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 112.14 Current Level 1,735.84 Bursa Vol 4229 Intraday High 1,740.13 Bursa Val 2573.31 Intraday Low 1,733.79 Technical Ratings Resistance 2 1,750 MACD Bearish Resistance 1 1,740 RSI (14) Bearish Current Level 1,735.84 Stochastic Oversold Support 1 1,727 Support 2 1,714 Outlook Downsidebias Second-liners still on the spotlight Yesterday, the FBMKLCI dipped 3.68 points (0.212%) to close lower at 1,735.84 as blue chips have been taking a step back from investors radar as of recent, while second-liners have been taking the spotlight as depicted by the strong trading volume yesterday. On the chart, the FBMKLCI is still trending on its downtrend trajectory after reaching a multi-month high level of 1,760 back in 29 March. There is still persistent weakness among the bulls as depicted by the negative trending of MACD, RSI and Stochastic. However, downside could be limited at the 1,727-1,734 region given the increasingly oversold condition. That said, with investors' sentiment still plagued by the growing geopolitical concerns in the absence of fresh catalyst, the FBMKLCI is likely to continue its downside-bias trade this week. Overhead resistance are capping upside at 1,740 (R1)/1,750 (R2), while supports are tied at 1,727 (S1)/1,714 (S2). Anxiety still lingering on the air Wall Street was caught mostly in the red during last night s session, as growing uncertainties over geopolitical concerns continued to cloud the air. At the close, the DJIA shed 6.72 points (0.03%) to close at 20,651.30. The DJIA is still caught in its monotone trajectory as it hovers just above its multi-month support trend line. The sideways trading is likely to persist over the immediate term underpinned by the flattish momentum indicators displayed, whereby the MACD, RSI and Stochastic have yet to showcase any signs of definite movement. Thus, we still opine that the DJIA will continue on its range-bound trade this week within 20,500 (S1)-20,840 (S2), where the next overhead resistance and support levels are seen at 20,982 (R2) and 20,352 (S2), respectively. Daily technical highlights - (PWORTH, WCEHB) PWORTH (Not Rated). Yesterday, PWORTH rallied to a high of RM0.255 before finishing off-best at RM0.24 - still up by 4.0 sen (20.0%) for the day. Chart-wise, its trend short to medium term trend is positive, with key SMAs fanning out. The share price had earlier last month broken out at RM0.11 and subsequently ran up to as high as RM0.22 before consolidating. However, with yesterday s bullish move, the share price has confirmed a Bullish Flag pattern which signals a resumption of its prior uptrend. Key momentum indicators such as the MACD and RSI have also hooked upwards as a result, and this reflects a sudden pick-up in buying momentum. With these, we expect the share price to climb towards RM0.24 (R1) before testing the Sep-2014 high of RM0.285 (R2) fairly soon. Downside support should be present between RM0.21-RM0.22 (S1), although a move below RM0.18 (S2) would raise a red flag for us. WCEHB (Not Rated). WCEHB s share price rose to a fresh six-year high yesterday, after the share price closed 6.0 sen higher (4.5%) at RM1.38. Until recently (January), WCEHB broke out of its sideways trend and subsequently rallied to a high of RM1.35 before staging a meaningful pullback towards RM1.16. Subsequent attempts to challenge the RM1.35 high were met with strong resistance. Nevertheless, the share price had finally punched through this crucial level as a result of yesterday s bullish move confirming an Ascending Triangle pattern in the process. From here, expect the share price to be positively biased towards the next resistance levels RM1.46 (R1) and RM1.52/RM1.55 (R2) where the measurement objective is located. Any return to the RM1.35 (S1) resistance-turned-support may offer a buying opportunity, while a move below RM1.31 (S2) would be a huge negative. PP7004/02/2013(031762) Page 1 of 5
Figure 2: Daily Charting Dow Jones Industrial Average Figure 3: Daily Charting worth International Berhad (Not Rated) About the stock: Shariah Compliant : Yes Name : worth International Berhad Bursa Code : PWORTH CAT Code : 7123 Market Cap : 169.5 52 Week High/Low : 0.26/0.09 3-m Avg. Daily Vol. : 31,847,510.00 Free Float (%) : 85.14% Beta vs. KLCI : 1.2 Key Support & Resistance Level Resistance : RM0.24 (R1) RM0.285 (R2) Support : RM0.22 (S1) RM0.18 (S2) Outlook : Bullish What does the indicator says MACD : Bullish RSI : Overbought Stochastic : Overbought Trend : Bullish What should you do Current Share : RM0.24 Technical Target : - Technical Cut-loss : - Fundamental Call Kenanga : - Consensus : - PP7004/02/2013(031762) Page 2 of 5
Figure 4: Daily Charting WCE Holdings Berhad (Not Rated) About the stock: Shariah Compliant : Yes Name : WCE Holdings Berhad Bursa Code : WCEHB CAT Code : 3565 Market Cap : 1,383.8 52 Week High/Low : 1.4/0.89 3-m Avg. Daily Vol. : 1,242,121.00 Free Float (%) : 38.64% Beta vs. KLCI : 0.6 Key Support & Resistance Level Resistance : RM1.46 (R1) RM1.52 (R2) Support : RM1.35 (S1) RM1.31 (S2) Outlook : Bullish What does the indicator says MACD : Bullish RSI : Bullish Stochastic : Bullish Trend : Bullish What should you do Current Share : RM1.38 Technical Target : - Technical Cut-loss : - Fundamental Call Kenanga : - Consensus : - This section is intentionally left blank. PP7004/02/2013(031762) Page 3 of 5
Unrealised Positions (April 2017) No CATS Code Stock Name Issued Date (ID) @ 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 (%) 1 8869 PRESS METAL BERHAD 13-Oct-16 1.557 2.730 2.280 75.34% 46.44% -1.6 2.710 0.025 1.18 75.66% BUY 2 9334 KESM INDUSTRIES BHD 11-Nov-16 9.150 11.340 8.480 23.93% -7.32% 3.3 12.480 0.030 3.36 36.72% BUY 3 7579 AWC BERHAD 28-Feb-17 0.985 1.080 0.930 9.64% -5.58% 1.7 1.000-0.02 1.52% BUY 4 7071 O&C RESOURCES BHD 16-Mar-17 0.620 0.730 0.570 17.74% -8.06% 2.2 0.625-0.01 0.81% BUY 5 7097 TA WIN HOLDINGS BHD 16-Mar-17 0.625 0.795 0.545 27.20% -12.80% 2.1 0.670-0.05 7.20% BUY 6 7204 D&O GREEN TECHNOLOGIES BHD 17-Mar-17 0.660 0.785 0.590 18.94% -10.61% 1.8 0.635 - -0.03-3.79% BUY 7 1171 MALAYSIA BUILDING SOCIETY 21-Mar-17 1.240 1.460 1.100 17.74% -11.29% 1.6 1.230 - -0.01-0.81% BUY 8 5054 TRC SYNERGY BHD 28-Mar-17 0.575 0.650 0.540 13.04% -6.09% 2.1 0.595-0.02 3.48% BUY Rating Comment/ Action TP upgraded to RM2.73, SL revised to RM2.28 Simple Average 25.45% -1.91% 1.65 15.10% *Tracker does not include Non-Rated positions Realised Positions (April 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 (%) 1 0120 VISDYNAMICS HOLDINGS BHD 14-Feb-17 0.605 0.795 0.570 31.40% -5.79% 6-Apr-17 0.775-0.17 28.10% Take Profit 2 0151 KELINGTON GROUP BHD 7-Mar-17 0.465 0.630 0.460 35.48% -1.08% 7-Apr-17 0.630-0.17 35.48% Take Profit Gain/ Loss Rating Comment/ Action Simple Average 33.44% -3.43% 31.79% PP7004/02/2013(031762) Page 4 of 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, 50400 Kuala Lumpur, Malaysia Telephone: (603) 2172 0880 Website: www.kenanga.com.my Email: research@kenanga.com.my Chan Ken Yew Head of Research PP7004/02/2013(031762) Page 5 of 5