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 Technical Ratings 52-week High 1,729.13 (in Million) 52-week Low 1,600.92 KLCI Vol 99.

1 By the Kenanga Research Team l research@kenanga.com.my Figure 1: Daily Charting FBMKLCI Basic Data Technical Ratings 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, Year-end window dressing activities kick in Resistance 2 1,640 MACD Neutral Resistance 1 1,632 RSI (14) Bullish Current Level 1,630.3 Stochastic Oversold Support 1 1,620 Support 2 1,610 Outlook Mild Positive The FBMKLCI rose points (0.656%) to close at 1,630.3 underpinned by some window-dressing activities on several blue chips, mainly MAYBANK (+2.58%), AXIATA (+2.21%) and GENTING (+3.1%). The broader market has turned positive by recording 416 advancers against 287 decliners during yesterday s session. Chart-wise, the FBMKLCI has rebounded from the 1,610 (S1) level after the formation of a Doji candlestick. Positive reversals are spotted in both the RSI and Stochastic, with the latter staging a bullish crossover while looking to reverse from its oversold threshold. Despite year-end dressing activities, upside is likely to be limited to 1,630 (R1) or 1,640 (R2) at most this week given that there is only two trading sessions left for 2016 before the long weekend break. Failure to build on the bullish momentum yesterday would likely see a consolidation play, where key supports are envisaged at 1,620 (S1)/1,610 (S2). Wall Street loses steam US stocks slipped into the red, dampening the DJIA s attempt of breaching the 20,000 psychological level, where the blue-chip index was just 19 points of the milestone after the opening session before shedding points throughout last night s session. At the closing bell, the DJIA dipped points (0.56%) to close lower at 19,833.68, weighed down by losses across sectors. Chart-wise, the DJIA has retraced further away from its psychological 20,000 (R1) resistance level. Signs that the bulls are losing momentum are further depicted by the rolling over of RSI and Stochastic from their prolonged deep overbought conditions. Besides, a bearish crossover set by the MACD is also lending a hand on the downside-bias trade in the immediate term. Taking the above into consideration, we view that the DJIA is likely to consolidate downside-bias this week where key support levels are now capped at 19,675 (S1)/19,469 (S2). Overhead resistance levels are tied at 19,843 (R1)/20,000 (R2). Daily technical highlights - (DAYANG, PERISAI) DAYANG (Not Rated). A favourable recommendation by a local research house coupled with improved sentiment towards O&G counters drove DAYANG s share price to the RM1.00 psychological mark yesterday (up by 4.0 sen or 4.2% on high volume of 3.1m shares). Chartwise, DAYANG appeared to have bottomed out in November (RM0.73) and is now poised for a healthy recovery. More importantly, the 20- and 50-day SMAs have just completed a Golden Crossover, while the share price has also broken above the long-term 100-day SMA for the first time since April. From here, we expect DAYANG to be biased to the upside towards RM1.12 (R1) and RM1.22 (R2). Any return to the RM0.93 (S1) support can be viewed as an opportunity to enter, with stronger support present at RM0.90 (S2). PERISAI (Not Rated). PERISAI surged for a 2 nd straight day to RM0.09, up by 1.5 sen (20.0%) on huge trading volume of 126.9m shares. This came amid news that the company and Singapore-listed Emas Offshore Ltd (EOL) have came to a settlement which will give it US$43.0m which is crucial for the success of its debt restructuring plan. From a charting perspective, PERISAI s share price had been moving sideways at the RM0.04-RM0.06 levels these past two months. However, consequent to the price surge this week, the share price has broken out of its short-term sideways consolidation phase to signal a sharp change in sentiment. The MACD has also crossed above the Zero-line to confirm this transition. With the price recovery expected to continue over the near term, we see the RM0.105 (R1) RM0.12 (R2) gaps as obvious resistance levels. In contrast, any return to the RM0.065 (S1) and RM0.04 (S2) supports should see strong bargain hunting. PP7004/02/2013(031762) Page 1 of 5

Figure 2: Daily Charting Dow Jones Industrial Average Figure 3: Daily Charting Dayang Enterprise Holdings Bhd (Not Rated) About the stock: Shariah Compliant : Yes Name : Dayang Enterprise

8 Key Support & Resistance Level Resistance : RM1.12 (R1) RM1.22 (R2) Support : RM0.93 (S1) RM0.

2 Figure 2: Daily Charting Dow Jones Industrial Average Figure 3: Daily Charting Dayang Enterprise Holdings Bhd (Not Rated) About the stock: Shariah Compliant : Yes Name : Dayang Enterprise Holdings Bhd Bursa Code : DAYANG CAT Code : 5141 Market Cap : Week High/Low : 1.41/ m Avg. Daily Vol. : 1,058, Free Float (%) : 66.52% Beta vs. KLCI : 1.8 Key Support & Resistance Level Resistance : RM1.12 (R1) RM1.22 (R2) Support : RM0.93 (S1) RM0.90 (S2) Outlook : Bullish What does the indicator says MACD : Bullish RSI : Bullish Stochastic : Overbought Trend : Neutral-Bullish What should you do Current Share : RM1.00 Technical Target : - Technical Cut-loss : - Fundamental Call Kenanga : RM0.93 Consensus : RM0.91 PP7004/02/2013(031762) Page 2 of 5

Figure 4: Daily Charting Perisai Petroleum Teknologi Berhad (Not Rated) About the stock: Shariah Compliant : Yes Name : Perisai Petroleum Teknologi Berhad Bursa Code : PERISAI CAT Code : 0047 Market

3 Figure 4: Daily Charting Perisai Petroleum Teknologi Berhad (Not Rated) About the stock: Shariah Compliant : Yes Name : Perisai Petroleum Teknologi Berhad Bursa Code : PERISAI CAT Code : 0047 Market Cap : Week High/Low : 0.3/ m Avg. Daily Vol. : 21,047, Free Float (%) : 71.67% Beta vs. KLCI : 1.5 Key Support & Resistance Level Resistance : RM (R1) RM 0.12 (R2) Support : RM (S1) RM 0.04 (S2) Outlook : Bullish What does the indicator says MACD : Bullish RSI : Overbought Stochastic : Overbought Trend : Bearish What should you do Current Share : RM0.09 Technical Target : - Technical Cut-loss : - Fundamental Call Kenanga : - Consensus : RM0.11 This section is intentionally left blank. PP7004/02/2013(031762) Page 3 of 5

4 Unrealised Positions (December 2016) 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 (%) SKP RESOURCES BHD 22-Sep % -8.27% % BUY PRESS METAL BERHAD 13-Oct % -3.37% % BUY KESM INDUSTRIES BHD 11-Nov % -7.32% % BUY RGB INTERNATIONAL BHD 20-Dec % % % BUY PELIKAN INTERNATIONAL CORP 21-Dec % % % BUY - Simple Average 15.78% -8.79% % *Tracker does not include Non-Rated positions Rating Comment/ Action Realised Positions (December 2016) 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 (%) SASBADI HOLDINGS BHD 17-Nov % -9.15% 1-Dec % Stopped Out YONG TAI BHD 21-Oct % -2.48% 15-Dec % Take Profit - Simple Average 4.06% -5.81% 0.45% Gain/ Loss Rating Comment/ Action 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 1,729.13 (in Million) 52-week Low 1,611.88 KLCI Vol 166.34 Current Level 1,708.08 Bursa Vol