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 142.09 Current Level 1,744.67 Bursa Vol 4437.44 Intraday High 1,747.01 Bursa Val 3486.58 Intraday Low 1,741.51 Technical Ratings Resistance 2 1,750 MACD Bearish Resistance 1 1,740 RSI (14) Bearish Current Level 1,739.56 Stochastic Bearish Support 1 1,727 Support 2 1,714 Outlook Downsidebias Still cautious The local bourse continued to slip further into the red yesterday with profit-taking activities in blue-chips such as GENTING (-1.37%) and CIMB (- 1.26%), as investors' sentiment remains subdued over the poor overnight Wall Street performance. In tandem with the bearish-bias broader market, the FBMKLCI dipped 5.11 points (0.293%) to close lower at 1,739.56 on the back of thinner trading volume. Overall, the underlying index slipped marginally below the support line of 1,740 (R1). Key momentum indicators such as daily RSI and Stochastic are still trending negatively to reflect the waning bulls. All in, with uncertainties emerging over the recent minutes by the US Fed suggesting that the central bank should trim its massive stimulus and anxiousness over the presidential meeting between Trump and Xi Jinping, the local bourse is likely to close the week on a tepid note within 1,735-1,745. Resistance levels are found at 1,740 (R1)/1,750 (R2), while supports are tied at 1,727 (S1)/1,714 (S2). Wall Street pares stronger gains, on hawkish Syria talks Overnight on Wall Street, stocks pared stronger gains made during the day before ending marginally higher. At the closing bell, the DJIA was up 14.80 points (0.07%) at 20,662.95.The Fed remained in focus following Wednesday s release of the March meeting minutes, with one official endorsing a decrease in the central bank s massive balance sheet. However, the DJIA pared most of the earlier gains by market close, as Secretary of State Rex Tillerson indicated the US would support a regime change in Syria. Chart-wise, the primary trend of the DJIA is positive, supported by its multi-month uptrend support line. Nevertheless, the short-bodied candlestick with an upper shadow still indicates the reluctance of investors to drive up prices. Key momentum indicators are also flat. Combined, this reflected a directionless nature, and we believe that the DJIA is likely to trade sideways for now. Overhead resistance levels are 20,840 (R1) and 20,982 (R2) while downside support levels are 20,500 (S1) and 20,352 (S2). Daily technical highlights - (FAJAR, KGB) FAJAR (Not Rated). FAJAR s share price finished at RM0.785 with a 5.0 sen (6.8%) gain on high trading volume of 8.0m shares. Chartwise, FAJAR s short and longer-term trends are positive with the volume indicator showing signs of a healthy uptrend for both time frames. Consequent to yesterday s bullish move, FAJAR s share price has broken out of its mild consolidation phase, and is now in the midst of retesting its March high of RM0.79. Should this level be taken out next, FAJAR would then have a clear path towards the next resistance at RM0.81 (R1), RM0.84 (R2) and possibly RM0.84 (R3) next. Downside Is capped at the reaction low of RM0.715 (S1), although a break below would be highly negative for the stock with the next key support only present at RM0.635 (S2). KGB (Take Profit @ RM0.63). Recall that we previously issued a technical buy call on KGB (report dated 7 March 2017), after the share price staged a technical breakout of bullish Flag-like chart pattern. Since then, the share price had trended up strongly and eventually surpassed our target price objective of RM0.555. Recently, there was a formation of a Gravestone Doji at the peak of its recent rally, suggesting that a bearish reversal could be in play. Besides, daily RSI and Stocahstic have been in deeply overbought condition for a prolonged period of time, laying a hand on the possibility of the share price taking a breather soon. That said, we opt to take this golden opportunity to lock in our profit of 35.5% and re-look for another compelling re-entry again. PP7004/02/2013(031762) Page 1 of 5
Figure 2: Daily Charting Dow Jones Industrial Average Figure 3: Daily Charting Fajarbaru Builder Group Berhad (Not Rated) About the stock: Shariah Compliant : Yes Name : Fajarbaru Builder Group Berhad Bursa Code : FAJAR CAT Code : 7047 Market Cap : 284.2 52 Week High/Low : 0.79/0.5 3-m Avg. Daily Vol. : 2,479,911.00 Free Float (%) : 81.62% Beta vs. KLCI : 0.9 Key Support & Resistance Level Resistance : RM0.81 (R1) RM0.84 (R2) Support : RM0.715 (S1) RM0.635 (S2) Outlook : Bullish What does the indicator says MACD : Neutral-Bullish RSI : Bullish Stochastic : Overbought Trend : Bullish What should you do Current Share : RM0.785 Technical Target : - Technical Cut-loss : - Fundamental Call Kenanga : - Consensus : - PP7004/02/2013(031762) Page 2 of 5
Figure 4: Daily Charting Kelington Group Berhad (Take Profit @ RM0.63) About the stock: Shariah Compliant : Yes Name : Kelington Group Berhad Bursa Code : KGB CAT Code : 0151 Market Cap : 141.3 52 Week High/Low : 0.64/0.23 3-m Avg. Daily Vol. : 2,734,116.00 Free Float (%) : 43.91% Beta vs. KLCI : 1.6 Key Support & Resistance Level Resistance : RM0.64 (R1) RM0.70 (R2) Support : RM0.60 (S1) RM0.545 (S2) Outlook : Bullish-Neutral What does the indicator says MACD : Bullish RSI : Overbought Stochastic : Overbought Trend : Bullish What should you do Current Share : RM0.63 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 2.680 0.025 1.15 73.73% BUY 2 9334 KESM INDUSTRIES BHD 11-Nov-16 9.150 11.340 8.480 23.93% -7.32% 3.3 12.500 0.030 3.38 36.94% BUY 3 7579 AWC BERHAD 28-Feb-17 0.985 1.080 0.930 9.64% -5.58% 1.7 1.040-0.06 5.58% BUY 4 7071 O&C RESOURCES BHD 16-Mar-17 0.620 0.730 0.570 17.74% -8.06% 2.2 0.640-0.02 3.23% BUY 5 7097 TA WIN HOLDINGS BHD 16-Mar-17 0.625 0.795 0.545 27.20% -12.80% 2.1 0.550 - -0.08-12.00% BUY 6 7204 D&O GREEN TECHNOLOGIES BHD 17-Mar-17 0.660 0.785 0.590 18.94% -10.61% 1.8 0.655 - -0.01-0.76% BUY 7 1171 MALAYSIA BUILDING SOCIETY 21-Mar-17 1.240 1.460 1.100 17.74% -11.29% 1.6 1.270-0.03 2.42% BUY 8 5054 TRC SYNERGY BHD 28-Mar-17 0.575 0.650 0.540 13.04% -6.09% 2.1 0.610-0.04 6.09% BUY Rating Comment/ Action TP upgraded to RM2.73, SL revised to RM2.28 Simple Average 25.45% -1.91% 1.65 14.40% *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