On Our Technical Watch

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By the Kenanga Research Team l research@kenanga.com.my Figure 1: Daily Charting FBMKLCI Basic Data 52-week High 1,757.99 (in Million) 52-week Low 1,611.88 KLCI Vol 137.65 Current Level 1,754.

1 By the Kenanga Research Team l research@kenanga.com.my Figure 1: Daily Charting FBMKLCI 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 1,774 MACD Neutral Resistance 1 1,760 RSI (14) Ovebought Current Level 1, Stochastic Overbought Support 1 1,750 Support 2 1,740 Outlook Neutral FBMKLCI up on final-hour push Despite opening higher, the FBMKLCI index struggled to stay afloat above the 1,750 level throughout the day amidst some profit-taking activity. Nonetheless, the FBMKLCI managed to climb up 9.47 points (0.543%) to close at 1, during the final hour. On the chart, the FBMKLCI is still consolidating sideways on the back of tapering trading volume. Key technical indicators are still hovering at their respective overbought levels, suggesting that the key index could continue to consolidate further in the immediate term. Coupled with the absence of fresh domestic catalyst, we view that the underlying index is likely to continue on its sideways trading mode this week where overhead resistances are capped at (R1)/1,774 (R2), and supports tied at 1,750 (S1)/1,740 (S2). Strong consumer data lifts Wall Street US stocks rose higher last night underpinned by the release of strong consumer confidence data, leading the DJIA to surge points (0.73%) to close at 20, From a technical perspective, the DJIA had rebounded from its multi-month support trend line. The daily RSI and Stochastic had also hooked up strongly to reinforce the rebound play by indicating pilling buying momentum on the key index, especially with the Stochastic reversing strongly from its oversold position. From here, the DJIA could set sights at a higher high with an immediate resistance target at 20,840 (R1) and 20,982 (R2) further up. Key supports are located at 20,500 (S1)/20,125 (S2). Daily technical highlights - (PETRONM, TECFAST) PETRONM (Not Rated). PETRONM s share price surged 50.0 sen (8.7%) yesterday to a closing high of RM6.27 on increased trading volume of 1.3m shares. Earlier in February, the share price gapped up after it posted 4Q16 earnings, which jumped 595% and subsequently rose to an intra-day high of RM6.66 before consolidating downwards. Nevertheless, yesterday s bullish move has resulted in a consolidation breakout. Key momentum indicators have also spiked upwards to reflect this drastic increase in positive momentum. Hence, we expect the share price to stage a retest of its February high of RM6.66 (R1) fairly soon. Should this level be taken out next, further gains would then be expected towards RM7.00/RM7.02 (R2). Meanwhile, downside appears limited with solid support present at RM5.72 (S1). Failing which, additional support can be found at RM5.30 (S2). TECFAST (Not Rated) TECFAST has been consolidating over the past week after a prior strong two-week rally. Yesterday, the share price surged 6.5 sen (19.4%) to close at RM0.40 to confirm a bullish Flag chart pattern with a long white Marubozu candlestick. The MACD line is poised to form a higher high on the back of strong uptick in RSI and Stochastic, laying a hand on the bullish bias. In tandem with the strong trading volume observed, we view that follow-through buying interest could rally the stock further up towards RM0.40 (R1) and possibly RM0.50 (R2) in the near-to-mid term, based on the flagpole measurement objective. On a side note, we do not discount the possibility of the share price taking a breather soon before resuming its uptrend given the overbought condition displayed by the RSI and Stochastic. That said, we note key support levels are found at RM0.335 (S1) followed by RM0.295 (S2). PP7004/02/2013(031762) Page 1 of 5

Figure 2: Daily Charting Dow Jones Industrial Average Figure 3: Daily Charting Petron Malaysia Refining & Marketing Berhad (Not Rated) About the stock: Shariah Compliant : Yes Name : Petron

KLCI : 0.3 Key Support & Resistance Level Resistance : RM6.66 (R1) RM7.00 (R2) Support : RM5.72 (S1) RM5.

2 Figure 2: Daily Charting Dow Jones Industrial Average Figure 3: Daily Charting Petron Malaysia Refining & Marketing Berhad (Not Rated) About the stock: Shariah Compliant : Yes Name : Petron Malaysia Refining & Marketing Berhad Bursa Code : PETRONM CAT Code : 3042 Market Cap : 1, Week High/Low : 6.66/ m Avg. Daily Vol. : 302, Free Float (%) : 24.97% Beta vs. KLCI : 0.3 Key Support & Resistance Level Resistance : RM6.66 (R1) RM7.00 (R2) Support : RM5.72 (S1) RM5.30 (S2) Outlook : Bullish What does the indicator says MACD : Neutral RSI : Bullish Stochastic : Overbought Trend : Bullish What should you do Current Share : - Technical Target : - Technical Cut-loss : - Fundamental Call Kenanga : - Consensus : - PP7004/02/2013(031762) Page 2 of 5

Figure 4: Daily Charting Techfast Holdings Berhad (Not Rated) About the stock: Shariah Compliant : Yes Name : Techfast Holdings Berhad Bursa Code : TECFAST CAT Code : 0084 Market Cap : 67.

3 Figure 4: Daily Charting Techfast Holdings Berhad (Not Rated) About the stock: Shariah Compliant : Yes Name : Techfast Holdings Berhad Bursa Code : TECFAST CAT Code : 0084 Market Cap : Week High/Low : 0.41/ m Avg. Daily Vol. : 2,081, Free Float (%) : 63.44% Beta vs. KLCI : 1.1 Key Support & Resistance Level Resistance : RM0.40 (R1) RM0.50 (R2) Support : RM0.335 (S1) RM0.295 (S2) Outlook : Bullish What does the indicator says MACD : Bullish RSI : Overbought Stochastic : Overbought Trend : Bullish What should you do Current Share : RM0.40 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 (March 2017) No CATS Code Stock Name Issued Date ID Dividend Gain/ Gain/ Target Stop- Upside Downside Reward/ Last Received Loss Potential Risk Risk Ratio Loss (incl. since ID Div.) Loss RM RM (%) (%) (x) RM RM RM (%) PRESS METAL BERHAD 13-Oct % 46.44% % BUY KESM INDUSTRIES BHD 11-Nov % -7.32% % BUY VISDYNAMICS HOLDINGS BHD 14-Feb % % % BUY AWC BERHAD 28-Feb % -5.58% % BUY KELINGTON GROUP BHD 7-Mar % % % BUY JCY INTERNATIONAL BHD 14-Mar % -7.75% % BUY O&C RESOURCES BHD 16-Mar % -8.06% % BUY TA WIN HOLDINGS BHD 16-Mar % % % BUY D&O GREEN TECHNOLOGIES BHD 17-Mar % % % BUY MALAYSIA BUILDING SOCIETY 21-Mar % % % BUY TRC SYNERGY BHD 28-Mar % -6.09% % BUY Simple Average 23.66% -5.03% % *Tracker does not include Non-Rated positions Rating Comment/ Action TP upgraded to RM2.73, SL revised to RM2.28 Realised Positions (March 2017) No CATS Code Stock Name Issued Date Buy Intraday price since Buy Date change since Buy Date (%) Sell Date Sell Dividend Received since ID Gain/ Loss (incl. Div.) (H) (L) (H) (L) RM RM RM (%) FRONTKEN CORP BHD 10-Feb % -2.38% 2-Mar % Take Profit HALEX HOLDINGS BHD 21-Mar % 8.13% 27-Mar % Take Profit Gain/ Loss Rating Comment/ Action Simple Average 16.14% 2.87% 15.74% 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) Level 12, Kenanga Tower, 237, Jalan Tun Razak, Kuala Lumpur, Malaysia Telephone: (603) Website: research@kenanga.com.my 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 Basic Data 52-week High 1,759.76 (in Million) 52-week Low 1,611.88 KLCI Vol 84.65 Current Level 1,733.93 Bursa Vol