By Lawrence Yeo Eng Chien l lawrenceyeo@kenanga.com.my Figure 1: Daily Charting FBMKLCI Basic Data 52-week High 1,795.00 (in Million) 52-week Low 1,611.88 KLCI Vol 136.57 Current Level 1,791.01 Bursa Vol 2300.11 Intraday High 1,795.00 Bursa Val 2618.60 Intraday Low 1,783.08 Technical Ratings Resistance 2 1,824 MACD Neutral Resistance 1 1,800 RSI (14) Bullish Current Level 1,791.01 Stochastic Bullish Support 1 1,787 Support 2 1,760 Outlook Upside-bias Setting sights at 1,800 The FBMKLCI continued to ride on its positive momentum to climb 3.06 points (0.171%) yesterday, closing at 1,791.01 on higher trading volume. Chart-wise, the FBMKLCI is currently looking to test its immediate psychological resistance level of 1,800 (R1) on the back of encouraging momentum indicators. The daily RSI and Stochastic are persisting on their hook-ups to indicate that the bulls are pilling on their strength to extend the uptrend from the 1,760 mark. All in, we opine that the FBMKLCI is likely to continue on its upside-bias trend this week after staging a breakout from its consolidation channel, gearing towards the 1,800 (R1) mark. Its next overhead resistance is seen at 1,824 (R2), while support levels are found at 1,787 (S1)/1,760 (S2). Wall Street decline ahead of eventful Thursday Jitters among investors were felt ahead of major political and economic events (Britain general election, ECB policy meeting and former FBI Director s testimony) that will occur these few days, as the DJIA shed 47.81 points (0.23%) to close at 21,136.23. On the DJIA s chart, it is observed that the underlying index is currently undergoing a slight pullback after notching a record high level two days ago. Trading volume has also been declining since, as investors opted to stay at the side lines amid rising uncertainties. Indicator-wise, the daily RSI and Stochastic are also rolling over from their toppish levels to indicate weakening of the bulls, hinting that the DJIA could likely take a breather in the coming days. From here, we view that the DJIA will possibly trade tepidly for the remainder of the week. Key resistance levels are now capped at 21,169 (R1)/21,500 (R2), while support levels are seen at 20,915 (S1)/20,757 (S2). Daily technical highlights - (MUDAJYA, PRG) MUDAJYA (Not Rated). Yesterday, MUDAJYA surged 14.0 sen (9.7%) to finish at the day s high of RM1.58. Its share price has been on an uptrend since March, and currently remains positive with the key SMAs (20-, 50- and 100-day) fanning outwards. Furthermore, the share price now appears poised to resume its bullish run following yesterday s consolidation breakout. Although trading volume has been lower than what we prefer, the momentum indicators are supportive of a move higher. Investors may look towards a retest of last month's high of RM1.67 (R1), beyond which RM1.74 (R2) is located further up. Downside support is RM1.40 (S1), failing which the next major support is located at RM1.26 (S2). PRG (Not Rated). PRG has been consolidating within the range of RM0.84-RM0.935 over the past six months. Yesterday, the share price finally made a technical breakthrough, surging 8.5 sen (15.6%) to stage a breakout from the consolidation zone to close at RM0.995. The underlying trend is looking positive from here, as the share price is currently trading above all its key moving averages. Besides, the bullish convergence of MACD is also laying a hand on the bullish-bias outlook ahead. Nonetheless, the sharp price action yesterday led the stock turning deeply overbought as depicted by the RSI and Stochastic. Hence, we do not discount the possibility of a slight pullback, where any retracement towards RM0.92 (S1) would be deemed as a good accumulation point, with RM0.84 (S2) seen as an exit. Near-term upside resistance now seen at RM1.00 (R1)/RM1.10 (R2). PP7004/02/2013(031762) Page 1 of 5
Figure 2: Daily Charting Dow Jones Industrial Average Figure 3: Daily Charting Mudajaya Group Bhd (Not Rated) About the stock: Shariah Compliant : Yes Name : Mudajaya Group Bhd Bursa Code : MUDAJYA CAT Code : 5085 Market Cap : 850.7 52 Week High/Low : 1.67/0.73 3-m Avg. Daily Vol. : 2,099,820.00 Free Float (%) : 49.82% Beta vs. KLCI : 1.1 Key Support & Resistance Level Resistance : RM1.67 (R1) RM1.74 (R2) Support : RM1.40 (S1) RM1.26 (S2) Outlook : Bullish What does the indicator says MACD : Neutral-Bullish RSI : Bullish Stochastic : Bullish Trend : Bullish What should you do Current Share : RM1.58 Technical Target : - Technical Cut-loss : - Fundamental Call Kenanga : - Consensus : - PP7004/02/2013(031762) Page 2 of 5
Figure 4: Daily Charting PRG Holdings Berhad (Not Rated) About the stock: Shariah Compliant : Yes Name : PRG Holdings Berhad Bursa Code : PRG CAT Code : 7168 Market Cap : 296.7 52 Week High/Low : 1/0.55 3-m Avg. Daily Vol. : 93,007.81 Free Float (%) : 62.84% Beta vs. KLCI : 0.9 Key Support & Resistance Level Resistance : RM1.00 (R1) RM1.10 (R2) Support : RM0.92 (S1) RM0.84 (S2) Outlook : Neutral-Bullish What does the indicator says MACD : Bullish RSI : Overbought Stochastic : Bullish Trend : Neutral-Bullish What should you do Current Share : RM0.995 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 (June 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 9334 KESM INDUSTRIES BHD 11-Nov-16 9.150 11.340 8.480 23.93% -7.32% 3.3 15.020 0.060 5.93 64.81% BUY - Rating Comment/ Action 2 7071 O&C RESOURCES BHD 16-Mar-17 0.620 0.730 0.570 17.74% -8.06% 2.2 0.600 - -0.02-3.23% BUY - TP upgraded to RM1.12, Sl 3 7097 TA WIN HOLDINGS BHD 16-Mar-17 0.625 1.120 0.825 79.20% 32.00% -2.5 1.120-0.50 79.20% BUY revised to RM0.825 4 1171 MALAYSIA BUILDING SOCIETY 21-Mar-17 1.240 1.460 1.100 17.74% -11.29% 1.6 1.310 0.030 0.10 8.06% BUY - 5 0089 TEX CYCLE TECHNOLOGY 21-Apr-17 1.270 1.460 1.150 14.96% -9.45% 1.6 1.190 0.010-0.07-5.51% BUY - 6 0186 PERAK TRANSIT BHD 16-May-17 0.285 0.335 0.255 17.54% -10.53% 1.7 0.295-0.01 3.51% BUY - 7 7231 WELLCALL HOLDINGS BHD 25-May-17 2.290 2.540 2.220 10.92% -3.06% 3.6 2.280 - -0.01-0.44% BUY - 8 7233 DUFU TECHNOLOGY CORP BHD 1-Jun-17 1.430 1.620 1.370 13.29% -4.20% 3.2 1.560-0.13 9.09% BUY - Simple Average 24.42% -2.74% 1.82 19.44% *Tracker does not include Non-Rated positions Realised Positions (June 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 8869 PRESS METAL BERHAD 13-Oct-16 1.550 2.930 1.530 89.03% -1.29% 2-Jun-17 2.570 0.025 1.05 67.42% Take Profit - Gain/ Loss Rating Comment/ Action Simple Average 89.03% -1.29% 67.42% 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