By the Kenanga Research Team l research@kenanga.com.my Figure 1: Daily Charting FBMKLCI Basic Data 52-week High 1,757.99 (in Million) 52-week Low 1,611.88 KLCI Vol 174.33 Current Level 1,748.30 Bursa Vol 3164.82 Intraday High 1,748.30 Bursa Val 2752.79 Intraday Low 1,738.40 Technical Ratings Resistance 2 1,760 MACD Bullish Resistance 1 1,750 RSI (14) Overbought Current Level 1,748.3 Stochastic Overbought Support 1 1,740 Support 2 1,727 Outlook Neutral FBMKLCI down on profit taking Blue-chips took a beating during yesterday s session as investors opt to take profit on their holdings after the sudden overnight plunge in Wall Street. The FBMKLCI dipped 6.37 points (0.363%) to close at 1,748.3. Market breadth turned negative with 605 bears outpacing 328 bulls. On the chart, the benchmark index had gap down to form a Dragonfly Doji candlestick to depict a late comeback by the bulls pulling the key index up from an earlier sell down. Downtick displayed by the RSI and Stochastic are reflecting the heavy selling pressure during intra-day trading. We expect the key index to trade downside-bias within 1,740-1,750 throughout the rest of the week for now, but should the FBMKLCI unable to hold above the 1,740 (S1) level, it could face further pressure towards 1,727 (S2) next. Overhead levels are now capped at 1,750 (R1)/1,760 (R2). US stocks rebound, but DJIA still down marginally Overnight on Wall Street, stocks rebounded after the first 1% decline since October. Safe havens such as Treasuries and the yen remained in demand as investors assessed the prospects for pro-growth policies in the US. Nevertheless, the DJIA was down marginally by 6.71 points (0.03%) at 20,661.30, despite recovering from deeper losses of 89 points earlier in the session. Chart-wise, the DJIA had broke down from its sideways consolidation zone earlier on Tuesday, signalling the potential start to a meaningful pullback in an overall uptrend. Yesterday s Doji candlestick indicated that some light support is present. However, with the momentum indicators sill in a negative state over the short term, we reckon that near-term bias remains on the downside. Support levels include 20,654 (S1) although a more solid level would be at 20,500 (S2) further below. At the same time, overhead resistance levels are now at 20,840 (R1) and 20,982 (R2). Daily technical highlights - (SALUTE, ALAM ) SALUTE (Not Rated). SALUTE has been consolidating into a Wedge -like chart pattern over the past two months, with multiple attempts to breach above the RM1.62 level. Yesterday, SALUTE surged 12.0 sen (7.69%) to close at RM1.68, setting a fresh all-time high level. The MACD line has staged a bullish crossover from its Signal line, while RSI and Stochastic have also hooked up to signal expanding buying momentum on the stock. With the convincing technical breakout, the stock could look to gear higher up towards RM1.80 (R1)/RM2.00 (R2) in the mid to long-term. Support levels are now formed at RM1.62 (S1)/RM1.55 (S2). ALAM (Not Rated). ALAM announced that it had bagged a 2-year IMR job worth RM99.0m recently, leading to a surge in its share price yesterday. The stock rose 2.5 sen (8.77%) to close at RM0.31 on the back of strong trading volume. The positive price action led ALAM to breaching above its 2-month downtrend resistance line. MACD is looking to stage a bullish crossover from its Signal line, while positive uptick by RSI and Stochastic from a relatively low base is suggesting buying interest are resurfacing. Nonetheless, we observe that there are clusters of overhead resistances ahead, notably the RM0.32 (R1)/RM0.37 (R2) area. A ambitious takeout of the aforesaid levels are needed to lead the share price to a new uptrend trajectory. Otherwise, the stock could look to consolidate again within RM0.25-RM0.37. Support levels are currently spotted at RM0.30 (S1)/RM0.25 (S2). PP7004/02/2013(031762) Page 1 of 5
Figure 2: Daily Charting Dow Jones Industrial Average Figure 3: Daily Charting Salutica Berhad (Not Rated) About the stock: Shariah Compliant : Yes Name : Salutica Berhad Bursa Code : SALUTE CAT Code : 0183 Market Cap : 651.8 52 Week High/Low : 1.71/0.77 3-m Avg. Daily Vol. : 859,613.30 Free Float (%) : 96.21% Beta vs. KLCI : N.A. Key Support & Resistance Level Resistance : RM1.80 (R1) RM2.00 (R2) Support : RM1.62 (S1) RM1.55 (S2) Outlook : Bullish What does the indicator says MACD : Bullish RSI : Bullish Stochastic : Overbought Trend : Bullish What should you do Current Share : RM1.68 Technical Target : - Technical Cut-loss : - Fundamental Call Kenanga : - Consensus : - PP7004/02/2013(031762) Page 2 of 5
Figure 4: Daily Charting Alam Maritim Resources Bhd (Not Rated) About the stock: Shariah Compliant : Yes Name : Alam Maritim Resources Bhd Bursa Code : ALAM CAT Code : 7140 Market Cap : 237.3 52 Week High/Low : 1.54/0.95 3-m Avg. Daily Vol. : 337,843.30 Free Float (%) : 40.50% Beta vs. KLCI : 0.9 Key Support & Resistance Level Resistance : RM0.32 (R1) RM0.37 (R2) Support : RM0.30 (S1) RM0.25 (S2) Outlook : Bullish What does the indicator says MACD : Neutral RSI : Bullish Stochastic : Bullish Trend : Neutral What should you do Current Share : RM0.31 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 (March 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 2.430 0.025 0.90 57.68% BUY 2 9334 KESM INDUSTRIES BHD 11-Nov-16 9.150 11.340 8.480 23.93% -7.32% 3.3 11.720 0.030 2.60 28.42% BUY 3 0120 VISDYNAMICS HOLDINGS BHD 14-Feb-17 0.605 0.770 0.475 27.27% -21.49% 1.3 0.675-0.07 11.57% BUY 4 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 5 0151 KELINGTON GROUP BHD 7-Mar-17 0.465 0.555 0.415 19.35% -10.75% 1.8 0.510-0.05 9.68% BUY 6 5161 JCY INTERNATIONAL BHD 14-Mar-17 0.645 0.710 0.595 10.08% -7.75% 1.3 0.635 - -0.01-1.55% BUY 7 7071 O&C RESOURCES BHD 16-Mar-17 0.620 0.730 0.570 17.74% -8.06% 2.2 0.650-0.03 4.84% BUY 8 7097 TA WIN HOLDINGS BHD 16-Mar-17 0.625 0.795 0.545 27.20% -12.80% 2.1 0.590 - -0.04-5.60% BUY 9 7204 D&O GREEN TECHNOLOGIES BHD 17-Mar-17 0.660 0.785 0.590 18.94% -10.61% 1.8 0.665-0.01 0.76% BUY 10 1171 MALAYSIA BUILDING SOCIETY 21-Mar-17 1.240 1.460 1.100 17.74% -11.29% 1.6 1.240-0.00 0.00% BUY 11 5151 HALEX HOLDINGS BHD 21-Mar-17 0.615 0.740 0.515 20.33% -16.26% 1.3 0.670-0.06 8.94% BUY Simple Average 24.32% -5.95% 1.52 10.94% *Tracker does not include Non-Rated positions Rating Comment/ Action TP upgraded to RM2.73, SL revised to RM2.28 Realised Positions (March 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 0128 FRONTKEN CORP BHD 10-Feb-17 0.210 0.230 0.205 9.52% -2.38% 2-Mar-17 0.230-0.02 9.52% Take Profit Gain/ Loss Rating Comment/ Action Simple Average 9.52% -2.38% 9.52% PP7004/02/2013(031762) Page 4 of 5
Continuation Patterns Reversal Patterns On Our Technical Watch 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 Inverted Head & Shoulders (Bullish) Head & Shoulders (Bearish) Wedge Reversal (Bullish/ Bearish) Double Top (Bearish) Double Bottom (Bullish) 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