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 129.13 Current Level 1,740.60 Bursa Vol 2788.9 Intraday High 1,741.51 Bursa Val 2451.67 Intraday Low 1,735.31 Technical Ratings Resistance 2 1,760 MACD Neutral Resistance 1 1,743 RSI (14) Bullish Current Level 1,740.55 Stochastic Bullish Support 1 1,727 Support 2 1,713 Outlook Neutral Encouraging signs for the FBMKLCI Asian markets finished mixed Tuesday as geopolitical tensions took a back seat following a failed missile test by North Korea over the weekend. As for the local bourse, the benchmark FBMKLCI ended 6.62 points higher (0.38%) at 1,740.55. Market breadth was stronger for the day with 520 gainers, 327 decliners and 397 counters traded unchanged. On the daily chart, the FBMKLCI has formed a Morning Doji Star candlestick formation, which is typical of a short-term reversal pattern. Buying support was also apparent at the medium-term uptrend line in the past two days. While early signs are encouraging, trading volume has been lower than what we hoped for. At the same time, the key momentum indicators remain mixed. Hence, investors should wait for a move above 1,743 (R1) which would signal a more decisive resumption of its short and medium term uptrend. Further up the line, stronger resistance can be found at 1,760 (R2) while downside support levels are 1,727 (S1) and 1,713 (S2). Wall Street finishes lower as earnings unravel US stocks fell on Tuesday, after Goldman Sachs shocked Wall Street by falling below estimates, and as Britain called for a snap election in June, adding to investors' concerns over geopolitical instability. At market close, the DJIA was down 113.64 (0.55%) points at 20,523.28. Chart-wise, the DJIA has formed a short-bodied candlestick with an upper and lower shadow. This reflects the indecision in market direction during the day. The DJIA lacks impetus for a move higher, evidenced by the MACD which is still below the Zero-line, while both the RSI and Stochastic indicators are bearish and have dipped below the 50-point mark. Unless and until the DJIA recover above the 20-day SMA/consolidation phase in a decisive manner, it is expected that the global benchmark index continue to bias on the downside. Resistance levels are 20,840 (R1) and 21,200 (R2) while support levels are 20,352 (S1) and 20,172 (S2). Daily technical highlights - (AIRASIA, PTRANS) AIRASIA (Not Rated). AIRASIA saw its share price rallying 9.0 sen (3.0%) yesterday to RM3.13. Trading volume rose to 17.2m shares, triple the day before. Chart-wise, AIRASIA s share price has been on a healthy uptrend since January, having gained from a low of RM2.16 to as high as RM3.16 earlier this month. More recently these past two weeks, the share price consolidated back to its short and medium term trend line at RM3.00 where it found buying support. Nevertheless, the share price broke out of its consolidation mode yesterday, which signals that AIRASIA is poised to start the next leg of its upwards climb. From here, expect a swift retest of its RM3.16 (R1) soon. Should this level be taken out next, further gains would then be expected towards RM3.30 (R2) next. Downside support levels are RM3.00 (S1), and RM2.77 (S2) further below. PTRANS (Not Rated). PTRANS saw its share price surging 2.0 sen (8.3%) yesterday to a closing high of RM0.26. Until recently, the share price had been stuck within sideways between RM0.15-RM0.18 for almost half a year. Nevertheless, strong buying interest at the start of last month drove the share price to break out of this tight range, with a subsequent climb to as high as RM0.27 within just a month. The share price had since pulled back towards RM0.23 last week. Consequent to yesterday s bullish move, PTRANS has broken out of its downwards consolidation phase, while the RSI indicator has also hooked up into bullish territory. From here, expect the share price to retest its recent RM0.27 (R1) high, before moving higher towards RM0.285 (R2) next. RM0.23 (S1) should offer strong support, although a break below would be highly negative with next support only present at RM0.21 (S2). PP7004/02/2013(031762) Page 1 of 5
Figure 2: Daily Charting Dow Jones Industrial Average Figure 3: Daily Charting Airasia Berhad (Not Rated) About the stock: Shariah Compliant : No Name : Airasia Berhad Bursa Code : AIRASIA CAT Code : 5099 Market Cap : 10,460.1 52 Week High/Low : 3.3/1.88 3-m Avg. Daily Vol. : 17,176,830.00 Free Float (%) : 62.51% Beta vs. KLCI : 1.2 Key Support & Resistance Level Resistance : RM3.16 (R1) RM3.30 (R2) Support : RM3.00 (S1) RM2.77 (S2) Outlook : Bullish What does the indicator says MACD : Neutral-Bullish RSI : Bullish Stochastic : Bullish Trend : Bullish What should you do Current Share : RM3.13 Technical Target : - Technical Cut-loss : - Fundamental Call Kenanga : - Consensus : RM3.31 PP7004/02/2013(031762) Page 2 of 5
Figure 4: Daily Charting Perak Transit Berhad (Not Rated) About the stock: Shariah Compliant : Yes Name : Perak Transit Berhad Bursa Code : PTRANS CAT Code : 0186 Market Cap : 297.2 52 Week High/Low : 0.27/0.16 3-m Avg. Daily Vol. : 7,242,618.00 Free Float (%) : 84.86% Beta vs. KLCI : 0186 Key Support & Resistance Level Resistance : RM0.27 (R1) RM0.285 (R2) Support : RM0.23 (S1) RM0.21 (S2) Outlook : Bullish What does the indicator says MACD : Neutral-Bullish RSI : Bullish Stochastic : Bullish Trend : Bullish What should you do Current Share : RM0.26 Technical Target : - Technical Cut-loss : - Fundamental Call Kenanga : - Consensus : RM0.31 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 2.800 0.025 1.27 81.44% BUY 2 9334 KESM INDUSTRIES BHD 11-Nov-16 9.150 11.340 8.480 23.93% -7.32% 3.3 12.000 0.030 2.88 31.48% BUY 3 7579 AWC BERHAD 28-Feb-17 0.985 1.080 0.930 9.64% -5.58% 1.7 0.990-0.01 0.51% BUY 4 7071 O&C RESOURCES BHD 16-Mar-17 0.620 0.730 0.570 17.74% -8.06% 2.2 0.630-0.01 1.61% BUY 5 7097 TA WIN HOLDINGS BHD 16-Mar-17 0.625 0.795 0.545 27.20% -12.80% 2.1 0.635-0.01 1.60% BUY 6 7204 D&O GREEN TECHNOLOGIES BHD 17-Mar-17 0.660 0.785 0.590 18.94% -10.61% 1.8 0.645 - -0.02-2.27% BUY 7 1171 MALAYSIA BUILDING SOCIETY 21-Mar-17 1.240 1.460 1.100 17.74% -11.29% 1.6 1.190 - -0.05-4.03% BUY 8 5054 TRC SYNERGY BHD 28-Mar-17 0.575 0.650 0.540 13.04% -6.09% 2.1 0.605-0.03 5.22% BUY Simple Average 25.45% -1.91% 1.65 14.44% *Tracker does not include Non-Rated positions Rating Comment/ Action TP upgraded to RM2.73, SL revised to RM2.28 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 3 9342 ANZO HOLDINGS BHD 13-Apr-17 0.535 0.600 0.360 12.15% -32.71% 17-Apr-17 0.465 - -0.07-13.08% Stopped Out Gain/ Loss Rating Comment/ Action Simple Average 26.35% -13.19% 16.83% 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