Daily Market Update (EFORCE, UCHITEC, MAGNA)

Wall Street extended its gains for the second straight session as the Dow rose 1.3%, in line with the recovery in crude oil prices. Meanwhile, the S&P 500 rose 1.0%, erasing its monthly losses , led by gains in the financial sector (+1.4%) while the Nasdaq added 0.9%.

The FBM KLCI closed lower for the second straight session yesterday, spooked by the rout in China stockmarkets. The MACD Histogram has extended another red bar, while the RSI continues to hover above the 50 level. The immediate resistance will be envisaged around the 1,700 level. Support will be pegged around the 1,600-1,630 levels.


EFORCE (0065): Monitor for a breakout above the RM0.915 level. TP: RM1.00. SL: RM0.89.

UCHITEC (7100): Price has formed a BPC formation above the RM1.60 level. TP: RM1.80-RM2.00. SL: RM1.58.

MAGNA (7617): Monitor for a breakout above the RM1.06 level. TP: RM1.15-RM1.24. SL: RM1.00.

Daily KLSE Market News update

The FBM KLCI index gained 20.21 points or 1.21% on Wednesday. The Finance Index increased 0.91% to 14268.24 points, the Properties Index up 0.11% to 1136.99 points and the Plantation Index rose 0.35% to 7848.88 points. The market traded within a range of 16.38 points between an intra-day high of 1691.03 and a low of 1674.65 during the session.

Actively traded stocks include AIRASIA, AAX, APFT, SKH, SKPETRO, GENETEC, MINETEC, XOX, TIGER and JADI. Trading volume decreased to 1664.69 mil shares worth RM2278.63 mil as compared to Tuesday’s 1673.90 mil shares worth RM1648.28 mil.

Leading Movers were SKPETRO (+8 sen to RM2.05), MAXIS (+22 sen to RM6.42), DIGI (+15 sen to RM5.08), SIME (+20 sen to RM7.90) and GENTING (+17 sen to RM8.39). Lagging Movers were UMW (-8 sen to RM6.97), KLCC (-3 sen to RM7.02), KLK (-2 sen to RM23.88), GENM (-0 sen to RM4.31) and PET- DAG (-2 sen to RM25.00). Market breadth was positive with 478 gainers as compared to 375 losers.

The KLCI closed higher at 1691.03 points with last minute spike before the closing bell amid overnight gains in US Market following the better-than-expected manufacturing data. The performance of our local bourse was in tandem with our regional peers and lifted by buying interest in heavy weight counters such as SapuraKencana Petroleum, Maxis and Digi.com.

HK buys three German shipyards for RM1bil

Genting Hong Kong (GenHK) has acquired Nordic Yards’ three shipyards in Wismar, Warnemunde and Stralsund, Germany, for the consideration of 230.6 million euros (RM1.04bil). 

The global leisure, entertainment and hospitality company said in a statement that these purchases, along with that of Lloyd Werft last year (also in Germany), enabled GenHK to realise its global cruise ships fleet strategy over the next decade for its three brands - Crystal Cruises, Dream Cruises, and Star Cruises.

“The rapid growth of the world cruise industry, especially in China, has led to cruise ship order book reaching an all-time high,” said GenHK chairman and chief executive officer Tan Sri Lim Kok Thay.

“In order to ensure that the company can build the required number of cruise ships in the next decade for our global fleet expansion, it is strategic that we acquired shipyards that can build our cruise ships in a timely basis and in a more cost effective manner

KLSE MALAYSIA STOCK MARKET TRADING PICKS

MARKET UPDATES :

• The FBM KLCI index lost 0.21 points or 0.01% on Friday. The Finance Index fell 0.02% to 13836.7 points, the Properties Index dropped 0.32% to 1098.39 points and the Plantation Index rose 0.29% to 7722.81 points. The market traded within a range of 10.20 points between an intra-day high of 1648.70 and a low of 1638.50 during the session.

• Actively traded stocks include TIGER, XDL, GAMUDA-WR, GENETEC, SKH, XOX, APFT, BJCORP, VIVO- COM and HSI-HQ. Trading volume increased to 1333.72 mil shares worth RM1574.00 mil as compared to Thursday’s 1226.16 mil shares worth RM1411.24 mil.

• Leading Movers were ASTRO (+4 sen to RM2.68), CIMB (+6 sen to RM4.20), MISC (+12 sen to RM8.70), IOICORP (+6 sen to RM4.67) and KLCC (+9 sen to RM7.04). Lagging Movers were GENM (- 12 sen to RM4.27), MAXIS (-8 sen to RM6.06), GENTING (-8 sen to RM7.79), PETCHEM (-6 sen to RM6.90) and WPRTS (-2 sen to RM3.98). Market breadth was negative with 271 gainers as compared to 517 losers.

• The KLCI ended little change for the second day and closed lower at 1643.74 points amid overnight losses in US market after oil prices dipped below US$30 a barrel. Market sentiment remained muted as investors were cautious with global gloom outlook.

STOCK RECOMMENDATION :

• BUY SK PETRO ABOVE 1.820 TARGET 1.860 1.910 1.970 SL 1.750

Ringgit slides with Malaysian stocks it lower down to 0.7 per cent

The ringgit weakened 0.7 per cent to 4.1845 per US dollar as of 9.56

am in Kuala Lumpur, after last week posting its biggest rally since October as the outlook for the oil-exporting nation's finances improved amid a recovery in Brent crude. Oil fell for a second day on Tuesday as Malaysian markets reopened after a holiday on Monday.

The ringgit also weakened to 2.9393 to the Singapore dollar as of 10.41am, 0.7 per cent lower than its close on Monday.

"It appears that the dust is being kicked up on 1MDB all over again," said Mr Vishnu Varathan, a Singapore-based economist at Mizuho Bank Ltd. "Downside pressures for the ringgit could re-emerge."

The ringgit climbed 3.3 per cent in January, more than any other in emerging markets, on speculation 2015's 19 per cent decline was overdone.

Malaysia's benchmark stock index fell 0.5 per cent after climbing 2.6 per cent in the five days through Jan 29. Government bonds due in 2020 rose, with the yield falling two basis points to 3.36 per cent, Bursa Malaysia prices show.

Ringgit opens marginally lower against US dollar

KUALA LUMPUR: The ringgit opened marginally lower against the US dollar this morning as some investors turned to the safe haven currency, dealers said.

At 9.05am, the local unit was traded at 4.3720/3820 from 4.3625/3675 against the greenback at 5pm on Tuesday.

The local unit was traded mostly lower against other emerging currencies.

It depreciated against the Singapore dollar to 3.0410/0498 from 3.0375/0349 yesterday and eased versus the yen to 3.7218/7313 from 3.7017/7072 the previous day.

The ringgit appreciated against the British pound to 6.1956/2106 from 6.2384/2481 on Tuesday but weakened against the euro to 4.7747/7873 from 4.7473/7536 yesterday

Mustapa: TPP gives more benefits than challenges

The Trans-Pacific Partnership Agreement (TPP) will provide give benefits compared to its challenges, said Minister of International Trade and Industry, Datuk Seri Mustapa Mohamed.

Mustapa said the government has analysed the full impact of the trade agrement and would continue to provide explanations to all levels of the society for them to gain deeper understanding.

"The ministry had conducted various dialogue sessions where I was involved in such engagements," he said in a RTM dialogue talk show entitled "TPP Enlightenment" here today.

Mustapa stressed that the government would not make any hasty decisions.

"In any decisions, the government would consider the advantages and disadvantages of any policy," he said.

He said the government had conducted two Cost-and-Benefit Analyses that were done by PwC Malaysia and the Institute of Strategic and International Studies Malaysia.

"Even though, the government recognised there were costs that have to be borne, the benefits outweigh the costs," he said.

"It cannot be denied that there are several challenges that we have to face by participating in the TPP, but the government recognises that as a whole, Malaysia can stand to benefit," he said.

He said if the country decided to be a party of the TPP, there will also be a two-year ratification period following the signing.

As such, the coming into force of the TPP was only expected to take place earliest at early 2018, he said.

The TPP countries, namely Australia, the US, New Zealand, Canada, Mexico, Peru, Chile, Brunei, Singapore, Japan, Vietnam and Malaysia account for almost 40 per cent of the world's gross domestic product and a third of global trade