By Lawrence Yeo / lawrenceyeo@kenanga.com.my; Steven Chan / steven.chan@kenanga.com.my; Muhammad Afif Bin Zulkaplly / muhammad.afif@kenanga.com.my Figure 1: Daily Charting FBMKLCI Basic Data 52-week High 1,796.75 (in Million) 52-week Low 1,616.08 KLCI Vol 109.27 Current Level 1,720.68 Bursa Vol 2273.2 Intraday High 1,722.73 Bursa Val 2368.66 Intraday Low 1,716.45 Technical Ratings Resistance 2 1,750 MACD Bearish Resistance 1 1,734 RSI (14) Bearish Current Level 1,720.68 Stochastic Oversold Support 1 1,714 Support 2 1,700 Outlook Negative The FBMKLCI close higher entering reporting season Asian equities closed mostly higher led by the Hang Seng Index after it hit a 10-year high. On the local front, market sentiment was negative with losers outweighing gainers by 684 to 240, while 370 shares traded unchanged. In line with market breath, most sectors ended lower except for Industrial, Trading/Services and Plantations. Bucking the market breadth, the bellwether FBMKLCI added 2.32pts (+0.14%) to close at 1,720.68 with PETGAS, RHBBANK and TM among the top gainers. Chart-wise, the index vacillated between gains and losses throughout the day before a last-minute push to close higher. Since the index broken below the support level of 1,727 last Wednesday, it traded within a 10-point tight range of between 1,716 and 1,725. Without any significant movement since then, the technical outlook remains biased towards the downside. On any further weakness, the index could break down below the immediate support level 1,714 (S1) to trend lower towards psychological level of 1,700 (S2). Conversely, the resistance levels are now 1,734 (R1) and 1,750 (R2). Wall Street record closing highs, lifted by tech stocks US equities extended their gains yesterday with all three major indexes recording closing highs. The gains were mainly boosted by gains in technology sector. The DJIA was up by 160.50 (0.69%) to close at 23,590.83. From a charting perspective, the index is bullish after it gapped up and continued to climb higher later yesterday. Now that it broke above its previous closing high in early November, we expect the index to retest the resistance level of 23,602 (R1) soon. A decisive breakout from that level will mark another signal of continuation of the Bull Run after it broke out from its recent pullback. Beyond that, the DJIA should then have a clear path towards the next resistance at 23,820 (R2). Downside support levels are now 23,250 (S1) and 22,856 (S2) below. Daily technical highlights - (BREM, CCMDBIO) BREM (Not Rated). BREM s share price gapped at the opening bell yesterday, and continued to climb towards its RM1.12 close (up 6.0 sen or 5.7% for the day). This follows its 1H18 earnings announcement, which jumped 432.1% to RM17.4m. From a charting perspective, the share price has been on an overall uptrend since the start of the year. However, with yesterday s bullish move, the share price has now punched through its RM1.11 resistance to signal a continuation of its prior uptrend after the past month s pullback. Similarly, the MACD has now crossed above its Signal-line, while upticks on the RSI and Stochastic indicate a pick-up in bullish momentum. Hence, investors may expect bias to be on the upside from here. Immediate resistance levels to watch are RM1.17 (R1) and RM1.21 (R2) while downside support levels are RM1.05 (S1) and RM1.00 (S2). CCMDBIO (Not Rated). Yesterday saw CCMDBIO rallying up for a fourth consecutive day, gaining 7.0 sen (3.1%) to close at RM2.31. This comes after the company announced its 3Q17 quarterly results, which saw its headline net profit figure jumping 80% on a YoY-basis. From a charting perspective, this recent rally brought key SMAs to a golden crossover, with key indicators following with positive upticks. Notable is the MACD which crossed over its Signal-line while in an upward motion. Increased trading volumes of late also indicate a possible gain in investors interest. Currently, we believe the share is in the midst of retesting its RM2.31 (R1) resistance. With sustained follow-through momentum, we expect the share to decisively break out and trend towards the higher resistance at RM2.43 (R2). Conversely, downside support levels can be identified at RM2.07 (R1) and RM1.99 (R2). PP7004/02/2013(031762) Page 1 of 5
Figure 2: Daily Charting Dow Jones Industrial Average Figure 3: Daily Charting Brem Holdings Bhd (Not Rated) About the stock: Shariah Compliant : No Name : Brem Holdings Bhd Bursa Code : BREM CAT Code : 8761 Market Cap : 385.7 52 Week High/Low : 1.14/0.79 3-m Avg. Daily Vol. : 701,257.40 Free Float (%) : 46.10% Beta vs. KLCI : 0.3 Key Support & Resistance Level Resistance : RM1.17 (R1) RM1.21 (R2) Support : RM1.05 (S1) RM1.00 (S2) Outlook : Bullish What does the indicator says MACD : Bullish RSI : Bullish Stochastic : Bullish Trend : Bullish What should you do Current Share : RM1.12 Technical Target : - Technical Cut-loss : - Fundamental Call Kenanga : - Consensus : - PP7004/02/2013(031762) Page 2 of 5
Figure 4: Daily Charting CCM Duopharma Biotech Bhd (Not Rated) About the stock: Shariah Compliant : Yes Name CCM Duopharma : Biotech Bhd Bursa Code : CCMDBIO CAT Code : 7148 Market Cap : 644.4 52 Week High/Low : 2.43/1.9 3-m Avg. Daily Vol. : 68,422.95 Free Float (%) : 91.87% Beta vs. KLCI : 0.6 Key Support & Resistance Level Resistance : RM2.31 (R1) RM2.43 (R2) Support : RM2.07 (S1) RM1.99 (S2) Outlook : Neutral-Bearish What does the indicator says MACD : Bullish RSI : Neutral Stochastic : Neutral Trend : Neutral What should you do Current Share : RM2.31 Technical Target : - Technical Cut-loss : - Fundamental Call Kenanga : - Consensus : RM2.70 This section is intentionally left blank. PP7004/02/2013(031762) Page 3 of 5
Unrealised Positions (Nov 2017) No CATS Code Stock Name Issued Date (ID) Upside Reward/ Dividend Gain/ Gain/ Target Stop- Downside Last Potential Risk Ratio Received Loss Risk Loss (incl. Loss since ID Div.) RM RM (%) (%) (x) RM RM RM (%) Rating Comment/ Action 1 7097 TA WIN HOLDINGS BHD 16-Mar-17 0.625 1.540 1.100 146.40% 76.00% -1.9 1.300-0.68 108.00% BUY Upgraded TP/SL (8-Aug) 2 4731 SCIENTEX BHD 6-Sep-17 8.910 9.640 8.440 8.19% -5.27% 1.6 8.760 - -0.15-1.68% BUY 3 7100 UCHI TECHNOLOGIES BHD 4-Oct-17 2.730 3.420 2.510 25.27% -8.06% 3.1 3.150-0.42 15.38% BUY 4 0097 VITROX CORP BHD 13-Oct-17 4.860 5.930 4.370 22.02% -10.08% 2.2 4.980-0.12 2.47% BUY 5 4324 HENGYUAN REFINING CO BHD 7-Nov-17 8.980 11.190 8.080 24.61% -10.02% 2.5 9.820-0.84 9.35% BUY 6 0181 AEMULUS HOLDINGS BHD 10-Nov-17 0.670 0.840 0.580 25.37% -13.43% 1.9 0.600 - -0.07-10.45% BUY Simple Average 41.98% 4.85% 1.55 20.51% *Tracker does not include Non-Rated positions Realised Positions (Nov 2017) No CATS Code Stock Name Issued Date Buy 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 (%) Gain/ Loss Rating Comment/ Action 1 3042 PETRON MALAYSIA REFINING & M 19-Sep-17 10.300 12.740 10.220 23.69% -0.78% 15-Nov-17 11.840-1.54 14.95% TAKE PROFIT 2 0186 PERAK TRANSIT BHD 16-May-17 0.259 0.373 0.245 43.91% -5.23% 15-Nov-17 0.300 0.002 0.12 45.51% TAKE PROFIT Gains include free warrants received on the basis of 1 warrant for every 2 shares. of warrant as at sell date is RM0.165. 3 0089 TEX CYCLE TECHNOLOGY 21-Apr-17 0.847 0.893 0.787 5.47% -7.12% 16-Nov-17 0.825 0.008-0.01-1.69% CLOSE POSITION 4 5125 PANTECH GROUP HOLDINGS BHD 29-Sep-17 0.670 0.730 0.655 8.96% -2.24% 16-Nov-17 0.655 - -0.02-2.24% CLOSE POSITION Simple Average 20.51% -3.84% 14.28% 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