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 93.61 Current Level 1,637.93 Bursa Vol 1767.66 Intraday High 1,640.53 Bursa Val 1399.36 Intraday Low 1,625.82 FBMKLCI continues to see window dressing activities Resistance 2 1,651 MACD Neutral Resistance 1 1,640 RSI (14) Bullish Current Level 1,637.93 Stochastic Bullish Support 1 1,632 Support 2 1,620 Outlook Mild Positive The FBMKLCI extended its gain during yesterday s session by climbing 7.63 points (0.468%) to 1,637.93, underpinned by follow-through buying on selected blue-chip counters such as TENAGA (+2.21%) and PCHEM (+1.75%). On the chart, the FBMKLCI managed to ride on its technical rebound play from two days ago to close above the resistance-turned-support level of 1,630 (S1). Further hook-up seen by the RSI and Stochastic from their oversold positions are reflecting the increased buying interest arising from the year-end window dressing activities. Going into the last trading session of 2016 before the long holiday weekend, we view that any follow-through window dressing activities will likely see the benchmark index testing its immediate resistance level of 1,640 (R1). If a decisive breach above the R1 level occurs, the underlying index could look to gear towards 1,651 (R2) next. Meanwhile,key support levels are currently tied at 1,630 (S1)/1,620 (S2). All quiet on Wall Street Overnight on Wall Street, stocks closed fractionally lower as investors took the quiet holiday period to book gains ahead of the long weekend. Financial stocks, which have had a tremendous run since the US presidential election, were exerting the greatest downward pressure as bond yields retreated further from recent highs. At market close, the DJIA was down by 13.90 points (0.07%) at 19,819.78 after an early-morning lead. Overall, the DJIA remains in a bullish trend with the index firmly above all 3 key SMAs (20-, 50-, and 100-day). The recent pullback consolidation represents a healthy reversion from an earlier deeply overbought situation (RSI and Stochastic). As such, we expect the on-going pullback to be shallow, with some buying support likely to be present at 19,675 (S1) and 19,490 (S1). Key overhead resistances include the recent high/ psychological level of 19,986/20,000 (R1) although a breakout would set our sights on 20,482 (R2) next. Daily technical highlights - (GHLSYS, MTDACPI) GHLSYS (Trading Buy, TP: RM0.94). GHLSYS has been on a roll in recent weeks, following the announcement of its 3Q16 earnings, which quadrupled YoY to RM4.7m. Yesterday, the share price rose a further 2.0 sen (2.3%) to a 5-month high of RM0.885. Notably, the share price has now broken out of Double Bottom pattern on high volume. The MACD and RSI indicators have also been trending higher to reflect a steady increase in bullish momentum. Combined, these signaled that GHLSYS has bottomed out, and is poised for a bullish reversal in the weeks ahead. Investors may enter now, or on any dip towards the RM0.865-RM0.875 (S1) trigger-line support. Meanwhile, aim to take profit at the RM0.95-RM0.955 (R1) resistance/measurement objective. MTDACPI (Not Rated). Earlier in September, MTDACPI almost doubled over a short span of 2 weeks (from RM0.25 to as high as RM0.44) on news that the company may be a RTO vehicle for Putrajaya Perdana. The initial euphoria was short-lived, and MTDACPI subsequently slipped to a recent low of RM0.305 in the following months. Nevertheless, renewed buying interest emerged this week, with the share price rallying for a second straight day yesterday to RM0.35 (up by 3.0 sen or 9.4%). With the bullish move, MTDACPI has now broken out of its downwards consolidation phase. The RSI has also hooked upwards into bullish territory to signal a possible start of the next up-cycle. From here, we expect the share price to be upside biased. Overhead resistance levels to look out for are RM0.385 (R1) and RM0.41 (R2) while downside support is RM0.305 (S1) and RM0.28 (S2). PP7004/02/2013(031762) Page 1 of 5
Figure 2: Daily Charting Dow Jones Industrial Average Figure 3: Daily Charting GHL Systems Bhd (Trading Buy, TP: RM0.94) About the stock: Shariah Compliant : Yes Name : GHL Systems Bhd Bursa Code : GHLSYS CAT Code : 0021 Market Cap : 577.6 52 Week High/Low : 1.01/0.71 3-m Avg. Daily Vol. : 600,782.60 Free Float (%) : 32.26% Beta vs. KLCI : 1.1 Key Support & Resistance Level Resistance : RM0.95 (R1) RM1.00 (R2) Support : RM0.865 (S1) RM0.83 (S2) Outlook : Bullish What does the indicator says MACD : Bullish RSI : Bullish Stochastic : Overbought Trend : Bullish What should you do Current Share : RM0.885 Technical Target : RM0.94 Technical Cut-loss : RM0.85 Fundamental Call Kenanga : RM1.07 Consensus : RM0.93 PP7004/02/2013(031762) Page 2 of 5
Figure 4: Daily Charting MTD ACPI Engineering Bhd (Not Rated) About the stock: Shariah Compliant : Yes Name : MTD ACPI Engineering Bhd Bursa Code : MTDACPI CAT Code : 5924 Market Cap : 81.1 52 Week High/Low : 0.44/0.23 3-m Avg. Daily Vol. : 543,607.90 Free Float (%) : 30.35% Beta vs. KLCI : 0.6 Key Support & Resistance Level Resistance : RM 0.385 (R1) RM 0.41 (R2) Support : RM 0.305 (S1) RM 0.28 (S2) Outlook : Bullish What does the indicator says MACD : Neutral-Bullish RSI : Bullish Stochastic : Overbought Trend : Bullish What should you do Current Share : RM0.35 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 (December 2016) 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 7155 SKP RESOURCES BHD 22-Sep-16 1.33 1.550 1.220 16.54% -8.27% 2.0 1.290 - -0.04-3.01% BUY - 2 8869 PRESS METAL BERHAD 13-Oct-16 1.56 1.739 1.505 11.69% -3.37% 3.5 1.600-0.04 2.76% BUY - 3 9334 KESM INDUSTRIES BHD 11-Nov-16 9.15 11.340 8.480 23.93% -7.32% 3.3 9.830-0.68 7.43% BUY - 4 0037 RGB INTERNATIONAL BHD 20-Dec-16 0.29 0.320 0.255 12.28% -10.53% 1.2 0.285-0.00 0.00% BUY - 5 5231 PELIKAN INTERNATIONAL CORP 21-Dec-16 0.90 1.030 0.770 14.44% -14.44% 1.0 0.870 - -0.03-3.33% BUY - 6 0021 GHL SYSTEMS BERHAD 30-Dec-16 0.89 0.940 0.850 6.21% -3.95% 1.6 0.885-0.00 0.00% BUY - Simple Average 14.18% -8.79% 2.08 0.64% *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 (%) 1 5252 SASBADI HOLDINGS BHD 17-Nov-16 1.53 1.490 1.390-2.61% -9.15% 1-Dec-16 1.430 - -0.10-6.54% Stopped Out - 2 7066 YONG TAI BHD 21-Oct-16 1.21 1.340 1.180 10.74% -2.48% 15-Dec-16 1.300-0.09 7.44% Take Profit - Simple Average 4.06% -5.81% 0.45% Gain/ Loss Rating Comment/ Action 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 2626 Website: www.kenanga.com.my E-mail: research@kenanga.com.my Chan Ken Yew Head of Research PP7004/02/2013(031762) Page 5 of 5