By the Kenanga Research Team l research@kenanga.com.my Figure 1: Daily Charting FBMKLCI Index Basic Data 52-week High 1,729.13 (in Million) 52-week Low 1,600.92 KLCI Vol 85.75 Current Level 1,665.32 Bursa Vol 1291.53 Intraday High 1,669.46 Bursa Val 1365.73 Intraday Low 1,663.25 Technical Ratings Resistance 2 1,680 MACD Neutral Resistance 1 1,670 Stochastic Bearish Current Level 1,665.32 RSI (14) Neutral Support 1 1,650 Support 2 1,643 Outlook Neutral A muted start to the week. The FBMKLCI started off the week on a tepid note, closing flat at 1,665.32, declining 0.06 points. Market breadth was in the red with 460 decliners outpacing 324 advancers. Technical-wise, the benchmark index remained aligned to its sideways consolidation play. In tandem with the thin trading volume and rolling over of Stochastic indicator, daily RSI is still in neutral gear to suggest much indecisiveness among investors on the market direction. From here, we continue to view that the FBMKLCI will persist on its sluggish trend within 1,642-1,670 this week given the absence of key catalysts. Resistance level are observed at 1,670 (R1)/1,680 (R2), while downside support are capped at 1,650 (S1)/1,642 (S2). Wall Street rises on stronger oil prices. The Dow rose 88.55 points (0.49%) to close at 18,329.04 points last night, underpinned by stronger crude oil prices and gains seen in several healthcare counters. Investors also took positivism from the second presidential debate, where Hillary Clinton was widely seen as the winner. On the chart, the Dow is inching up to retest its immediate resistance level of 18,400 (R1). Nonetheless, major indicators (RSI and Stochastic) are still flattish to suggest that the key index will still be directionless in the near-term. Thus, we reckon that the Dow will continue to trade tepidly within 18,000-18,400 this week, as we seek inspirations from the on-going earnings season for more clues on the market direction. Resistance level are set at 18,400 (R1)/18,600 (R2), while supports are tied at 18,000 (S1)/17,800 (S2). Daily technical highlights - (JTIASA, PIE) JTIASA (Take Profit @ RM1.29). Earlier in August (9-Aug), we recommended JTIASA when the share price began to show signs of a rebound at RM1.20. Since then, JTIASA had risen to as high as RM1.37, surpassing our RM1.36 technical target price two weeks back. Yesterday, the share price finished flat at RM1.29. The technical picture has now deteriorated, evidenced by the MACD Bearish Divergence. Unless and until JTIASA offers another buy signal, we suggest that investors lock in prior gains for now. Immediate resistance levels to look out for are RM1.37 (R1) and RM1.50 (R2), while downside support levels are RM1.20 (S1) and RM1.08 (S2). PIE(Close Position). Last month (7-September), we issued a trading buy call on PIE after the stock saw rekindled buying interest to break out from its consolidation zone at RM1.94. Nonetheless, the stock had failed to live up to its momentum as it retraced further to break down from its key support-turned-resistance of RM1.83 recently. MACD histogram has staged a bearish crossover to suggest that downside pressure still persist on the stock. Thus, we opt to close position on the stock while keeping a look out for another buy signal. Overhead resistance are seen at RM1.83 (R1) and RM1.95 (R2), with support located at RM1.73 (S1) and RM1.62 (S2). PP7004/02/2013(031762) Page 1 of 5
Figure 2: Daily Charting Dow Jones Industrial Average (INDU) Figure 3: Daily Charting Jaya Tiasa Holdings Berhad (Take Profit @ RM1.29) About the stock: Shariah Compliant : Yes Name : Jaya Tiasa Holdings Berhad Bursa Code : JTIASA CAT Code : 4383 Market Cap : 1,248.7 52 Week High/Low : 1.81/1.05 3-m Avg. Daily Vol. : 1,486,587.00 Free Float (%) : 63.71% Beta vs. KLCI : 0.6 Key Support & Resistance Level Resistance : RM 1.37 (R1) RM 1.50 (R2) Support : RM 1.20 (S1) RM 1.08 (S2) Outlook : Neutral What does the indicator says MACD : Bearish Stochastic : Neutral RSI : Neutral Trend : Neutral What should you do Current Share : RM1.29 Technical Target : - Technical Cut-loss : - Fundamental Call Kenanga : - Consensus : RM1.51 PP7004/02/2013(031762) Page 2 of 5
Figure 4: Daily Charting P.I.E Industrial Berhad (Close Position) About the stock: Shariah Compliant : No Name : P.I.E Industrial Berhad Bursa Code : PIE CAT Code : 7095 Market Cap : 691.3 52 Week High/Low : 2.77/1.28 3-m Avg. Daily Vol. : 635,362.90 Free Float (%) : 35.35% Beta vs. KLCI : 0.9 Key Support & Resistance Level Resistance : RM 1.83 (R1) RM 1.95 (R2) Support : RM 1.73 (S1) RM 1.62 (S2) Outlook : Bearish What does the indicator says MACD : Bearish Stochastic : Oversold RSI : Oversold Trend : Bearish What should you do Current Share : RM1.80 Technical Target : RM2.17 Technical Cut-loss : RM1.79 Fundamental Call Kenanga : RM2.17 Consensus : RM2.17 This section is intentionally left blank. PP7004/02/2013(031762) Page 3 of 5
Unrealised Positions (October 2016) No CATS Code Stock Name Issued Date (ID) @ ID Target Stop- Upside Potential Downside Risk Reward/ Risk Ratio Last Dividend Received since ID (incl. Div.) RM RM (%) (%) (x) RM RM RM (%) 1 0127 JHM CONSOLIDATION BHD 10-Aug-16 1.35 1.650 1.200 22.22% -11.11% 2.0 1.250 - -0.10-7.41% BUY - 2 7133 UNITED U-LI CORP BHD 2-Sep-16 3.80 4.460 3.560 17.37% -6.32% 2.8 4.040 0.030 0.27 7.11% BUY - 3 7207 SUCCESS TRANSFORMER CORP 20-Sep-16 1.87 2.140 1.710 14.44% -8.56% 1.7 1.790 - -0.08-4.28% BUY - 4 5222 FELDA GLOBAL VENTURES 22-Sep-16 2.41 2.770 2.240 14.94% -7.05% 2.1 2.300 - -0.11-4.56% BUY - 5 7155 SKP RESOURCES BHD 22-Sep-16 1.33 1.550 1.220 16.54% -8.27% 2.0 1.290 - -0.04-3.01% BUY - 6 5072 HIAP TECK VENTURE BHD 27-Sep-16 0.34 0.375 0.305 11.94% -8.96% 1.3 0.295 - -0.04-11.94% BUY - Rating Comment/ Action Simple Average 16.24% -8.38% 1.98-4.02% *Tracker does not include Non-Rated positions Realised Positions (October 2016) No CATS Code Stock Name Issued Date Buy Intraday price since Buy Date change since Buy Date (%) Sell Date Sell Dividend Received since ID (incl. Div.) (H) (L) (H) (L) RM RM RM (%) 1 4383 JAYA TIASA HOLDINGS BHD 9-Aug-16 1.20 1.350 1.200 12.50% 0.00% 11-Oct-16 1.290-0.09 7.50% Take Profit - 2 7095 PIE INDUSTRIAL BHD 7-Sep-16 1.94 1.960 1.800 1.03% -7.22% 11-Oct-16 1.800 - -0.14-7.22% Close Position - Simple Average 6.77% -3.61% 0.14% 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) 8th Floor, Kenanga International, Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia Telephone: (603) 2166 6822 Facsimile: (603) 2166 6823 Website: www.kenanga.com.my Chan Ken Yew Head of Research PP7004/02/2013(031762) Page 5 of 5