Bursa Malaysia Daily Market Report - 10 March

Transcription

1. Friday , 10 March, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED REPORTS’ News 1. Daily Market Commentary 2. Daily Brief Fundamental Reports 1. Malaysian Economy: New PCAP Regulation 2016 and Its Impact on Inflation 2. YTL Power International Berhad: Yet To Live-up to Potential Technical Reports 1. Daily Technical Stock Picks 2. Daily Stock Screen 3. Foreign Technical Stock Watch (AUS, HK & FSSTI) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research
2. Daily Note Daily Market Commentary (A Participating Organisation of Bursa Malaysia Securities Bhd) Menara TA One, 22 Jalan P Ramlee, 50250 Kuala Lumpur Tel : 603 - 2072 1277. Fax : 603 - 2032 5048 Friday, 10 March 2017 TA Research e-mail : taresearch@ta.com.my For Internal Circulation Only KLSE Market Statistics (09.03.2017) Volume (mil) +/-chg (RMmn) Main Market 2,676.4 498.5 2,347.1 Warrants 224.9 -48.2 29.8 ACE Market 444.3 -177.6 89.8 Bond 11.6 8.2 2.7 ETF 0.0 -0.04 0.0 Total 3,357.2 2,469.3 Off Market 32.4 -143.8 50.0 Value +/-chg 40.3 -7.1 -11.3 1.8 -0.08 -118.9 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP March Futures Other Markets DOW JONES NASDAQ (US) FTSE (UK) NIKKEI (JAPAN) KOSPI (KOREA) HANG SENG (HK) FSSTI (S'PORE) SET (BANGKOK) JCI (JAKARTA) SHANGHAI SHENZHEN AUSTRALIA Up Down 247 392 51 104 42 56 4 4 1 2 345 558 % chg % YTD chg 1,717.42 12,134.45 16,370.85 1,720.50 -8.12 -64.23 -16.54 -9.50 -0.47 -0.53 -0.10 -0.55 4.61 5.82 11.25 5.20 20,858.19 5,838.81 7,314.96 19,318.58 2,091.06 23,501.56 3,118.84 1,549.24 5,402.39 3,216.75 2,009.55 5,741.20 2.46 1.26 -19.65 64.55 -4.35 -280.71 -26.45 -2.49 8.62 -23.92 -14.73 -18.46 0.01 0.02 -0.27 0.34 -0.21 -1.18 -0.84 -0.16 0.16 -0.74 -0.73 -0.32 5.54 8.47 2.41 1.07 3.19 6.82 8.26 0.41 2.00 3.64 2.05 1.33 Top 10 KLCI Movers Based on Mkt Cap. Off Market (mn) LAYHONG-WA 8.6 IWCITY 8.4 WTHORSE 5.0 REACH 4.9 PENERGY 1.4 DKLS 1.3 OCR-PA 1.0 Value/ Volume 0.88 0.13 0.20 0.23 1.17 0.74 1.54 @ @ @ @ @ @ @ (RM) 0.57 1.49 2.16 0.63 0.94 1.70 0.18 Counter Mkt Cap. (RM’mn) MAYBANK 88,988 PBBANK 76,458 PCHEM 58,960 IHH 48,732 AXIATA 41,725 PETGAS 38,941 GENTING 34,593 MISC 33,211 GENM 30,326 KLK 25,964 Chg Vol. (RM) (mn) -0.10 14.32 -0.12 6.34 -0.07 2.09 -0.08 2.99 -0.07 5.25 -0.12 1.01 -0.08 1.96 -0.02 0.67 -0.05 5.33 -0.02 0.72 Review & Outlook Blue chips slipped into profit-taking correction mode Thursday, dampened by regional weakness and after global crude oil prices slumped below USD50 a barrel as US crude inventories surged to a record last week. The KLCI lost 8.12 points to close at the day's low of 1,717.42, off an early high of 1,724.4, as losers beat gainers 558 to 345 on robust turnover of 3.36bn shares worth RM2.47bn. The local market should extend profit-taking correction ahead of the weekend, as investors refrain from buying pending a much anticipated US rate hike next week. Immediate uptrend supports for the index are now at 1,710, 1,700 and 1,682, representing the respective rising 10, 30 and 50-day moving averages. Key upside hurdles are at the recent high of 1,734, next at 1,744, the 3/8/15 peak, and 1,758, the 23.6%FR of the 1,310 to 1,896 upswing. Any price weakness on CMSB towards RM4.00 will be attractive to accumulate for rebound upside to the upper Bollinger band (RM4.34), with a convincing breakout to target the 50%FR (RM4.58) and 61.8%FR (RM4.92) going forward. Strong retracement support is at the 23.6%FR (RM3.84). Likewise, buyers should cushion price dips on Naim Holdings towards RM1.50/1.40, while a confirmed breakout above the 23.6%FR (RM1.68) will aim for the 38.2%FR (RM1.88). Crucial support is from the 14/11/16 low (RM1.35). • • • • • • • • • • Exchange Rate USD/MYR 4.4593 0.0042 USD/JPY 114.71 0.6300 EUR/USD 1.056 0.0000 Commodities Futures Palm Oil (RM/mt) 2,784.00 -38.00 Crude Oil ($/Barrel) 49.62 -0.58 Gold ($/tr.oz.) 1,200.90 -7.20 Important Dates IOIPG - 1:4 Rights Issue - RI of up to 1,109.9m shares. 1 rights share for every 4 existing shares held, at an issue price of RM1.38 per rights share. Application Closed: 17/03/2017. LISTING ON: 31/03/2017. • • • • News Bites Eco World International Bhd expects to raise some RM2.58bn from the sale of 2.15bn new shares at an indicative price of RM1.20 each to finance the property developer's working capital requirement, repay debt and land acquisitions. Datasonic Group Bhd has been awarded a contract by the Ministry of Home Affairs for the supply of more passport polycarbonate data pages and personalisation services worth RM79.72mn for the Immigration Department. Iskandar Waterfront Holdings Sdn Bhd clarified that its Bandar Malaysia land is also included in the corporate exercise announced which involves the group merging with Iskandar Waterfront City Bhd. Icon Offshore Bhd has secured a long-term charter contract for its accommodation workboat Icon Valiant worth RM72.06mn. Petroliam Nasional Bhd has signed a ten-year deal to supply up to 130,000 tonnes of LNG per year to Hokkaido Electric Power Company through its subsidiary Malaysia LNG Sdn Bhd. D&O Green Technologies Bhd said several parties have approached the company expressing interest in business opportunities but no deal has been reached. Vizione Holdings Bhd has called off a proposed joint venture with Paragon Residencia Sdn Bhd to develop a residential project worth RM152.2mn in GDV in Seri Kembangan, Selangor. LBS Bina Group Bhd plans a renounceable rights issue to raise up to RM165.6mn to fund its property development projects and general working capital requirements. JKG Land Bhd, which is planning a rights issue of 1.5bn shares on the basis of two rights shares for one existing share held, has fixed the rights issue price at 10 sen apiece. CN Asia Corporation Bhd has been given a further extension of time until March 28 by Bursa Malaysia Securities to submit its regularisation plan. The ECB left the rate on regular loans to commercial banks at 0% and maintained the rate on overnight deposits at minus 0.40%, China's producer prices surged 7.8% YoY in February, at the fastest pace since 2008, compared with median estimate of 7.7% in Bloomberg survey and a 6.9% in January, further lifting the outlook for global reflation. The Trump administration plans to press Japan, Germany and other nations with which the U.S. has large trade deficits, to buy more U.S.made commercial and military products. The US initial jobless claims rose by 20,000 to a seasonally adjusted 243,000 in the week ended March 4. DISCLAIMER The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD Kaladher Govindan, Head of Research
3. TA Securities Friday , March 10, 2017 FBMKLCI: 1,717.42 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 p Daily Brief Market View, News In Brief: Corporate, Economy, and Share Buybacks THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TA Research Team Coverage Market View Tel: +603-2072 1277 taresearch@ta.com.my www.taonline.com.my Further Profit Taking Ahead of Weekend Blue chips slipped into profit-taking correction mode Thursday, dampened by regional weakness and after global crude oil prices slumped below USD50 a barrel as US crude inventories surged to a record last week. The KLCI lost 8.12 points to close at the day’s low of 1,717.42, off an early high of 1,724.4, as losers beat gainers 558 to 345 on robust turnover of 3.36bn shares worth RM2.47bn. Uptrend Supports at 1,710, Then 1,700 The local market should extend profit-taking correction ahead of the weekend, as investors refrain from buying pending a much anticipated US rate hike next week. Immediate uptrend supports for the index are now at 1,710, 1,700 and 1,682, representing the respective rising 10, 30 and 50-day moving averages. Key upside hurdles are at the recent high of 1,734, next at 1,744, the 3/8/15 peak, and 1,758, the 23.6%FR of the 1,310 to 1,896 upswing. Buy on Weakness CMSB & Naim Holdings Any price weakness on CMSB towards RM4.00 will be attractive to accumulate for rebound upside to the upper Bollinger band (RM4.34), with a convincing breakout to target the 50%FR (RM4.58) and 61.8%FR (RM4.92) going forward. Strong retracement support is at the 23.6%FR (RM3.84). Likewise, buyers should cushion price dips on Naim Holdings towards RM1.50/1.40, while a confirmed breakout above the 23.6%FR (RM1.68) will aim for the 38.2%FR (RM1.88). Crucial support is from the 14/11/16 low (RM1.35). China Inflation Data Weighed on Asian Bourses Equity markets outside Japan finished in negative territory on Thursday after China's inflation data painted a mixed picture. China's producer price index (PPI) jumped more than expected by 7.8 percent in February from the previous year, the fastest pace since Sept. 2008. In contrast, consumer prices slowed from a year ago, to 0.8 percent, its slowest pace since Jan. 2015. Traders in the region were also watching for more geopolitical-related news out of East Asia, after Washington's ambassador to the United Nations Nikki Haley said Wednesday that the U.N. was re-evaluating how it must deal with North Korea after its repeated missile tests and that "all options are on the table”. China stocks closed at two-week lows, as energy shares tumbled on diving oil prices while global investors turned cautious ahead of a widely expected hike in U.S. interest rates next week. Renewed weakness in the yuan currency also dampened confidence, though China's state banks stepped into the market to keep the currency from falling too fast. The blue-chip CSI300 index fell 0.6 percent, to 3,426.94, while the Shanghai Composite Index lost 0.7 percent to 3,216.75 points. In down under, the benchmark ASX 200 closed down 0.32 percent or 18.5 points at 5,741.2. The index was weighed heavily by a 1.13 percent drop in its energy sub-index and a 2.62 percent decline in its materials sub-index. However, Japan's Nikkei share average snapped a four-day losing streak on Thursday, helped by a weaker yen as the dollar gained after a private jobs report cemented expectations the U.S. Federal Reserve will raise interest rates next week. The Nikkei gained 0.3 percent at 19,318.58. Page 1 of 7
4. TA Securities 10-Mar-17 A Member of the TA Group Wall Street Flat Ahead of Job Report The S &P 500 Index eked out a gain for the first time in four days, as health-care shares lifted the measure in late trading before Friday’s jobs report. The day marked the eight-year anniversary of the current bull market that’s seen the index more than triple since 2009. The S&P 500's slight gain came after three straight days of losses. A frenetic post-election rally on bets of reduced regulation and tax cuts under President Donald Trump has been losing steam as investors fret over valuations and the possibility of the Federal Reserve raising rates more aggressively. Helping the market early in the day was a report that showed the number of Americans applying for unemployment benefits rose to 243,000 last week, but remained below 300,000 for the 105th week. Friday's nonfarm payrolls report is expected to show 190,000 jobs were added in the U.S. private and public sectors in February. Stronger economic data has prompted hawkish rhetoric from several Fed officials, leading traders to price in a near 90-percent chance of a quarter-point rate increase next week. Energy shares also rebounded as oil prices pared losses late in the session. U.S. crude oil fell more than 3 percent earlier before ending the day down 2 percent at USD49.28 a barrel. The Dow Jones Industrial Average ended up 2.46 points, or 0.01 percent, to 20,858.19, the S&P 500 gained 1.89 points, or 0.08 percent, to 2,364.87 and the Nasdaq Composite added 1.26 points, or 0.02 percent, to 5,838.81. Page 2 of 7
5. TA Securities 10-Mar-17 A Member of the TA Group News In Brief Corporate Petroliam Nasional Bhd (Petronas) has signed a ten-year deal to supply liquefied natural gas (LNG) to Hokkaido Electric Power Company (HKE) through its subsidiary Malaysia LNG Sdn Bhd. Under the agreement — inked on March 2 — the Petronas’ LNG unit will deliver up to 130,000 tonnes of LNG per year to HKE's receiving facilities for the electricity supply in Hokkaido. (The Edge) Eco World International Bhd, which is seeking a Bursa Malaysia Main Market listing, expects to raise some RM2.58bn from its initial public offering to finance the property developer's working capital requirement and land acquisitions. The company also plans to use proceeds to repay debt. It expects to raise RM2.58bn, from the sale of 2.15bn new shares at an indicative RM1.20 each. (The Edge) Datasonic Group Bhd has been awarded a contract by the Ministry of Home Affairs for the supply of more passport polycarbonate data pages and personalisation services worth RM79.72mn for the Immigration Department, the group said in a statement today. With the latest award the total quantity of passport polycarbonate data pages to be supplied along with personalisation services, has now increased to 12.8mn, while the total contract value has gone up to RM364.42mn. (Bursa Malaysia) Iskandar Waterfront Holdings Sdn Bhd clarified that its Bandar Malaysia land is also included in the corporate exercise announced which involves the group merging with Iskandar Waterfront City Bhd. (The Edge) Icon Offshore Bhd has secured a long-term charter contract for its accommodation workboat Icon Valiant worth RM72.06mn. Its indirect wholly-owned subsidiary Icon Bahtera (B) Sdn Bhd was awarded the charter contract by SPHI Marine Sdn Bhd, a company operating in Brunei, for the chartering of its vessel to Zell Transportation Sdn Bhd. The contract commences March 1, 2017, for a total period of three years with an option for extension of up to two years. (Bursa Malaysia) D&O Green Technologies Bhd said several parties have approached the company expressing interest in business opportunities as the semiconductor industry undergoes a consolidation process globally, but no deal has been reached. (The Edge) Vizione Holdings Bhd has called off a proposed joint venture with Paragon Residencia Sdn Bhd to develop a residential project worth RM152.2mn in gross development value in Seri Kembangan, Selangor, following lower-than-anticipated proceeds from a cash call that was concluded on Feb 10. (Bursa Malaysia) LBS Bina Group Bhd plans a renounceable rights issue to raise up to RM165.6mn to fund its property development projects and general working capital requirements. The cash call involves up to 150.6mn redeemable convertible preference shares (RCPS) on the basis of one RCPS for every five share held on the entitlement date. (Bursa Malaysia) JKG Land Bhd, which is planning a rights issue of 1.5bn shares on the basis of two rights shares for one existing share held, has fixed the rights issue price at 10 sen apiece. Based on that, the property developer expects to raise up to RM151.7mn. (Bursa Malaysia) CN Asia Corporation Bhd has been given a further extension of time until March 28 by Bursa Malaysia Securities to submit its regularisation plan. The steel storage tank manufacturer had previously been granted an extension up to Feb 28 to submit the plan. (Bursa Malaysia) Page 3 of 7
6. TA Securities 10-Mar-17 A Member of the TA Group Land & General Bhd, which is considering an asset injection by its ultimate controlling shareholder Malaysia Land Properties Sdn Bhd, has declared a special interim single tier dividend of two sen for the financial year ending March 31, 2017. (Bursa Malaysia) KESM Industries Bhd’s net profit for 2QFY17 leapt 42.52% to RM9.98mn, from RM7mn a year ago, on higher demand for its burn-in and test services. For the first half of FY17, net profit rose to RM19.99mn from RM15.07mn in 1HFY16, while revenue increased to RM163.23mn from RM140.44mn. (Bursa Malaysia) Page 4 of 7
7. TA Securities 10-Mar-17 A Member of the TA Group News In Brief Economy Asia China Factory Prices Extend Surge in February , Lifting Reflation Outlook China’s producer prices surged at the fastest pace since 2008, further lifting the outlook for global reflation as manufacturers in the exporter to the world look to pass on higher costs. Producer price index rose 7.8% last month from a year earlier, compared with median estimate of 7.7% in Bloomberg survey and a 6.9% in January. Factory prices only swung out of 4 1/2 years of deflation in September. Meanwhile, consumer price index rose 0.8% versus 1.7% increase forecast by analysts, as timing of Lunar New Year holidays skewed the reading. China is lifting the global price outlook as producer inflation climbs and a pickup in demand fuels commodity prices. Still, economists see such forces moderating as yearearlier comparisons begin to rise and policy curbs restrain the property market. The CPI data was distorted by the week-long Chinese New Year holiday, which started in February last year, driving up food prices as families prepared for gatherings, whereas it fell in late January this year, when CPI climbed to a 2 1/2 year high of 2.5%. (Bloomberg) Japan February M2 Money Stock Rises 4.2% The M2 money stock in Japan was up 4.2% on year in February, the Bank of Japan said coming in at 958.3 trillion yen. That was in line with expectations following the downwardly revised 4.0% increase in January (originally 4.1 percent). The M3 money stock advanced an annual 3.6% to 1,282.5 trillion yen - also in line with forecasts and up from 3.5% in the previous month. The L money stock gained 4.5% on year to 1,681.4 trillion yen, up from 4.3% a month earlier. (RTT News) U.S. U.S. Household Net Worth Reaches Record $92.8 Trillion U.S. household net worth climbed to a record $92.8 trillion in the fourth quarter of 2016, as the end-of-year surge in stocks and a steady climb in home prices added more than $2 trillion of wealth to household balance sheets. The biggest contributor to the increase was the stock market, which added $728 billion to household balance sheets in the fourth quarter, according to the Federal Reserve’s quarterly financial accounts report. The stock market rallied by about 8% in the fourth quarter of 2016, following the election of President Donald Trump, with many investors anticipating tax cuts, regulatory relief and fiscal stimulus. The market has climbed an additional 6% so far this year, which isn’t captured in Thursday’s report. The figures are reported in nominal terms, but are also at a record if adjusted for inflation or for population. U.S. households lost nearly $13 trillion during the 2007-09 recession. Since the first quarter of 2009, however, wealth has soared by $38 trillion, driven by an eight-year rally in stocks and eventually by a robust recovery in home prices. Real-estate gains contributed to this quarter’s rise. The value of real estate owned by households and nonprofit organizations climbed by $557 billion in the fourth quarter, reaching a record $26.5 trillion. That exceeds the housing bubble’s peak by $1.6 trillion. (The Wall Street Journal) To Reduce Trade Deficit, White House Wants Partners to Buy American The Trump administration plans to press Japan, Germany and other nations with which the U.S. has large trade deficits, to buy more U.S.-made commercial and military products as a way to boost jobs and reduce the nation’s $500 billion trade deficit. “Any country we have a significant trade deficit with needs to work with us on a product-by-product and sector-bysector level to reduce that deficit over a specified period of time,” Peter Navarro, director of the White House’s National Trade Council, said in an interview with The Wall Street Journal. “That can be achieved, if they buy more of our products than they now are buying from the rest of the world, whether it’s chemicals or corn or whether, from a national security perspective, it’s submarines or aircraft.” Mr. Navarro said the push for more sales would come as part of bilateral trade deals with countries like Japan, or in separate trade negotiations with countries like Germany, whose trade relations are handled by the European Union. “I don’t see why we can’t have bilateral discussions with Germany about how we can rebalance our trade,” he said. The White House trade official declined to discuss China, which runs the largest bilateral trade deficit with the U.S., but it’s clear that Page 5 of 7
8. TA Securities 10-Mar-17 A Member of the TA Group Beijing is on the administration ’s mind too. In a speech at the National Association for Business Economics in Washington, D.C., Mr. Navarro referred to China as “Communist China” and discussed a “rapidly militarizing strategic rival intent on hegemony in Asia, and perhaps world hegemony”—a description that fits China. (The Wall Street Journal) U.S. Jobless Claims Rose Last Week The number of Americans applying for unemployment benefits rose last week from a 44year low but remained at a level consistent with a growing labor market. Initial jobless claims, a proxy for layoffs across the U.S., rose by 20,000 to a seasonally adjusted 243,000 in the week ended March 4, the Labor Department said. Economists surveyed by The Wall Street Journal had expected 238,000 new claims last week. Claims for the week ended Feb. 25 were unrevised at 223,000. That was the lowest weekly level since March 1973. Data on unemployment applications can be volatile from week to week. A more stable measure, the four-week moving average, increased by 2,250 last week to 236,500. That measure has also been trending near a four-decade low. A low level of jobless claims typically coincides with steady hiring. U.S. employers added 227,000 jobs in January, the best gain since July 2016. Economists forecast employers added 197,000 jobs last month. The Labor Department will release the February jobs report on Friday. (The Wall Street Journal) U.S. Import And Export Prices Rise More Than Expected In February U.S. import and exports prices both rose by slightly more than anticipated in the month of February, according to a report released by the Labor Department. The report said imports prices edged up by 0.2% in February after climbing by an upwardly revised 0.6% in January. Economists had expected import prices to inch up by 0.1% compared to the 0.4% increase originally reported for the previous month. Additionally, the Labor Department said exports prices rose by 0.3% in February after edging up by an upwardly revised 0.2% in January. Export prices had been expected to rise by 0.2% compared to the 0.1% uptick that had been reported for the previous month. (RTT News) Europe ECB Leaves Rates, Policy Guidance Unchanged The European Central Bank left all its key interest rates unchanged, maintaining the cost of borrowing at record low levels, despite inflation eclipsing the bank’s target for the first time in four years. The ECB left the rate on regular loans to commercial banks at 0% and maintained the rate on overnight deposits at minus 0.40%, meaning that banks pay to leave overnight funds with the central bank. The euro dipped slightly following the announcement. The bank also left its guidance unchanged, saying it continued to expect rates to remain “at present or lower levels for an extended period of time, and well past the horizon of the net asset purchases.” Also, headline inflation has reached the bank's lone mandate of near 2% for the first time since early 2013, but core inflation, stripping out volatile energy prices, remains too weak to remove accommodation. The ECB's long-term headline inflation forecast was unchanged. For 2017, they expect consumer prices to rise 1.7%, while their December forecast was 1.3%. However, they project 1.7% inflation in 2019. The ECB's monthly bond-buying program will run until at least December, slowing to 60 billion euros ($63 billion) in April from the current 80 billion euros. (The Wall Street Journal, RTT News) Page 6 of 7
9. TA Securities 10-Mar-17 A Member of the TA Group Share Buy-Back : 09 Mar 2017 Company FIAMMA SIGN SNTORIA SUPERMX TNLOGIS Bought Back Price (RM) Hi/Lo (RM) 280,000 140,000 50,000 756,900 170,000 0.60 0.915/0.91 0.74/0.735 2.07/2.06 1.61/1.57 0.61/0.595 0.915/0.905 0.74/0.72 2.08/2.04 1.62/1.57 Total Treasury Shares 12,980,000 9,140,200 451,000 10,891,000 7,931,600 Source: Bursa Malaysia Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 7 of 7
10. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company AUTOMOBILE BAUTO MBMR UMW Share Price (RM) 09-Mar-17 2.03 2.40 5.79 Target Price BETA (RM) EPS (sen) PER (X) FY17 FY18 FY17 FY18 Div Yield (%) FY17 FY18 52weeks 52weeks High Price % Chg Low Price % Chg % Chg YTD 2.41 2.20 5.12 0.99 0.57 1.19 12.1 22.7 17.7 16.1 23.8 27.6 16.8 10.6 32.8 12.6 10.1 21.0 6.0 3.8 1.9 7.9 3.8 3.1 2.44 2.70 7.14 -16.8 -11.1 -18.9 1.95 1.95 4.43 4.1 23.1 30.7 -4.7 12.1 26.7 3.90 3.20 5.00 5.60 14.90 8.60 20.90 4.40 8.50 1.24 0.93 1.26 1.30 0.66 0.93 0.80 1.26 0.68 35.8 29.4 46.4 50.6 101.3 73.7 136.6 49.0 36.4 37.7 33.1 50.6 55.6 109.8 82.8 140.4 51.7 38.2 11.3 9.7 10.6 10.6 13.3 11.8 14.5 10.6 24.9 10.7 8.6 9.7 9.7 12.3 10.5 14.1 10.0 23.7 3.7 2.8 3.2 3.8 3.0 5.7 2.8 2.3 3.8 3.7 2.8 3.7 4.1 3.0 5.7 2.9 2.3 3.8 4.37 2.89 5.03 5.50 13.76 9.20 20.28 5.25 9.43 -7.3 -1.4 -2.0 -2.2 -2.2 -5.1 -2.4 -1.3 -3.9 3.60 2.08 3.90 4.11 12.70 7.50 18.48 4.34 8.20 12.5 37.0 26.4 30.8 6.0 16.4 7.1 19.4 10.5 8.9 19.2 14.4 19.3 -0.3 6.5 0.4 10.0 2.4 0.45 1.22 4.98 3.40 0.61 1.71 1.88 5.99 0.49 1.37 5.62 3.27 0.58 1.90 1.50 5.58 0.80 0.67 1.02 1.07 1.12 na 1.01 0.13 6.0 12.9 32.9 16.8 9.6 12.6 12.8 44.4 6.0 13.6 36.7 20.9 9.9 12.5 12.7 45.8 7.4 9.5 15.1 20.2 6.3 13.5 14.6 13.5 7.4 9.0 13.6 16.2 6.2 13.6 14.8 13.1 0.0 2.3 2.4 2.8 1.6 3.2 1.6 4.2 2.2 2.3 2.4 2.8 1.6 3.2 1.6 4.2 0.51 1.35 5.07 3.61 0.77 1.81 1.98 6.06 -12.7 -9.8 -1.8 -5.8 -20.8 -5.5 -5.1 -1.2 0.36 0.76 4.59 3.07 0.41 1.39 1.41 4.90 23.6 61.4 8.5 10.7 50.6 23.0 33.3 22.2 2.3 16.2 4.2 6.2 6.1 0.6 8.7 1.9 2.00 2.00 0.47 15.4 15.6 13.0 12.8 5.0 5.0 2.40 -16.7 1.93 3.6 -0.5 14.36 17.54 15.41 21.08 0.57 0.57 69.6 93.1 77.5 20.6 101.9 18.8 18.5 17.2 4.8 4.8 5.4 5.2 15.20 18.74 -5.5 -6.4 12.38 13.60 16.0 29.0 3.2 7.1 2.28 7.85 24.28 76.32 2.90 1.85 4.57 0.92 2.23 9.59 21.63 83.86 4.00 2.08 4.17 1.10 0.42 0.36 0.34 0.38 0.50 0.62 0.51 0.64 6.5 35.9 97.9 291.3 23.5 22.9 12.7 9.6 7.5 40.5 119.6 318.0 26.5 22.9 15.8 13.2 35.1 21.8 24.8 26.2 12.3 8.1 36.0 9.6 30.2 19.4 20.3 24.0 10.9 8.1 29.0 7.0 0.9 3.8 2.6 3.7 5.2 4.3 1.0 5.5 1.0 4.8 3.1 4.0 6.2 4.3 1.1 5.5 3.00 9.58 27.00 81.80 3.08 1.88 4.73 1.07 -24.0 -18.1 -10.1 -6.7 -5.8 -1.6 -3.4 -14.3 2.11 7.31 19.66 73.76 1.92 1.42 4.17 0.78 8.1 7.4 23.5 3.5 51.2 30.3 9.6 17.3 -11.3 7.1 3.4 -2.4 13.7 6.9 4.8 15.1 47.26 54.22 1.03 271.1 271.8 17.4 17.4 5.6 5.6 55.96 -15.5 40.31 17.2 7.0 9.29 5.35 10.34 6.10 1.34 1.25 45.0 25.7 51.0 27.9 20.6 20.8 18.2 19.2 0.5 1.5 0.6 1.7 9.83 5.51 -5.5 -2.8 7.50 4.17 23.9 28.2 16.9 18.4 2.90 0.09 4.01 0.10 0.71 1.13 24.5 0.2 24.7 0.3 11.8 45.6 11.7 29.8 7.2 0.0 7.4 0.0 3.47 0.10 -16.4 -5.3 2.86 0.05 1.4 80.0 -2.0 80.0 5.92 3.99 6.40 4.61 0.80 0.51 13.9 13.3 17.9 16.5 42.6 29.9 33.0 24.2 0.7 1.5 0.8 1.9 6.79 4.37 -12.8 -8.7 5.78 3.97 2.4 0.5 -6.8 -4.5 4.80 6.24 2.05 5.16 2.08 4.50 6.80 1.90 4.90 2.55 0.56 0.12 0.36 -0.20 0.32 18.2 35.8 16.2 25.6 4.3 21.2 40.5 18.2 30.0 7.1 26.4 17.4 12.7 20.2 48.5 22.6 15.4 11.2 17.2 29.4 1.7 2.9 2.4 2.5 0.5 2.0 3.2 2.7 2.9 0.8 5.03 7.07 2.88 5.51 2.74 -4.6 -11.7 -28.8 -6.4 -24.1 3.81 5.90 1.99 4.20 2.07 26.0 5.8 3.0 22.9 0.5 -0.6 -5.3 -2.8 -3.6 -11.9 INDUSTRIAL SCIENTX SKPRES 7.29 1.37 8.50 1.75 0.53 0.59 67.9 9.3 78.0 14.4 10.7 14.7 9.3 9.5 2.7 3.2 3.2 5.0 7.57 1.44 -3.7 -4.9 5.55 1.12 31.4 22.3 8.8 6.2 MEDIA ASTRO MEDIA PRIMA STAR 2.85 1.10 2.37 3.30 0.85 1.95 1.06 0.61 0.55 11.9 7.7 15.0 13.5 8.0 15.8 23.9 14.2 15.8 21.2 13.8 15.0 4.4 5.6 7.6 4.6 5.8 7.6 3.02 1.54 2.70 -5.6 -28.6 -12.2 2.56 1.00 2.20 11.3 10.0 7.7 9.6 -4.3 5.8 OIL & GAS EATECH MHB MISC PANTECH PCHEM SKPETRO UMWOG UZMA 0.68 0.94 7.44 0.54 7.37 1.92 0.64 1.87 0.45 0.96 8.16 0.52 7.91 1.92 0.54 1.40 na 1.74 0.87 1.21 1.15 2.40 1.94 1.39 11.5 -0.4 49.5 3.7 34.7 5.3 -14.7 11.3 11.9 1.1 56.1 4.3 39.3 4.6 -12.4 12.2 5.9 na 15.0 14.4 21.2 36.6 na 16.6 5.7 84.2 13.3 12.4 18.8 41.4 na 15.3 5.0 0.0 4.0 2.8 2.6 0.0 0.0 0.0 6.0 0.0 4.0 3.2 3.0 0.0 0.0 0.0 1.25 1.34 9.00 0.54 7.59 2.17 1.04 2.04 -46.0 -29.9 -17.3 -0.9 -2.9 -11.5 -38.5 -8.3 0.45 0.84 6.88 0.44 5.95 1.29 0.61 1.30 51.7 11.9 8.1 23.0 23.9 48.8 5.8 43.8 8.9 2.7 1.2 20.2 5.6 18.5 -26.9 10.0 BANKS & FINANCIAL SERVICES AFG 4.05 AFFIN 2.85 AMBANK 4.93 CIMB 5.38 HLBANK 13.46 MAYBANK 8.73 PBBANK 19.80 5.18 RHBBANK BURSA 9.06 CONSTRUCTION BPURI GADANG GAMUDA IJM SENDAI SUNCON WCT LITRAK Building Materials WTHORSE CONSUMER Brewery CARLSBG HEIM Retail AEON AMWAY F&N NESTLE PADINI POHUAT QL SIGN Tobacco BAT GAMING Casino GENTING GENM NFO BJTOTO LUSTER HEALTHCARE Hospitals IHH KPJ Rubber Gloves HARTA KOSSAN SUPERMX TOPGLOV KAREX
11. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price (RM) PLANTATIONS FGV IJMPLNT IOICORP KLK SIME UMCCA 1.84 3.31 4.69 24.38 9.10 5.81 Target Price BETA (RM) 1.53 3.88 3.66 22.75 8.24 6.53 1.72 0.46 1.06 0.94 1.24 0.50 EPS (sen) PER (X) FY17 FY18 FY17 FY18 6.3 13.7 18.7 111.8 30.8 25.8 11.1 15.7 21.1 119.1 35.3 32.0 29.0 24.2 25.0 21.8 29.6 22.5 16.6 21.0 22.3 20.5 25.8 18.1 Div Yield (%) FY17 FY18 2.7 2.1 2.1 2.3 2.4 2.8 2.7 2.4 2.6 2.4 3.1 2.8 52weeks 52weeks High Price % Chg Low Price % Chg 2.52 3.74 5.04 25.50 9.30 6.19 -27.0 -11.5 -6.9 -4.4 -2.2 -6.1 1.31 3.22 4.07 22.62 7.10 5.53 40.5 2.8 15.2 7.8 28.2 5.1 % Chg YTD 18.7 -2.6 6.6 1.6 12.3 -3.2 PROPERTY GLOMAC 0.71 0.69 0.65 3.4 7.0 20.6 10.1 5.6 5.6 0.85 -16.0 0.68 4.4 2.2 HUAYANG 1.13 1.09 0.64 20.0 17.4 5.7 6.5 3.5 3.1 1.45 -21.9 1.05 7.6 0.0 IOIPG 1.90 2.10 0.91 14.7 15.3 12.9 12.4 3.7 3.9 2.46 -22.8 1.85 2.8 -2.5 Note: IOIPG 1 for 4 rights issue share, at an issue price of RM1.38 per rights share. Ex-Target price RM1.98. For more detail please refer to 21.11.16 report. MAHSING 1.41 1.60 0.64 14.5 12.5 9.7 11.3 4.3 3.9 1.70 -17.1 1.31 7.6 -1.4 SNTORIA 0.72 0.80 0.28 6.4 9.7 11.3 7.4 1.4 1.4 0.86 -16.3 0.69 4.3 -10.0 SPSETIA 3.40 3.82 0.68 27.7 24.5 12.3 13.9 4.1 4.1 3.59 -5.3 2.80 21.4 8.6 SUNWAY 3.15 3.40 0.49 31.2 33.3 10.1 9.5 3.8 3.8 3.24 -2.8 2.87 9.8 4.0 REIT SUNREIT 1.70 1.79 0.53 8.9 10.1 19.2 16.8 5.2 5.9 1.84 -7.6 1.51 12.6 -1.2 CMMT 1.68 1.78 0.61 8.1 8.5 20.8 19.7 5.4 5.6 1.72 -2.3 1.40 20.0 9.8 POWER & UTILITIES MALAKOF PETDAG PETGAS TENAGA YTLPOWR 1.20 24.30 19.68 13.74 1.49 1.45 20.19 19.64 17.19 1.81 na 0.82 0.79 1.02 0.57 6.9 98.4 89.4 129.4 8.8 8.3 102.3 91.6 132.7 10.6 17.3 24.7 22.0 10.6 17.0 14.5 23.8 21.5 10.4 14.1 5.8 3.0 3.2 2.5 6.7 4.8 3.1 3.0 2.6 6.7 1.80 25.70 22.80 14.90 1.64 -33.3 -5.4 -13.7 -7.8 -9.1 1.14 22.16 19.56 13.00 1.38 5.3 9.7 0.6 5.7 8.0 -12.4 2.1 -7.6 -1.2 0.0 TELECOMMUNICATIONS AXIATA DIGI MAXIS TM 4.65 5.08 6.41 6.29 5.25 4.90 5.95 6.95 1.24 0.97 0.73 0.69 16.7 20.8 25.1 21.4 17.6 21.1 25.4 22.3 27.8 24.4 25.5 29.3 26.4 24.1 25.2 28.2 1.8 4.1 3.1 3.1 1.9 4.1 3.1 3.2 6.00 5.13 6.47 6.90 -22.5 -1.0 -0.9 -8.8 4.11 4.31 5.36 5.81 13.1 17.9 19.6 8.3 -1.5 5.2 7.2 5.7 TECHNOLOGY Semiconductor & Electronics IRIS 0.13 INARI 1.97 MPI 9.90 UNISEM 2.87 0.14 2.05 10.55 3.15 1.20 0.77 0.47 0.77 -1.2 10.7 88.9 26.9 0.9 na 12.8 18.4 101.9 11.1 29.1 10.7 13.8 15.4 9.7 9.9 0.0 2.1 2.3 4.2 0.0 2.5 2.3 4.2 0.24 2.01 10.14 2.98 -47.9 -2.0 -2.4 -3.7 0.10 1.28 6.86 2.12 25.0 53.6 44.3 35.4 13.6 18.7 33.6 21.6 2.87 6.80 3.02 7.68 1.14 1.43 33.5 9.8 34.9 10.2 8.6 69.1 8.2 66.9 0.0 1.5 0.0 1.5 3.30 7.30 -13.0 -6.8 1.71 5.76 67.8 18.1 25.3 12.2 1.58 3.99 1.88 4.51 0.84 0.72 15.5 19.3 21.7 17.4 10.2 20.6 7.3 22.9 3.5 3.6 4.4 3.3 1.76 4.59 -10.2 -13.1 1.22 3.74 29.5 6.7 -0.6 -7.2 TRANSPORTATION Airlines AIRASIA AIRPORT Freight & Tankers TNLOGIS WPRTS SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price (S$) BANKS & FINANCIAL SERVICES DBS 18.94 OCBC 9.48 UOB 21.42 PLANTATIONS WILMAR IFAR 3.58 0.52 Target Price Beta (S$) EPS (cent) PER (X) FY17 FY18 FY17 FY18 Div Yield (%) FY17 FY18 52week 52week High Price % Chg Low Price % Chg % Chg YTD 16.70 8.50 19.40 1.21 1.12 1.08 173.8 87.8 195.7 190.2 10.9 92.5 10.8 209.4 10.9 10.0 10.2 10.2 3.2 5.7 3.3 3.2 6.7 3.3 19.4 9.8 22.0 -2.2 -3.1 -2.4 14.63 8.84 17.41 29.5 15.5 23.0 9.2 6.3 5.0 3.45 0.51 0.91 1.11 28.9 3.9 31.1 4.3 11.5 12.2 2.2 1.8 2.5 2.0 4.0 0.6 -10.5 -16.8 2.96 0.44 20.9 18.2 -0.3 -1.0 12.4 13.3 BUY : Total return within the next 12 months exceeds required rate of return by 5%-point. HOLD : Total return within the next 12 months exceeds required rate of return by between 0-5%-point. SELL : Total return is lower than the required rate of return. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.
12. TA Securities ECONOMIC REPORT A Member of the TA Group Friday , March 10, 2017 FBMKLCI: 1,717.42 MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 . Malaysian Economy New PCAP Regulation 2016 and Its Impact on Inflation THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Shazma Juliana Abu Bakar Tel: +603-2167 9608 shazma@ta.com.my Summary In early January 2017, the Ministry of Domestic Trade, Cooperatives and Consumerism (MDTCC) issued a statement on the enforcement on the Price Control Anti-Profiteering Regulations 2016 (Mechanism to Determine Unreasonably High Profit for Goods) effective on 1 January 2017. This new regulation replaces the Price Control and Anti-Profiteering (Mechanism to Determine Unreasonably High Profit) (Net Profit Margin) Regulations 2014, which expired on 31 December last year. The new regulation applies only to food and beverages as well as other household items, mainly perishable goods including personal care products, as they have a direct impact on household spending and cost of living. The enforcement will be expanded to other goods and services according to the need. It previously covered all goods and services. Under the new regulation, the profit is determined as unreasonably high if the margin percentage or mark-up percentage of goods on any date in a particular financial year or calendar year exceeds the margin percentage or mark-up percentage of goods on the first day of that particular financial year or calendar year. Businesses are given a transition period of 3 months from the start of year for their adherence to the regulation. Thus, the new Act will be fully effective in April 2017, with no statement of expiry date. While the new regulation seem to apply to certain classes of goods, businesses may increase prices for other products and services, which will eventually push our consumer price index higher. This comes as companies have been seeking a sustainable margin against rising operational costs, especially from recent developments such as higher minimum wage since July last year, adverse forex impact on commodity and raw material prices. In addition, the given three months transition period will lead companies to test with their pricing strategies with progressive increments in determining an ideal price point to maximize margin or profits. But, we do not anticipate a very aggressive mark up in prices as companies will take a more cautious approach and implement strategic price strategies. This is especially with the economic situation is still fragile, rising cost of living as well as weak consumer sentiment. Indeed, the MIER consumer sentiment index (CSI) has decreased further to 69.8 points in 4Q16 (3Q16: 73.6 points). Going forward, there will be more cost push factors in the pipeline, thus putting our consumer price forecast to be higher than last year. This include higher food costs following reviews in sugar and cooking oil prices, higher retail pump price as compared to last year as well as further scheduled and pending reviews of “administered prices” following the subsidy rationalization programme. Thus, we raise our 2017 CPI forecast to 2.7% YoY from 2.4% YoY(2016: 2.1% YoY). CPI shot up to 3.2% YoY in January this year. Page 1 of 5 www.taonline.com.my
13. TA Securities 10-Mar-17 A Member of the TA Group What is New on PCAP Regulation ? In early January 2017, the Ministry of Domestic Trade, Cooperatives and Consumerism (MDTCC) issued a statement on the enforcement on the Price Control Anti-Profiteering Regulations 2016 (Mechanism to Determine Unreasonably High Profit for Goods) effective on 1 January 2017. This new regulation replaces the Price Control and Anti-Profiteering (Mechanism to Determine Unreasonably High Profit) (Net Profit Margin) Regulations 2014, which expired on end December last year. The new Act will be fully effective in April 2017 as the government gives a transition period of 3 months from the start of year for companies to adjust with the new regulation. Unlike the previous one, it now has no expiration date. Among the changes under the new Act: The new regulation applies only to food and beverages as well as other household items mainly perishable goods including personal care products as they have a direct impact on household spending and cost of living. The enforcement will be expanded to other goods and services according to the need. It previously covered all goods and services. Under the new regulation, the profit is determined as unreasonably high if the margin percentage or mark-up percentage of goods on any date in a particular financial year or calendar year exceeds the margin percentage or mark-up percentage of goods on the first day of that particular financial year or calendar year. The price control mechanism does not fall under the purview of the GST Act. Thus, the PCAP is administered by the MDTCC. Under the PCAP, it is an offence for a person to make an unreasonably high profit (profiteering) from the supply of goods and services in the course of a trade or business. Under Section 18 of PACP 2011, the fine can go up to RM1 million for a subsequent offence for companies; or a maximum of RM250,000 and/or imprisonment up to 5 years for non-corporate. Implications on Malaysia’s Consumer Prices With the new regulation seem to apply to certain classes of goods, businesses may increase prices for other products and services, which will eventually push our consumer price index higher. This comes as companies have been seeking a sustainable margin against rising operational costs, especially from recent developments such as higher minimum wage since July last year, adverse forex impact on commodity and raw material prices. In addition, the given three months transition period will lead companies to test with their pricing strategies with progressive increments in determining an ideal price point to maximize margin or profits. Consumer Price Index (CPI) already shot up to 3.2% YoY in January 2017 – the highest since February last year. The growth beat consensus estimate of 2.8% YoY and almost double than 1.8% YoY rise in December 2016. Details showed higher pace of growth for food items (+4.0% YoY), transport (+8.3% YoY) and healthcare (+2.5% YoY). Non-food items also remained high at 2.9% YoY during the month as compared to only 1.0% YoY in December 2016. We predict food prices to remain high in the coming months (TA forecast range: 3.5% to 4.0% level) especially with the upward adjustments in retail cooking oil and sugar as well as increase seen in global commodity prices. Starting 1 March 2017, the price of coarse granulated sugar has gone up by 11 sen to RM2.95 per kg. The old price was RM2.84 a kg. This is in view of the rise in world prices of raw sugar. The last price increase was in October 2013. That time the sugar subsidy of 34 sen a kg was scrapped. While prices of coarse and fine granulated sugar are controlled by the government, prices of premium sugar – caster, icing, brown and soft brown sugar – are not. Sugar carries about 0.2% of CPI basket. - Effective 1 November 2016, retail cooking oil prices were adjusted under the Cooking Oil Price Stabilisation Scheme (COSS) as part of government subsidy rationalisation plan. Subsidies for all consumer pack sizes such as 1kg, 2kg, 5kg and 3kg bottle has been removed Page 2 of 5
14. TA Securities 10-Mar-17 A Member of the TA Group and sold at market price (refer Figure 1). The 1kg polybag, however, will continued to be subsidised and subjected to the same quota as determined previously. Price of cooking oil was persistently high as it rose 47.2% YoY in January 2017, contributing about 0.4% of total CPI basket. We also expect persistent high of retail pump price across categories than last year in tandem with gradual recovery in global oil price. Despite unchanged retail pump prices for RON 97 and RON 95 in March 2017 at RM2.60 per liter and RM2.30 respectively, it was still higher than March last year. The difference was 65 sen for RON 97; 70 sen for RON 95; and 85 sen higher for diesel. Under Transport sub-sector, fuel & lubricants contributes about 7.8% of total CPI basket. We estimate that for every 10% increase in average pump price, it will lead to 6% increase in Transport Index, vice versa. Figure 1: Malaysia’s Retail Pump Price (January 2016 – March 2017) Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Ron97 Ron95 2.25 2.05 1.95 2.05 2.05 2.05 2.10 2.10 2.05 2.15 2.30 2.25 2.40 2.60 2.60 1.85 1.75 1.60 1.70 1.70 1.70 1.75 1.75 1.70 1.80 1.95 1.90 2.10 2.30 2.30 Diesel RM per liter 1.60 1.35 1.35 1.55 1.55 1.55 1.60 1.70 1.70 1.75 1.90 1.85 2.05 2.15 2.20 Average Pump Price 1.90 1.72 1.63 1.77 1.77 1.77 1.82 1.85 1.82 1.90 2.05 2.00 2.18 2.35 2.37 Source: TA Securities It also appears that a new fuel ceiling price mechanism will be introduced in Malaysia next month. According to MDTCC Minister Datuk Hamzah Zainuddin, the ceiling price for fuel will be announced on a weekly basis starting from April 2017 instead of the exact retail prices every month as per current practice. Fuel retailers can then decide to either follow the ceiling price, or set them lower. The ceiling price will likely be announced on the Monday or Saturday of each week. But, there is no official media press release by MDTCC at the time of writing. Adding inflation pressures in the pipeline are also further scheduled and pending reviews of “administered prices” following the subsidy rationalization programme including gas prices, electricity tariffs, toll rate and sewerage charges. Influenced by cost push factors rather than demand pull, we raise our 2017 CPI forecast to 2.7% YoY from 2.4% YoY (2016: 2.1% YoY). Page 3 of 5
15. TA Securities 10-Mar-17 A Member of the TA Group Figure 2 : Malaysia’s Annual Consumer Prices % YoY 3.5% 3.0% 2.7% 2.5% 2.1% 2.0% 1.5% 1.0% 0.5% 0.0% 2010 2011 2012 2013 2014 2015 2016 2017f Source: DOS, TA Securities Nevertheless, we do not anticipate a significant increase in prices of goods and services on anticipation that companies will take a more cautious approach and implement strategic pricing. This is especially with the economic situation is still fragile and rising cost of living. Although various government initiatives and accommodative monetary policy kept private consumption robust at above 6.0% level for three consecutive quarters, these positive factors have failed to improve MIER’s consumer sentiment index (CSI), which has decreased further to 69.8 points in 4Q16 (3Q16: 73.6 points). Figure 3: CPI Sub-components Sub Components Wt. (%) Consumer Price Index (CPI) Food & Non-Alcoholic Beverages Alcoholic Beverages & Tobacco Clothing and Footwear Housing, Water, Electricity, Gas & Other Fuels Furnishings, Household Equip. & Routine Household Maintenance Health Transport Communication Recreation Services & Culture Education Restaurants and Hotels Miscellaneous Goods & Services Index 100.0 30.2 2.9 3.3 23.8 Jan-17 118.2 127.2 165.3 98.3 115.2 3.8 112.9 1.7 13.7 5.2 4.9 1.1 2.9 6.5 119.7 113.5 97.9 111.2 116.3 126.5 114.3 % YoY % MoM Dec-16 1.8 3.7 0.1 -0.5 2.1 Jan-17 3.2 4.0 0.2 -0.7 1.9 Dec-16 0.0 0.6 -0.1 -0.1 0.0 Jan-17 1.1 0.9 0.0 0.0 0.0 1.4 2.4 -0.6 -2.6 3.3 1.7 1.9 1.8 1.5 2.5 8.3 -0.2 3.2 2.0 2.1 1.4 0.1 0.2 1.4 0.0 0.1 0.0 0.2 -0.2 0.4 0.3 5.9 0.0 0.1 1.0 0.3 0.1 Sources: Department of Statistics, TA Securities Figure 4: Food & Non-Alcoholic Beverages vs Headline CPI (January 2011 – January 2017) Figure 5: Transport vs Headline CPI (January 2011 – January 2017) YoY % YoY % 6.0% 10.0% 5.0% 5.0% 4.0% 0.0% 3.0% -5.0% 2.0% -10.0% 1.0% Sources: Department of Statistics, TA Securities Page 4 of 5 Jan-17 Sep-16 Jan-16 May-16 Sep-15 Jan-15 Headline CPI May-15 Sep-14 Jan-14 May-14 Sep-13 Jan-13 May-13 Sep-12 Jan-12 May-12 Transport Headline CPI Sources: Department of Statistics, TA Securities Sep-11 Jan-11 Jan-17 Sep-16 Jan-16 May-16 Sep-15 Jan-15 May-15 Sep-14 Jan-14 May-14 Sep-13 Jan-13 May-13 Sep-12 Jan-12 May-12 Sep-11 Jan-11 May-11 Food and Non Alcoholic May-11 -15.0% 0.0%
16. TA Securities 10-Mar-17 A Member of the TA Group Figure 6 : List of Controlled Goods Goods which have been declared as controlled articles under the Control of Supplies Act 1961. • Sugar • Milk including condensed milk, powdered or dried milk and Evaporated milk • Salt • Cement and Clinker • Wheat Flour • Cooking Oil • Fertilizers • Pesticides • Formic acid or any other acid used for coagulating latex • Mild Steel Round Bars • Kerosene • Prepared or preserved fish in airtight containers • All types of rice ( State of Sabah Only) • Paddy ( State of Sabah Only) • Petrol Motor Spirit and Motor Gasoline of All Grades • Diesel Fuel • Liquified Petroleum Gas (LPG) • All types of bread • Fuel Oil • Chicken • Rubber Wood • Facemask ( 1-ply, 2-ply, N95) Source: MDTCC Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD(14948-M) (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 5 of 5
17. COMPANY UPDATE TA Securities Friday , March 10, 2017 FBM KLCI: 1,717.42 Sector: Power & Utilities A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 YTL Power International Berhad TP: RM1.81 (+22%) Last Traded: RM1.49 Yet To Live-up to Potential Buy THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Team Coverage Tel: +603-2167 9601 kyliechan@ta.com.my Our recent meeting with YTL Power’s management reinforced our view that handsome dividend payouts will likely remain intact. In addition, longer term payouts are boosted by incubating power projects with high IRRs of 15%-20%. This includes Tg Jati coal plant in Indonesia (start: 2020), and Attarat shale plant in Jordan (financial close: 1QCY17). Meanwhile, wildcards include bids for Jurong desalination plant and Pasir Gudang Track 4A gas plant. Whereas for the mobile segment, earnings drag will ease following commencement of 1Bestarinet Phase 2 in CY17, and improving YES 4G subscriber traction. Lastly, whilst UK operations are running smoothly, Seraya’s fortunes will be uplifted by Singapore’s tapering electricity reserve margin. We maintain Buy with SOP target price of RM1.81. Attractive valuations and potential M&A from RM10bn cash pile are sweeteners. www.taonline.com.my Share Information Bloomberg Code YTLP MK Stock Code 6742 Listing Main Market Share Cap (mn) 7,758.7 Market Cap (RMmn) 11,560.5 Par Value 0.50 52-wk Hi/Lo (RM) 1.64/1.38 12-mth Avg Daily Vol ('000 shrs) 2,654.0 Estimated Free Float (%) 24.0 Beta Major Shareholders (%) 0.36 YTL Corp Berhad - 47.6 Cornerstone Crest - 6.9 Forecast Revision FY17 Consistent Stellar Performance by Wessex. Operations of Wessex Water have been smooth sailing, whereby in 2013-16, Wessex ranked Top 3 (out of 18) water companies in England & Wales in terms of Service Incentive Mechanism (SIM). Whereas on the impact of the Brexit referendum on water companies, the Office of Water Services (OFWAT), which is the economic regulator, reiterated that sector fundamentals remain intact. According to OFWAT, investability of water companies post-Brexit are unchanged underpinned by sound fundamentals, predictable regulatory environment, and customer legitimacy. Crown Jewel Underappreciated. Management intends to maintain dividends in FY17, largely supported by cash flows from Wessex. We estimate annual FCFE of circa £136mn – £167mn (FY16: £156mn) (RM746mn-921mn) for Wessex over FY17E-19F. This accounts for 92%114% of forecasted dividend payout of RM810mn p.a (yield: 6.8%). On the back of this, we regard Wessex as the group’s most valuable asset, given its superior cash generative ability, coupled with stable business. However, we believe this is underappreciated by the market, as YTL Power is currently trading at 1SD below historical forward P/B (Figure 1). Figure 1 : Historical Forward P/B FY18 6.6 0.5 Net Profit (RM mn) 679.1 819.6 Consensus 720.2 810.9 TA's / Consensus (%) 94.3 101.1 Forecast Revision (%) Previous Rating Buy (Maintained) Financial Indicators FY17 FY18 Net Debt/Equity (x) 1.1 1.2 FCFPS (RM) 0.1 0.1 P/CFPS (x) 15.5 11.2 ROE (%) 5.4 6.5 ROA (%) 1.6 1.9 NTA/Share (RM) 0.5 0.5 Price/NTA (x) 2.9 2.9 Share Performance (%) Price Change YTLP FBM KLCI 1 mth 1.4 3 mth 2.8 4.6 6 mth (2.6) 1.8 12 mth 2.8 1.6 1.1 (12-Mth) Share Price relative to the FBM KLCI Source: Bloomberg Source: Bloomberg Page 1 of 6
18. TA Securities 10-Mar-17 A Member of the TA Group Ready War Chest for Assault When Crisis Hits . Despite cheaper valuations for UK assets following Brexit, management guided that it will likely hold back on M&A activities at this juncture. This is because the group is not keen to acquire UK utilities unless it entails a controlling stake. According to management, there are restrictions governing foreign ownership of UK utility companies. Therefore, UK acquisitions will likely remain on the backburner, despite a chunky cash pile of RM9.5bn, whereby circa RM8bn is earmarked for M&A. Nevertheless, we do not discount any potential M&As on the international front or in other utility sectors. 1Bestarinet Phase 2 back in Business. YTL Power’s targets for 1Bestarinet Phase 2 include increasing bandwidth speed, and enhancing take-up rate. To recap, this RM4bn project was awarded by the Education Ministry in 2011. It will be rolled out over 15 years in 3 phases, whereby YTL Power had earlier completed Phase 1 in Jun-14. This project involves implementation of 4G broadband and Frog VLE (Virtual Learning Experience) online software for 10,000 schools. Recall that back in Dec-16, the Public Accounts Committee (PAC) requested a second review on Phase 1’s effectiveness. Nevertheless, we are optimistic that headwinds for this project have largely cleared. Phase 2 has now received the green light after YTL Power’s explanation to PAC, along with other measures by the group. This includes nominal rental payment for tower sites, and engaging content providers to enhance Frog’s content. Phase 2 is a Cash Cow Now. We believe Phase 2 will provide a much needed cushion to losses in the Broadband segment. In addition, 1Bestarinet is now highly cash generative, given that future capex will be minimal after the completion of expensive 4G network rollout in Phase 1. Furthermore, management expects improved take-up rates as teething issues are resolved. In our forecasts, we assume annual revenue recognition of RM450mn for Phase 2 in the form of government grants (start: 3QFY17) until 3QFY18. Assuming a pretax margin of 10%, this translates to PBT of RM45mn p.a. In addition, on an encouraging note, the broadband segment reported shrinking losses (Figure 2) in the past 3 quarters. We attribute this to improving subscriber traction at YES 4G. To recap, losses have progressively narrowed to RM15mn in 2QFY17, after having peaked at RM109mn in 4QFY16. Seeing Light at Power Seraya. Meanwhile, there is a glimmer of hope at Power Seraya, as evident from improving results over the past 3 quarters (Figure 3). To recap, after pre-tax profits peaked at RM267mn in 4QFY11, it had progressively tumbled to a low of RM6mn in 3QFY16. This was attributed to:1) oversupplied market, where the current reserve margin is circa ~90%, 2) dip in vesting volumes for the government from as high as 70% to current levels of 25%, 3) weak contribution from oil trading and sale of fuel oil. We attribute the latter to:- 1) volatile oil prices over 2015-16, and 2) lower demand for marine bunker due to the slowdown in E&P activities for the oil and gas industry. Page 2 of 6
19. TA Securities 10-Mar-17 A Member of the TA Group Figure 2 : Quarterly Pretax Broadband Segment Losses for Mobile Source: EMA Figure 3: Quarterly Pretax Losses for Mobile Power Seraya Source: EMA Easing Electricity Reserve Margin in Singapore. On a bright note, we see light at the end of the tunnel, as we understand that government initiatives are in place to arrest new power capacity additions and maintain current vesting volumes. Correspondingly, the Energy Market Authority (EMA) of Singapore projects total electricity supply to reduce in 2019 by 700MW to 13,000MW (Figure 4). This is net of a 300MW increase in 2017 due to new investments, and 700MW decrease in 2019 following retirement of aged capacity. Correspondingly, the reserve margin (Figure 5) is expected to taper off to circa 70% by 2020. On top of an improving outlook for power generation, we believe Seraya’s earnings will also be uplifted by the group’s shift in focus to high-margin non-regulated ancillary businesses (i.e. steam sales, oil storage tank leasing, and bunkering services etc.). Figure 4: Projected Total Electricity Supply in Singapore Figure 5: Projected Electricity Reserve Margins in Singapore Source: EMA Source: EMA Earnings Rerating if Seraya Bags Desalination Plant. In addition, earnings may potentially be catalysed if Seraya secures the contract to design, build, own, and operate (DBOO) Singapore’s 5th water desalination plant at Jurong, (capacity: 137,000 m3). To recap, in Feb-17, Seraya was shortlisted for this project alongside Keppel Infrastructure, Sembcorp Utilities and Tuas Power. This project is targeted for completion in 2020, which suggests that the award will likely be in CY17-18. We view earnings from this project as largely water tight, unlike that of Seraya’s existing power business. This is underpinned by a 25-year offtake agreement from Singapore’s national water agency, the Public Utilities Board (PUB). Fighting Chance Vs. Water Competitors. As a benchmark, according to Hyflux Ltd, for its Tuaspring Desalination Plant (capacity: 318,500 m3), equity IRR is in the attractive low-teens. To recap, this DBOO project with 25 year concession (start: 2013) is the 2nd desalination plant in Singapore (Figure 6). Therefore, this reinforces our view that Seraya may derive attractive and stable returns from Page 3 of 6
20. TA Securities 10-Mar-17 A Member of the TA Group the Jurong desalination project . On the flipside, Seraya is competing against strong contenders, particularly government linked players, Sembcorp and Keppel. Recall that both are established players with a track record in water management. However, we believe Keppel will not be prioritized for this tender, given that it was recently awarded Singapore’s 4th desalination plant (start: 2020). On the bright side, Seraya’s financial capacity exceeds that of its competitors, given a healthy balance sheet with FY16 net debt/EBITDA of 3.6x (peers average: 8.1x). Figure 6 : Desalination Plants in Singapore Source: Straits Times Not Counting on Paka. For Paka’s delayed extension, management intends to lobby for a revised PPA with a full 2-year tenure. This is because the PPA extension granted earlier was for the period Mar 2016-18. In addition, we understand that YTL Power’s land lease with Tenaga, which is the source of the delay, will also expire in 2017. Therefore, at this juncture, management is reviewing the contract terms amidst ongoing negotiations with Tenaga. Nevertheless, regardless of the outcome, we have priced-in the black skies scenario of FY17E losses from Paka, and zero contribution thereafter. This is underpinned by our expectations that even if Paka secures a new PPA, this 22-year old plant will likely not be prioritized in Tenaga’s IPP power despatch queue. We understand that older and less efficient plants are now relegated to the back of the queue. This is following the start-up of modern plants, including Janamanjung 5, Tg. Bin Energy, etc. Maintain Buy on Rosier Outlook. Nevertheless, loss of Paka’s contribution will be more than offset by upcoming plants in the pipeline. Recall that YTL Power has two power plants in the offing, including:- 1) Tg Jati coal plant in Indonesia (start: 2020), and 2) Attarat shale plant in Jordan (target financial close: 1QCY17). Recall that both projects in emerging economies carry high project IRRs of 15%-20%. In addition, we do not discount the possibility of the group reviving its bid for Track 4A (1,000MW) gas plant in Johor. We incorporate FY16 audited figures for Power Seraya and roll forward its DCF valuation to FY17E. As a result, its equity value (EV) is reduced to 33 sen (previous: 45 sen) due to higher-than-expected net debt levels. In addition, its FY17 pre-tax profit forecast is raised by RM60mn on account for higher retail spot prices. Correspondingly, the group’s FY17 profit forecast is raised by 7%, but the SOP target price (Figure 7) is lowered to RM1.81 (previous: RM1.90) in tandem with Seraya’s reduced EV. Against an improving backdrop for YTL Power, we maintain our Buy recommendation. Page 4 of 6
21. TA Securities 10-Mar-17 A Member of the TA Group Figure 7 : SOP Valuation Equity Value (RM mn) Per Share (RM) 80 0.01 Power Seraya 2,374 0.30 DCF (WACC: 9%) Wessex Water 15,428 1.92 Regulatory Capital Value, RCV (£5.50/RM) Operating Assets Malaysia power assets Method Estimated Salvage Value 35%-associate Jawa Power 1,386 0.17 DCF (WACC: 15.0%) 33.5%-associate Electranet 2,609 0.33 Regulated Asset Base, RAB (AUD3.00/RM) 350 0.04 FY17E Book Value YES Total 22,226 Less: Holding Co. Net Debt (4,900) Warrants Conversion Total Equity Value Fully diluted no of shares (mn) FD Equity Value Per share 949 0.12 18,275 8,024 2.28 Holding Co. Discount 20% Target Price 1.81 Implied CY17 PER of 21x [ T HE RE M AI NI NG OF T HI S P AG E I S I NT E NT I ON AL L Y LE FT B L AN K] Page 5 of 6
22. TA Securities 10-Mar-17 A Member of the TA Group Earnings Summary Income Statement FYE June (RM mn) Revenue EBITDA Depreciation Net interest expense Associates EI and FX Pretax profit Taxation Minority interest Net Profit Core Net Profit Per Share Data Core EPS DPS Book Value FCF Ratios FYE June (RM mn) Valuations Core PER Dividend Yield EV/EBITDA P/BV FCF Yield Profitability Ratios EBITDA margin EBIT margin Pretax margin Core net margin ROE ROA 2015 2016 11,858.1 10,240.5 3,135.5 2,557.4 (1,379.4) (1,242.6) (795.3) (823.7) 287.6 630.1 (1.2) 178.8 1,247.2 1,300.0 (326.8) (140.2) (1.6) (115.1) 918.8 1,044.7 920.0 865.9 (sen) (sen) (RM) (sen) (x) (%) (x) (x) (%) (%) (%) (%) (%) (%) (%) 2017E 2018F 2019F 9,982.7 10,857.0 11,039.6 2,617.4 3,023.3 3,123.8 (1,200.2) (1,432.8) (1,452.5) (843.3) (823.8) (805.3) 279.0 284.5 290.2 0.0 0.0 0.0 852.9 1,051.2 1,156.1 (172.2) (230.0) (259.8) (1.6) (1.7) (1.7) 679.1 819.6 894.7 679.1 819.6 894.7 11.2 10.0 1.4 13.2 9.7 10.0 1.4 9.7 7.6 10.0 1.4 9.6 9.2 10.0 1.4 13.3 10.0 10.0 1.4 13.5 2015E 2016F 2017F 2018F 2019F 13.3 6.8 7.8 1.1 8.9 12.6 6.8 9.0 1.0 6.5 19.4 6.8 8.8 1.1 6.5 16.1 6.8 7.7 1.0 9.0 14.8 6.8 7.5 1.0 9.2 26.4 14.8 10.5 7.8 8.2 2.1 25.0 12.8 12.7 8.5 8.6 2.0 26.2 14.2 8.5 6.8 5.4 1.6 27.8 14.6 9.7 7.5 6.5 1.9 28.3 15.1 10.5 8.1 7.1 2.1 Liquidity ratios Current ratio Quick ratio (x) (x) 2.7 2.7 4.7 4.5 3.7 3.6 3.3 3.1 3.0 2.8 Leverage ratios Gross Gearing Net gearing Total Debt/ Assets Interest Coverage (x) (x) (x) (x) 2.1 1.3 0.6 3.9 1.9 1.1 0.6 3.1 1.8 1.1 0.5 3.1 1.8 1.2 0.5 3.7 1.7 1.2 0.5 3.9 (%) (%) (%) (%) (%) (17.9) 9.9 10.7 (19.4) (19.4) 8.8 15.5 23.3 20.7 20.6 1.7 3.3 10.0 9.2 9.1 Growth ratios Revenue EBITDA PBT Core net profit Core EPS (13.6) (18.4) 4.2 (5.9) (12.7) (2.5) 2.3 (34.4) (21.6) (21.9) Balance Sheet FYE June (RM mn) Property, Plant & Equip Intangibles Associates Others Non-Current Assets 2015 2016 2017E 2018F 2019F 21,204.7 20,003.1 20,468.1 20,750.4 21,064.5 7,580.7 8,058.3 8,058.3 8,058.3 8,058.3 1,807.8 2,119.0 2,217.1 2,317.2 2,419.3 616.9 1,047.8 1,047.8 1,047.8 1,047.8 31,210.1 31,228.2 31,791.3 32,173.7 32,589.9 Inventories Trade receivables Cash and Deposits Others Current Assets 440.4 2,294.0 9,608.3 84.9 12,427.7 438.4 1,716.9 9,674.2 64.5 11,894.1 427.4 1,673.7 8,915.9 64.5 11,081.5 464.8 1,820.3 8,006.5 64.5 10,356.1 472.6 1,850.9 7,123.7 64.5 9,511.8 Total Assets 43,637.8 43,122.3 42,872.8 42,529.8 42,101.7 Borrowings Deferred taxation Others Non-Current Liabilities 23,424.0 2,117.7 1,944.2 27,485.8 23,836.4 1,827.0 2,213.3 27,876.7 23,279.7 1,827.0 2,213.3 27,320.0 22,723.0 1,827.0 2,213.3 26,763.2 22,166.2 1,827.0 2,213.3 26,206.5 2,168.3 138.3 1,910.4 306.3 4,523.3 1,877.5 125.3 277.6 250.8 2,531.3 2,314.2 125.3 277.6 250.8 2,968.0 2,516.9 125.3 277.6 250.8 3,170.6 2,559.3 125.3 277.6 250.8 3,213.0 Share capital Reserves Minority interest Equity 3,710.8 7,682.9 235.0 11,628.7 4,050.8 8,444.5 219.0 12,714.3 4,050.8 8,313.5 220.6 12,584.9 4,050.8 8,322.9 222.2 12,596.0 4,050.8 8,407.4 223.9 12,682.2 Total Equity + Liabilities 43,637.8 43,122.3 42,872.8 42,529.8 42,101.7 Trade payables Deferred Taxes Borrowings Others Current Liabilities FYE Aug (RM mn) Cashflow Statement Pretax Profit Depreciation Net Interest Associates & JCEs Net change in working capital Tax paid Others CF from Operations 2015 2016 2017E 2018F 2019F 1,247.2 1,379.4 795.3 (287.6) (32.2) (326.8) (893.4) 1,881.9 1,300.0 1,242.6 823.7 (630.1) 341.6 (140.2) (826.0) 2,111.5 852.9 1,200.2 843.3 (279.0) 490.9 (172.2) 0.0 2,936.2 1,051.2 1,432.8 823.8 (284.5) 18.7 (230.0) 0.0 2,811.9 1,156.1 1,452.5 805.3 (290.2) 3.9 (259.8) 0.0 2,867.9 Capex Interest income Dividends Received Others CF from Investing (1,795.7) 16.2 290.5 153.1 (1,335.9) (1,632.5) 71.0 408.4 (182.6) (1,335.6) (1,665.2) 19.3 180.8 0.0 (1,465.0) (1,715.1) 18.6 184.4 0.0 (1,512.1) (1,766.6) 16.9 188.1 0.0 (1,561.5) Dividends Net Change in debt Interest paid Others CF from Financing (817.3) (46.7) (821.4) 1,100.1 (585.4) (930.3) (556.7) (894.7) 1,671.3 (710.4) (810.2) (556.7) (862.5) 0.0 (2,229.4) (810.2) (556.7) (842.4) 0.0 (2,209.3) (810.2) (556.7) (822.3) 0.0 (2,189.1) Net Cash Flow Beginning Cash FX Ending Cash (39.4) 8,890.9 671.7 9,523.2 65.5 9,523.2 85.5 9,674.2 (758.3) 9,674.2 0.0 8,915.9 (909.4) 8,915.9 0.0 8,006.5 (882.8) 8,006.5 0.0 7,123.7 Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD(14948-M) (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 6 of 6
23. Friday , 10 March, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED LOCAL TECHNICAL REPORTS’ Local Technical Reports 1. Daily Technical Stock Picks 2. Daily Stock Screen Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research
24. T e c h n i c a l TA Securities V i e w Friday , March 10, 2017 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Daily Technical Stock Picks Malaysia FBM KLCI: 1,717.42 (-8.12, -0.47%) THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Name FBMKLCI AFFIN AFG AMBANK AXIATA CIMB DIGI GAMUDA GENTING GENM IHH IOICORP MALAKOFF MAXIS MAYBANK MBSB RHBBANK SIME TENAGA TM WPRTS AIRASIA AIRASIA X ARMADA BINAPURI CMSB DIALOG ECO WORLD GADANG HSL ISKANDAR KIMLUN KKBE MUDAJAYA MRCB NAIM SKPETRO SUNCON UEMS WASEONG WCT Close 9-Mar 1717.42 2.85 4.05 4.93 4.65 5.38 5.08 4.98 9.29 5.35 5.92 4.69 1.20 6.41 8.73 1.18 5.18 9.10 13.74 6.29 3.99 2.87 0.41 0.72 0.45 4.19 1.67 1.51 1.22 1.68 1.76 2.19 1.26 0.89 1.51 1.53 1.92 1.71 1.19 0.87 1.88 Change (8.12) -0.03 -0.03 -0.06 -0.07 0.01 0.00 -0.04 -0.08 -0.05 -0.08 0.00 0.00 0.01 -0.10 -0.01 -0.01 0.00 0.04 0.01 0.01 0.09 0.01 -0.02 0.01 -0.02 -0.01 -0.04 -0.01 -0.03 0.12 -0.17 -0.02 -0.02 -0.02 0.00 -0.11 0.00 -0.02 -0.01 0.00 Tel: +603-2167-9607 High Low 1,724.40 1,717.42 2.89 4.07 4.99 4.72 5.43 5.10 5.07 9.37 5.47 6.02 4.72 1.20 6.42 8.81 1.20 5.20 9.13 13.80 6.31 4.03 2.91 0.41 0.73 0.45 4.22 1.68 1.56 1.24 1.70 1.81 2.38 1.28 0.91 1.53 1.53 1.98 1.72 1.20 0.87 1.88 2.83 4.01 4.92 4.57 5.35 5.07 4.98 9.28 5.35 5.91 4.67 1.18 6.40 8.70 1.18 5.17 9.07 13.66 6.22 3.97 2.74 0.40 0.71 0.44 4.17 1.66 1.50 1.20 1.67 1.57 2.15 1.26 0.88 1.50 1.51 1.91 1.70 1.17 0.86 1.86 Bollinger Bands Lower Mid Upper 1,689.26 1,709.08 1,728.89 2.30 3.80 4.38 4.29 4.88 5.00 4.86 8.48 4.91 5.78 4.55 1.13 6.28 8.19 1.13 4.86 8.99 13.42 6.08 3.91 2.54 0.39 0.66 0.43 4.08 1.53 1.44 1.02 1.65 0.85 2.06 1.21 0.81 1.39 1.48 1.80 1.68 1.12 0.85 1.85 2.60 3.94 4.70 4.73 5.16 5.06 4.95 8.99 5.21 6.07 4.67 1.22 6.38 8.55 1.16 5.07 9.11 13.58 6.19 4.04 2.69 0.41 0.72 0.45 4.21 1.63 1.51 1.12 1.69 1.24 2.20 1.31 0.89 1.47 1.61 1.92 1.73 1.17 0.89 1.89 2.89 4.07 5.02 5.17 5.45 5.12 5.04 9.51 5.51 6.37 4.80 1.32 6.48 8.90 1.19 5.27 9.24 13.73 6.29 4.18 2.84 0.42 0.79 0.47 4.34 1.72 1.57 1.22 1.74 1.62 2.34 1.42 0.96 1.54 1.73 2.03 1.79 1.21 0.92 1.93 stsoo@ta.com.my RSI Moving Averages 14d 10d 30d 50d 59.68 1,710.67 1,700.78 1,682.87 DMI DI + DI - ADX 35.20 15.80 38.81 Diff 19.40 81.43 61.25 73.64 47.01 68.74 57.99 54.86 65.69 60.01 37.29 53.67 40.71 62.71 65.16 64.03 62.32 56.07 60.84 65.72 39.19 64.64 53.04 54.39 49.36 52.09 63.54 54.23 70.06 48.91 86.74 48.78 43.98 52.22 60.24 39.14 54.04 46.12 59.01 48.05 52.41 43.94 28.28 33.90 21.15 35.61 22.38 19.96 33.59 26.58 17.83 23.02 13.99 21.36 38.72 28.83 29.77 22.21 17.26 23.05 7.60 31.57 17.74 25.37 20.92 19.31 29.67 26.58 37.87 34.54 55.09 31.73 27.22 32.91 32.31 14.35 26.72 16.69 30.04 19.60 19.76 34.71 17.33 25.53 (7.17) 21.19 5.86 (2.66) 29.07 17.93 (11.18) 7.38 (10.84) 4.57 22.56 16.14 13.19 3.62 (1.49) 6.69 (22.72) 16.78 2.00 3.38 0.07 20.46 20.46 15.05 27.47 3.65 48.84 8.69 0.01 4.29 21.82 (14.63) 5.17 4.19 14.86 2.70 (4.67) 2.69 3.96 4.82 4.57 5.22 5.04 4.95 9.21 5.29 5.93 4.71 1.19 6.35 8.71 1.16 5.05 9.09 13.61 6.21 3.99 2.71 0.40 0.73 0.44 4.20 1.67 1.51 1.15 1.69 1.34 2.24 1.27 0.86 1.46 1.55 1.95 1.72 1.17 0.87 1.87 2.54 3.90 4.65 4.79 5.10 5.04 4.94 8.77 5.12 6.15 4.63 1.25 6.30 8.44 1.14 5.03 9.05 13.57 6.14 4.10 2.65 0.41 0.69 0.45 4.19 1.60 1.49 1.11 1.68 1.12 2.18 1.32 0.88 1.47 1.61 1.86 1.73 1.15 0.87 1.87 2.49 3.84 4.55 4.74 4.94 4.99 4.91 8.50 4.93 6.23 4.56 1.29 6.20 8.32 1.08 4.95 8.79 13.68 6.11 4.17 2.53 0.39 0.66 0.44 4.10 1.58 1.43 1.09 1.66 1.02 2.16 1.30 0.88 1.43 1.61 1.79 1.71 1.12 0.85 1.85 9.23 10.95 8.38 28.32 14.42 16.52 22.62 4.53 8.65 29.01 15.63 24.83 16.79 16.16 12.69 16.58 18.59 18.75 16.36 30.32 14.79 15.74 25.63 17.54 19.24 9.21 11.53 10.40 30.89 6.25 23.04 27.20 28.62 10.49 28.99 21.54 12.51 15.18 16.90 24.43 43.00 32.04 40.78 24.73 32.41 17.74 18.13 60.61 47.24 19.95 22.39 23.59 22.09 36.54 37.19 24.39 30.16 17.82 17.27 59.46 21.23 23.08 30.20 19.95 18.85 50.14 39.55 36.03 18.87 56.35 36.01 20.95 23.79 31.70 33.13 39.88 22.96 30.63 21.19 14.84 www.taonline.com.my Line 10.41 0.10 0.05 0.12 -0.04 0.12 0.02 0.02 0.25 0.12 -0.09 0.05 0.02 0.05 0.15 0.02 0.05 0.08 0.01 0.05 -0.06 0.06 0.00 0.02 0.00 0.02 0.03 0.02 0.03 0.01 0.15 0.04 -0.02 0.00 0.02 -0.02 0.06 0.00 0.02 0.00 0.01 MACD Signal Diff 9.87 0.539 0.07 0.04 0.09 -0.04 0.09 0.02 0.01 0.24 0.12 -0.09 0.05 0.03 0.06 0.13 0.03 0.03 0.11 -0.03 0.03 -0.06 0.05 0.00 0.03 0.00 0.03 0.03 0.03 0.02 0.01 0.11 0.03 -0.01 0.00 0.01 -0.01 0.06 0.01 0.02 0.01 0.01 0.037 0.013 0.029 0.003 0.026 (0.001) 0.007 0.015 0.002 (0.004) (0.002) (0.004) (0.008) 0.018 (0.003) 0.016 (0.027) 0.035 0.013 0.003 0.008 (0.002) (0.004) (0.002) (0.008) 0.002 (0.004) 0.011 (0.000) 0.042 0.010 (0.006) 0.003 0.006 (0.012) 0.001 (0.007) 0.003 (0.005) (0.003) DMI MACD Recent Signal BUY BUY DMI MACD Signal Change - BUY BUY BUY SELL BUY BUY SELL BUY BUY SELL BUY SELL BUY BUY BUY BUY BUY SELL BUY SELL BUY BUY BUY BUY BUY BUY BUY BUY BUY BUY BUY BUY BUY BUY SELL BUY BUY BUY BUY SELL SELL BUY - BUY BUY BUY BUY BUY SELL BUY BUY BUY SELL SELL SELL SELL BUY SELL BUY SELL BUY BUY BUY BUY SELL SELL SELL SELL BUY SELL BUY SELL BUY BUY SELL BUY BUY SELL BUY SELL BUY SELL SELL SELL BUY SELL - The table above is a compilation of actively traded stocks with some popular technical indicators. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. INTERPRETATION OF TECHNICAL INDICATORS: Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average, and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Page 1 of 4
25. Technical Comments : Any price weakness on CMSB towards RM4.00 will be attractive to accumulate for rebound upside to the upper Bollinger band (RM4.34), with a convincing breakout to target the 50%FR (RM4.58) and 61.8%FR (RM4.92) going forward. Strong retracement support is at the 23.6%FR (RM3.84). Likewise, buyers should cushion price dips on Naim Holdings towards RM1.50/1.40, while a confirmed breakout above the 23.6%FR (RM1.68) will aim for the 38.2%FR (RM1.88). Crucial support is from the 14/11/16 low (RM1.35). CMSB Upper Middle RM4.19 (-0.02) BOLLINGER BANDS RM RM 4.34 4.21 10-day 30-day RM 4.08 50-day Lower DMI Recent Signal BUY 4.10 Recent Signal SELL Signal Change NAIM HOLDINGS Recent Signal Signal Change RM DAILY MACD Signal Change Upper Middle Lower SIMPLE MOVING AVERAGES RM 4.20 RM 4.19 BOLLINGER BANDS RM RM RM DMI RM1.53 (UNCH) 1.73 1.61 1.48 SELL SIMPLE MOVING AVERAGES RM 1.55 RM 1.61 RM 1.61 DAILY MACD Recent Signal SELL Signal Change 10-day 30-day 50-day Page 2 of 4
26. T e c h n i c a l TA Securities V i e w Friday , March 10, 2017 FBMKLCI: 1,717.42 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Daily Stock Screen s Malaysia End Day Census of 09.03.2017 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my www.taonline.com.my Report Description: The Daily Stock Screen is a retail product which can be a very useful guide for momentum trading and trading ideas .The following list is derived from the screening of more than 1000 stocks currently listed on Bursa Malaysia to identify: the top 20 breakout, 20 breakdown, and 30 ‘potential’ breakout stocks which just climbed above the middle Bollinger band, with potential to appreciate toward the upper Bollinger band. [MIDDLE BOLLINGER RANGEBOUND] List of 30 Potential Breakout Stocks (Short-term BUY for upside toward Upper Bollinger Band or higher to TAKE PROFIT/SELL) No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Stock Name DBE GURNEY RESOU SAPURAKENCANA ZELAN BHD STERLING PROGRES TIGER SYNERGY BH BERJAYA CORP BHD BIOALPHA HOLDING HIAP TECK VENTUR AT SYSTEMATIZATI DRB-HICOM BHD AEMULUS HOLDINGS ANZO HOLDINGS BH KIM TECK CHEONG SMTRACK BHD INSAS BHD CENSOF HOLDINGS YFG BHD SP SETIA BHD IGB REIT IOI CORP BHD CONNECTCOUNTY MIKRO MSC BHD GLOBAL ORIENTAL MULPHA INTL BHD PRINSIPTEK CORPO PLASTRADE TECHNO ECO WORLD DEVELO HOVID BHD KARYON INDUS BHD K-ONE TECHNOLOGY Price 0.04 1.92 0.15 0.23 0.05 0.39 0.25 0.35 0.04 1.39 0.35 0.28 0.28 0.04 0.85 0.30 0.06 3.40 1.70 4.69 0.18 0.58 0.41 0.27 0.15 0.21 1.51 0.33 0.25 0.18 Bollinger Band Moving Average RSI Lower Middle Upper 14-day 10-day 30-day 50-day 0.03 1.80 0.12 0.20 0.04 0.37 0.21 0.31 0.03 1.28 0.30 0.23 0.26 0.03 0.78 0.21 0.04 3.38 1.61 4.55 0.15 0.54 0.37 0.23 0.13 0.17 1.44 0.31 0.22 0.14 0.04 1.92 0.14 0.21 0.04 0.38 0.23 0.33 0.04 1.38 0.33 0.26 0.27 0.04 0.83 0.28 0.05 3.40 1.68 4.67 0.16 0.56 0.40 0.25 0.14 0.19 1.51 0.32 0.23 0.17 0.04 2.03 0.16 0.23 0.05 0.40 0.26 0.35 0.04 1.49 0.36 0.29 0.29 0.04 0.87 0.35 0.06 3.42 1.75 4.80 0.18 0.59 0.43 0.28 0.15 0.21 1.57 0.34 0.25 0.20 53.15 54.04 57.95 70.40 51.38 58.02 59.93 65.61 53.65 57.54 62.04 57.81 54.27 51.47 60.47 58.03 58.91 56.83 51.00 53.67 76.33 58.17 58.14 66.10 66.86 63.09 54.23 57.68 67.05 56.52 0.04 1.95 0.13 0.22 0.05 0.39 0.24 0.33 0.04 1.41 0.34 0.28 0.27 0.04 0.81 0.31 0.05 3.40 1.70 4.71 0.17 0.56 0.39 0.26 0.14 0.19 1.51 0.32 0.23 0.16 0.04 1.86 0.14 0.19 0.04 0.38 0.23 0.32 0.04 1.32 0.31 0.26 0.27 0.04 0.82 0.26 0.05 3.39 1.71 4.63 0.16 0.56 0.39 0.25 0.13 0.18 1.49 0.32 0.23 0.18 0.04 1.79 0.14 0.16 0.04 0.37 0.22 0.31 0.04 1.26 0.28 0.25 0.27 0.04 0.79 0.24 0.04 3.31 1.69 4.56 0.15 0.55 0.37 0.24 0.12 0.16 1.43 0.32 0.21 0.17 Vol 192,970,900 31,692,900 30,087,200 29,447,700 23,840,600 19,102,000 16,037,400 14,487,500 12,181,500 8,715,700 7,913,400 7,523,300 6,633,800 5,843,700 5,540,800 4,956,500 4,588,300 4,481,200 4,363,100 4,308,700 4,198,700 4,180,800 4,116,300 4,095,600 4,024,700 3,272,900 2,949,900 2,867,800 2,748,500 2,702,900 20-day avg vol 15,315,890 16,609,190 2,975,180 31,758,670 5,682,285 19,231,770 17,682,620 6,188,335 18,418,930 10,436,040 3,565,205 10,125,710 1,857,215 955,755 1,854,610 13,787,750 5,086,255 2,815,775 4,196,725 6,658,125 3,189,790 1,427,280 2,327,090 3,004,815 1,410,275 2,736,505 4,130,130 5,717,080 2,978,605 2,974,160 Raw data sourced from Bloomberg *Note: To qualify in this list above, the first sorting criteria is stock price must have just climbed or stayed ABOVE the middle Bollinger Band, followed by a second criteria that trading volume for the day must be significantly strong. This is a good watch list for momentum traders looking for short-term BUY ideas, as they are laggards with good upside potential towards the upper Bollinger band or higher to TAKE PROFIT/SELL. Caveat: Some stocks may continue to stay range bound and trade sideways, hence traders should refer to their respective charts to spot accumulation (volume growth) or breakout patterns. INTERPRETATION OF TECHNICAL INDICATORS: Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The mediumterm trend is positive if share price stays above the 30-day, and negative if it remains below this average. 14-day RSI: A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-day SMA should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day SMA is bearish and imply further near-term downside risk. Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders will buy on price breaks above the upper band, and sell when price breaks below the lower band. Alternatively, a sharp move that originates at one band tends to go all the way to the other band, a useful observation when projecting price targets. Page 1 of 2
27. TA Securities A Member of the TA Group *Note: To qualify in the breakout list below, the first sorting criteria is stock price must close ABOVE the upper Bollinger Band, followed by a second criteria that trading volume for the day must be significantly higher than the 20-day average volume, which signal a bullish breakout. Caveat: We would caution momentum traders that a highly overbought 14-day RSI reading (> 80) and share price pullback BELOW the upper Bollinger Band are early warning signals to exit buy breakout trades. [UPPER BOLLINGER BREAKOUT] Top 20 Breakout Stocks (Generally BULLISH, but can be short-term TAKE PROFIT/SELL guide) No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Stock Name Price REDTONE INTL BREM HLDG BHD CYPARK RESOURCES LEON FUAT BHD LNG RESOURCES HWA TAI INDUS ISKANDAR WATERFR AHMAD ZAKI RES YEN GLOBAL BHD EDARAN BHD TITIJAYA LAND BH MAJUPERAK HOLDIN KARAMBUNAI CORP TRC SYNERGY BHD TAN CHONG MOTOR MEDIA PRIMA BHD ENCORP BHD HEXZA CORP BHD PUB PACKAGES HLD 0.55 0.88 2.29 0.65 0.17 0.54 1.76 0.90 1.15 0.30 1.76 0.34 0.08 0.47 1.81 1.10 0.73 1.14 1.06 0.54 PANTECH GROUP Raw data sourced from Bloomberg 20 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 0.29 0.80 2.15 0.51 0.13 0.48 0.85 0.57 1.03 0.19 1.63 0.28 0.05 0.39 1.64 1.01 0.57 0.97 0.91 0.45 0.38 0.82 2.20 0.56 0.15 0.50 1.24 0.70 1.07 0.24 1.70 0.30 0.06 0.42 1.70 1.05 0.64 1.04 0.97 0.48 0.46 0.85 2.25 0.61 0.16 0.52 1.62 0.82 1.12 0.29 1.76 0.33 0.07 0.46 1.76 1.09 0.71 1.12 1.03 88.38 82.84 70.07 78.25 71.44 71.79 86.74 89.94 61.89 62.56 64.50 68.56 76.54 75.76 67.84 63.98 69.88 73.37 75.41 82.02 0.38 0.82 2.21 0.58 0.15 0.50 1.34 0.73 1.08 0.26 1.70 0.30 0.06 0.43 1.70 1.04 0.66 1.05 0.99 0.49 0.36 0.82 2.20 0.54 0.14 0.49 1.12 0.68 1.08 0.26 1.70 0.30 0.06 0.42 1.70 1.04 0.63 1.02 0.96 0.47 0.33 0.81 2.17 0.52 0.14 0.48 1.02 0.66 1.09 0.26 1.70 0.29 0.06 0.41 1.73 1.05 0.62 0.99 0.95 0.47 0.52 Vol 8,379,700 759,000 3,366,500 13,631,900 4,143,800 594,300 85,571,300 14,657,900 347,900 14,500 3,554,700 798,500 34,917,900 3,464,800 1,690,800 5,591,300 1,130,000 4,639,700 1,111,900 6,470,300 20-day avg vol 903,285 92,425 422,685 1,814,070 675,855 100,070 14,412,240 2,646,665 63,405 3,010 751,485 172,905 7,673,060 770,550 388,330 1,371,640 288,430 1,238,995 305,125 1,787,720 p *Note: As for the top 20 breakdown list below, the sole sorting criteria is stock price must close significantly BELOW the lower Bollinger Band, with the largest distance from the lower band at the top of the table, signaling a severe sell-off which is bearish. Caveat: A stock should bottom out if share price moves ABOVE the falling lower Bollinger Band, which can be a good buy signal for technical rebound upside after the sharp sell-off. p [LOWER BOLLINGER BREAKDOWN] Top 20P Breakdown Stocks (Generally BEARISH, but can be short-term BUY guide) No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Stock Name Price SHANGRI-LA HOTEL HONG LEONG INDS CI HOLDINGS BHD ANALABS RES BHD BORNEO AQUA HARV MAH SING GROUP YTL CORP BHD PA RESOURCES BHD JIANKUN INTERNAT TEX CYCLE TECH MEXTER TECHNOLOG REACH ENERGY BHD MYETF-MSIC SE ID MMAG HOLDINGS BH SOLID AUTOMOTIVE EKSONS CORP BHD PBA HOLDINGS BHD MRCB-QUILL REIT FIBON BHD SELANGOR PROPS 5.00 9.45 2.41 2.25 0.82 1.41 1.50 0.06 0.26 1.09 0.24 0.61 0.91 0.05 1.28 0.95 1.20 1.26 0.68 4.42 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 5.08 9.47 2.43 2.27 0.83 1.42 1.50 0.06 0.26 1.09 0.24 0.61 0.91 0.05 1.28 0.95 1.20 1.26 0.68 4.42 5.19 9.54 2.53 2.31 0.88 1.47 1.54 0.07 0.27 1.13 0.24 0.63 0.93 0.06 1.31 0.99 1.23 1.30 0.72 4.53 5.29 9.60 2.63 2.36 0.93 1.52 1.57 0.07 0.29 1.16 0.25 0.65 0.95 0.06 1.33 1.03 1.26 1.34 0.77 4.63 33.92 41.13 29.30 34.70 24.69 34.08 38.67 25.23 42.92 39.75 40.58 36.52 36.08 38.89 36.63 39.57 44.93 34.31 44.46 36.37 5.17 9.53 2.49 2.30 0.87 1.45 1.53 0.07 0.27 1.12 0.24 0.62 0.93 0.06 1.30 0.98 1.23 1.28 0.71 4.53 5.20 9.56 2.54 2.31 0.90 1.48 1.54 0.07 0.27 1.13 0.24 0.63 0.93 0.05 1.31 0.99 1.21 1.31 0.71 4.49 5.22 9.53 2.54 2.27 0.93 1.47 1.54 0.07 0.26 1.12 0.25 0.64 0.93 0.05 1.29 0.96 1.19 1.29 0.66 4.46 Vol 376,600 5,000 5,000 500 492,700 2,560,900 10,939,400 2,305,500 10,000 94,500 102,000 1,008,200 10,000 30,697,300 76,000 2,400 125,000 464,300 572,300 6,200 20-day avg vol 44,440 63,590 39,320 9,380 300,855 1,892,860 4,752,320 316,280 55,880 87,050 268,580 1,724,060 5,295 11,426,470 78,665 41,260 216,720 393,920 490,940 85,385 Raw data sourced from Bloomberg Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 2 of 2
28. Friday , 10 March, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED FOREIGN TECHNICAL REPORTS’ Asian Technical Reports 1. Foreign Technical Stock Watch (AUS) 2. Foreign Technical Stock Watch (HK) 3. Foreign Technical Stock Watch (FSSTI) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research
29. T e c h n i c a l TA Securities V i e w Friday , March 10, 2017 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Foreign Technical Stock Watch Australia ASX: 5,741.20 (-18.47, -0.32%) THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Name ASX 200 BHP BILLITON RIO TINTO COMMONW BK AUSTR WESTPAC BANKING AUST AND NZ BANK NATL AUST BANK WESFARMERS WOODSIDE PETRO NEWCREST MINING WESTFIELD GROUP FORTESCUE METALS QBE INSURANCE ORIGIN ENERGY AMP SANTOS MACQUARIE GROUP SUNCORP GROUP ORICA OIL SEARCH COCA-COLA AMATIL AMCOR STOCKLAND ALUMINA COMPUTERSHARE QANTAS AIRWAYS SIMS METAL MGMT Tel: +603-2167 9607 stsoo@ta.com.my Close Bollinger Bands RSI Moving Averages DMI Change High Low 9-Mar Lower Mid Upper 14d 10d 30d 50d DI + DI - ADX Diff 5741.20 -18.46 5760.70 5729.00 5694.40 5761.94 5829.48 51.40 5739.51 5723.63 5719.42 26.71 19.20 18.09 7.51 23.96 60.14 83.53 35.04 31.63 32.87 43.66 30.90 21.02 8.64 6.25 12.59 6.35 4.98 3.54 87.27 13.44 18.14 6.99 10.35 14.20 4.64 1.86 13.85 3.75 12.55 -1.27 -1.25 0.30 0.45 0.03 0.17 0.06 -0.33 -0.04 -0.01 -0.25 -0.28 -0.07 0.02 -0.12 -0.12 0.11 -0.56 0.02 -0.04 0.07 -0.05 -0.02 -0.04 0.04 -0.25 24.31 60.98 83.86 35.14 31.90 33.15 43.80 30.90 21.18 8.69 6.40 12.71 6.36 5.04 3.57 87.60 13.45 18.78 7.00 10.40 14.26 4.68 1.90 13.98 3.77 12.67 23.89 59.69 83.05 34.72 31.50 32.70 43.30 30.55 20.82 8.54 6.24 12.52 6.25 4.95 3.48 86.98 13.30 18.06 6.81 10.27 14.05 4.57 1.85 13.77 3.71 12.48 24.25 58.40 81.54 32.69 29.50 30.86 41.93 30.62 20.69 8.60 6.21 12.15 6.06 4.74 3.56 85.42 13.09 17.96 6.87 9.81 13.77 4.46 1.82 13.05 3.32 11.98 25.78 64.92 83.70 33.88 30.77 31.92 42.87 31.41 22.31 8.89 6.71 12.61 6.75 5.04 3.84 86.93 13.40 18.66 7.07 10.23 14.47 4.63 1.93 13.58 3.61 12.60 27.32 71.43 85.86 35.08 32.03 32.99 43.81 32.20 23.94 9.17 7.21 13.07 7.44 5.34 4.13 88.45 13.70 19.36 7.27 10.65 15.18 4.80 2.04 14.11 3.89 13.23 33.68 37.23 52.10 72.40 68.93 73.12 63.38 41.90 36.78 34.16 40.90 50.80 33.55 47.18 30.10 56.10 54.18 41.34 47.10 56.43 44.00 53.87 44.54 63.84 66.25 50.77 25.14 61.85 83.13 34.20 31.22 32.27 43.07 31.15 21.80 8.76 6.51 12.59 6.44 4.94 3.72 87.11 13.36 18.77 7.03 10.35 14.19 4.70 1.89 13.67 3.73 12.76 26.02 65.35 83.14 33.27 30.27 31.46 42.13 31.54 22.34 8.89 6.67 12.54 6.87 5.05 3.88 85.99 13.30 18.67 7.02 10.10 14.42 4.55 1.93 13.34 3.53 12.19 26.05 63.98 83.24 33.09 30.39 31.25 42.04 31.65 21.80 9.03 6.46 12.49 6.90 5.08 3.96 86.14 13.39 18.49 7.11 10.07 14.62 4.52 1.89 13.00 3.49 12.37 22.85 20.50 24.14 38.55 35.93 36.76 29.21 14.44 20.18 10.67 18.73 33.52 18.97 21.22 11.22 22.87 22.48 22.80 16.16 26.68 16.73 16.50 27.05 26.07 27.83 26.08 44.14 42.18 23.90 17.37 16.09 14.31 15.68 29.63 34.80 26.63 29.60 26.96 35.22 25.65 40.63 19.66 24.82 33.81 26.61 20.91 26.61 16.57 24.39 12.39 15.13 17.70 14.53 25.42 12.33 27.32 27.09 35.65 27.89 20.88 19.20 23.84 16.18 15.58 23.21 21.08 27.10 11.61 12.45 15.93 13.27 17.54 19.12 23.12 21.90 24.62 28.48 29.12 (21.29) (21.68) 0.24 21.18 19.84 22.45 13.53 (15.19) (14.61) (15.96) (10.87) 6.56 (16.25) (4.43) (29.41) 3.21 (2.34) (11.01) (10.46) 5.77 (9.89) (0.08) 2.66 13.68 12.70 8.39 www.taonline.com.my MACD DMI MACD DMI MACD Line Signal Diff Recent Signal Signal Change 13.89 18.81 (4.918) BUY SELL -0.36 -0.22 (0.135) SELL SELL -1.13 -0.47 (0.660) SELL SELL 0.14 0.21 (0.076) BUY SELL BUY 0.51 0.44 0.065 BUY BUY 0.43 0.36 0.077 BUY BUY 0.46 0.41 0.053 BUY BUY 0.46 0.40 0.056 BUY BUY -0.19 -0.14 (0.051) SELL SELL -0.23 0.04 (0.277) SELL SELL -0.09 -0.07 (0.023) SELL SELL -0.04 0.03 (0.068) SELL SELL 0.09 0.07 0.021 BUY BUY -0.18 -0.13 (0.047) SELL SELL -0.03 -0.03 (0.001) SELL SELL -0.10 -0.07 (0.027) SELL SELL 0.51 0.49 0.017 BUY BUY 0.02 0.02 0.005 SELL BUY 0.09 0.12 (0.034) SELL SELL SELL SELL -0.02 -0.01 (0.011) SELL SELL 0.11 0.11 0.003 BUY BUY -0.12 -0.10 (0.017) SELL SELL 0.06 0.07 (0.004) SELL SELL SELL SELL 0.00 0.01 (0.009) BUY SELL 0.25 0.26 (0.004) BUY SELL 0.09 0.08 0.006 BUY BUY 0.18 0.17 0.006 BUY BUY - The table below consists of the top 30 ASX 200 Index component stocks, weighted by market capitalization in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. Stock names and technical statistics in bold highlight stocks that have changes in BUY/SELL signals on the DMI and MACD on the given date. Page 1 of 2
30. TA Securities A Member of the TA Group INTERPRETATION OF TECHNICAL INDICATORS : Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Fundamentals of Foreign Technical Picks Bloomberg Ticker Stock Name BHP AU BHP BILLITON LTD RIO AU RIO TINTO LTD CBA AU COMMONW BK AUSTR WBC AU WESTPAC BANKING ANZ AU AUST AND NZ BANK NAB AU NATL AUST BANK WES AU WESFARMERS LTD WPL AU WOODSIDE PETRO NCM AU NEWCREST MINING WFD AU WESTFIELD GROUP FMG AU FORTESCUE METALS QBE AU QBE INSURANCE ORG AU ORIGIN ENERGY AMP AU AMP LTD STO AU SANTOS LTD MQG AU MACQUARIE GROUP SUN AU SUNCORP GROUP LT ORI AU ORICA LTD OSH AU OIL SEARCH LTD CCL AU COCA-COLA AMATIL AMC AU AMCOR LTD SGP AU STOCKLAND AWC AU ALUMINA LTD CPU AU COMPUTERSHARE LT QAN AU QANTAS AIRWAYS SGM AU SIMS METAL MGMT PER(x) EPS ($) Div Yield(%) 52week Price % Chg Close Target Price % upside 23.96 28.26 15% 60.14 71.02 15% 4.11 3.12 11.0 14.5 3.967 3.159 69.80 41.51 0.40 83.53 83.51 0% 5.63 5.80 14.8 14.4 5.077 5.175 86.09 69.22 1.36 35.04 33.82 -4% 2.41 2.49 14.5 14.1 5.317 5.300 35.14 27.57 7.48 31.63 30.89 -2% 2.39 2.42 13.2 13.1 5.103 5.166 31.90 22.06 3.98 32.87 31.82 -3% 2.40 2.44 13.7 13.5 5.902 5.783 33.15 23.90 7.17 43.66 43.28 -1% 2.61 2.64 16.7 16.6 5.057 5.131 46.06 38.62 3.61 30.90 33.16 7% 1.32 1.53 17.6 15.2 3.298 3.754 32.59 23.82 -0.83 21.02 22.70 7% 0.74 0.93 21.4 17.0 0.747 1.199 27.20 15.88 3.80 8.64 9.80 12% 0.33 0.36 19.7 18.0 2.963 3.021 11.14 8.21 -7.89 6.11 2017 2018 2017 2018 2017 2018 High Low YTD 1.43 1.21 12.6 14.9 3.406 2.926 27.96 15.85 -4.39 6.25 6.60 5% 0.79 0.48 6.0 9.9 4.816 3.008 7.27 2.40 12.59 13.49 7% 0.63 0.79 15.0 12.0 3.296 3.948 13.28 9.22 1.37 6.35 7.26 13% 0.32 0.55 19.9 11.6 0.000 1.386 7.47 4.42 -3.64 4.98 5.31 6% 0.36 0.37 14.0 13.4 5.823 6.084 5.96 4.39 -1.19 3.54 4.42 20% 0.14 0.20 18.7 13.6 1.017 2.203 5.07 3.30 -11.94 87.27 88.37 1% 6.12 6.36 14.3 13.7 4.869 5.082 89.49 61.05 0.17 13.44 13.90 3% 0.92 0.98 14.7 13.8 5.461 5.841 13.95 11.27 -0.59 18.14 18.03 -1% 1.05 1.13 17.3 16.0 2.933 3.186 19.49 12.04 2.60 6.99 7.98 12% 0.21 0.26 25.1 20.1 1.202 1.516 7.75 5.98 -2.51 10.35 9.92 -4% 0.57 0.59 18.1 17.4 4.638 4.763 10.69 7.94 2.27 14.20 15.90 11% 0.61 0.65 17.6 16.4 3.007 3.366 16.66 13.62 -5.02 4.64 4.82 4% 0.31 0.33 14.8 14.1 5.539 5.776 5.11 4.03 1.31 1.86 1.87 1% 0.11 0.10 12.9 14.7 5.714 5.499 2.04 1.19 1.37 13.85 13.19 -5% 0.55 0.60 19.1 17.2 1.921 2.036 14.13 8.63 11.16 3.75 4.34 14% 0.53 0.53 7.13 7.05 3.893 4.747 4.22 2.58 12.61 12.55 12.50 0% 0.62 0.71 20.2 17.7 3.044 3.139 13.62 7.40 -2.18 Note : The above data is based on Bloomberg consensus. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 2 of 2
31. T e c h n i c a l TA Securities V i e w Friday , March 10, 2017 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Foreign Technical Stock Watch Hong Kong HSI: 23,501.56 (-280.71, -1.18%) THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Tel: +603-2167 9607 Stock Close Name 9-Mar HANG SENG 23,501.56 (280.71) 23,673.58 23,456.06 HSBC CH MOBILE CCONB ICBC CNOOC CH LIFE BOC SHK PROP PETRO CH TENCENT HKSE CK HUTCHISON PING AN SINOPEC CORP CH SHENHUA CLP LI & FUNG BOC HK HS BANK HK&CH GAS SWIRE HL PROP WHARF CH OV LAND POWER ASSETS BELLE HENDERSON BOCOMM CH COAL CH UNICOM BK EASIA ESPRIT MTR SINO LAND CH RES NEW WORLD CH RES LAND CH MERCHANT CH RES POWER ALCORP CATHAY CITIC COSCO FIH MOBILE LTD GENHK AIA SANDS CHINA GALAXY 62.85 84.60 6.06 4.93 8.89 23.40 3.78 112.60 5.76 209.80 190.40 95.50 41.45 5.89 15.94 78.80 3.61 30.90 156.80 14.86 78.30 19.66 62.25 24.00 67.70 5.14 44.75 5.99 3.93 9.54 31.80 6.85 41.85 13.12 17.58 9.90 20.70 21.15 14.20 3.95 11.58 10.98 8.57 3.25 2.43 49.60 33.90 38.20 (0.30) (0.70) (0.13) (0.09) (0.16) (0.50) (0.05) (0.40) (0.13) (2.40) (1.40) (0.90) (0.35) (0.21) (0.58) (0.85) (0.03) (0.25) (1.50) (0.16) (0.95) (0.18) (0.30) (0.45) (0.80) (0.13) (0.50) (0.11) (0.10) (0.04) (0.20) (0.24) (0.10) (0.24) (0.02) (0.18) (0.65) (0.50) (0.22) (0.12) (0.20) (0.08) 0.11 0.02 (0.01) (0.10) 0.20 (0.50) 63.10 85.15 6.16 4.99 8.91 23.85 3.83 113.00 5.78 213.00 191.40 96.05 41.80 6.00 16.48 79.50 3.64 31.20 157.50 15.02 78.75 19.82 62.65 24.30 68.50 5.25 45.20 6.06 4.04 9.63 32.10 7.05 42.10 13.38 17.62 10.04 21.20 21.60 14.44 4.06 11.72 11.06 8.58 3.29 2.48 49.95 33.95 38.60 62.70 84.50 6.06 4.91 8.84 23.40 3.76 111.60 5.72 209.20 189.30 94.90 41.25 5.86 15.84 78.60 3.53 30.90 156.50 14.84 78.05 19.50 61.65 23.85 67.65 5.13 44.55 5.95 3.90 9.49 31.65 6.84 41.75 13.02 17.30 9.78 20.50 21.00 14.10 3.95 11.42 10.94 8.47 3.18 2.39 49.25 33.50 37.90 Change High RSI Bollinger Bands Low Lower 23,418.46 60.67 84.11 5.91 4.86 8.89 23.20 3.71 106.55 5.75 201.92 188.42 90.97 41.02 5.88 15.91 76.69 3.33 30.71 156.24 14.78 78.85 19.38 57.14 23.26 67.73 5.00 43.36 5.91 3.93 9.24 31.27 5.57 39.87 12.33 16.96 9.01 20.39 21.12 13.85 3.89 10.88 10.77 8.37 2.82 2.30 47.10 31.26 35.12 Mid stsoo@ta.com.my Upper 14d 23,840.09 24,261.72 46.47 65.02 86.43 6.25 5.04 9.33 24.03 3.90 111.68 6.01 209.32 196.31 94.26 41.88 6.07 16.31 78.43 3.50 31.21 161.03 14.96 80.16 19.68 60.84 23.94 69.64 5.28 44.68 6.15 4.13 9.42 32.90 6.66 41.07 13.12 17.59 9.77 21.17 21.71 14.23 4.13 11.37 11.39 8.52 3.05 2.36 48.77 32.68 37.41 69.38 88.75 6.58 5.22 9.76 24.85 4.08 116.81 6.27 216.72 204.20 97.54 42.73 6.25 16.71 80.17 3.68 31.71 165.81 15.14 81.46 19.97 64.55 24.62 71.55 5.55 46.00 6.39 4.33 9.60 34.53 7.74 42.26 13.91 18.23 10.52 21.95 22.30 14.61 4.37 11.85 12.00 8.67 3.29 2.42 50.43 34.09 39.69 36.84 38.39 44.49 47.26 23.71 49.64 47.69 57.80 35.21 55.09 41.03 59.14 50.18 40.84 44.46 56.77 58.72 49.81 42.52 49.63 40.66 56.12 63.06 55.22 37.17 48.22 55.60 45.95 40.54 59.31 40.39 57.35 63.29 50.55 57.45 60.03 50.50 45.92 55.64 46.54 60.10 34.67 59.55 71.05 63.97 62.34 58.70 58.44 Moving Averages 10d 23,724.99 63.12 85.46 6.25 5.02 9.14 23.71 3.86 113.61 5.90 209.18 192.91 95.79 41.55 6.00 16.20 79.13 3.54 31.02 159.04 15.01 80.04 19.66 62.08 23.83 69.05 5.31 45.19 6.12 4.06 9.45 32.28 7.16 41.53 13.48 17.69 10.08 20.96 21.52 14.27 4.06 11.54 11.12 8.51 3.12 2.37 49.30 33.09 38.22 30d www.taonline.com.my DMI 50d DI + DMI MACD DI - ADX Diff Line Signal Diff MACD Recent Signal DMI MACD Signal Change 23,663.60 23,214.40 24.80 18.97 27.86 5.83 92.15 174.96 (82.811) BUY SELL - - 65.44 86.96 6.10 4.95 9.45 23.42 3.78 110.38 6.05 207.81 193.85 93.48 41.37 6.10 16.29 77.82 3.45 31.12 160.41 14.87 79.67 19.57 60.01 23.70 69.74 5.16 44.15 6.02 4.10 9.36 32.92 6.45 40.64 13.05 17.12 9.53 20.70 21.45 13.94 4.11 11.12 11.40 8.33 2.89 2.35 48.39 32.92 36.83 64.70 85.83 6.00 4.85 9.59 22.46 3.67 107.49 6.05 202.43 190.29 92.28 40.72 6.00 15.97 76.28 3.47 30.27 155.77 14.59 78.48 18.71 58.27 22.92 68.13 4.92 43.38 5.88 3.98 9.21 32.21 6.32 39.73 12.74 16.32 9.18 19.74 20.87 13.50 3.81 10.87 11.36 8.10 2.73 2.33 47.29 33.48 36.01 35.00 20.10 20.85 16.58 36.42 18.88 17.12 12.42 33.71 22.95 24.26 19.43 18.06 23.30 17.20 11.43 21.76 17.73 25.31 17.91 21.49 15.65 15.99 15.59 26.30 17.96 15.06 22.73 23.61 12.73 18.45 15.28 5.40 20.69 20.33 17.13 18.48 22.64 13.50 24.93 17.29 21.20 13.14 7.70 15.27 10.53 16.66 16.55 22.62 30.40 22.00 20.62 28.73 28.05 30.38 40.68 20.31 13.74 18.22 31.08 22.40 13.97 17.45 48.23 12.64 16.77 29.72 24.66 24.15 25.85 29.71 30.56 24.39 37.39 31.26 17.76 15.04 21.56 16.36 43.85 49.18 38.91 29.54 46.34 28.86 16.00 35.17 27.92 35.66 24.87 20.71 58.24 41.13 30.44 19.88 23.08 (9.78) (11.63) (3.59) 2.46 (25.81) 5.67 1.14 9.90 (17.76) 2.61 (3.41) 10.59 6.56 (0.66) 1.72 12.50 4.06 0.30 (7.00) (2.19) (9.83) 4.00 12.18 11.80 (14.16) 4.31 6.43 (3.23) (5.22) 15.00 (4.48) 14.96 23.24 3.46 1.33 8.70 3.50 (5.14) 7.21 2.27 10.89 (13.20) 7.33 23.17 37.51 13.26 11.74 13.34 -0.71 -0.46 0.06 0.03 -0.18 0.26 0.04 1.64 -0.06 1.98 -0.20 1.08 0.15 -0.02 0.02 0.85 0.04 0.15 0.21 0.10 0.19 0.22 1.20 0.21 -0.13 0.09 0.51 0.05 -0.01 0.06 -0.18 0.25 0.56 0.20 0.36 0.25 0.26 0.13 0.22 0.05 0.25 -0.13 0.11 0.15 0.02 0.59 0.04 0.76 -0.43 -0.18 0.10 0.06 -0.15 0.43 0.07 1.89 -0.03 2.41 0.88 0.98 0.26 0.00 0.06 0.87 0.03 0.25 1.18 0.13 0.51 0.29 1.24 0.26 0.20 0.13 0.58 0.08 0.03 0.06 0.00 0.25 0.56 0.22 0.45 0.28 0.40 0.23 0.26 0.08 0.23 -0.08 0.13 0.13 0.01 0.61 -0.19 0.68 (0.279) (0.283) (0.044) (0.027) (0.029) (0.172) (0.032) (0.255) (0.028) (0.422) (1.084) 0.097 (0.105) (0.022) (0.041) (0.028) 0.019 (0.103) (0.970) (0.030) (0.317) (0.075) (0.040) (0.053) (0.329) (0.041) (0.068) (0.037) (0.032) (0.000) (0.180) 0.009 0.006 (0.019) (0.095) (0.023) (0.138) (0.098) (0.036) (0.034) 0.020 (0.047) (0.027) 0.013 0.007 (0.018) 0.239 0.079 SELL SELL SELL BUY SELL BUY BUY BUY SELL BUY SELL BUY BUY SELL BUY BUY BUY BUY SELL SELL SELL BUY BUY BUY SELL BUY BUY SELL SELL BUY SELL BUY BUY BUY BUY BUY BUY SELL BUY BUY BUY SELL BUY BUY BUY BUY BUY BUY SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL BUY SELL SELL SELL SELL BUY SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL BUY BUY SELL SELL SELL SELL SELL SELL SELL BUY SELL SELL BUY BUY SELL BUY BUY SELL SELL SELL SELL SELL - SELL SELL - 25.23 8.47 17.27 19.03 10.62 24.55 18.25 22.32 15.95 25.55 20.85 30.01 24.62 22.64 18.92 23.93 25.81 18.03 18.30 15.72 11.66 19.65 28.17 27.39 12.13 22.27 21.49 19.50 18.39 27.73 13.97 30.24 28.64 24.15 21.65 25.83 21.99 17.50 20.71 27.21 28.18 8.01 20.47 30.87 52.79 23.79 28.40 29.88 The table above consists of the 45 HKSE Hang Seng Index component stocks, sorted by market capitalization in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. Stock names and technical statistics in bold highlight stocks that have changes in BUY/SELL signals on the DMI and MACD on the given date. Page 1 of 3
32. TA Securities A Member of the TA Group Corporate News : Oil prices which dictate the outlook on margins and capital spending for exploration and production companies, are likely to stabilize in the mid-USD50s a barrel in 2017. A further recovery from current levels may be limited by rising US production, China’s slowing oil-product demand growth and high global inventory. – Bloomberg. Technical Comments: Extremely oversold technical condition on Cnooc shares should attract buyers looking to accumulate on weakness for technical rebound towards the 30-day ma (HKD9.45), with the upper Bollinger band (HKD9.76) and the 50%FR (HKD10.09) acting as stronger hurdles. Crucial support is capped at the 23.6%FR (HKD8.14). CNOOC LTD HKD8.89 (-0.16) \\ Upper Middle Lower Recent Signal Signal Change BOLLINGER BANDS HKD HKD HKD DMI 9.76 9.33 8.90 SELL SIMPLE MOVING AVERAGES HKD 9.14 HKD 9.45 HKD 9.59 DAILY MACD Recent Signal SELL Signal Change 10-day 30-day 50-day Page 2 of 3
33. TA Securities A Member of the TA Group INTERPRETATION OF TECHNICAL INDICATORS : Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Fundamentals of Foreign Technical Picks Bloomberg Ticker 5 941 939 1398 883 2628 3988 16 857 700 388 1 2318 386 1088 2 494 2388 11 3 19 101 4 688 6 1880 12 3328 1898 762 23 330 66 83 291 17 1109 144 836 2600 293 267 1199 2038 678 1299 1928 27 HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK EPS ($) PER(x) Div Yield(%) 52week Price % Chg Stock Name Close Target Price % upside 2017 2018 2017 2018 2017 2018 High Low YTD HSBC CH MOBILE CCONB ICBC CNOOC CH LIFE BOC SHK PROP PETRO CH TENCENT HKSE CK HUTCHISON PING AN SINOPEC CORP CH SHENHUA CLP LI & FUNG BOC HK HS BANK HK&CH GAS SWIRE HL PROP WHARF CH OV LAND POWER ASSETS BELLE HENDERSON BOCOMM CH COAL CH UNICOM BK EASIA ESPRIT MTR SINO LAND CH RES NEW WORLD CH RES LAND CH MERCHANT CH RES POWER ALCORP CATHAY CITIC COSCO FIH MOBILE LTD GENHK AIA SANDS CHINA LTD GALAXY 62.85 64.28 2% 0.6 0.7 13.2 12.0 0.8 0.8 69.10 44.50 0.96 84.50 108.93 22% 5.3 5.7 14.2 13.1 2.8 3.1 99.30 80.30 2.80 6.07 7.24 16% 0.9 0.9 5.9 5.8 4.5 4.5 6.47 4.50 1.68 4.92 5.81 15% 0.8 0.8 5.7 5.6 4.7 4.7 5.20 3.82 8.90 11.21 21% 0.0 0.6 N/A 13.2 2.9 3.6 10.88 8.46 -8.25 23.40 26.85 13% 0.7 0.9 31.3 23.3 1.1 1.3 24.95 16.00 15.84 3.78 4.32 13% 0.6 0.6 5.9 5.8 4.6 4.5 4.08 2.90 9.88 112.60 128.91 13% 8.8 9.5 12.8 11.9 3.6 3.7 123.30 85.40 14.90 0.0 0.3 104.6 17.6 0.7 2.3 6.38 5.81 5.76 7.25 21% 4.76 -0.35 209.60 239.68 13% 4.8 6.1 38.8 30.6 0.2 0.3 220.80 143.40 10.49 190.20 193.25 2% 5.6 6.1 34.1 30.9 2.7 2.9 213.20 169.50 3.82 95.65 113.57 16% 8.2 8.8 11.7 10.8 2.8 3.1 103.90 80.60 8.82 41.40 55.00 25% 3.4 3.5 10.7 10.6 1.3 1.5 32.50 6.70 5.92 7.13 17% 0.3 0.4 15.3 12.4 3.0 3.8 6.34 4.66 7.64 15.98 18.78 15% 1.3 1.4 11.1 9.8 3.0 3.5 17.70 44.15 11.40 9.45 79.00 79.00 0% 5.0 5.2 15.7 15.3 3.7 3.8 84.35 67.60 10.88 3.58 3.46 -4% 0.0 0.0 13.2 12.5 0.9 0.8 5.15 3.24 4.99 11.53 30.95 34.37 10% 2.2 2.5 13.9 12.3 5.8 4.1 31.75 20.14 157.20 155.88 -1% 9.3 10.2 16.9 15.4 4.0 4.3 164.40 127.60 8.94 14.90 12.90 -16% 0.6 0.6 25.0 24.7 2.4 2.5 15.50 12.55 8.44 78.50 76.30 -3% 4.3 5.3 18.3 14.7 4.0 4.2 94.40 72.20 6.01 19.66 19.28 -2% 1.2 1.1 16.5 18.2 3.8 3.8 20.10 13.64 19.59 62.30 55.26 -13% 4.3 4.5 14.6 14.0 3.3 3.4 63.80 39.00 20.85 24.05 28.53 16% 3.1 3.5 7.7 6.9 3.1 3.5 27.85 20.15 17.03 67.75 76.42 11% 3.6 3.5 18.9 19.2 5.7 4.0 75.73 62.78 6.02 5.15 4.98 -3% 0.4 0.4 10.9 11.2 5.0 4.9 5.79 4.07 18.12 44.80 46.26 3% 3.8 3.1 14.6 3.3 3.3 48.20 39.59 8.61 6.00 5.80 -3% 0.9 0.9 6.0 6.1 4.3 4.3 6.44 4.46 6.95 3.91 4.64 16% 0.1 0.2 26.8 14.0 0.5 1.6 4.88 2.92 6.25 14% 0.1 11.7 9.55 11.11 0.2 157.4 35.4 0.6 1.2 10.26 7.70 31.75 25.31 -25% 2.1 1.7 15.4 18.2 2.9 2.6 34.75 25.95 6.90 6.92 6.11 -13% 0.0 0.2 N/A 43.0 0.0 1.1 7.62 5.34 13.63 5.76 42.00 39.33 -7% 1.6 1.6 26.6 25.5 7.8 2.6 44.50 33.84 11.41 13.08 13.52 3% 0.8 0.8 15.6 15.8 3.9 3.9 14.48 10.96 12.56 17.52 18.91 7% 0.4 0.7 47.1 26.1 0.5 1.0 18.34 12.85 13.77 9.88 11.27 12% 0.8 0.8 12.7 11.9 4.5 4.5 10.46 6.91 20.49 20.75 27.47 24% 2.4 2.8 8.7 7.5 3.1 3.7 23.85 16.50 18.98 21.10 23.42 10% 1.4 1.6 15.0 13.1 3.2 3.5 24.95 18.80 9.67 14.20 14.17 0% 1.9 1.5 7.5 9.5 5.7 5.5 15.50 10.70 15.26 4.26 7% 0.0 0.2 106.8 19.8 2.25 23.75 11.54 9.30 -24% 0.2 0.0 67.1 262.3 0.6 0.6 14.06 10.00 13.14 11.02 3.96 11.87 7% 1.5 1.6 7.2 7.1 3.2 0.0 3.2 0.2 12.78 4.45 10.54 -0.72 8.53 8.89 4% 0.1 0.1 14.3 13.6 1.1 0.4 9.48 7.28 9.50 3.21 3.13 -3% 0.0 0.0 29.5 23.0 0.3 0.3 3.38 2.31 31.02 2.43 2.79 13% 0.0 0.0 N/A N/A 0.0 0.0 3.09 2.00 7.52 49.60 56.63 12% 0.4 0.4 17.3 15.7 0.3 0.3 54.15 41.20 13.37 33.85 37.60 10% 0.2 0.2 21.9 20.0 0.7 0.8 39.30 24.60 0.45 38.10 42.29 10% 1.6 1.7 24.0 22.3 1.2 1.4 40.10 21.87 12.72 Note : The above data based on Bloomberg consensus. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 3 of 3
34. T e c h n i c a l TA Securities V i e w Friday , March 10, 2017 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 • Foreign Technical Stock Watch FSSTI: 3,118.84 (-26.45, -0.84%) Singapore THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Stock Name FSSTI SINGTEL DBS OCBC UOB JARDINE M. WILMAR HK LAND CAPLAND GENSP KEPPEL SGX SIA FNN NOBLE CITY DEV JARDINE S. SG PRESS JARDINE C&C GOLDEN AGRI SG TECH OLAM INT CAP TRUST SEMBCORP SEMCORP M. CMFT DELGRO STARHUB SIA ENG IFOOD AGRI YZJ Tel: +603-2167 9607 Close Bollinger Bands RSI Change High Low 9-Mar Lower Mid Upper 14d 3,118.84 (26.45) 3,137.19 3,114.67 3,076.36 3,112.40 3,148.43 56.23 3.91 18.94 9.48 21.42 66.22 3.58 6.95 3.57 0.99 6.83 7.44 9.92 2.08 0.21 9.61 39.25 3.46 43.20 0.38 3.62 1.97 1.93 3.22 1.92 2.49 2.86 3.70 0.52 1.12 (0.02) (0.34) (0.07) (0.26) 0.05 (0.02) (0.08) (0.04) (0.01) (0.12) (0.13) (0.07) (0.02) (0.02) (0.11) (0.65) (0.01) (1.10) (0.01) (0.05) (0.01) (0.01) (0.05) (0.05) (0.02) 0.01 0.03 (0.01) (0.01) 3.92 19.15 9.53 21.54 66.88 3.61 7.02 3.60 1.00 6.88 7.57 9.99 2.10 0.23 9.73 39.90 3.47 44.15 0.39 3.66 1.99 1.94 3.23 1.93 2.50 2.88 3.70 0.53 1.13 3.89 18.89 9.45 21.40 65.77 3.57 6.92 3.55 0.98 6.77 7.44 9.90 2.08 0.21 9.59 39.25 3.45 43.13 0.38 3.62 1.96 1.93 3.20 1.90 2.48 2.83 3.66 0.52 1.09 3.88 18.24 9.35 20.68 61.71 3.49 6.67 3.42 0.96 6.26 7.41 9.81 2.06 0.19 9.13 37.03 3.45 40.10 0.35 3.37 1.96 1.92 3.10 1.32 2.38 2.75 3.63 0.50 0.81 3.95 18.79 9.54 21.36 64.29 3.75 6.87 3.56 0.99 6.80 7.55 9.90 2.10 0.23 9.48 38.79 3.48 42.62 0.40 3.60 2.05 1.96 3.23 1.73 2.47 2.83 3.68 0.54 0.99 4.01 19.33 9.73 22.04 66.86 4.01 7.07 3.70 1.02 7.33 7.69 9.99 2.15 0.26 9.83 40.55 3.51 45.13 0.45 3.84 2.14 1.99 3.35 2.14 2.55 2.91 3.72 0.57 1.16 49.54 54.77 49.03 54.15 70.32 32.89 55.27 56.42 53.50 54.74 44.34 51.25 46.31 48.29 57.63 57.07 44.15 54.16 32.73 58.53 36.65 38.11 51.29 66.67 53.88 49.46 60.46 41.92 67.84 stsoo@ta.com.my Moving Averages 10d 30d 50d DI + 3,121.99 3,094.66 3,048.09 33.81 DI 19.52 ADX 31.33 3.93 18.96 9.51 21.56 64.72 3.64 6.92 3.61 0.99 7.02 7.49 9.93 2.09 0.22 9.60 38.98 3.47 43.20 0.38 3.67 2.02 1.95 3.26 1.91 2.49 2.87 3.69 0.52 1.04 20.35 21.33 22.06 15.28 10.31 24.69 16.16 19.21 17.91 24.08 19.40 14.12 20.70 21.29 15.58 12.87 12.15 28.32 26.86 17.89 21.84 16.19 20.30 15.09 17.34 20.94 8.98 25.58 10.96 18.35 (1.92) 0.01 18.84 9.86 0.16 9.60 2.58 0.02 21.12 11.60 0.18 38.00 17.05 1.20 30.90 (11.76) -0.07 24.82 9.34 0.06 44.74 7.45 0.07 22.70 6.16 0.01 47.84 6.85 0.20 11.84 (0.01) 0.00 16.26 3.34 0.02 17.53 (3.86) -0.01 30.93 1.50 0.01 36.72 14.69 0.14 30.55 16.71 0.64 16.41 3.42 -0.01 16.84 (1.42) 0.62 30.02 (13.64) -0.01 27.89 4.24 0.07 26.89 (9.61) -0.01 15.51 (5.89) -0.01 35.75 8.08 0.04 44.93 28.28 0.13 15.39 (0.23) 0.01 16.49 (1.93) -0.01 37.87 8.42 0.04 16.14 (5.40) -0.01 47.72 28.37 0.07 3.92 18.82 9.53 21.16 63.58 3.80 6.83 3.50 0.98 6.62 7.54 9.90 2.10 0.21 9.44 38.45 3.48 42.38 0.41 3.51 2.03 1.96 3.20 1.65 2.45 2.86 3.63 0.54 0.93 3.86 18.49 9.41 21.01 61.72 3.78 6.78 3.35 0.96 6.39 7.45 9.87 2.11 0.20 9.13 37.43 3.52 41.87 0.41 3.43 2.02 1.96 3.14 1.58 2.47 2.89 3.55 0.54 0.89 18.43 31.19 24.64 26.87 27.36 12.92 25.50 26.65 24.07 30.93 19.39 17.46 16.83 22.79 30.27 29.58 15.57 26.90 13.23 22.13 12.23 10.30 28.39 43.37 17.11 19.01 17.40 20.18 39.33 DMI www.taonline.com.my Diff 14.29 MACD DMI MACD DMI MACD Line Signal Diff Recent Signal Signal Change 22.89 25.62 (2.730) BUY SELL 0.02 0.15 0.04 0.20 1.08 -0.05 0.05 0.08 0.01 0.21 0.02 0.01 -0.01 0.01 0.15 0.60 -0.01 0.46 -0.01 0.08 0.00 0.00 0.04 0.10 0.01 -0.01 0.04 0.00 0.05 (0.012) 0.014 (0.017) (0.013) 0.126 (0.020) 0.008 (0.014) (0.001) (0.014) (0.018) 0.005 (0.003) (0.004) (0.003) 0.045 0.002 0.153 (0.002) (0.010) (0.013) (0.005) (0.004) 0.024 0.008 0.007 (0.008) (0.001) 0.018 SELL BUY BUY BUY BUY SELL BUY BUY BUY BUY SELL BUY SELL BUY BUY BUY BUY SELL SELL BUY SELL SELL BUY BUY SELL SELL BUY SELL BUY SELL BUY SELL SELL - SELL BUY SELL BUY SELL SELL SELL - SELL SELL SELL BUY SELL SELL SELL - SELL BUY BUY BUY SELL SELL SELL SELL SELL SELL - SELL BUY BUY SELL BUY SELL SELL BUY - The table above consists of the revamped 30 SGX FTSE Straits Times Index component stocks, sorted by market capitalization in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. Stock names and technical statistics in bold highlight stocks that have changes in BUY/SELL signals on the DMI and MACD on the given date. Page 1 of 2
35. INTERPRETATION OF TECHNICAL INDICATORS : Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Fundamentals of Foreign Technical Picks Bloomberg Ticker ST DBS OCBC UOB JM WIL HKL CAPL GENS KEP SGX SIA FNN NOBL CIT JS SPH JCNC GGR STE OLAM CT SCI SMM CD STH SIE IFAR SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP EPS ($) PER(x) Div Yield(%) 52week Price % Chg Stock Name Close Target Price SINGTEL DBS OCBC UOB JARDINE M. WILMAR HK LAND CAPLAND GENSP KEPPEL SGX SIA FNN NOBLE CITY DEV JARDINE S. SG PRESS JARDINE C&C GOLDEN AGRI SG TECH OLAM INT CAP TRUST SEMBCORP SEMCORP M. CMFT DELGRO STARHUB SIA ENG IFOOD AGRI 3.91 4.25 18.94 9.48 21.42 21.18 -1% 1.9 2.1 11.1 10.3 3.4 3.5 21.95 17.41 5.00 66.22 63.80 -0.04 4.0 4.3 16.4 15.3 2.4 2.5 67.27 52.42 19.86 3.58 3.80 6% 0.2 0.2 12.7 11.8 2.0 2.2 4.00 2.96 -0.28 6.95 7.41 6% 0.4 0.4 17.5 17.1 2.8 2.8 7.35 5.77 9.79 3.57 3.93 9% 0.2 0.2 17.6 18.2 2.8 2.9 3.67 2.85 18.21 0.99 1.06 6% 0.0 0.0 28.3 25.4 2.9 3.0 1.04 0.69 9.39 6.83 6.53 -5% 0.5 0.6 13.4 12.4 3.3 3.5 7.23 5.10 17.96 7.44 7.81 5% 0.3 0.4 22.1 20.6 4.0 4.3 8.05 6.96 3.91 9.92 9.63 -3% 0.5 0.4 22.0 22.6 3.6 2.8 11.67 9.60 2.59 2.08 2.17 4% 0.1 0.1 28.1 27.7 2.1 2.1 2.23 1.92 -0.48 0.21 0.22 0.05 0.0 0.0 9.9 6.7 0.0 1.0 0.37 0.11 23.53 9.61 10.36 7% 0.6 0.7 14.9 14.0 1.5 1.5 9.79 7.35 16.06 39.25 38.80 -1% 2.7 2.9 14.6 13.6 0.8 0.8 40.56 27.35 18.22 3.46 3.19 -9% 0.2 0.2 22.6 22.5 4.9 4.8 4.13 3.45 -1.98 43.20 53.00 18% 2.1 2.4 14.4 12.9 1.8 2.0 45.20 31.60 4.78 0.38 0.39 3% 0.0 0.0 16.5 14.7 1.9 1.9 0.45 0.33 -12.79 3.62 3.62 0% 0.2 0.2 20.9 20.0 4.3 4.4 3.70 2.97 12.07 1.97 1.99 1% 0.1 0.1 14.8 14.8 2.3 2.3 2.17 1.58 0.00 1.93 2.13 10% 0.1 0.1 16.9 16.5 5.7 5.7 2.25 1.87 2.12 3.22 3.45 7% 0.2 0.3 13.4 11.2 2.9 3.2 3.38 2.44 12.98 1.92 1.60 -20% 0.1 0.1 34.3 26.7 1.5 1.7 2.09 1.22 39.13 2.49 2.94 15% 0.2 0.2 15.9 15.3 4.4 4.8 3.02 2.37 0.81 2.86 2.65 -8% 0.2 0.2 17.5 18.5 5.6 5.5 3.97 2.73 1.78 3.70 3.55 -4% 0.2 0.2 24.0 23.9 4.1 4.0 3.91 3.35 9.79 0.52 0.58 10% 436 583 11.2 8.4 12418 18132 0.63 0.44 -0.95 1.12 1.05 -6% 0.5 0.5 11.3 11.9 17.1 17.1 1.19 0.71 36.81 YZJSGD SP YZJ % upside 2017 2018 2017 2018 2017 2018 High Low YTD 8% 0.2 0.3 16.1 15.2 4.6 4.8 4.36 3.59 7.12 19.44 3% 1.791 1.962 10.6 9.7 3.2 3.3 19.37 14.63 9.23 9.56 1% 0.9 0.9 11.0 10.1 3.9 4.1 9.78 8.21 6.28 Note : The above data based on Bloomberg consensus. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 2 of 2