daily Charting Dow Jones Industrial Average (INDU) Figure 3: Daily Charting Xin Hwa Holdings Berhad (Not Rated) About the stock: Shariah Compliant : Yes Name : Xin Hwa Holdings Berhad Bursa Code : XINHWA CAT Code : 5267 Market Cap : Week High/Low : 1.32/ m Avg. Daily Vol. : 490, Free Float (%) : 23.42% Beta vs. KLCI : - Key Support & Resistance Level Resistance : RM 1.20 (R1) RM 1.32 (R2) Support : RM 1.17 (S1) RM 1.07 (S2) Outlook : Bullish What does the indicator says MACD : Bullish Stochastic : Bullish RSI : Bullish Trend : Bullish What should you do Current Share : RM1.18 Technical Target : - Technical Cut-loss : - Fundamental Call Kenanga : - Consensus : - PP7004/02/2013(031762) Page 2 of 5

Figure 4: Daily Charting AT Systematization Berhad (Not Rated) About the stock: Shariah Compliant : Yes Name : ATSystematization Berhad Bursa Code : AT CAT Code : 0072 Market Cap : 36.

3 Figure 4: Daily Charting AT Systematization Berhad (Not Rated) About the stock: Shariah Compliant : Yes Name : ATSystematization Berhad Bursa Code : AT CAT Code : 0072 Market Cap : Week High/Low : 0.1/ m Avg. Daily Vol. : 5,065, Free Float (%) : 85.59% Beta vs. KLCI : 0.9 Key Support & Resistance Level Resistance : RM 0.09 (R1) RM 0.10 (R2) Support : RM 0.06 (S1) RM (S2) Outlook : Positively Biased What does the indicator says MACD : Bullish Stochastic : Overbought RSI : Bullish Trend : Neutral-Bullish What should you do Current Share : RM0.075 Technical Target : - Technical Cut-loss : - Fundamental Call Kenanga : - Consensus : - This section is intentionally left blank. PP7004/02/2013(031762) Page 3 of 5

4 Unrealised Positions (October 2016) No CATS Code Stock Name Issued Date ID Target Stop- Upside Potential Downside Risk Reward/ Risk Ratio Last Dividend Received since ID (incl. Div.) RM RM (%) (%) (x) RM RM RM (%) JAYA TIASA HOLDINGS BHD 9-Aug % -8.33% % BUY JHM CONSOLIDATION BHD 10-Aug % % % BUY UNITED U-LI CORP BHD 2-Sep % -6.32% % BUY PIE INDUSTRIAL BHD 7-Sep % -7.73% % BUY SUCCESS TRANSFORMER CORP 20-Sep % -8.56% % BUY FELDA GLOBAL VENTURES 22-Sep % -7.05% % BUY SKP RESOURCES BHD 22-Sep % -8.27% % BUY HIAP TECK VENTURE BHD 27-Sep % -8.96% % BUY - Rating Comment/ Action Simple Average 15.33% -8.29% % *Tracker does not include Non-Rated positions Realised Positions (October 2016) CATS No Stock Name Code Issued Date Buy Intraday price since Buy Date change since Buy Date (%) Sell Date Sell Dividend Received since ID (incl. Div.) Rating Comment/ Action (H) (L) (H) (L) RM RM RM (%) Simple Average PP7004/02/2013(031762) Page 4 of 5

5 Basic Technical Terms: Reversal Candlesticks Patterns Description Doji Dragonfly Doji (Bullish) Gravestone Doji (Bearish) Engulfing Pattern Hammer (Bullish) Shooting Star (Bearish) Inverted Hammer (Bullish) Hanging Man (Bearish) Harami Harami Cross Dojis form when a security's open and close are virtually equal. The length of the upper and lower shadows can vary, and the resulting candlestick looks like, either, a cross, inverted cross, or plus sign. Doji convey a sense of indecision or tug-of-war between buyers and sellers. A reversal pattern that can be bearish or bullish, depending upon whether it appears at the end of an uptrend (bearish engulfing pattern) or a downtrend (bullish engulfing pattern). The first day is characterized by a small body, followed by a day whose body completely engulfs the previous day's price action. Hammer candlesticks form when a security moves significantly lower after the open, but rallies to close well above the intraday low. This appears in a downtrend. In contrast, the Shooting Star pattern appears in an uptrend. It opens higher, trades much higher, then closes near its open. It looks just like the Inverted Hammer except that it is bearish. The Inverted Hammer is a single-day bullish reversal pattern. In a downtrend, the open is lower, then it trades higher, but closes near its open price, therefore looking like an inverted lollipop. Hanging Man candlesticks form when a security moves significantly lower after the open, but rallies to close well above the intraday low. The Harami is a two-day pattern that can be bullish or bearish. It has a small body day completely contained within the range of the previous body, and is the opposite colour. The Harami Cross is similar to the Harami. The difference is that the last day is a Doji. Marubozu A Marubozu candlestick has no shadow extending from the body at either the open, the close or at both. Morning Doji Star (Bullish) Evening Doji Star (Bearish) Spinning Top A Morning Doji Star (Evening Doji Star) is a three-day candlestick bullish (bearish) reversal pattern - a long-bodied black (white) candle extending the current downtrend, a short middle candle that gapped down (up) on the open, and a long-bodied white candle that gapped up (down) on the open and closed above (below) the midpoint of the body of the first day. Spinning Tops are candlestick lines that have small bodies with upper and lower shadows that exceed the length of the body. They are similar to the Doji candlesticks, and signal indecision. Source: Various Common Chart Patterns Reversal Patterns Inverted Head & Shoulders (Bullish) Head & Shoulders (Bearish) Wedge Reversal (Bullish/ Bearish) Double Top (Bearish) Double Bottom (Bullish) Continuation Patterns Symmetrical Triangle (Bullish/ Bearish) Ascending Triangle (Bullish) Channels (Bullish/ Bearish) Flags (Bullish/ Bearish) Pennant (Bullish/ Bearish) Source: Various This document has been prepared for general circulation based on information obtained from sources believed to be reliable but we do not make any representations as to its accuracy or completeness. Any recommendation contained in this document does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may read this document. This document is for the information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees. Kenanga Investment Bank Berhad accepts no liability whatsoever for any direct or consequential loss arising from any use of this document or any solicitations of an offer to buy or sell any securities. Kenanga Investment Bank Berhad and its associates, their directors, and/or employees may have positions in, and may effect transactions in securities mentioned herein from time to time in the open market or otherwise, and may receive brokerage fees or act as principal or agent in dealings with respect to these companies. Published and printed by: KENANGA INVESTMENT BANK BERHAD (15678-H) 8th Floor, Kenanga International, Jalan Sultan Ismail, Kuala Lumpur, Malaysia Telephone: (603) Facsimile: (603) Website: Chan Ken Yew Head of Research PP7004/02/2013(031762) Page 5 of 5

On Our Technical Watch

On Our Technical Watch By the Kenanga Research Team l research@kenanga.com.my Figure 1: Daily Charting FBMKLCI Index Basic Data 52-week High 1,729.13 (in Million) 52-week Low 1,600.92 KLCI Vol 85.75 Current Level 1,665.32 Bursa