Advertisement

Wednesday, April 06, 2016

USD-MYR: Some Exporters Are Looking Attractive Again

In the past 3 weeks, USD-MYR had been trending lower after it broke the tentative uptrend line, S1-S1 at 4.10. That level is also the horizontal line. USD-MYR will probably continue its slide until 3.75, which is a strong horizontal support level.


Chart 1: USD-MYR's weekly chart as at April 5, 2016 (Source: Investing.com)

The drop in USD-MYR has dragged down many exporters, which had earlier benefited immensely from the weak MYR. However, some of these exporters are no weaklings. The retracement of USD-MYR would not push them into a loss-making position; it merely reduce their abnormal profit. Thus, the correction in their share prices due to the strengthening of MYR may flash out good value if you take a long-term view of these stocks.

I appended below some of the exporters which had dropped sufficiently for investors to consider adding them into their portfolio. They are:

1. Kossan


Chart 2: Kossan's weekly chart as at April 5, 2016 (Source: ShareInvestor.com)

2. Evergrn


Chart 3; Evergrn's weekly chart as at April 5, 2016 (Source: ShareInvestor.com)

These are only 2 stocks in a fairly large population of exporters that you can sift through for stock picking. I like rubber glove sector and particleboard/MDF sector for itheir strong competitive advantage.

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of,Kossan & Evergrn.

No comments: