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Monday, February 26, 2018

PBBANK: Earnings Continued to Rise

Result Update

For QE31/12/2017, PBBank's net profit 5.8% q-o-q or 0.2% y-o-y to RM1.49 billion while revenue rose 0.7% q-o-q or 5.2% y-o-y to RM5.35 billion. PBT rose q-o-q mainly due to lower loan impairment allowance, higher other operating income, lower other operating expenses and higher net interest income, partially offset by lower investment income.


Table: PBBank's last 8 quarterly results

From the chart below, we can see that PBBank's revenue, profits and profit margins are beginning to rise again after stagnating for 6 quarters.


Graph: PBBank's last 44 quarterly results

Valuation

PBBank (closed at RM22.90 as at 12.30pm) is now trading at a PE of 16 times (based on last 4 quarters' EPS of 142 sen). At this PER, PBBank is deemed fully valued. It pays a decent dividend yield of 2.7%.

Technical Outlook

PBBank is still in a long-term uptrend, with 30-month EMA acting as a support at RM20.00.


Chart 1: PBBank's monthly chart as at Feb 23, 2018 (Source: ShareInvestor.com)

PBBank broke above the horizontal line at RM21.00 in late January. This breakout could signal the continuation of its prior uptrend. The immediate target price is at RM24.40.


Chart 2: PBBank's weekly chart as at Feb 23, 2018 (Source: ShareInvestor.com)

Conclusion

Based on good financial performance, fair valuation & positive technical outlook, PBBank is still a good stock for long-term investment. 

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

PetronM: Earnings Dropped Slightly

Results Update

For QE31/12/2017, PetronM's net profit dropped 6% q-o-q and 12% y-o-y to RM99 million while revenue rose 11% q-o-q or 24% y-o-y to RM2831 million. Revenue rose y-o-y due to 10%%-increase in total sales volume from 8.3 million barrels last year to 9.1 million barrels this year. Despite higher revenue, profit before tax dropped due to lower gross margin, which dropped 31% as compared to last year. The drop in gross profit margin was attributed to narrowing of crack spread where crude oil prices rose faster than product price increase. In my opinion, the period of abnormally high gross profit margin is over. Along with that, the super-normal profit for refineries will also cease.


Table: PetronM's last 8 quarterly results  


Graph: PetronM's last 22 quarterly results  

Valuation

PetronM (closed at RM11.48 last Friday) is now trading at a PER of 7.7 times (based on annualized EPS of 150 sen). At this PER, PetronM is deemed fvery attractive. However, if you agree that PetronM is now coming off its earning peak, then its share price will likely to trend lower as its earnings continue to go lower.

Technical Outlook  

PetronM has broken its intermediate uptrend line, SS at RM13.00 in late January. It has support at the horizontal line at RM10.60-10.70.


Chart 1: PetronM's weekly chart as at Feb 23, 2018 (Source: ShareInvestor,com)

From the monthly chart, we can see PetronM rallied strongly in the past few months after it broke above the upper line of the irregular upward channel. If the share prices were to drift lower, this upper line may provide support for the stock at RM8.50.


Chart 2: PetronM's monthly chart as at Feb 23, 2018 (Source: ShareInvestor,com)

Conclusion

Based on potential peak earnings and negative technical outlook, I think it is a good time to take profit on PetronM. Based on the same logic, you should also take profit on Hengyuan if you have that stock.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

Thursday, February 22, 2018

TOYOINK: Magic At Work


If Wishes Were Horses, Beggars Would Ride On Them

This morning TOYOINK broke above the horizontal line at RM0.85 and rallied to close the gap made in early 2013 at around RM1.05. The volume is decent at 3.7 million at the time of writing this post (11.20am).


Chart 1: TOYOINK's weekly chart as at Feb 22, 2018_11.12am (Source: Malaysiastock.biz)

The rally in TOYOINK has caused a sharp rally for TOYOINK-WA. The latter jumped from RM0.005 to RM0.135 now. You may ask, Why was this warrant so cheap? That's very good question. And the answer: It is due to expire worthless in 57 days... until now. With an exercise price of RM1.50, the chance of this warrant attaining any intrinsic value is pretty slim. In a market deprived of good trading opportunity, even dicey opportunity mustn't go to waste. I presume I don't have to say what you shouldn't do in this situation.


Chart 2: TOYOINK-WA's weekly chart as at Feb 22, 2018_11.12am (Source: Malaysiastock.biz)

[UPDATE] I better say it; Stay away or walk away from TOYOINK-WA. If nothing good is forthcoming in TOYOINK, the share price would drop back. And, TOYOINK-WA would not only drop back, it would tumble back quickly to RM0.005.  


AAX: Earnings Soared

Results Update

For QE31/12/2017, AAX reported a net profit of RM84 million as compared to a net loss of RM43 million in the immediate preceding quarter. At the same time, revenue rose 8.5% to RM1.22 billion.

When compared to the same quarter last year (4Q16), revenue rose 4% due to 12% growth in passenger volume. Ancillary revenue per passenger increased by 4% to RM142 year-on-year. The seat load factor was at 83% which was 2 percentage point higher than the same quarter last year. Average fare was down by 8% at RM519 as compared to RM565 achieved in 4Q16. Included in other operating expenses in 4Q17 was provision for doubtful debts of RM11.8 million. The profit before tax for the period was RM135.6 million compared to a profit before tax of RM29.9 million in 4Q16; while the net profit for the period was RM84.4 million compared to a net profit of RM39.0 million in 4Q16


Table: AAX's last 8 quarterly results

AAX's top-line, bottom-line and profit margins are all pointing upwards. Things are beginning to look quite positive for AAX.


Graph: AAX's last 13 quarterly results

Technical Outlook

AAX has been moving sideways for the past 17 months. A breakout above RM0.50 or below RM0.35 would point the way forward for AAX.


Chart: AAX's weekly chart as at Feb 21, 2018 (Source: Shareinvestor.com)

Conclusion

Based on good financial performance, AAX could be a good stock to consider for a very long-term investment.

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

Freight: Earnings Stagnated

Results Update

For QE31/12/2017, Freight's net profit dropped marginally by 1% q-o-q but rose 16% y-o-y to RM5.9 million while revenue rose 3.4% q-o-q & 14.4% y-o-y to RM132 million. Revenue increased q-o-q mainly due to higher activities in Seafreight, 3PL & Warehousing and Landfreight services. PBT decreased slightly by 5% due to higher freight cost and higher share of loss from associates.


Table: Freight's last 8 quarterly results


Graph: Freight's last 39 quarterly results

Financial Position

As at 31/122017, Freight's financial position is deemed satisfactory with current ratio at 2.4x and gearing ratio at 0.6x.

Valuation

Freight (closed at RM1.21 yesterday) is trading at a PE of 9.9 times (based on last 4 quarters' EPS of 12.25 sen). The stock is deemed fairly valued.

Technical Outlook

Freight is struggling to hang onto its long-term uptrend line, SS.


Chart 1: Freight's monthly chart as at Feb 21, 2018 (Source: Malaysiastock.biz)


Chart 2: Freight's weekly chart as at Feb 21, 2018 (Source: Malaysiastock.biz)

Conclusion

Based on good financial performance and position, Freight is considered a good stock for long-term investment. 

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

Wednesday, February 21, 2018

Nestle: That's All?


Results Update

For QE31/12/2017, Nestle's net profit rose 12% q-o-q or 99% y-o-y to RM133 million while revenue dropped by 3% q-o-q but rose by 3% y-o-y at RM1.28 billion. Revenue rose y-o-y due to 4.5%-increase in domestic sales, which was partially offset by slowdown in export sales. PBT rose 14.3% y-o-y due to the continuation of its robust and effective cost management as well as effective and efficient marketing-trade investments.

All in all, Nestle's latest result was a disappointment for me after its spectacular rally in the past 4 months- until I read this morning papers (here, here and here). If you have looked carefully at the Table 1 below, you could be amused by the idea that Nestle had a gang-buster quarter. I have to give credit to Nestle's investor relation team for such a good write-up. The choice of the 2 emboldened phrases above has certainly helped. For those who used to follow FMCG MNCs like Nestle or BAT, you will be familiar with the coincidence of a jump in profits whenever advertising & promotional expenses declined- a simple "trick". What happened in Nestle's results for QE31/12/2017 & QE31/12/2016 were a drop in advertising & promotional expenses in the period in 2017 ( boost profits) compared to a jump in advertising & promotional expenses in 2016 (depressed profit). If you are still not convinced, you can look at Table 2 where I compared the last 2 years results as well as the Graph below. 


Table 1: Nestle's last 8 quarterly results


Table 2: Nestle's last 2 years' results compared


Graph: Nestle's revenue, profits, profit margins & dividend for last 44 quarterly results

Valuation

Nestle (closed at RM121.50 yesterday) is now trading at a PE of 44 times (based on lats 4 quarters' EPS of 275 sen). If this is not expensive, I don't know what expensive means.

Technical Outlook

Nestle is still in an uptrend since the Asian Financial Crisis ended in 1999.


Chart: Nestle's monthly chart as at Feb 20, 2018 (Source: ShareInvestor.com)

Conclusion

Based on satisfactory financial performance and bullish technical outlook, Nestle is a good stock to invest in. However, its valuation is very demanding and it deserves a rating of UNDER-PERFORM or TAKE PROFIT.

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

Thursday, February 15, 2018

Happy Chinese New Year

I like to wish everyone a very Happy Chinese New Year. May the Year of the Dog bring you good health and abundant happiness along with success in your career, business and investment.


Artwork by Lu Yee Ann





Supermx: Earnings Jumped

Result Update

For QE31/12/2017, Supermx's net profit rose 29% q-o-q or 59% y-o-y to RM36 million while revenue rose 8% q-o-q or 42% y-o-y to RM336 million. Revenue rose y-o-y due to strong demand for gloves and higher output recorded. Profits rose due to higher revenue recorded, higher production capacity and also improved operational efficiency.


Table 1: Supermx's last 8 quarters' P&L


Graph 1: Supermx's last 45 quarters' P&L

Below is a comparison of the last 4 quarters' revenue, PBT, PAT, NP & EPS of the top 4 glove manufacturers against the preceding 4 quarters' numbers. This comparison is a bit unfair for Kossan because its latest result is QE30/9/2017 whereas Harta and Supermx have the results for QE31/12/2017 & Topglov's result is for QE30/11/2017. Since I am trying to make a point about Supermx, it sufficed that we compare it with Harta & Topglov. We can see that Harta's revenue and profits have the highest increase among these 4 companies. This is followed by Supermx and then Topglov. The point to note is that Supermx is finally catching up with the other players in this sector- something we have not seen for a while.


Graph 2: Top 4 glove manufacturers' recent changes in financial performance

Valuation

Supermx (closed at RM2.20 yesterday) is now trading at a PER of 16x (based on last 4 quarters' adjusted EPS of 13.70sen). At this PER, Supermx is the cheapest glove manufacturer listed on Bursa. From the table below, we can see that the other 3 players command PER ranging from 31 to 47 times. If we were to value Supermx at the average PER of 36.7 times and discount that by 20%, Supermx's fair value would be RM4.02.


Table 2: Glove Manufacturers' valuation by PER & PBR

The market is probably assigning a lower PER for Supermx because its major shareholder, Stanley Thai was found guilty of insider’s trading. He was sentenced to a 5-year jail term & a fine of RM5 million. Stanley is appealing that decision. I believe that a 20%-discount is sufficient to factor in the risk of business interruption if the appeal is rejected and Stanley has to serve the jail sentence.

Technical Outlook

Supermx is moving within a large band between RM1.70 and RM3.30. Within this trading band, its immediate support is at RM2.00 & immediate resistance is at RM2.40.


Chart: Supermx's monthly chart as at Feb 14, 2018 (Source: ShareInvestor)

Conclusion

Based on satisfactory financial performance and attractive valuation, I am revising my rating for Supermx from a HOLD to a BUY.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

BAT: Earnings Plummeted


Result Update

For QE31/12/2017, BAT's net profit dropped 45% q-o-q or 74% y-o-y to RM78 million while revenue dropped by 8% q-o-q or 17% y-o-y to RM700 million.

Revenue decreased by 7.5% due to decline in sales volume of 3.0% compared to immediate preceding quarter as well as decline in higher price segment. The Group registered market share growth from 53.6% in the third quarter to 53.9% in the fourth quarter of 2017 with Dunhill registering a 0.7%-decrease in market share to 37.7% while Aspirational Premium brands, Peter Stuyvesant and Pall Mall, increased their market share to 10.9%. The group entered the Value For Money (VFM) segment in October 2017 through the introduction of Rothmans. In the fourth quarter of 2017, Rothmans stood at 1.8% market share and was becoming the fastest growing brand within the VFM segment, exiting 2017 at 2.8% market share.

Operating expenses were 39.1% (RM33 million) higher than preceding quarter. Operating expenses, excluding the provision of impairment for prepaid excise duties of RM21 million, increased 14.9% (RM13 million) versus immediate preceding quarter.

After deducting restructuring expenses of RM1.4 million which consisted of on-going cost of the project and outplacement programs, operating profit declined 44.4% (RM84.1 million) when compared to the immediate preceding quarter.


Table 1: BAT's last 8 quarterly results

BAT's revenue and profits have been on a decline for the past 3 years. There is no sign that these have hit hot the bottom.


Graph: BAT's last 44 quarterly results

Valuation

BAT (closed at RM29.06 yesterday) is now trading at an adjusted PER of 16.9 times (based on the last 4 quarters' EPS of 172.6 sen). BAT has paid out quarterly dividend payment totaling of169 sen; thus giving a Dividend Yield of 5.8%. If BAT's revenue & profits were to stabilize, the stock will be an attractive stock as these multiples are fairly attractive for a well-managed MNC.

Technical Outlook

BAT broke its long-term uptrend line, SS at RM52 in April 2016. In the last 2 months, it broke the psychological support at RM40 as well as the horizontal line at RM38. Today it broke another psychological support of RM30.00. Its next support is at the horizontal line at RM27.


Chart: BAT's monthly chart as at Feb 14, 2018 (Source: Shareinvestor.com)

Conclusion

Based on dateriorating financial performance and bearish technical outlook, BAT is a stock to be avoided. However once the company's revenue and profits have made a bottom, it could be a good stock to invest in as it is a well-managed company.

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

Tuesday, February 13, 2018

CSCSTEL: Earnings Recovered

Results Update

For QE31/12/2017, CSCStel's net profit rose 5.6% q-o-q or 139% y-o-y to RM15 million on the back of higher revenue -which rose 13% q-o-q or 288% y-o-y to RM267 million. Group’s revenue rose q-o-q due to substantial increase in total sale volume and higher selling prices for all its steel products. As a result, the Group's profit before tax rose to RM19 million this quarter compared with RM16 million achieved in the previous quarter. (Note that effective tax rate on consolidated profit before tax for the current period was lower than the statutory income tax rate of 24% due mainly to tax effect of income not taxable in determining taxable profit; and tax effect of utilizing re-investment allowance.)


Table: CSCStel's last 8 quarterly results


Graph: CSCStel's P&L for last 41 quarterly results

Valuation

CSCStel (closed at RM1.51 yesterday) has a PER of 9.3 times (based the last 4 quarters' EPS of 16.19  sen). At this PER multiple, CSCStel is deemed fairly attractive.

Technical Outlook

CSCStel has broken below its intermediate uptrend line, SS at RM1.70 in late November last year. Shortly thereafter, it also broke to the downside of its descending triangle, ABC at RM1.63. This means CSCStel may continue to slide.


Chart 1: CSCStel's daily chart as at Feb 13, 2017 (Source: MalaysiaStock.Biz)

If you look at the monthly chart, CSCtel has been rising in an upward channel since 2006. It is now slightly below the middle line. If the share price weakens further, it is likely to go to the lower line. Thus it is important that CSCtel must recover above the middle line at RM1.55.


Chart 2: CSCStel's weekly chart as at Feb 13, 2017 (Source: MalaysiaStock.Biz)

Conclusion

Based on satisfactory financial performance and fairly attractive valuation, CSCStel is a good stock for long-term investment. However we have to track this stock closely as its technical outlook has turned negative.

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

GCB: Strong Earnings from Lower Material Costs


Results Update

For QE31/12/2017, GCB's net profit rose 10-fold y-o-y to RM31 million on the back of a 9%-decline in revenue to RM494 million. Compared to the immediate preceding quarter (QE30/9/2017), net profit rose 4% while revenue was lowered by 9%.

Revenue dropped y-o-y mainly due to decrease in sales volume of cocoa solids and overall selling price of cocoa products. The profit before tax rose y-o-y mainly due to improved margin (due to lower bean purchase price) and also unrealized gain derived from commodity future contract.


Table: GCB's last 8 quarterly results


Graph: GCB's last 53 quarterly results

Valuation

GCB (closed at RM1.99 yesterday) is now trading at a trailing PER of 10.7 times (based on last 4 quarters' EPS of 18.65 sen). At this PER, GCB is deemed fairly valued.

Technical Outlook

GCB has broken below its uptrend line, SS at RM2.10 on January 17. In addition it has gone below the 10-week SMA line which has guided the share price higher since June 2017. The technical outlook for GCB is mildly bearish.


Chart 1: GCB's weekly chart as at Feb 12, 2017(Source: Malaysiastock.biz)


Chart 1: GCB's weekly chart as at Feb 12, 2017(Source: Malaysiastock.biz)

Conclusion

Based on good financial performance and reasonable valuation, GCB is a good stock for long-term investment. However we should be careful not to over-invest in GCB as its  technical outlook is mildly negative.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

Friday, February 09, 2018

F&N: Earnings dropped y-o-y

Result Update

For QE31/12/2017, F&N's net profit rose more than 4-fold q-o-q to RM107 million on the back of a 9.5%-increase in revenue to RM1.07 billion. The huge jump in net profit is attributed to restructuring cost totaling RM50.2 million incurred in the immediate preceding quarter. When we compared the latest result with the same quarter last year, we can see that net profit  dropped 16% while revenue was lowered by 2%.

F&B Malaysia revenue grew by 12.1% q-o-q to RM600.4 million mainly due to lower revenue in the immediate preceding quarter since that was right after the Hari Raya festive season. F&B Malaysia operating profit (excluding one-off items in the preceding quarter) improved by 119.2% to RM41.2 million due to higher volume, lower manufacturing overheads and operational cost savings.

F&B Thailand revenue grew by 6.2% q-o-q to RM468.2 million mainly due selling-in for New Year festive season. F&B Thailand operating profit (excluding one-off items in the preceding quarter) improved by 124.5% to RM75.6 million compared with the preceding quarter mainly due to higher revenue, lower advertising and promotional spending, and favourable input costs.


Table: F&N's last 8 quarterly results


Graph: F&N's last 45 quarterly results

Valuation

F&N (closed at RM29.90 yesterday) is now trading at a PER of 36 times (based on last 4 quarters' EPS of 82.7 sen). At this PER, F&N is deemed overvalued.

Technical Outlook

F&N has rallied after it broke above a triangle at RM25.80-2.6.00. The rally peaked at RM30.30, which is about RM4.00 above the breakout level. That's approximately the distance between the lower line and upper line in the triangle at the widest points in the month of November 2016. Having achieved the 1-to-1 extension, F&N is likely to consolidate this gain for the next few months.


Chart 1: F&N's weekly chart as at Feb 8, 2018_10.00am (Source: Shareinvestor.com)


Chart 2: F&N's monthly chart as at Feb 8, 2018_10.00am (Source: Shareinvestor.com)

Conclusion

Based on demanding valuation and weaker financial performance, I rate F&N as a SELL.

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post.
 However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

Thursday, February 08, 2018

Harta: Bonus is coming

Result Update

For QE31/12/2017, Harta's net profit rose 71% y-o-y to RM113 million while revenue rose 32% y-o-y - to RM603 million. Compared to the immediate preceding quarter, PBT rose a meager 1% on the back of a 3%-increase in revenue while net profit was unchanged.

Revenue increased 3% q-o-q driven by higher sales volume which increase by 4.0% in line with increasing demand from customers. PBT rose 1% q-o-q mainly due to higher sales volume despite lower average selling price.


 Table: Harta's last 8 quarterly results


Graph: Harta's last 41 quarterly results

Proposed Bonus Issue

Harta has proposed a 1-for-1 bonus issue when it announced its latest results. This is the 4th bonus issue after the earlier 3 bonus issue of shares and 1 bonus issue of warrants:
  • In Sep 2010, bonus issue of shares of 1-for-2
  • In May 2012, bonus issue of shares of 1-for-1 cum bonus issue of warrants of 1-for-5
  • In Sep 2015, bonus issue of shares of 1-for-1
Valuation

Harta (closed at RM11.50 yesterday) is trading at a trailing PER of 46 times (based on last 4 quarters' EPS of 25.03 sen). This high PER can only be justified by the high earning growth of 60% achieved in the past 4 quarters. 

The group may be able to sustain this high earning growth based on the recent statement to the press, Harta managing director Kuan Mun Leong updated that the group’s Next Generation Integrated Glove Manufacturing Complex (NGC) is well on schedule to meet growing demand. "We have completed commissioning of Plant 4 with all 12 production lines operational and construction has commenced on Plant 5. In addition to this, we aim to launch our world-first non-leaching antimicrobial nitrile examination gloves by the second quarter of 2018.” For more, go here.

Technical Outlook

Harta is in a long-term uptrend, with share prices moving within an upward channel. The price movement was so bullish that it broke above the upper line of the channel at RM8.00, and rose to a high of RM12.18!


Chart 1: Harta's monthly chart as at Feb 7, 2018 (Source: Shareinvestor.com)

Looking at the weekly chart below, I believe the upside for Harta in the near term is fairly limited. On the other hand, it is possible to it to pullback to RM10.00 over the next few months.


Chart 2: Harta's weekly chart as at Feb 7, 2018 (Source: Shareinvestor.com)

Conclusion

Despite the improved operating performance, strong leadership in the glove sector and capable management team, I think it is a good time to take some profit on this stock.

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

Market Outlook as at February 7, 2018


Looking at the daily charts for FBMKLCI and FBM70, you will see that we had 2 gap-down days on Monday & Tuesday, which were followed by a gap-up day yesterday. The gap between Monday & Tuesday was so big that it accommodated the entire range of trading yesterday. The fact that the high of yesterday was lower than the low of Monday, shows that the buying enthusiasm was rather thin. In that sense, DJIA did better than us yesterday. However, I like to look at DJIA as the leading market and their market action yesterday seems to suggest that we will have a weak follow of the rebound - something which traders watching the market would have felt in the afternoon. 


Chart 1: FBMKLCI's daily chart as at Feb 7, 2018 (Source: Shareinvestor.com)


Chart 2: FBM70's daily chart as at Feb 7, 2018 (Source: Shareinvestor.com)


Chart 3: DJIA's daily chart as at Feb 7, 2018 (Source: Stockchart.com)

I like to give a quick take on crude oil and CPO charts. Brent crude has broken its uptrend line. Its next strong support is at USD65.


Chart 4: BRENT's daily chart as at Feb 7, 2018 (Source: Stockchart.com)

CPO is in a downtrend line, with strong support at RM2300. It will probably trade between RM2300 and RM2500 for the next few weeks.


Chart 5: CPO's daily chart as at Feb 7, 2018 (Source: Investing.com)

Based on the above, caution is the order of the day. Keep a check on your trading activity, and invest carefully (even, stingily). Good luck!