By the Kenanga Research Team l research@kenanga.com.my Figure 1: Daily Charting FBMKLCI Basic Data 52-week High 52-week Low Current Level Intraday High Intraday Low 1,729.13 1,611.88 1,688.84 1,690.91 1,684.84 (in Million) KLCI Vol 113.21 Bursa Vol 2139.13 Bursa Val 2101.41 Technical Ratings Resistance 2 1,700 MACD Neutral Resistance 1 1,690 RSI (14) Neutral Current Level 1,688.84 Stochastic Overbought Support 1 1,680 Support 2 1,660 Outlook Neutral Lack of inspiration Given the absence of notable catalyst and Ringgit slipping against the greenback at RM4.4350/USD, the FBMKLCI shed 2.4 points (0.142%) to close at 1,688.84 yesterday. Chart-wise, the FBMKLCI has formed a Spinning Top candlestick to signify indecision of market direction, as the key index faces pressure while it attempts to inch closer towards the psychological 1,700 mark. Indicator wise, MACD line is ironing out and looking to stage a bearish crossover to lay a hand on a tepid outlook ahead. RSI and Stochastic are also back pedaling to reflect the dissipating bull momentum on the index. Thus, we opine that the FBMKLCI could look to take a breather from its recent climb over the past few days. Resistance levels are now found at 1,690 (R1) followed by1,700 (R2), while support levels are tied at 1,690 (S1)/1,660 (S2). Wall Street lurks at all-time high level Bolstered mainly by gains in tech names, Wall Street observed several all-time high achievements by the Nasdaq and DJIA. At the closing bell, the DJIA edged to an intra-day all-time high level before settling 37.87 points (0.19%) up at 20,090.29 for the day. Attempting to breach above the 20,125 (R1) level, the DJIA faces headwinds as it lurks above the 20,125 level during last night s intra-day as selling pressure pushes the key index back below the R1 level. RSI and Stochastic are also rather flattish to indicate lack of bull momentum to climb further up. Thus, the likelihood of range bound trading to persist over the remainder of the week is still on the cards. At this point, key overhead resistances are seen at 20,125 (R1) and followed by 20,500 (R2), while support levels are tied at 20,000 (S1) and 19,650 (S2). Daily technical highlights - (PESONA, INNO) PESONA (Not Rated). PESONA has completed a rounding bottom chart pattern with a surge yesterday, breaching above its resistanceturned-support level of RM0.655 (S1) by closing up 3.5 sen (5.34%) at RM0.69. The underlying outlook is positively intact, supported firmly by all its up trending SMAs. The positively-inclined RSI is suggesting a strong bull case to climb further up, while the MACD line is also making a positive comeback from its zero-line to lay a hand on the positive-bias outlook. Nonetheless, we opine that the stock could undergo a healthy pullback in the immediate term given its overdone rally and toppish short-term signal displayed by the overbought Stochastic. Thus, any pullback towards the RM0.655 (S1)/RM0.63 (S2) levels could be a good support zone to accumulate on the stock. Upside is capped at RM0.73 (R1)/RM0.77 (R2). INNO (Take Profit @ RM1.45). INNO has been setting higher highs and troughs since our initial Trading Buy recommendation back in 4 Jan 2017 (LP: RM1.20, TP: RM1.73). Nonetheless, the regressing technical readings (MACD staging a bearish crossover, south trending RSI and rolling over of overbought Stochastic) are suggesting the waning momentum on the stocks, hinting possibility of the stock undergoing a consolidation mode. Given the likely tepid outlook in the immediate term, we opt to secure profit on the stock (20.8% gain) for now while we will relook for a more favourable entry point again. PP7004/02/2013(031762) Page 1 of 5
Figure 2: Daily Charting Dow Jones Industrial Average Figure 3: Daily Charting Pesona Metro Holdings Berhad (Not Rated) About the stock: Shariah Compliant : Yes Name : Pesona Metro Holdings Berhad Bursa Code : PESONA CAT Code : 8311 Market Cap : 451.8 52 Week High/Low : 0.7/0.33 3-m Avg. Daily Vol. : 3,792,592.00 Free Float (%) : 38.87% Beta vs. KLCI : 1.3 Key Support & Resistance Level Resistance : RM0.73 (R1) RM0.77 (R2) Support : RM0.655 (S1) RM0.63 (S2) Outlook : Bullish What does the indicator says MACD : Bullish RSI : Bullish Stochastic : Overbought Trend : Bullish What should you do Current Share : RM0.69 Technical Target : Technical Cut-loss : Fundamental Call Kenanga : RM0.49 Consensus : RM0.81 PP7004/02/2013(031762) Page 2 of 5
Figure 4: Daily Charting Innoprise Plantations Berhad (Take Profit @ RM1.45) About the stock: Shariah Compliant : Yes Name : Innoprise Plantations Berhad Bursa Code : INNO CAT Code : 6262 Market Cap : 693.2 52 Week High/Low : 1.5/0.55 3-m Avg. Daily Vol. : 329,656.40 Free Float (%) : 21.70% Beta vs. KLCI : 0.6 Key Support & Resistance Level Resistance : RM1.50 (R1) RM1.76 (R2) Support : RM1.27 (S1) RM1.10 (S2) Outlook : Bullish What does the indicator says MACD : Bearish RSI : Bearish Stochastic : Overbought Trend : Bullish-Neutral What should you do Current Share : RM1.45 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 (February 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 1.739 1.505 11.69% -3.37% 3.5 2.190 0.010 0.64 41.30% BUY 2 9334 KESM INDUSTRIES BHD 11-Nov-16 9.150 11.340 8.480 23.93% -7.32% 3.3 10.140 0.030 1.02 11.15% BUY 3 5231 PELIKAN INTERNATIONAL CORP 21-Dec-16 0.900 1.030 0.770 14.44% -14.44% 1.0 0.930-0.03 3.33% BUY 4 0021 GHL SYSTEMS BERHAD 30-Dec-16 0.885 0.940 0.850 6.21% -3.95% 1.6 0.930-0.05 5.08% BUY 5 9873 PRESTAR RESOURCES BHD 25-Jan-17 0.945 1.050 0.870 11.11% -7.94% 1.4 0.945-0.00 0.00% BUY 6 6963 V.S. INDUSTRY BERHAD 27-Jan-17 1.510 1.650 1.450 9.27% -3.97% 2.3 1.590-0.08 5.30% BUY 7 5115 ALAM MARITIM RESOURCES BHD 7-Feb-17 0.290 0.360 0.270 24.14% -6.90% 3.5 0.280 - -0.01-3.45% BUY Simple Average 14.40% -6.84% 2.4 8.96% *Tracker does not include Non-Rated positions Rating Comment/ Action Realised Positions (February 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 0037 RGB INTERNATIONAL BHD 20-Dec-16 0.285 0.33 0.32 14.04% -1.75% 7-Feb-17 0.325-0.04 14.04% Take Profit 2 6262 INNOPRISE PLANTATIONS BHD 4-Jan-17 1.200 1.45 1.41 24.17% 9.17% 8-Feb-17 1.450-0.25 20.83% Take Profit Simple Average 19.10% 3.71% 17.43% 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 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