Monday, March 08, 2010

Market Outlook as at March 8, 2010

FBM-KLCI gained 22.73 points to touch 1322.51 as at 12.00 noon. We can see from the daily chart that the market may be charting the course of its next upleg soon. Some indicators which have turned positive are:
1) MACD hooking up;
2) RSI entering into the overbought zone; and
3) +DMI swinging upward coupled with -DMI swinging downward. ADX has turned upward.

FBM-KLCI may however face some resistance at the level of 1325-30, as the market will attempt to break out of the expanding triangle ('ABCD').


Chart: FBM-KLCI's daily chart as at Mar 8, 2010_11.40am (Source: Quickcharts)

Based on the above, our market outlook should be bullish.
at

4 comments:

  1. LaymanMonday, March 08, 2010 2:37:00 PM

    Dear Alex,

    I am looking at JCY which is now traded below the IPO price. Any specific reasons for that, is it a good time to go in for short- long term investment?

    thanks for the trouble to reply.

    ReplyDelete
  2. Alex LuTuesday, March 09, 2010 10:18:00 AM

    Hi Layman,

    From its prospectus, we can see that JCY reported a net profit of RM207 million for FYE30/9/2009. This translates into an EPS of 10 sen for FY2009. For FY2010, I expect JCY's earning to grow due to strong global economic recovery. CIMB has projected that JCY will make a net profit of about RM360 million for FY2010, up more than 70% from last year.

    JCY (closed at RM1.59 yesterday) is now trading at trailing PER of 15.9 times or forward PER of 9.4 times. If we accept the projected FY2010 earning given by CIMB, then JCY's fair value could be about RM2.00 if we value the stock at a PER of 12 times. Being one of the world’s biggest makers of HDD components, JCY could command a higher PER (say 15 times) which would then peg its fair value at RM2.55.

    ReplyDelete
  3. LaymanTuesday, March 09, 2010 10:29:00 AM

    Dear Alex,

    Thanks.I believe your info is very much helpful to other investors as well.
    Best regards to you.

    ReplyDelete
  4. JRTuesday, March 09, 2010 9:27:00 PM

    Hi Alex,

    You have used trend fan for Astro. Is this indicator similar to Fibonacci?

    Appreciate your feedback.
    BR.

    ReplyDelete