Bursa Malaysia Daily Market Report - 12 April

Transcription

1. Wednesday , 12 April, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED REPORTS’ News 1. Daily Market Commentary 2. Daily Brief Fundamental Reports 1. Malaysian Economy: Resilient Industrial Production Growth 2. Malaysian Economy: Tourism Tax Bill 3. Semiconductor Sector: Visit to Penang 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 TA Research e-mail : taresearch@ta.com.my For Internal Circulation Only KLSE Market Statistics (11.04.2017) (mil) Main Market 3,000.2 Warrants 193.3 ACE Market 1,025.8 Bond 9.6 ETF 0.1 Total 4,229.0 Off Market 21.0 Volume +/-chg (RMmn) 956.9 2,395.4 63.4 23.8 -447.2 152.8 -5.2 1.3 0.01 0.1 2,573.3 -144.8 26.9 Value +/-chg 490.1 8.6 -29.8 -0.3 0.00 -583.3 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP April 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 1,735.84 12,392.07 17,516.55 1,740.50 20,651.30 5,866.77 7,365.50 18,747.87 2,123.85 24,088.46 3,174.75 1,582.78 5,627.93 3,288.97 2,022.38 5,929.27 (mn) 6.0 5.0 5.0 1.2 1.1 1.1 @ @ @ @ @ @ -3.68 -24.20 -33.86 -1.50 -6.72 -14.15 16.56 -50.01 -9.47 -173.72 -6.70 1.59 -16.37 19.57 13.88 16.39 Value/ Volume 0.80 0.12 0.15 0.13 1.13 0.61 1.28 Up Down 254 409 65 76 35 75 2 7 2 2 358 569 % chg % YTD chg -0.21 -0.19 -0.19 -0.09 5.73 8.07 19.03 6.42 -0.03 -0.24 0.23 -0.27 -0.44 -0.72 -0.21 0.10 -0.29 0.60 0.69 0.28 4.50 8.98 3.12 -1.92 4.81 9.49 10.21 2.58 6.25 5.97 2.71 4.65 Top 10 KLCI Movers Based on Mkt Cap. Off Market ENRA BJASSET SEG VERSATL BPURI DPS-WB (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 Wednesday, 12 April 2017 (RM) 2.30 1.00 1.07 1.16 0.42 0.07 Exchange Rate USD/MYR 4.4327 -0.0033 USD/JPY 110.62 -0.6300 EUR/USD 1.061 0.0033 Counter Mkt Cap. (RM’mn) MAYBANK 91,433 SIME 63,384 PCHEM 61,040 CIMB 48,421 AXIATA 45,587 DIGI 39,575 IOICORP 28,296 HAPSENG 22,208 RHBBANK 20,812 PPB 19,608 Chg Vol. (RM) (mn) -0.01 5.56 -0.02 12.57 -0.10 9.15 -0.01 8.34 -0.02 3.52 -0.01 4.84 -0.09 5.78 -0.07 0.37 -0.05 2.08 -0.10 0.44 Commodities Futures Palm Oil (RM/mt) 2,555.002550.56 Crude Oil ($/Barrel) 53.40 -57.85 Gold ($/tr.oz.) 1,276.501275.44 Review & Outlook Stocks stayed in correction mode Tuesday, falling in line with weaker regional markets as rising tensions in the Middle East and political uncertainty in Europe kept investors on edge. The KLCI fell 3.68 points to close at 1,735.84, off an early high of 1,740.13 and low of 1,733.79, as losers beat gainers 569 to 358 on total turnover of 4.23bn shares worth RM2.57bn. The underlying market tone should stay cautious, as the ongoing geopolitical uncertainties in the Middle East and Europe should continue to depress sentiment in the immediate term. Immediate support for the index stays at 1,735 and 1,720, the rising 30 and 50-day moving averages, with the 1,700 psychological level acting as stronger support. Immediate overhead resistance remains at 1,758, the 23.6%FR of the 1,310 to 1,896 upswing closely matching last week's high, with stronger hurdle from 1,782, the 76.4%FR of the 1,867 to 1,503 correction. Any further dip on IOI Corp would be attractive to buy for oversold rebound towards the upper Bollinger band (RM4.77), with tougher hurdle seen at the peak of 24/06/14 (RM5.04) and 123.6%FP (RM5.35), going forward. Key retracement support from the 38.2%FR (RM4.12) is expected to strongly cushion downside risk. Sime Darby should rebuild support at current levels with recovery potential towards the upper Bollinger band (RM9.48) or the peak of 08/07/14 (RM9.55), and the 123.6%FP (RM10.23) acting as the stronger upside hurdle. Crucial support is at the 100-day ma (RM8.71). • • • • • • • • • • • • • • Important Dates JK GLAND - 2:1 Rights Issue - RI of up to 1,516.6m shares. JKGLAND 2 rights shares for every 1 existing share held, at an issue price of RM0.10 per rights share. Application Closed: 10/04/2017. LISTING ON: 21/04/2017. • • News Bites Malaysia's industrial production index rose 4.7% in February, underpinned by the manufacturing sector, but the growth was below a forecast of a 6.1% growth. Indonesia and Malaysia will send a joint mission to meet with European Union officials next month, with the aim to prevent the implementation of a parliamentary call to curb the use of palm oil. Malaysia's construction sector is expected to grow by 8% to RM170bn this year, boosted by the numerous mega infrastructure projects in the country, the Construction Industry Development Board said. TRX City Sdn Bhd, which is the developer of the Kuala Lumpur Air Base relocation project, including eight other locations, costing RM2.7bn, is confident that the project will be ready by year end. Tenaga Nasional Berhad signed a PPA with Edra Energy Sdn. Bhd. to construct, own, operate and maintain a gas-fired combined cycle electricity generating facility with a total nominal capacity of 2,242.131 MW proposed to be located at Alor Gajah, Melaka. Ahmad Zaki Resources Berhad entered into a two-year service contract with Carigali Hess Operating Company Sdn Bhd at the Tok Bali Supply Base in Kelantan. Protasco Berhad has been awarded by Jabatan Kerja Raya, Terengganu, a five year contract to maintain minor roads in the state of Terengganu, at a total contract sum of RM49.9mn. Ire-Tax Corporation Berhad has called for an EGM to consider Elite Cosmo Group Ltd's proposal to replace most of its board of directors. Cypark Resources Bhd expects to tender for RM1bn worth of projects in environmental engineering, waste management, green technology and renewable energy in Malaysian and Singapore during its current financial year. Mulpha International Berhad's initial assessments have determined that the damage caused by a cyclone across the resort on One & Only Hayman Island is sufficiently extensive to require the closure of the resort for the rectification works until approximately mid-2018. Felda Global Ventures Holdings Bhd and KeyGene of Netherland have signed a Memorandum of Collaboration to establish a strategic partnership to start a joint research laboratory. mTouche Techonology Berhad entered into a Memorandum of Understanding with G.I.S. Park (Thailand) Company Limited to invite mTouche Thailand to be the solution and technology partner of G.I.S. PUC Founder (MSC) Berhad entered into a Memorandum of Understanding for the proposed acquisition of a 100% stake in Enovax Private Limited for SGD2.0mn. VSolar Group Berhad entered into a Joint Venture Agreement with Universiti Teknologi Malaysia to develop Solar Energy Generation Facilities with a capacity of up to 30 megawatts and to conduct research and development. The value of road projects which Malaysian firms are bidding for in India's Rajasthan state is US$1.6bn and the outcome is expected to be known in May. The unemployment rate for the OECD area was unchanged at 6.1% in February, though the number of jobless eased from the previous month. 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 Wednesday , April 12, 2017 FBMKLCI: 1,735.84 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 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 Sentiment to Remain Depressed on External Worries Stocks stayed in correction mode Tuesday, falling in line with weaker regional markets as rising tensions in the Middle East and political uncertainty in Europe kept investors on edge. The KLCI fell 3.68 points to close at 1,735.84, off an early high of 1,740.13 and low of 1,733.79, as losers beat gainers 569 to 358 on total turnover of 4.23bn shares worth RM2.57bn. Immediate Supports from 1,735/1,720 The underlying market tone should stay cautious, as the ongoing geopolitical uncertainties in the Middle East and Europe should continue to depress sentiment in the immediate term. Immediate support for the index stays at 1,735 and 1,720, the rising 30 and 50-day moving averages, with the 1,700 psychological level acting as stronger support. Immediate overhead resistance remains at 1,758, the 23.6%FR of the 1,310 to 1,896 upswing closely matching last week’s high, with stronger hurdle from 1,782, the 76.4%FR of the 1,867 to 1,503 correction. Buy on Weakness IOI Corp & Sime Darby Any further dip on IOI Corp would be attractive to buy for oversold rebound towards the upper Bollinger band (RM4.77), with tougher hurdle seen at the peak of 24/06/14 (RM5.04) and 123.6%FP (RM5.35), going forward. Key retracement support from the 38.2%FR (RM4.12) is expected to strongly cushion downside risk. Sime Darby should rebuild support at current levels with recovery potential towards the upper Bollinger band (RM9.48) or the peak of 08/07/14 (RM9.55), and the 123.6%FP (RM10.23) acting as the stronger upside hurdle. Crucial support is at the 100-day ma (RM8.71). Asian Markets Pressured By Middle East Crisis Asian equities close mixed on Tuesday trade, as the political tinderbox in the Middle East and the Korean Peninsula added to uncertainty over the looming French vote, pushing nervous investors into safer assets such as the yen and Treasuries. Trump is open to authorizing additional strikes on Syria if the use of chemical weapons continues in the country, the White House said on Monday. Investors are also nervous about the possibility of U.S. military action against North Korea after the strikes in Syria. In France, polls for many weeks have been showing centrist Emmanuel Macron and far-right leader Marine Le Pen on track to top the first round of voting on April 23 and go through to a May 7 runoff. Japan's Nikkei share average fell, as rising geopolitical tensions over North Korea and a stronger yen hurt investor sentiment. The Nikkei dropped 0.3 percent to 18,747.87, while the broader Topix shed 0.3 percent to 1,495.10. South Korea's Kospi also fell by 0.44 percent or 9.47 points to end at 2,123.85. Meanwhile, Australia's benchmark ASX 200 reversed earlier losses of 0.08 percent to finish up 0.28 percent or 16.42 points at 5,929.30. China stocks also reversed earlier losses to end higher on Tuesday, led by the Shanghai benchmark index closing at a 15-month high, even as investors continued to retreat from smaller-caps over regulatory concerns. The blue-chip CSI300 index rose 0.3 percent to 3,517.33 points, while the Shanghai Composite Index added 0.6 percent to 3,288.97 points. Page 1 of 7
4. TA Securities 12-Apr-17 A Member of the TA Group Wall Street Ends Down as Geopolitical Worries Linger U .S. stocks ended down but well off the day's lows on Tuesday, with worries over geopolitical risks dragging down sentiment, pushing safe-haven assets higher. Geopolitical developments across the globe contributed to the cautious mood among investors, with North Korea warning of a nuclear strike if provoked and President Donald Trump saying on Twitter that the U.S. would “solve the problem” with or without China. Meanwhile, U.S. Secretary of State Rex Tillerson said during a Group of Seven meeting in Italy that Russia must abandon its support of Syrian President Bashar al-Assad’s regime. On earning front, earnings season begins this week, with U.S. bank earnings begin with Citigroup, JPMorgan Chase & Co. and Wells Fargo early Thursday. Technology was the biggest drag, with Apple shedding 1.1 percent, to USD141.63, Facebook falling 0.8 percent, to USD139.92 and Amazon.com losing 0.5 percent, to USD902.36. The Dow Jones Industrial Average ended down 6.72 points, or 0.03 percent, to 20,651.30, the S&P 500 lost 3.38 points, or 0.14 percent, to 2,353.78 and the Nasdaq Composite dropped 14.15 points, or 0.24 percent, to 5,866.77. Page 2 of 7
5. TA Securities 12-Apr-17 A Member of the TA Group News In Brief Corporate Indonesia and Malaysia will send a joint mission to meet with European Union officials next month , with the aim to prevent the implementation of a parliamentary call to curb the use of palm oil, officials from the two countries said. A resolution by the European Parliament last week called for the EU to phase out by 2020 the use of vegetable oils in biodesel that are produced in an unsustainable way leading to deforestation. (The Edge) The value of road projects which Malaysian firms are bidding for in India’s Rajasthan state is US$1.6bn (RM7.1bn) and the outcome is expected to be known in May. Four Malaysian companies are vying for six packages covering a total of over 3,000km of roads. (The Edge) TRX City Sdn Bhd, which is the developer of the Kuala Lumpur Air Base relocation project, including eight other locations, costing RM2.7bn, is confident that the project will be ready by year end. The amount includes land acquisition cost, and for special equipment and utility works. (Bernama) Tenaga Nasional Berhad signed a Power Purchase Agreement (PPA) with Edra Energy Sdn. Bhd.. Edra will construct, own, operate and maintain a gas-fired combined cycle electricity generating facility with a total nominal capacity of 2,242.131 megawatts proposed to be located at Alor Gajah, Melaka. The PPA will be for a period of 21 years from the commercial operation date of the first generating block. (Bursa) Ahmad Zaki Resources Berhad entered into a two-year service contract with Carigali Hess Operating Company Sdn Bhd at the Tok Bali Supply Base in Kelantan. The service contract involves the provision of crew boat activity and other support services. The contract will last until February 2019. (Bursa) Protasco Berhad has been awarded by Jabatan Kerja Raya, Terengganu, a five year contract to maintain minor roads in the state of Terengganu, at a total contract sum of RM49.9mn. (Bursa) Ire-Tax Corporation Berhad has called for an EGM to consider Elite Cosmo Group Ltd’s proposal to replace most of its board of directors. It is seeking to remove all directors except co-founder/deputy chairman Datuk Yap Tatt Keat and Kong Hon Hay. It is proposing to appoint Hamdan Mohd Nor and Datuk Amiruddin Jamaluddin as new executive directors and Raja Hizad Raja Kamarulzaman to take over as chairman. (The Star) Cypark Resources Bhd expects to tender for RM1bn worth of projects in environmental engineering, waste management, green technology and renewable energy in Malaysian and Singapore during its current financial year. This would bring the green and clean technology solutions provider’s total tender book to around RM3bn for FY17 against RM2bn in FY16. (The Edge) With regards to the impact of Cyclone Debbie on One&Only Hayman Island, Mulpha International Berhad’s initial assessments have determined that the damage across the resort is sufficiently extensive to require the closure of the resort for the rectification works until approximately mid-2018. (Bursa) Felda Global Ventures Holdings Bhd (FGV) and KeyGene of Netherland have signed a Memorandum of Collaboration to establish a strategic partnership to start a joint research laboratory. The lab will empower FGV's research and development arm to become a centre of excellence by strengthening its research capabilities, enabling faster introduction of better and more sustainable oil palm varieties to the market. (Bernama) mTouche Techonology Berhad entered into a Memorandum of Understanding with G.I.S. Park (Thailand) Company Limited to invite mTouche Thailand to be the solution and Page 3 of 7
6. TA Securities 12-Apr-17 A Member of the TA Group technology partner of G .I.S.. This is to jointly develop, build, install and operate the SMART4 Public Phone and Wi-Fi Hub Terminal for TOT Public Company Limited. (Bursa) PUC Founder (MSC) Berhad entered into a Memorandum of Understanding for the proposed acquisition of a 100% stake in Enovax Private Limited for SGD2.0mn (RM6.3mn). PUC believes Enovax possesses the required expertise, domain knowledge and intellectual property for the development and expansion of its technology business. (Bursa) VSolar Group Berhad entered into a Joint Venture Agreement with Universiti Teknologi Malaysia (UTM) to develop Solar Energy Generation Facilities with a capacity of up to 30 megawatts and to conduct research and development. The project will be executed at a suitable sit of approximately 20 acres for even 10 megawatts to be identified and provided by UTM. (Bursa) Page 4 of 7
7. TA Securities 12-Apr-17 A Member of the TA Group News In Brief Economy OECD OECD Jobless Rate Unchanged in February The unemployment rate for the OECD area was unchanged in February , though the number of jobless eased from the previous month, figures from the Organization for Economic Cooperation and Development (OECD) showed. The jobless rate was 6.1%, unchanged from January. The youth unemployment rate, which applies to the 15-24 age groups, fell to 12.3% from 12.5% in January. The number of unemployed in the OECD area was 38 million in February versus 38.28 million in January. Among OECD members, the unemployment rate fell in the euro area and EU, Canada, Japan, Mexico and the United States. The figure rose in South Korea and Australia. (RTT News) Asia Malaysia February Industrial Output Up 4.7% YoY Malaysia's industrial production index (IPI) rose 4.7% in February, underpinned by the manufacturing sector, but the growth was below a forecast of a 6.1% growth. The Statistics Department said the growth in February 2017 was driven by positive expansion in manufacturing (+6.5%), mining (+0.4%) and electricity (+1.5%). Powering the growth in the manufacturing sector were the major sub-sectors including electrical and electronics products (+8.1%); food, beverages and tobacco (+15.9%); and petroleum, chemical, rubber and plastic products (+3.7%). As for the mining sector, output inched up just 0.4% in February 2017 after a 1.1% rise in January 2017. The drop was mainly due to a further decline in crude oil index by 4.7%. However, the natural gas index posted a better growth of 7%. The electricity sector output grew marginally by 1.5% in February 2017 after registering a growth of 1.1% in January 2017. (The Star) CIDB Sees Construction Sector Growing 8% to RM170bn in 2017 The construction sector is expected to grow by eight per cent to RM170bn this year, boosted by the numerous mega infrastructure projects in the country, the Construction Industry Development Board (CIDB) said. CIDB chief executive Datuk Ahmad Asri Abdul Hamid said projects such as the Refinery and Petrochemical Integrated Development project in Johor, Mass Rapid Transit Two in the Klang Valley and the Pan Borneo Highway connecting Sabah and Sarawak, would continue to drive demand in the sector. Ahmad Asri said the construction industry achieved an astounding average growth of 11% during the 10th Malaysia Plan, while surpassing the performance of other economic sectors in the country. He said in terms of construction volume, the value increased from RM140bn involving 7,455 projects in 2015, to RM166.4bn for 6,305 projects in 2016. Only 29.1% or RM48.5mn of the projects in 2016 were by the public sector, while 70.9% or RM117.9bn came from the private sector. (The Star) Australia Consumer Confidence Improves Australia's consumer sentiment improved during the week ended April 9, after weakening in the previous week. The consumer confidence index rose by 3.3% to 114.8 from 111.1 in the preceding week. Households' views towards their current finances climbed by 5.2% to 107.0, which was the highest score since February. Similarly, their views about future finances gained by 1.4% to 123.9. Inflation expectations were largely unchanged at 4.3%, with the four week moving average holding steady at 4.3%. (RTT News) World Bank Retains Philippines 2017 GDP Growth The Philippine economy is forecast to grow as previously estimated in 2017 and to remain a top performer in the East Asia and Pacific Region, the World Bank said in its Philippines Economic Update. The economy is forecast to grow 6.9% each this year. The outlook for 2017 was left unchanged, while that for 2018 was revised down from 7.0%. For 2019, the lender expects 6.8% expansion. The government's commitment to further increase public infrastructure investment is forecast to sustain the growth momentum through 2018 and reinforce business and consumer confidence. The bank observed that higher employment, low inflation and improved incomes contributed to the decline in the number of poor people. (RTT News) Page 5 of 7
8. TA Securities 12-Apr-17 A Member of the TA Group U .K. U.K. Inflation Holds Steady in March, Set to Gather Steam in April British inflation held steady in March due to the later timing of this year's Easter holidays which pushed down airfares and a dip in global oil prices, but the squeeze on households looks set to resume soon. Consumer prices increased in March by 2.3% compared with a year earlier, in line with economists' forecasts in a poll. Inflation has accelerated in Britain in recent months, pushed up by a weakening of the pound since last year's decision by voters to leave the European Union, and by the rise in oil prices which has fuelled inflation in other countries too. The data showed food prices rose by an annual 1.2% in March, their biggest increase in three years. Also in April, increases in taxes on air passengers and car owners are kicking in and many utility companies are raising their prices too. Housing costs, which include utility bills, already rose at their fastest pace since November 2014 in March. The retail price inflation - tracked by British inflation-linked government bonds and many commercial contracts - dipped to 3.1% in March, a bit weaker than forecast in the poll. Excluding oil prices and other volatile components such as food, core consumer price inflation slowed to 1.8%, also a touch below economists' expectations. As well as pushing down fuel prices for drivers moderately in March, a fall in international oil prices helped to take some of the steam out of cost growth faced by factories. Prices paid by factories for materials and energy were up by an annual 17.9%, slowing from February. Overall output prices rose by 3.6%, also a touch weaker than in February but above a forecast of 3.3% in the poll. Separately, the house prices rose by an annual 5.8% in February, picking up speed from January and their increase since October. But house prices in London rose at their slowest pace in nearly five years, increasing by 3.7%. Other surveys have detected a weakening of the market in the capital, especially for the most expensive properties. (Reuters) Europe Eurozone Industrial Production Unexpectedly Slumps Industrial production in the single currency area fell back in February, and output was lower than previously thought at the start of the year, according to data from Eurostat. On a seasonally adjusted basis, industrial output fell by 0.3% in February, in contrast to economist forecasts of a 0.1% expansion. Revised data also showed production grew by only 0.3% in January, in contrast to earlier estimates of a 0.9% expansion. Production in February was 1.2% higher than the same month last year. That was an improvement on January’s 0.6% expansion, but much lower than the 1.9% predicted by economists. The monthly decline was driven by falling energy and non-durable consumer goods production. Ireland suffered the biggest contraction among the countries for which local data are available, with production dropping 15.5%. (Financial Times) German ZEW Economic Sentiment At 20-Month High German economic confidence strengthened to a 20-month high in April, survey data from the Mannheim-based Centre for European Economic Research/ZEW showed. The ZEW Indicator of Economic Sentiment climbed 6.7 points to 19.5 in April. This was the highest since August 2015. The expected score was 14.5. The current conditions index rose 2.8 to 80.1 in April, the highest level since July 2011. The economic sentiment index for the euro area gained 0.7 points to 26.3 in April. Likewise, the current economic situation index climbed 4.1 points to 11.5. This was the highest since May 2008. (RTT News) Page 6 of 7
9. TA Securities 12-Apr-17 A Member of the TA Group Share Buy-Back : 11 April 2017 Company AMPROP FITTERS UNIMECH Bought Back Price (RM) Hi/Lo (RM) 79,400 100,000 25,000 0.825/0.82 0.41 1.08 0.83/0.82 0.41/0.405 1.08/1.07 Total Treasury Shares 13,077,800 17,166,900 6,164,610 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. liability for any direct or indirect loss arising from the use of this document. 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 We accept no We, our associates, directors, employees may have an interest in
10. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company AUTOMOBILE BAUTO MBMR UMW Share Price (RM) 11-Apr-17 2.08 2.52 6.05 Target Price BETA (RM) EPS (sen) PER (X) FY17 FY18 FY17 FY18 Div Yield (%) 52weeks 52weeks FY17 FY18 High Price % Chg Low Price % Chg % Chg YTD 2.36 2.04 5.12 0.98 0.55 1.21 10.8 22.7 17.7 15.8 23.8 27.6 19.3 11.1 34.2 13.2 10.6 22.0 5.7 3.6 1.8 7.6 3.6 3.0 2.44 2.70 7.00 -14.8 -6.7 -13.6 1.95 1.95 4.43 6.7 29.2 36.6 -2.3 17.8 32.4 4.10 3.40 5.40 6.10 15.80 9.20 22.10 4.70 8.50 1.26 0.93 1.27 1.32 0.66 0.93 0.80 1.27 0.70 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 11.2 9.8 10.4 10.8 13.5 12.2 14.6 10.6 26.2 10.6 8.7 9.6 9.8 12.5 10.8 14.2 10.0 25.0 3.7 2.8 3.3 3.7 3.0 5.6 2.8 2.3 3.6 3.7 2.8 3.7 4.1 3.0 5.6 2.9 2.3 3.6 4.37 2.92 5.03 5.83 14.00 9.20 20.28 5.39 10.00 -8.2 -1.7 -3.6 -6.3 -2.1 -2.4 -1.5 -3.7 -4.5 3.60 2.08 3.90 4.11 12.70 7.50 18.52 4.43 8.20 11.4 38.0 24.4 32.8 7.9 19.7 7.9 17.1 16.5 7.8 20.1 12.5 21.1 1.5 9.5 1.3 10.2 7.9 0.46 1.32 5.15 3.44 0.72 1.84 1.99 6.00 0.49 1.45 5.49 3.27 0.58 1.90 1.50 5.58 0.81 0.70 1.04 1.09 1.15 na 1.02 0.13 5.9 12.8 31.6 16.8 9.6 12.6 12.8 44.3 5.9 13.1 36.4 20.9 9.9 12.5 12.7 45.8 7.8 10.3 16.3 20.5 7.4 14.6 15.5 13.5 7.8 10.0 14.1 16.4 7.3 14.7 15.6 13.1 0.0 2.1 2.3 2.8 1.4 3.0 1.5 4.2 2.2 2.1 2.3 2.8 1.4 3.0 1.5 4.2 0.51 1.35 5.33 3.61 0.75 1.87 2.14 6.13 -9.8 -2.4 -3.4 -4.7 -4.7 -1.6 -7.0 -2.1 0.36 0.78 4.59 3.07 0.41 1.42 1.41 5.02 27.8 69.2 12.2 12.1 76.5 29.6 41.1 19.5 5.7 25.7 7.7 7.5 24.3 8.2 15.0 2.0 1.98 2.00 0.47 15.4 15.6 12.8 12.7 5.1 5.1 2.40 -17.5 1.93 2.6 -1.5 15.00 18.28 15.41 21.08 0.57 0.58 69.6 93.1 77.5 21.5 101.9 19.6 19.4 17.9 4.6 4.6 5.1 5.0 15.20 18.74 -1.3 -2.5 12.38 13.80 21.2 32.5 7.8 11.6 2.39 7.60 23.98 80.00 3.04 1.82 4.60 1.00 2.23 9.59 26.14 83.60 3.76 2.74 4.17 1.10 0.46 0.33 0.34 0.38 0.47 0.69 0.46 0.56 6.5 35.9 102.6 288.8 22.3 25.1 12.7 9.3 7.5 40.5 124.5 313.3 24.7 25.3 15.8 12.8 36.8 21.2 23.4 27.7 13.6 7.3 36.2 10.7 31.7 18.8 19.3 25.5 12.3 7.2 29.2 7.8 0.8 3.9 2.6 3.5 4.9 4.4 1.0 5.0 0.9 5.0 3.1 3.8 5.6 4.4 1.1 5.0 3.00 9.53 27.00 81.80 3.08 2.04 4.70 1.07 -20.3 -20.3 -11.2 -2.2 -1.3 -10.8 -2.1 -6.8 2.11 7.30 20.10 74.12 1.92 1.43 4.14 0.78 13.3 4.1 19.3 7.9 58.5 27.3 11.0 27.6 -7.0 3.7 2.1 2.3 19.2 5.2 6.2 25.2 46.12 54.22 1.02 271.1 271.8 17.0 17.0 5.7 5.7 55.64 -17.1 40.31 14.4 4.4 9.32 5.49 10.34 6.10 1.34 1.26 45.0 25.7 50.9 27.9 20.7 21.4 18.3 19.7 0.5 1.5 0.6 1.6 9.90 5.81 -5.9 -5.5 7.50 4.17 24.3 31.6 17.3 21.5 2.86 0.13 3.81 0.10 0.72 1.27 22.1 0.2 24.6 0.3 12.9 63.3 11.6 41.4 5.6 0.0 6.6 0.0 3.42 0.13 -16.4 -3.8 2.86 0.05 0.0 150.0 -3.4 150.0 6.02 4.00 6.40 4.61 0.78 0.50 13.9 13.3 17.9 16.5 43.3 30.0 33.6 24.3 0.7 1.5 0.7 1.9 6.79 4.37 -11.3 -8.5 5.78 3.85 4.2 3.9 -5.2 -4.3 4.88 6.18 1.96 4.91 2.11 4.50 6.80 1.90 5.05 2.55 0.55 0.11 0.36 -0.21 0.29 18.2 35.8 16.2 26.6 4.3 21.2 40.5 18.2 30.2 7.1 26.8 17.3 12.1 18.5 49.2 23.0 15.3 10.7 16.2 29.9 1.7 2.9 2.5 2.7 0.5 2.0 3.3 2.8 3.1 0.8 5.03 7.07 2.88 5.45 2.68 -3.0 -12.6 -31.9 -9.9 -21.3 3.81 5.90 1.94 4.20 1.96 28.1 4.7 1.0 16.9 7.7 1.0 -6.2 -7.1 -8.2 -10.6 INDUSTRIAL SCIENTX SKPRES 7.75 1.29 8.50 1.75 0.54 0.50 75.3 8.8 83.0 13.7 10.3 14.6 9.3 9.4 2.7 3.4 3.1 5.3 7.77 1.44 -0.3 -10.4 5.75 1.12 34.8 15.2 15.7 0.0 MEDIA ASTRO MEDIA PRIMA STAR 2.66 1.21 2.38 3.20 0.85 1.95 1.03 0.68 0.59 13.3 7.7 15.0 14.5 8.0 15.8 20.1 15.6 15.9 18.4 15.2 15.0 4.7 5.1 7.6 4.9 5.3 7.6 3.01 1.52 2.70 -11.6 -20.4 -11.9 2.56 1.00 2.20 3.9 21.0 8.2 2.3 5.2 6.3 OIL & GAS EATECH MHB MISC PANTECH PCHEM SENERGY UMWOG UZMA 0.66 1.01 7.32 0.63 7.63 2.09 0.66 1.85 0.45 0.96 8.16 0.52 7.91 2.02 0.54 1.40 0.90 1.78 0.85 1.25 1.13 2.43 1.95 1.38 11.5 -0.4 50.6 3.7 34.7 5.2 -14.7 11.3 11.9 1.1 57.1 4.3 39.3 7.8 -12.4 12.2 5.7 na 14.5 16.8 22.0 39.9 na 16.4 5.5 90.5 12.8 14.5 19.4 26.8 na 15.1 0.0 0.0 4.1 2.4 2.5 0.5 0.0 0.0 0.0 0.0 4.1 2.8 2.5 0.5 0.0 0.0 1.22 1.34 9.00 0.64 7.80 2.10 1.04 2.04 -45.9 -24.6 -18.7 -1.6 -2.2 -0.5 -36.5 -9.3 0.45 0.84 6.88 0.44 5.95 1.29 0.61 1.30 48.3 20.2 6.4 43.7 28.2 62.0 9.1 42.3 6.5 10.4 -0.4 40.4 9.3 29.0 -24.6 8.8 BANKS & FINANCIAL SERVICES AFG 4.01 AFFIN 2.87 AMBANK 4.85 CIMB 5.46 HLBANK 13.70 MAYBANK 8.98 PBBANK 19.98 5.19 RHBBANK BURSA 9.55 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 Target Price BETA (RM) EPS (sen) PER (X) FY17 FY18 FY17 FY18 Div Yield (%) 52weeks 52weeks FY17 FY18 High Price % Chg Low Price % Chg % Chg YTD 2.05 3.18 4.50 24.46 9.32 6.42 1.53 3.88 3.93 22.75 8.24 7.52 1.75 0.44 1.06 0.94 1.26 0.50 6.3 13.7 18.7 111.8 30.8 32.7 11.1 15.7 21.1 119.1 35.3 34.5 32.3 23.2 24.0 21.9 30.3 19.6 18.5 20.2 21.4 20.5 26.4 18.6 2.4 2.2 2.2 2.2 2.4 2.5 2.4 2.5 2.7 2.4 3.0 2.6 2.52 3.70 4.81 25.50 9.55 6.51 -18.7 -14.1 -6.4 -4.1 -2.4 -1.4 1.31 3.14 4.07 22.62 7.10 5.53 56.5 1.3 10.6 8.1 31.3 16.1 32.3 -6.5 2.3 1.9 15.1 7.0 0.72 1.09 0.94 2.05 1.48 0.84 3.50 3.30 0.69 1.09 1.00 2.10 1.60 0.80 3.82 3.40 0.65 0.63 0.34 0.91 0.69 0.30 0.67 0.49 3.4 20.0 7.3 14.7 14.5 6.4 27.7 31.2 7.0 17.4 11.2 15.3 12.5 9.7 24.5 33.3 20.7 5.5 12.9 13.9 10.2 13.2 12.7 10.6 10.2 6.2 8.4 13.4 11.8 8.7 14.3 9.9 5.6 3.7 3.7 3.4 4.1 1.2 4.0 3.6 5.6 3.2 4.3 3.7 3.7 1.2 4.0 3.6 0.83 1.43 1.09 2.46 1.70 1.00 3.61 3.32 -13.9 -23.9 -13.8 -16.7 -12.9 -16.0 -3.0 -0.6 0.68 1.05 0.91 1.85 1.34 0.69 2.80 2.84 5.1 3.8 3.3 11.0 10.4 21.7 25.0 16.1 2.9 -3.5 -6.0 5.2 3.5 5.0 11.8 10.0 1.71 1.61 1.79 1.78 0.53 0.61 8.9 8.1 10.1 8.5 19.3 19.9 16.9 18.9 5.2 5.6 5.9 5.8 1.84 1.72 -7.1 -6.4 1.57 1.43 8.9 12.6 -0.6 5.2 POWER & UTILITIES MALAKOF PETDAG PETGAS TENAGA YTLPOWR 1.26 24.04 19.68 13.72 1.48 1.45 20.19 19.64 17.19 1.81 0.71 0.77 0.78 1.02 0.59 6.9 98.4 89.4 133.8 8.8 8.3 102.3 91.6 132.7 10.6 18.2 24.4 22.0 10.3 16.9 15.2 23.5 21.5 10.3 14.0 5.6 3.0 3.2 4.2 6.8 4.6 3.2 3.3 2.9 6.8 1.80 25.70 22.66 14.90 1.64 -30.0 -6.5 -13.2 -7.9 -9.8 1.14 22.16 19.56 13.00 1.38 10.5 8.5 0.6 5.5 7.2 -8.0 1.0 -7.6 -1.3 -0.7 TELECOMMUNICATIONS AXIATA DIGI MAXIS TM 5.08 5.09 6.37 6.35 5.25 4.90 5.95 6.95 1.27 0.97 0.72 0.68 17.0 20.8 25.1 21.4 17.9 21.1 25.4 22.3 29.9 24.4 25.4 29.6 28.3 24.1 25.0 28.5 1.7 4.1 3.1 3.0 1.8 4.1 3.1 3.2 5.99 5.19 6.49 6.90 -15.2 -1.9 -1.8 -8.0 4.11 4.31 5.36 5.81 23.6 18.1 18.8 9.3 7.6 5.4 6.5 6.7 TECHNOLOGY Semiconductor & Electronics IRIS 0.18 INARI 2.06 MPI 11.84 UNISEM 3.15 0.14 2.35 12.00 3.55 1.32 0.75 0.46 0.78 -1.1 10.4 84.3 26.9 0.8 12.4 96.6 29.1 na 19.9 14.1 11.7 21.2 16.6 12.3 10.8 0.0 2.0 1.9 3.8 0.0 2.4 1.9 3.8 0.24 2.13 12.22 3.30 -27.1 -3.3 -3.1 -4.5 0.10 1.28 6.86 2.12 75.0 60.7 72.6 48.6 59.1 24.1 59.8 33.5 3.05 7.20 3.02 7.68 1.17 1.45 40.3 9.8 41.9 10.2 7.6 73.2 7.3 70.8 1.3 1.4 1.6 1.4 3.30 7.31 -7.6 -1.5 1.88 5.76 62.2 25.0 33.2 18.8 1.86 4.00 1.88 4.51 0.84 0.68 15.4 19.3 21.5 17.4 12.1 20.7 8.7 23.0 3.0 3.6 3.8 3.3 1.86 4.59 0.0 -12.9 1.23 3.74 51.2 7.0 17.0 -7.0 PROPERTY GLOMAC HUAYANG IBRACO IOIPG MAHSING SNTORIA SPSETIA SUNWAY REIT SUNREIT CMMT TRANSPORTATION Airlines AIRASIA AIRPORT Freight & Tankers TNLOGIS WPRTS SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price (S$) BANKS & FINANCIAL SERVICES DBS 19.16 OCBC 9.59 UOB 21.97 PLANTATIONS WILMAR IFAR 3.49 0.50 Target Price Beta (S$) EPS (cent) PER (X) FY17 FY18 FY17 FY18 Div Yield (%) 52week 52week FY17 FY18 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 11.0 92.5 10.9 209.4 11.2 10.1 10.4 10.5 3.1 5.7 3.2 3.1 6.7 3.2 19.4 9.8 22.2 -1.3 -1.9 -0.8 14.63 8.84 17.41 31.0 16.8 26.2 10.5 7.5 7.7 3.45 0.51 0.91 1.10 28.9 3.9 31.1 4.3 11.2 11.6 2.3 1.9 2.6 2.1 4.0 0.6 -12.8 -16.8 2.96 0.44 17.9 12.5 -2.8 -5.7 12.1 12.6 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 Wednesday , April 12, 2017 FBMKLCI: 1,735.84 MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Malaysian Economy Resilient Industrial Production Growth THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TA Research Team Coverage shazma@ta.com.my farid@ta.com.my Tel: +603-2167 9609 Summary Industrial Production Index (IPI) increased by 4.7% YoY to 120.3 points in February 2017, up from a 3.5% YoY in January 2017, but it was lower than consensus projection of 6.1% YoY. The gain was due to a faster increase in manufacturing and electricity output, while production growth from the mining sector eased during the month. Stronger demand was from both external- and domestic oriented industries. This pointed to a sustained increase in domestic demand, while external demand for the country’s exports is improving. The industrial production and manufacturing division expanded further in February given the favourable economic outlook. International demand for goods had remained robust during the start of the year. Exports surged by an astounding 26.5% YoY during the month following a 13.6% YoY growth in January 2017. Moreover, Malaysia’s PMI manufacturing survey improved in March 2017. Although the data was still below than 50-point threshold, it was better than the previous month at 49.5 (February 2017: 49.4), the highest reading since May 2015 as Malaysian manufacturers were able to boost output. Growth was modest, but nonetheless a second successive monthly rise in production was significant in being the first back-to back increase in two years. Meanwhile, backlogs of work continued to rise, in line with the trend seen since the start of the year. In 2M17, manufacturing output increased by 5.5% YoY as compared with 5.0% in the previous quarter as well as 4.3% in the 1Q16. In addition, Mining and Electricity sectors rose by 0.8% YoY and 1.3% YoY, respectively, pushing the overall IPI increased by 4.0% YoY during the period. As such, we believe that the economy is poised for another year of resilient growth, on the basis of better and improving manufacturing output data. Based on the 3-Month Moving Average (3MMA), it had shown a steady increase since October 2016 to 5.1% YoY in February 2017. Indeed, we expect a solid real GDP manufacturing output of 4.8% in the first quarter of 2017 that will surpass 1Q16’s 4.2% (TA’s estimate: +4.5% YoY for 1Q17 vs. +4.5% in 4Q16). Figure 1: IPI Manufacturing vs. GDP manufacturing vs. GDP (1Q11 – 1Q17e) 9.0 8.0 7.0 YoY % 6.0 5.0 4.0 3.0 2.0 1.0 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016p 2Q2016 3Q2016 4Q2016 1Q2017e 0.0 -1.0 GDP Growth GDP Manufacturing IPI Manufacturing Sources: Department of Statistics, TA Securities Page 1 of 4 www.taonline.com.my
13. TA Securities 12-Apr-17 A Member of the TA Group IPI Growth Led by Manufacturing Sector Despite a shorter working month in February 2017 , Malaysia’s IPI posted a stronger growth of 4.7% YoY to 120.3 points (January 2017: 3.5% YoY). Nonetheless, the result was below consensus projection of 6.1% YoY. The gain was due to a faster increase in manufacturing and electricity output, while production growth from the mining sector eased during the month. On a monthly comparison, IPI rose by 2.0% MoM, s.a. led by an increased in the Manufacturing and Electricity sectors by 2.0% MoM, s.a. and 0.5% MoM, s.a., respectively. Figure 2: Industrial Production Index (January 2011 – February 2017) Index All divisions (LHS) YoY % (RHS) 3MMA YoY % 140 12 135 10 130 8 125 6 120 4 115 2 110 0 105 Jan-17 Jan-16 Jan-15 -6 Jan-14 -4 90 Jan-13 95 Jan-12 -2 Jan-11 100 Sources: Department of Statistics, TA Securities Figure 3: Summary of IPI (September 2016 – February 2017) (2010=100) 2016 Sep-16 Oct-16 IPI Mining Electricity Manufacturing Manufacturing Sales Value 3.8% 1.6% 8.5% 4.3% 1.3% 3.1% -0.3% 7.1% 4.0% 1.1% 4.2% 3.5% 6.9% 4.2% 1.9% Nov-16 Dec-16 6.2% 4.7% 9.7% 6.5% 8.2% 4.7% 5.8% 6.1% 4.3% 10.6% Jan-17 Feb-17 2M17 3.5% 1.1% 1.1% 4.6% 10.7% 4.7% 0.4% 1.5% 6.5% 15.7% 4.0% 0.8% 1.3% 5.5% 13.1% Sources: Department of Statistics, TA Securities Increasing in Manufacturing Output The Manufacturing output (65.9% of total IPI) grew by 6.5% YoY as compared with 4.6% YoY gain observed in the previous month. The increase was mainly due to increases of E&E products, Food, beverages & tobacco, as well as Petroleum, chemical, rubber & plastic products. On a seasonally adjusted month on-month basis, manufacturing output increased by 2.0%. Details showed, output of export-oriented industries rose by 6.1% YoY, faster than 4.7% YoY gain previously. Within this industry: E&E products (February 2017: +8.1% YoY; January 2017: +6.9% YoY) led the way as orders from sub-index such as manufacture of computer, electronics & optical products (February 2017: +7.6% YoY; January 2017: +6.6% YoY); manufacture of electrical equipment (February 2017: +11.5% YoY; January 2017: +9.1% YoY); and manufacture of machinery & equipment (February 2017: +11.0% YoY; January 2017: +8.1% YoY). The largest contributor was another export-based manufacturing industries, petroleum, chemical, rubber & plastic products (February 2017: +3.7% YoY; January 2017: +2.3% YoY) which improved on stronger output growth of manufacture of coke & refined petroleum products (February 2017: +2.2% YoY; January 2017: +1.8% YoY); and manufacture of chemicals & chemical products (February 2017: +4.8% YoY; January 2017: +2.5% YoY) Page 2 of 4
14. TA Securities 12-Apr-17 A Member of the TA Group In the same vein , production of wood products, furniture, paper products & printing rose by double digit growth of 11.3% YoY in February 2017 (January 2017: +8.7% YoY) and textiles, wearing apparel, leather products & footwear increased by 7.8% YoY from 6.7% YoY in the previous month. Similarly, output growth in domestic oriented industries also improved from 4.3% YoY in January 2017 to 7.4% YoY in February 2017. The output of food, beverages & tobacco posted a double digit growth of 15.9% YoY underpinned by robust output for both food and beverages products at 16.6% YoY and 17.1% YoY, respectively. On the other hand, output of transport equipment & other manufactures moderated to 1.7% YoY (January: +3.2% YoY) while nonmetallic mineral products, basic metal & fabricated metal products gained 1.7% YoY during the month. Mining Output Increases at Modest Pace The output growth for the Mining sector (28.9% of total IPI) eased in February 2017. This was mainly due to the decreases in crude oil index (January 2017: -4.7%). However, natural gas index increased 7.4% YoY as compared with 5.3% YoY gain previously. As a result, the output for the Mining sector increased at a modest pace of 0.4% YoY (or -0.3% MoM, s.a.) in February 2017. Similarly, the Electricity output (5.2% of total IPI) improved slightly to 1.5% YoY in February 2017 as compared with 1.1% YoY gain observed in the previous month. Note that the IPI component of electricity had registered a positive annual growth since August last year but the pace of growth was reducing due to the high base impact. On a seasonally adjusted terms, Electricity output increased by 0.5% in February 2017 as compared to the previous month. Figure 4: IPI Sub-sectors Performance (January 2011 – February 2017) YoY % 20% Mining Production Manufacturing Production Electricity Production 15% 10% 5% 0% -5% -10% -15% -20% Jan-17 Jan-16 Jan-15 Jan-14 Jan-13 Jan-12 Jan-11 -25% Sources: Department of Statistics, TA Securities Manufacturing Sales Strong at 15.7% YoY Mirroring the stronger manufactured exports, manufacturing sales value accelerated for the fourth conservative months to 15.7% YoY amounting to RM59.4bn for the same month. In tandem with the improved sales, growth in total number of employees as well as salaries and wages paid out to the manufacturing sector, held steady at 1.4% YoY and 0.3% YoY respectively. Note that, Manufacturing sales value increased by hefty 13.1% YoY to RM120.6bn in the first two months of this year. Page 3 of 4
15. TA Securities 12-Apr-17 A Member of the TA Group Figure 5 : Manufacturing - Output vs. Sales (January 2013 – February 2017) % YoY Manufacturing Sales Manufacturing Output 20.0 15.0 10.0 5.0 0.0 -5.0 -10.0 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Sources: Department of Statistics, TA Securities 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 4 of 4
16. TA Securities ECONOMIC REPORT A Member of the TA Group Wednesday , April 12, 2017 FBMKLCI: 1,735.84 MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 . Malaysian Economy Tourism Tax Bill THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Shazma Juliana Abu Bakar Tel: +603-2167 9608 shazma@ta.com.my Summary The Malaysian Parliament has passed a Tourism Tax Bill last week, in which it must be imposed and levied on tourists staying at any accommodation made available by an operator. The Bill, however, does not subject to homestay and Kampung Stay registered under the ministry, premises managed by institutions (education), premises used for training purposes and religious institutions where such facilities are not used for commercial purposes. The proposal suggests that the rates would differ according to a hotel’s star rating and it applies to all hotel guests for each room night nationwide, ranging between RM2.50 to RM20.00 per night. We believe the decision was made as part of the ways to enhance the government revenue collection, especially from the non-oil sources. The tax collection may provide a sustainable fund every year to develop the tourism industry in Malaysia such as for marketing and promotion purposes. There were 4,799 hotels and 304,721 rooms in the country as of 2015, with the average occupancy rate (AOR) of 61.9%. Using the average of RM10.50 of the proposed tax rate and the AOR of between 60% to 80% level, the tax bill collection could range between RM700mn and RM934mn per annum, according to our simulation analysis. Our estimate is slightly higher than the government’s RM654.2mn based on 60% occupancy rate, or RM872.8mn based on 80% occupancy rate. Using a simple backward calculation, the average proposed tax rate used by the government’s estimation is RM9.80. While it may be good for our revenue collection, we view that the Tourism Tax Bill will be a burden for the domestic travellers as locals are already been charged 6% GST on the hotel services. Statistics showed that there were about 176.9mn domestic tourists, with an average length of stay (ALOS) of 2.3 days in 2015 – which was already a drop as compared to 2.6 days in 2014. Taxing tourists based on the nights of stay would only deter them from having long vacations in the country. We opine a one-time charge per stay would suffice, regardless of the room nights. The tax measure may also imply a negative development for the hotel sector. The tax could push the local and foreign tourists into seeking accommodation at places that were not regulated by the law. Hoteliers may also not be able to pass on all the additional tax to the tourist as the hotel occupancy rate is considered low. By states, the lowest AOR was 40.9% for Kelantan while the highest was Pahang at 79.3%. The government estimates 31mn tourists to visit Malaysia this year, a commendable growth over 26.8mn tourists in 2016, which could generate RM114bn in tourism receipts. Page 1 of 5 www.taonline.com.my
17. TA Securities 12-Apr-17 A Member of the TA Group Parliament Passes Tourism Tax Bill On 6 April 2017 , the Malaysian parliament passed a Tourism Tax Bill, in which it must be imposed and levied on tourists (both foreigners and locals) staying at any accommodation premise made available by an operator. Under Section 8, the Bill stated that the tax shall be charged and levied on a tourist staying at any accommodation premises made available by an operator at the rate fixed, which will be discussed at a later stage by the finance minister, together with the tourism minister. The Bill, however, does not subject to homestay and Kampung Stay registered under the ministry, premises managed by institutions (education), premises used for training purposes and religious institutions where such facilities are not used for commercial purposes. The Bill also read that it is only applicable for one-time payment per night. This means that if there is more than one tourist are staying in the same accommodation at the same time and the tourism tax has been paid by any one of them, the other tourist staying shall not be liable to pay tourism tax. Any exemption should be subjected to the Finance Minister’s order as per Clause 9 of the Bill. The Proposed Tax Rate The proposal suggests that the rates would be differ according to a hotel’s star rating and it applies to all hotel guests for each room night nationwide. Figure 1: Proposed Tax Rate Under Tourism Tax Bill Proposed Tax Rate Hotel’s Star Rating (per night) 5 RM20.00 4 RM15.00 3 RM10.00 2 RM5.00 Non-Rated RM2.50 Average RM10.50 Source: Media, TA Securities Currently, only Langkawi, Malacca and Penang charge tourists a tourism promotion fee, heritage tax fee and local government fee respectively, ranging from RM1 to RM9 per room per night, depending on the hotel's star rating. The Revenue Collection Based on the latest available data from Tourism Malaysia website, there were 4,799 hotels and 304,721 rooms in the country as of 2015, with the average occupancy rate (AOR) for all hotels of 61.9%. Figure 2: Number of Hotels in Malaysia (2000 – 2015) Figure 3: Number of Hotel Rooms in Malaysia (2000 – 2015) 6,000 350000 5,000 300000 250000 4,000 200000 3,000 150000 2,000 100000 1,000 50000 Source: Tourism Malaysia, TA Securities Source: Tourism Malaysia, TA Securities Page 2 of 5 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2000 2001 0 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 0
18. TA Securities 12-Apr-17 A Member of the TA Group There were no details on the hotel rooms based on the star ratings . Using the average of RM10.50 of the proposed tax rate and the AOR of 61.9% (as per 2015), we estimate that the government could collect about RM723mn per year. The table below is our simulation of the Tourism Tax Bill Collection. Using the AOR of between 60% and 80% level, the tax bill collection could range between RM700mn and RM934mn per annum. Our calculation is slightly higher than the government’s estimation of RM654.2mn based on 60% occupancy rate, according to Tourism Minister Nazri Abdul Aziz. With a proper promotion, the occupancy rate may increase to 80%, thus pushing the potential tourism tax bill revenue to RM872.82mn. Using a simple backward calculation, the average proposed tax rate is roughly about RM9.80. Figure 4: Tourism Tax Bill Collection Estimation Scenario 1 60.0% 66,733,899.0 AOR Room Nights* Revenue collection (RM mn) **Avg. tax Rate RM9.80 **Avg. tax rate RM10.50 Scenario 2 61.9% 68,847,139.1 653.99 700.71 Scenario 3 65.0% 72,295,057.3 674.70 722.89 Scenario 4 70.0% 77,856,215.5 708.49 759.10 Scenario 5 75.0% 83,417,373.8 762.99 817.49 *Based on assumption of 304,721 rooms x 365 days x AOR Source: Tourism Malaysia, TA Securities Boosting the Tourism Revenue We believe the decision was made as part of the ways to enhance the government revenue collection, especially from the non-oil sources. To recap, the Federal Government revenue collection is expected to grow by 3.4% to RM219.7bn in 2017, up from RM212.6bn estimated in 2016, largely due higher collection of tax revenue mainly from the non-oil related sources (2017F: 86.2% of total revenue or RM189.38bn). The tax collection may provide a sustainable fund every year to develop the tourism industry in Malaysia such as for marketing and promotion purposes. The weakening of Ringgit has made shopping and dining in Malaysia cheaper for foreign tourists. The government estimates about 31mn visitors this year to Malaysia that could generate RM114bn in tourism receipts. In 2016, about 26.8mn tourists visited Malaysia, according to data from the Tourism Ministry. By 2020, tourist arrivals is expected to reach 36mn with RM168bn receipts. Figure 5: Tourist Arrivals & Receipt to Malaysia (2005 – 2017E) 120.0 35.0 100.0 30.0 25.0 80.0 20.0 60.0 15.0 40.0 10.0 Receipt (RMbn) - LHS Arrivals (mn) - RHS Source: Tourism Malaysia, TA Securities Page 3 of 5 2017E 2016 2015 2014 2013 2012 2011 2010 2009 2008 0.0 2007 0.0 2006 5.0 2005 20.0 817.49 875.88 Scenario 6 80.0% 88,978,532.0 871.99 934.27
19. TA Securities 12-Apr-17 A Member of the TA Group Our View We view that the Tourism Tax Bill will be a burden for the domestic travelers as locals are already been charged 6 % GST on the hotel services. Statistics showed that there were about 176.9mn domestic tourists, with ALOS of 2.3 days in 2015 – which was already a drop as compared to 2.6 days in 2014. Meanwhile, the average length of stay for foreign guests was 5.5 days. Taxing tourists based on the nights of stay would only deter them from having long vacations in the country. We opine a one-time charge per stay is suffice, regardless of room nights. Figure 6: Domestic Tourists vs Average Length of Stay (2008 – 2015) 200,000 2.7 180,000 160,000 2.6 140,000 120,000 2.5 100,000 80,000 2.4 60,000 40,000 2.3 20,000 0 2.2 2008 2009 2010 2011 Number of Domestic Tourists 2012 2013 2014 2015 Average length of stay (RHS) Source: Statistics Department, TA Securities With limited details been provided, the tax measure may also imply a negative development for the hotel sector. The tax could have pushed local and foreign tourists into seeking accommodation at places which were not regulated by the law – such as AirBnB and unlicensed hotels. This could create an “uneven playing field” between license and unlicensed hotel operators. Hoteliers may also not be able to pass on all the additional tax to the tourist as the hotel occupancy rate is considered low. It was 61.9% in 2015 – a decline as compared to 63.6% in 2014. By states, the lowest AOR was 40.9% for Kelantan while the highest was Pahang at 79.3%. Figure 7: Average Occupancy Rate by States (2015) Kelantan Perlis Negeri Sembilan Terengganu Perak Kedah Sarawak Johor Melaka Pulau Pinang Sabah Selangor Putrajaya Labuan Kuala Lumpur Pahang 40.9 44.4 47.9 48.7 51.3 54.9 57.9 58.5 63.3 63.7 64.2 64.7 65.7 66.2 67.1 79.3 0 20 40 % 60 Source: Tourism Malaysia, TA Securities Page 4 of 5 80 100
20. TA Securities 12-Apr-17 A Member of the TA Group ( T HI S P AGE I S I NT E N T I ON AL L Y L E FT B L ANK) 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
21. TA Securities SECTOR UPDATE Wednesday , April 12, 2017 FBMKLCI: 1,735.84 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Overweight Semiconductor Sector (Maintained) Visit to Penang THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Paul Yap, CFA Tel: +603-2167 9603 paulyap@ta.com.my We recently organised a two day trip to Penang, where we visited Inari Amertron Berhad, Globetronics Technology Berhad, Vitrox Corporation Berhad, Elsoft Research Berhad and Foundpac Group Berhad. Generally, a bright outlook is expected in 2017, coupled with expectations of strong revenue and earnings growth. Despite a slowdown in smartphone unit sales, it remains an important driver of growth. Inari and Globetronics are anticipated to benefit from smartphone related content wins. Automotive is another key sector, following trends of increased ICs within vehicles and the popularity of daytime running lights. However, as a key risk, four of the five companies we visited remain heavily exposed to a single customer. Retain our Overweight call on the Semiconductor sector. Expecting Growth in 2017 We recently organised a two day semiconductor trip to Penang. We visited a mixture of OSAT (outsourced assembly and test) and test equipment manufacturers. The companies were Inari Amertron Berhad, Globetronics Technology Berhad, Vitrox Corporation Berhad, Elsoft Research Berhad and Foundpac Group Berhad. We left the trip feeling upbeat about prospects for these companies in the year ahead. Of the companies we visited, barring Foundpac (limited visibility), the majority are projecting a bright outlook for 2017. Smartphones Still Relevant Despite a slowdown in unit sales (2016: +5.0% YoY), smartphones remains a key driver of sales growth in the semiconductor sector. Smartphone related growth is anticipated to be driven by content wins. Both Inari and Globetronics are involved in the back-end production of an iris scanner, to be implemented in a new smartphone model. We suspect this could be the recently launched Samsung Galaxy S8, which depicts iris scanning capabilities as one of its features. Globetronics is also pursuing a light sensor (with ability to combo up as a proximity sensor). This is expected to be built into a flagship smartphone model to be launched in the later part of the year. Its gesture sensors may also see a boost in volumes, if its end customer decides to bundle the product with a higher end phone model. All Eyes on iPhone 8 We believe activity will be driven by the launch of the new iPhone. Three of the five companies we visited are expected to benefit from increased activity towards the 2Q-3Q2017. Based on data by IHS Markit, the iPhone was once again the bestselling smartphone in 2016, securing the top 4 spots with its closest competitor being the Samsung Galaxy S7 Edge. Expected to be launched in the fall, the iPhone 8 is tipped to include a major redesign with a glass body and edge-to-edge OLED display (with integrated Touch ID fingerprint sensor and front facing camera). Other speculated features include a faster A11 processor and wireless charging. Potentially boosting volumes, three models could be introduced, with a premium OLED display version sold alongside the standard 4.7 and 5.5 inch models with traditional LCD screens. Driving The Future Apart from smartphones, another important sector is automotive. One of the segments driving demand for Vitrox’s vision inspection systems is electric cars, with an increasing number of integrated circuits (ICs) within vehicles and high quality standards. In a different trend, Elsoft is also benefitting from the adoption of daytime running lights. Since 2011, daytime running lights have been made mandatory for all new cars and small delivery vans in the EU. Apart from aiding road users spot vehicles, daytime running lights have been gaining popularity due to enhanced aesthetics. Page 1 of 4 www.taonline.com.my
22. TA Securities 12-Apr-17 A Member of the TA Group Investments Put in Place Capacity expansion plans have been put in place to support new business opportunities . Having been qualified last December, Inari has begun production of its iris scanners in March 2017. Room for capacity upgrades has also been set aside at P21, in the event adoption of the technology picks up. For Globetronics, investments of RM53mn have been earmarked to purchase new equipment for its light sensor. Given a fall in volumes, existing proximity sensor lines will also be converted for the production of light sensors. Filled to the brim, Vitrox is waiting for the completion of its Campus 2.0 which is expected to expand existing capacity by 3x. Foundpac plans to utilise its IPO proceeds to purchase new machineries for stiffeners and test sockets to improve efficiency. With existing facilities still sufficient, there are no major capex outlays expected for Elsoft. Still Reliant on Few Customers On the downside, apart from Vitrox, the companies we visited remains heavily exposed to a single customer (>40% of revenue). This places them at risks of termination and/or reduction in orders. Most recently, Globetronics’ financial performance suffered from a fall in volumes for its proximity sensors (due to end customer switching suppliers). Updates on the companies we visited: Inari Amertron Berhad (BUY, TP: RM2.35/share) Inari Amertron Berhad is an OSAT and electronics manufacturing services provider. Its principal business is backend wafer processing, package assembly and final testing of Radio Frequency (RF) semiconductor components. We visited Inari at its new plant, P21. The meeting was centered on Inari Optical Technology, its new business involved in the packaging and testing of infrared LED – which will be implemented into smartphones for iris scanning capabilities. Progressing well, production has begun in March 2017, with an initial capacity of 5mn units/month. Plans are to eventually expand this capacity to 10mn units/month, as another line is transferred from its customer’s facilities. The iris scanner is built in to a recent major smartphone launch, which we believe could be the Samsung Galaxy S8. Positive reviews on the phone could potentially see the technology making its way into other smartphone models. Iris scan is viewed as a new biometric unlocking method, which is not only fast but safe with an error rate of less than 1%. It also improves on current fingerprint scans, as fingerprints can change during the course of life or be subjected to external influences. Assuming successful adoption, we see potential in the business, with volumes possibly picking up to 50-60mn units/month. The group is currently the single source for the chips. Make no changes to our earnings at this point in time. Maintain BUY on Inari with a TP of RM2.35/share. Globetronics Technology Berhad (Not Rated, Consensus TP: RM5.28/share) Globetronics is an OSAT with main products of sensors, timing & quartz crystal devices and SSL/LED components. The group is expected to rebound after a weak FY16, where it was impacted by a steep fall in proximity sensor volumes. Volumes dropped to 3mn units/month from a peak of 20mn units/month – as its end customer switched suppliers for its latest smartphone model. Recovering to previous levels, growth is expected to be driven by its new light and gesture sensor projects. The light sensor, which has the ability to detect ambient light in a room or outside, can double up as a proximity sensor. Light sensor volumes are expected to reach 25-27mn units/month upon full ramp. To cater for this, the group will be investing RM53mn for new equipment and will convert some its existing proximity sensor lines. The gesture sensor, currently suspected to be utilised in a wireless earbud, may also see a bump in volumes. This is along with rumours of a potential product bundling with the launch of a premium smartphone model. This could see gesture sensor volumes rise from 4mn units/month currently to 14mn units/month. Consensus is projecting a steep recovery in revenue and earnings of 62.5% YoY and 137.4% YoY to RM349.8mn and RM61.1mn. At current levels, the stock is trading at an implied CY17 PE of 24.6x. Page 2 of 4
23. TA Securities 12-Apr-17 A Member of the TA Group Vitrox Corporation Berhad (Not Rated, Consensus TP: RM4.70/share) Vitrox designs and manufactures automated vision inspection equipment and system on chip embedded electronics devices for the semiconductor and electronics packaging industries. Currently enjoying an impressive run, Vitrox has recorded seven quarters of consecutive top line growth. 2016 revenue and core net profit jumped 46.0% YoY and 37.9% YoY to RM234.0mn and RM66.5mn – attributing to its automated board inspection (+44.3% YoY) and machine vision system tray (+109.1% YoY) products. Demand has sustained into FY17, as it currently has an order backlog of RM60mn, to be delivered within the next two to three months. Running a single shift, the group is currently at maximum capacity, with utilisation rates at 90-95%. We expect future earnings to be boosted by Vitrox Campus 2.0, which it plans to shift into in 3Q2017. This is projected to expand its existing capacity by 3x and is targeted to be fully utilised in 2019. By segments, demand is being driven by automotive, telco infrastructure, aerospace, healthcare and smart devices. Strategies to sustain growth include new product launches, market share gains and expansion into new segments. Despite revenue growth projections of 10.9% YoY, consensus are projecting flattish earnings in FY17. Revenue and earnings are then expected to pick up by 20.6% YoY and 15.2% YoY in FY18. The stock is currently trading at an implied CY17 PE of 17.6x. Elsoft Research Berhad (Not Rated, Consensus TP: RM1.90/share) Elsoft research, designs and develops test and burn-in systems and application specific embedded systems. Its products are mainly utilised in the smart devices, automotive and general lighting industry. Achieving record revenues and profits in FY16, Elsoft appears to be on track for a good start in FY17. Its existing 1QFY17 order book stands at RM27mn vs. RM22mn at the same point in time a year ago. Demand for its burn-in systems in the automotive segment remains strong. For smart devices, there are more upgrades this year, but less orders for new machines. In our view, growth will be dependent on the success of new product launches. One of this is a high speed LED tile tester, which has applications in the automotive and general lightings segment. It has managed to secure orders for the product from an existing customer. We envision good prospects given the tester is 10x faster than existing competitors and priced competitively. As part of plans for future growth, it is also entering new segments through the development of an automated test equipment (ATE) for solar cell and embedded control systems for kidney dialysis machines. Consensus is predicting a 19.0% YoY increase in both revenue and earnings for FY17. This implies the group is currently trading at a CY17 PE of 15.6x. Foundpac Group Berhad (Not Rated, TP: RM0.61/share) Foundpac is a manufacturer of stiffeners, test sockets and hand lids – components used to facilitate the testing of ICs. Against its competitors, the group’s product commands a premium pricing due to its shorter lead time and quality. Starting slow, 1HFY17 revenue only accounts for 36.6% of revenues in its previous year. However, due to the unpredictable nature of its business (visibility limited to three weeks), management does not discount the possibility of earnings catching up in the second half. Its demand is dependent on the success of R&D initiatives by its customers. To boost sales, focus will be placed on increased engagement with customers through visits and contact. It also expects to do more turnkey projects, which will potentially see absolute revenue and profit increase, albeit at lower margins. Its IPO proceeds will be spent on new machineries for stiffeners and test sockets which are more efficient, potentially leading to cost savings. From our IPO report, we are expecting earnings to decline by 14.5% YoY in FY17 – due to the expiration of its pioneer status. At its last price, the stock is trading at a CY17 PE of 17.3x. Recommendation We retain our Overweight recommendation on the semiconductor sector. 2017 is positioned to be a good year for semiconductor stocks, with expectations of healthy revenue and earnings growth. Growth is expected to outpace the industry, due to their exposures to high growth segments and pipeline of expansion plans. Being export oriented, the weak ringgit environment will also be conducive to operations in our view. We currently only cover one of the companies we visited. We have a BUY call on Inari with a TP of RM2.35/share. Page 3 of 4
24. TA Securities 12-Apr-17 A Member of the TA Group Peers Comparison Company Price (RM) TP (RM) Inari Amertron Unisem MPI Globetronics* Vitrox* Elsoft* Foundpac Weighted average *Based on consensus TP 2.06 3.15 11.84 5.21 4.74 2.18 0.73 2.35 3.55 12.00 5.28 4.70 1.90 0.61 Recom. BUY BUY Under Review Not rated Not rated Not rated Not rated PE (x) CY17 CY18 18.1 15.7 11.7 10.8 13.1 11.6 24.6 16.5 17.6 15.0 15.6 n/a 17.3 14.3 16.5 13.2 P/BV (x) CY17 CY18 4.4 3.7 1.5 1.4 2.1 1.8 5.3 5.0 3.4 2.9 5.6 n/a 3.4 2.9 3.4 2.8 Dividend yield CY17 CY18 2.2 2.6 3.8 3.8 1.9 1.9 4.0 5.1 1.4 1.5 4.6 n/a 1.7 2.1 2.7 2.8 ROE (%) CY17 CY18 26.2 25.5 13.5 13.5 17.0 16.8 25.1 35.6 21.4 20.8 n/a n/a 22.8 21.7 20.0 20.9 [ 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] Sector Recommendation Guideline OVERWEIGHT: The industry, as per our coverage universe, is expected to outperform the FBMKLCI over the next 12 months. NEUTRAL: The industry, as per our coverage universe, is expected to perform in line with the FBMKLCI over the next 12 months. UNDERWEIGHT: The industry, as per our coverage universe, is expected to underperform the FBMKLCI over the next 12 months. 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 4 of 4
25. Wednesday , 12 April, 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
26. T e c h n i c a l TA Securities V i e w Wednesday , April 12, 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: 1,735.84 (-3.68, -0.21%) 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 SAPURA ENERGY SUNCON UEMS WASEONG WCT Close 11-Apr 1735.84 2.87 4.01 4.85 5.08 5.46 5.09 5.15 9.32 5.49 6.02 4.50 1.26 6.37 8.98 1.23 5.19 9.32 13.72 6.35 4.00 3.05 0.40 0.80 0.46 4.32 1.85 1.49 1.32 1.68 3.08 2.27 1.37 1.11 1.72 1.60 2.09 1.84 1.23 0.91 1.99 Change (3.68) -0.01 -0.02 -0.05 -0.02 -0.01 -0.01 -0.05 0.05 0.00 0.00 -0.09 -0.01 0.03 -0.01 0.01 -0.05 -0.02 0.02 0.02 -0.03 -0.03 0.00 0.00 0.01 0.01 0.02 0.00 0.04 0.00 0.20 0.00 0.00 -0.01 0.00 -0.01 0.06 0.00 -0.02 0.02 -0.07 Tel: +603-2167-9607 High Low 1,740.13 1,733.79 2.89 4.05 4.91 5.10 5.50 5.10 5.20 9.42 5.55 6.04 4.58 1.29 6.44 9.00 1.24 5.23 9.32 13.72 6.35 4.04 3.09 0.40 0.81 0.48 4.33 1.87 1.51 1.34 1.69 3.16 2.30 1.38 1.17 1.72 1.60 2.10 1.85 1.25 0.92 2.05 2.84 4.01 4.84 5.03 5.42 5.06 5.14 9.26 5.44 6.01 4.49 1.26 6.33 8.96 1.22 5.17 9.27 13.68 6.33 3.97 3.01 0.39 0.79 0.45 4.30 1.81 1.49 1.28 1.67 2.86 2.26 1.35 1.10 1.70 1.57 2.03 1.83 1.21 0.89 1.96 Bollinger Bands Lower Mid Upper 1,728.09 1,743.90 1,759.71 2.83 3.99 4.72 4.80 5.41 5.08 5.04 9.27 5.34 5.95 4.55 1.14 6.33 8.82 1.17 5.14 9.18 13.68 6.31 3.85 2.76 0.39 0.70 0.43 4.15 1.61 1.47 1.23 1.66 2.40 2.17 1.19 0.83 1.50 1.47 1.76 1.71 1.22 0.86 1.74 2.87 4.08 4.85 5.01 5.56 5.13 5.19 9.61 5.53 6.00 4.66 1.21 6.40 8.95 1.24 5.25 9.33 13.73 6.38 4.01 2.99 0.40 0.76 0.45 4.27 1.74 1.52 1.28 1.69 2.77 2.22 1.27 1.02 1.66 1.54 1.91 1.78 1.27 0.89 1.94 2.91 4.18 4.97 5.22 5.71 5.18 5.34 9.95 5.72 6.05 4.77 1.28 6.47 9.07 1.31 5.36 9.48 13.78 6.45 4.17 3.21 0.41 0.81 0.46 4.39 1.87 1.57 1.33 1.71 3.14 2.26 1.35 1.21 1.82 1.61 2.07 1.86 1.32 0.91 2.14 stsoo@ta.com.my RSI Moving Averages 14d 10d 30d 50d 50.71 1,743.37 1,735.35 1,720.13 DMI DI + DI - ADX 26.14 21.95 31.83 62.56 46.18 52.45 58.14 49.55 46.22 50.93 45.48 52.43 51.01 35.37 61.74 47.67 60.57 52.43 49.02 55.47 51.45 51.27 46.82 58.30 45.53 63.29 59.03 56.59 68.68 44.60 61.66 48.16 76.47 62.91 73.11 63.34 63.85 60.25 68.42 63.12 46.61 61.10 55.30 19.17 13.42 20.49 27.73 23.06 13.95 19.08 13.91 21.23 20.64 14.86 29.10 14.97 21.41 19.08 16.11 19.24 12.77 18.47 17.47 22.00 11.82 30.62 32.60 17.50 31.99 21.87 31.70 18.15 43.78 31.05 41.89 41.72 31.50 32.32 32.86 22.32 21.19 30.88 23.48 2.87 4.09 4.83 5.06 5.54 5.12 5.21 9.49 5.53 6.01 4.62 1.24 6.41 8.97 1.26 5.23 9.32 13.73 6.40 4.07 3.09 0.40 0.77 0.44 4.30 1.79 1.52 1.29 1.68 2.91 2.23 1.29 1.08 1.72 1.56 1.96 1.80 1.27 0.89 2.02 2.84 4.05 4.86 4.90 5.49 5.11 5.12 9.51 5.46 5.97 4.67 1.20 6.39 8.89 1.21 5.21 9.26 13.71 6.34 3.99 2.91 0.40 0.74 0.45 4.25 1.71 1.51 1.26 1.69 2.43 2.23 1.26 0.97 1.60 1.54 1.92 1.76 1.24 0.88 1.91 2.70 3.98 4.75 4.87 5.31 5.09 5.04 9.17 5.31 6.06 4.65 1.22 6.36 8.67 1.19 5.13 9.19 13.63 6.25 4.04 2.81 0.40 0.72 0.45 4.23 1.66 1.51 1.19 1.69 1.88 2.20 1.29 0.94 1.55 1.58 1.89 1.75 1.20 0.88 1.90 15.93 20.11 19.69 17.17 21.70 26.58 17.82 19.90 16.79 16.42 28.24 10.02 16.94 17.14 17.63 20.55 21.92 19.52 14.43 24.34 13.90 14.33 8.62 10.86 18.20 13.41 14.18 13.36 23.55 15.05 11.05 14.76 13.97 10.09 16.01 15.29 9.94 18.21 12.63 24.97 35.74 21.74 21.20 20.48 33.01 18.15 17.47 39.21 29.67 11.72 15.40 32.18 12.27 22.15 32.87 14.32 11.50 18.59 28.60 26.87 32.22 17.63 30.23 24.53 13.84 48.70 32.66 42.82 12.79 52.94 22.30 23.48 43.86 61.03 22.75 23.98 30.99 39.41 22.40 23.55 www.taonline.com.my Diff 4.19 3.24 (6.68) 0.80 10.56 1.36 (12.63) 1.26 (5.99) 4.43 4.21 (13.38) 19.08 (1.97) 4.27 1.45 (4.43) (2.68) (6.75) 4.03 (6.87) 8.09 (2.52) 21.74 (0.70) 18.58 18.58 7.69 18.35 (5.40) 28.73 20.00 27.13 27.75 21.41 16.31 17.57 12.39 2.98 18.25 (1.48) Line 5.95 0.04 0.02 0.02 0.07 0.05 0.00 0.04 0.04 0.06 -0.01 -0.02 0.00 0.01 0.08 0.02 0.03 0.05 0.01 0.03 0.01 0.08 0.00 0.02 0.00 0.03 0.05 0.00 0.03 0.00 0.31 0.02 0.02 0.06 0.06 0.01 0.04 0.03 0.02 0.01 0.05 MACD Signal Diff 8.94 (2.988) 0.05 0.04 0.03 0.07 0.08 0.01 0.06 0.11 0.08 -0.02 0.00 0.01 0.02 0.10 0.03 0.04 0.07 0.02 0.05 0.01 0.09 0.00 0.02 0.00 0.03 0.04 0.01 0.03 0.00 0.34 0.01 0.00 0.05 0.06 0.00 0.02 0.02 0.03 0.00 0.04 (0.012) (0.017) (0.005) (0.003) (0.036) (0.010) (0.017) (0.079) (0.028) 0.010 (0.018) (0.007) (0.012) (0.018) (0.008) (0.014) (0.017) (0.007) (0.015) 0.004 (0.008) (0.000) 0.003 0.002 0.002 0.008 (0.007) (0.002) (0.001) (0.026) 0.005 0.016 0.012 0.001 0.014 0.019 0.007 (0.009) 0.002 0.012 DMI MACD Recent Signal BUY SELL DMI MACD Signal Change - BUY SELL BUY BUY BUY SELL BUY SELL BUY BUY SELL BUY SELL BUY BUY SELL SELL SELL BUY SELL BUY SELL BUY SELL BUY BUY BUY BUY SELL BUY BUY BUY BUY BUY BUY BUY BUY BUY BUY SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL BUY SELL SELL SELL SELL SELL SELL SELL SELL SELL BUY SELL SELL BUY BUY BUY BUY SELL SELL SELL SELL BUY BUY BUY BUY BUY BUY BUY SELL BUY BUY - 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
27. Technical Comments : Buy on Weakness IOI Corp & Sime Darby Any further dip on IOI Corp would be attractive for oversold rebound towards the upper Bollinger band (RM4.77), with tougher hurdle seen at the peak of 24/06/14 (RM5.04) and 123.6%FP (RM5.35), going forward. Key retracement support from 38.2%FR (RM4.12) is expected strongly cushioned downside risk. Sime Darby should rebuild support from the current levels with recovery potential towards the upper Bollinger band (RM9.48) or the peak of 08/07/14 (RM9.55), while the 123.6%FP (RM10.23) acting as the stronger upside hurdle. Crucial support is at 100-day ma (RM8.71). IOI CORP Upper Middle RM4.50 (-0.09) BOLLINGER BANDS RM RM 4.77 4.66 10-day 30-day RM 4.55 50-day Lower DMI Recent Signal SELL 4.65 Recent Signal SELL Signal Change SIME DARBY Recent Signal Signal Change RM DAILY MACD Signal Change Upper Middle Lower SIMPLE MOVING AVERAGES RM 4.62 RM 4.67 BOLLINGER BANDS RM RM RM DMI RM9.32 (-0.02) 9.48 9.33 9.18 SELL SIMPLE MOVING AVERAGES RM 9.32 RM 9.26 RM 9.19 DAILY MACD Recent Signal SELL Signal Change 10-day 30-day 50-day Page 2 of 4
28. T e c h n i c a l TA Securities V i e w Wednesday , April 12, 2017 FBMKLCI: 1,735.84 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 11.04.2017 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 Price VIVOCOM INTERNAT NAIM INDAH CORP METRONIC GLOBAL XOX BHD LUSTER INDUSTRIE VSOLAR GROUP BHD GLOBALTEC FORMAT JAG BHD SUMATEC RESOURCE PUC FOUNDER MSC MQ TECHNOLOGY BH NEXGRAM HOLDINGS TIGER SYNERGY BH JKG LAND BHD JASA KITA BHD BIO OSMO BHD DIGISTAR CORP HO WAH GENTING AT SYSTEMATIZATI NWP HLDGS BHD CHINA STATIONERY DAYA MATERIALS DPS RESOURCES BH FELDA GLOBAL VEN GPA HOLDINGS BHD IFCA MSC BHD PERISAI PETROLEU SCOMI GROUP BHD SYSTECH BHD MMAG HOLDINGS BH 0.16 0.12 0.08 0.11 0.13 0.13 0.06 0.12 0.08 0.14 0.06 0.06 0.06 0.12 0.17 0.09 0.21 0.07 0.05 0.23 0.09 0.09 0.11 2.05 0.12 0.45 0.07 0.19 0.29 0.06 RSI Bollinger Band Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 0.15 0.09 0.07 0.10 0.10 0.10 0.04 0.10 0.07 0.11 0.04 0.04 0.04 0.11 0.15 0.08 0.19 0.06 0.04 0.20 0.07 0.07 0.09 1.92 0.10 0.41 0.06 0.17 0.26 0.05 0.16 0.11 0.07 0.10 0.12 0.12 0.05 0.11 0.07 0.14 0.05 0.05 0.05 0.12 0.17 0.09 0.20 0.06 0.05 0.22 0.08 0.09 0.10 2.04 0.11 0.44 0.07 0.19 0.28 0.05 0.16 0.13 0.08 0.11 0.13 0.15 0.06 0.12 0.08 0.16 0.06 0.06 0.06 0.13 0.18 0.09 0.21 0.07 0.05 0.25 0.09 0.10 0.11 2.16 0.12 0.46 0.07 0.20 0.31 0.06 51.64 59.04 60.50 52.76 65.38 63.59 56.62 55.56 51.54 59.16 59.74 60.38 58.13 49.21 57.28 58.78 58.07 61.00 54.04 58.22 55.78 59.35 56.65 56.66 62.31 50.89 54.01 53.35 59.69 53.06 0.16 0.11 0.07 0.10 0.12 0.13 0.05 0.11 0.07 0.14 0.06 0.05 0.05 0.12 0.16 0.09 0.20 0.06 0.05 0.22 0.08 0.09 0.11 2.07 0.11 0.44 0.07 0.19 0.29 0.05 0.16 0.10 0.07 0.10 0.11 0.11 0.05 0.11 0.07 0.12 0.05 0.05 0.05 0.12 0.16 0.08 0.20 0.06 0.05 0.21 0.08 0.08 0.10 1.98 0.11 0.44 0.07 0.18 0.27 0.05 0.16 0.10 0.08 0.10 0.10 0.10 0.05 0.12 0.08 0.11 0.05 0.04 0.05 0.13 0.16 0.07 0.19 0.06 0.04 0.21 0.07 0.08 0.09 1.93 0.10 0.46 0.07 0.18 0.26 0.05 Vol 94,824,500 81,234,900 37,212,900 36,516,200 34,956,600 29,206,800 18,646,500 15,253,700 14,238,600 12,474,200 12,340,200 12,213,900 12,173,300 10,874,100 10,251,800 9,707,100 9,528,600 9,203,300 8,784,400 8,212,500 8,020,400 7,273,000 5,764,800 5,631,000 5,310,400 5,077,300 4,913,200 4,623,600 4,525,400 4,434,000 20-day avg vol 24,288,730 36,723,100 10,413,480 22,167,680 36,072,360 17,883,010 14,458,290 6,381,890 21,821,510 41,810,690 14,630,180 14,589,300 13,676,410 18,149,070 2,024,300 13,428,520 21,358,060 21,674,540 22,024,780 6,284,255 3,271,165 17,093,360 3,332,760 12,611,510 3,948,065 21,048,320 7,507,605 10,980,970 7,869,645 6,198,030 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
29. 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 AMTEK HLDGS MALAYAN UTD INDS PAN MALAYSIA NAKAMICHI CORP WIDETECH MALAYSI PANSAR ACME HOLDINGS BH BTM RESOURCES MALAYAN FLOUR PAN MALAYSIA HLD WCE HOLDINGS BHD ECM LIBRA FINANC PJBUMI BHD BISON CONSOLIDAT MARCO HOLDINGS B WATTA HLDG BHD PLB ENGINEER MUI PROPERTIES MESB BHD EP MANUFACTURING Raw data sourced from Bloomberg 20 Price 0.28 0.28 0.23 0.19 0.51 0.46 0.33 0.33 1.62 0.23 1.38 0.41 0.40 2.09 0.18 0.42 1.52 0.36 0.95 0.60 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 0.21 0.13 0.16 0.09 0.39 0.40 0.17 0.29 1.40 0.14 1.27 0.35 0.25 1.81 0.16 0.36 1.31 0.30 0.49 0.52 0.25 0.18 0.19 0.14 0.44 0.42 0.24 0.30 1.48 0.17 1.33 0.38 0.31 1.93 0.17 0.38 1.41 0.32 0.69 0.54 0.28 0.23 0.21 0.18 0.50 0.44 0.30 0.32 1.56 0.20 1.38 0.41 0.38 2.05 0.18 0.40 1.52 0.35 0.89 0.57 60.35 89.43 76.96 67.35 67.53 69.03 71.64 67.51 72.85 82.85 65.26 62.38 75.55 72.87 68.46 64.52 61.17 64.19 74.18 64.45 0.25 0.18 0.19 0.13 0.46 0.42 0.26 0.31 1.50 0.18 1.33 0.39 0.34 1.96 0.17 0.39 1.44 0.32 0.77 0.55 0.24 0.17 0.18 0.14 0.44 0.42 0.23 0.30 1.47 0.16 1.31 0.38 0.30 1.93 0.16 0.38 1.44 0.32 0.67 0.54 0.25 0.17 0.17 0.13 0.44 0.42 0.25 0.30 1.47 0.15 1.28 0.37 0.30 1.89 0.16 0.38 1.40 0.31 0.66 0.54 Vol 41,000 248,861,900 19,857,400 129,600 32,500 2,039,400 235,600 9,462,200 5,367,300 32,467,400 8,647,500 578,500 990,000 1,455,700 35,174,000 185,500 20,400 4,485,700 187,000 127,200 20-day avg vol 2,235 16,326,770 1,946,270 12,715 3,225 211,310 29,045 1,172,575 674,830 4,143,140 1,111,255 75,245 145,445 215,985 5,269,705 31,900 3,625 797,350 34,145 23,455 *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 20 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 GOODWAY INTEGRAT IOI CORP BHD UMS HLDGS BHD KECK SENG MALAYS SURIA CAPITAL ASTRO MALAYSIA BERJAYA SPORTS MKH BHD MAGNUM BHD BERJAYA LAND COMINTEL CORP BH YTL POWER INTL REACH ENERGY BHD SHH RESOURCES HL LAY HONG BHD CB INDUSTRIAL TH PLANTATIONS PRG HOLDINGS BHD JAYA TIASA HLDG TEO SENG CAPITAL 0.36 4.50 2.55 5.06 2.14 2.66 2.86 2.95 2.10 0.54 0.81 1.48 0.58 1.57 0.89 2.02 1.15 0.90 1.19 1.02 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 0.42 4.55 2.59 5.08 2.16 2.67 2.87 2.96 2.11 0.55 0.82 1.49 0.58 1.57 0.89 2.02 1.15 0.90 1.19 1.02 0.50 4.66 2.72 5.13 2.21 2.80 2.92 3.06 2.13 0.56 0.88 1.51 0.60 1.61 0.91 2.10 1.18 0.91 1.24 1.05 0.57 4.77 2.84 5.19 2.26 2.93 2.96 3.17 2.15 0.58 0.95 1.54 0.62 1.64 0.93 2.18 1.20 0.93 1.28 1.08 19.01 35.37 35.80 38.81 39.76 32.00 36.32 34.47 37.25 26.18 31.98 40.66 31.99 29.59 38.59 32.34 37.91 47.37 28.74 39.66 0.48 4.62 2.67 5.12 2.19 2.75 2.90 3.02 2.13 0.56 0.86 1.52 0.60 1.59 0.90 2.07 1.17 0.91 1.22 1.04 0.50 4.67 2.74 5.12 2.20 2.82 2.92 3.04 2.14 0.57 0.89 1.50 0.61 1.61 0.91 2.12 1.19 0.91 1.24 1.06 0.52 4.65 2.71 5.05 2.13 2.82 2.94 3.06 2.16 0.58 0.88 1.49 0.62 1.63 0.90 2.11 1.19 0.89 1.29 1.08 Vol 4,293,600 5,775,300 6,000 96,900 56,500 3,898,900 1,983,700 436,900 661,400 60,000 1,891,900 5,089,900 3,843,600 19,200 410,200 212,000 53,100 77,000 2,918,300 127,600 20-day avg vol 389,655 5,625,235 4,020 60,810 30,115 1,830,060 1,747,850 386,930 528,455 191,075 1,688,675 5,062,280 2,414,970 26,735 894,500 223,285 187,830 80,150 3,094,540 222,495 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
30. Wednesday , 12 April, 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
31. T e c h n i c a l TA Securities V i e w Wednesday , April 12, 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: 5,929.27 (+16.39, +0.28%) 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 www.taonline.com.my Close Bollinger Bands RSI Moving Averages DMI MACD Change High Low 11-Apr Lower Mid Upper 14d 10d 30d 50d DI + DI - ADX Diff Line Signal Diff 5929.27 16.39 5950.10 5898.10 5687.41 5821.40 5955.38 66.35 5880.10 5797.99 5768.65 35.88 15.18 25.23 20.70 40.66 32.07 8.594 25.41 62.03 86.10 34.87 31.81 33.01 44.60 33.76 24.61 8.96 6.01 13.06 7.46 5.29 3.87 89.35 13.46 18.08 7.53 10.70 15.24 4.84 1.80 14.12 3.92 12.40 -0.32 1.19 0.61 0.42 0.11 0.33 -0.15 0.55 0.11 -0.05 -0.09 0.13 0.01 0.02 0.00 0.65 0.27 0.23 0.04 0.01 -0.01 0.06 -0.01 0.14 -0.02 -0.16 25.54 62.51 86.34 35.00 32.03 33.18 44.95 33.97 24.74 9.02 6.08 13.11 7.54 5.34 3.93 89.60 13.48 18.10 7.62 10.79 15.37 4.88 1.81 14.18 3.97 12.48 25.12 61.30 85.27 34.47 31.56 32.61 44.23 33.56 24.31 8.96 5.96 12.96 7.45 5.24 3.86 88.51 13.16 17.66 7.51 10.63 15.17 4.77 1.78 13.91 3.91 12.32 23.33 58.76 82.68 33.48 30.83 31.52 43.19 30.21 21.19 8.42 5.85 12.60 6.40 4.89 3.58 86.66 12.80 17.30 6.71 10.22 14.29 4.42 1.73 13.59 3.76 12.12 24.43 60.78 84.94 34.51 31.63 32.61 44.32 31.89 22.87 8.79 6.31 12.86 6.94 5.10 3.75 88.56 13.13 17.70 7.14 10.56 14.92 4.63 1.80 13.93 3.89 12.50 25.54 62.79 87.19 35.53 32.42 33.70 45.45 33.56 24.55 9.15 6.78 13.12 7.49 5.31 3.92 90.45 13.46 18.10 7.58 10.91 15.55 4.83 1.86 14.28 4.03 12.88 57.97 53.87 59.18 56.37 55.43 57.10 56.52 74.00 76.16 59.49 40.19 58.21 73.01 68.35 56.90 56.49 59.58 53.74 71.61 58.08 66.09 70.90 47.18 59.32 58.00 48.05 24.52 60.65 85.80 34.80 31.82 33.03 44.78 32.60 23.40 8.95 6.19 12.90 7.18 5.19 3.81 89.08 13.12 17.72 7.34 10.72 15.18 4.71 1.80 14.06 3.94 12.46 24.54 60.81 84.52 34.52 31.59 32.61 44.06 31.57 22.38 8.74 6.33 12.81 6.76 5.06 3.71 88.33 13.22 18.01 7.08 10.50 14.70 4.63 1.83 13.91 3.85 12.57 25.18 63.02 83.99 33.95 30.96 32.07 43.22 31.61 22.56 8.83 6.50 12.69 6.85 5.07 3.80 87.26 13.25 18.22 7.06 10.32 14.62 4.59 1.87 13.65 3.70 12.36 35.46 31.07 26.19 29.96 24.99 27.93 22.32 42.20 40.27 26.29 16.11 29.55 44.47 30.02 30.04 24.03 29.81 24.95 34.76 25.26 27.98 33.57 23.37 21.07 21.10 24.72 20.95 27.98 19.22 25.32 21.90 22.05 20.90 12.91 12.64 13.74 34.12 18.51 14.85 12.15 18.71 21.92 23.32 20.77 12.14 16.51 15.35 10.50 25.91 16.92 18.70 23.80 15.00 15.90 15.45 16.17 17.70 19.13 19.39 26.66 24.99 27.95 25.34 16.93 28.15 21.20 16.07 11.30 14.26 18.03 24.58 24.31 23.30 26.12 10.83 19.67 24.61 12.06 14.51 3.08 6.96 4.64 3.09 5.88 1.42 29.30 27.63 12.55 (18.01) 11.04 29.62 17.87 11.33 2.11 6.49 4.19 22.62 8.75 12.63 23.07 (2.54) 4.15 2.41 0.91 0.00 -0.39 0.52 0.16 0.16 0.22 0.39 0.51 0.58 0.07 -0.10 0.07 0.18 0.06 0.02 0.39 -0.03 -0.13 0.12 0.12 0.20 0.05 -0.02 0.12 0.06 -0.01 -0.23 -0.67 0.51 0.21 0.22 0.26 0.45 0.29 0.36 0.03 -0.09 0.07 0.11 0.04 0.00 0.46 -0.06 -0.18 0.08 0.12 0.18 0.03 -0.02 0.13 0.07 0.00 0.222 0.281 0.015 (0.050) (0.054) (0.044) (0.062) 0.217 0.226 0.034 (0.013) 0.007 0.066 0.023 0.021 (0.068) 0.030 0.057 0.046 (0.001) 0.023 0.020 0.004 (0.011) (0.012) (0.007) DMI MACD DMI MACD Recent Signal Signal Change BUY BUY BUY BUY BUY BUY BUY BUY BUY - BUY BUY SELL BUY BUY SELL BUY BUY SELL BUY BUY SELL BUY BUY BUY BUY BUY BUY SELL SELL BUY BUY - BUY BUY BUY BUY BUY BUY BUY BUY SELL BUY BUY BUY BUY BUY BUY BUY BUY BUY BUY SELL - SELL BUY BUY BUY BUY SELL BUY BUY SELL BUY SELL BUY SELL - 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
32. 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 EPS ($) PER(x) Div Yield(%) 52week Price % Chg Close Target Price % upside 25.41 28.09 10% 62.03 70.93 13% 4.64 3.38 10.0 13.8 4.335 3.221 69.80 41.51 3.56 86.10 84.01 -2% 5.64 5.84 15.3 14.7 4.922 5.053 86.65 69.22 4.48 34.87 34.05 -2% 2.41 2.51 14.5 13.9 5.346 5.337 35.39 27.57 6.96 31.81 31.15 -2% 2.39 2.43 13.3 13.1 5.077 5.143 32.44 22.11 4.57 33.01 32.27 -2% 2.41 2.46 13.7 13.4 5.919 5.798 33.63 23.90 7.63 44.60 43.46 -3% 2.61 2.63 17.1 17.0 4.951 5.027 46.06 38.62 5.84 33.76 33.09 -2% 1.31 1.48 19.4 17.1 2.995 3.395 33.97 24.95 8.34 24.61 23.08 -7% 0.74 0.93 24.8 19.8 0.703 1.020 27.20 16.35 21.53 8.96 9.48 6% 0.33 0.36 20.4 18.7 2.857 2.913 11.14 8.21 -4.48 6.01 6.62 9% 0.86 0.51 5.2 8.9 5.458 3.328 7.27 2.70 2.04 13.06 13.64 4% 0.64 0.81 15.3 12.2 3.247 3.828 13.28 9.22 5.15 7.46 7.44 0% 0.32 0.57 23.3 13.2 0.000 1.314 7.54 4.55 13.20 5.29 5.31 0% 0.36 0.37 14.9 14.2 5.482 5.728 5.96 4.39 4.96 3.87 4.39 12% 0.14 0.19 20.3 15.0 0.956 1.990 5.07 3.30 -3.73 89.35 88.37 -1% 6.16 6.36 14.5 14.1 4.755 4.964 90.93 61.05 2.56 13.46 13.79 2% 0.90 0.97 14.9 13.8 5.401 5.832 13.95 11.27 -0.44 18.08 16.75 -8% 1.05 1.13 17.3 16.0 2.937 3.186 19.49 12.04 2.26 7.53 7.98 6% 0.22 0.26 26.2 22.1 1.169 1.408 7.75 6.16 5.02 10.70 9.92 -8% 0.57 0.60 18.7 18.0 4.477 4.607 10.87 7.94 5.73 15.24 15.97 5% 0.61 0.65 18.9 17.6 2.795 3.136 16.66 13.62 1.94 4.84 4.83 0% 0.32 0.34 15.1 14.4 5.310 5.517 5.11 4.03 5.68 2017 2018 2017 2018 2017 2018 High Low YTD 1.51 1.26 12.7 15.1 3.487 3.070 27.96 16.25 1.40 1.80 1.89 5% 0.11 0.10 12.6 14.2 5.794 5.738 2.04 1.19 -1.91 14.12 13.31 -6% 0.55 0.60 19.4 17.6 1.877 1.983 14.33 8.63 13.32 3.92 4.39 11% 0.53 0.53 7.44 7.41 3.750 4.592 4.08 2.58 17.72 12.40 12.42 0% 0.64 0.73 19.5 17.1 3.089 3.177 13.62 7.40 -3.35 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
33. T e c h n i c a l TA Securities V i e w Wednesday , April 12, 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: 24,088.46 (-173.72, -0.72%) THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Tel: +603-2167 9607 Stock Close Name 11-Apr HANG SENG 24,088.46 (173.72) 24,318.15 24,007.85 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 63.70 84.35 6.20 4.97 9.39 23.05 3.69 116.80 5.68 225.00 193.80 95.55 42.30 6.41 18.24 81.20 3.27 31.75 156.60 15.68 76.00 20.45 66.20 22.95 68.35 5.05 49.80 5.91 4.11 10.58 31.65 6.15 44.45 13.28 18.58 9.76 22.35 22.40 14.44 3.97 10.98 10.92 8.32 2.70 2.40 49.30 36.85 43.05 0.30 (1.05) (0.07) (0.07) (0.10) (0.25) (0.04) (0.80) (0.09) (1.40) (1.70) (0.15) (0.20) (0.07) (0.08) (1.25) (0.07) 0.10 (1.10) (0.22) (2.10) (0.20) (0.50) (0.05) (0.45) (0.03) 0.20 (0.03) (0.03) 0.02 (0.50) (0.11) 0.00 (0.20) (0.06) 0.01 (0.15) 0.00 0.04 (0.08) (0.18) (0.10) (0.07) (0.03) 0.00 (0.45) (0.35) (0.80) 63.80 85.55 6.30 5.07 9.52 23.30 3.73 117.80 5.77 228.00 195.90 96.35 42.75 6.51 18.50 82.20 3.35 31.85 157.90 15.92 77.30 20.70 67.10 23.25 68.85 5.10 50.20 5.97 4.29 10.72 32.25 6.33 44.70 13.52 18.76 9.84 22.60 22.60 14.64 4.07 11.14 11.06 8.44 2.74 2.40 49.85 37.65 44.05 63.25 84.30 6.16 4.96 9.35 22.75 3.66 116.10 5.65 224.20 193.40 95.20 41.95 6.35 18.10 81.15 3.27 31.30 156.10 15.66 75.20 20.30 66.10 22.75 68.05 5.03 49.55 5.86 4.02 10.40 31.50 6.13 44.05 13.16 18.44 9.69 22.10 22.15 14.30 3.92 10.72 10.82 8.28 2.70 2.38 49.05 36.60 42.75 Change High RSI Bollinger Bands Low Lower 23,887.30 62.70 82.68 6.19 4.98 8.80 22.96 3.69 112.08 5.62 216.59 192.33 94.94 41.96 5.80 16.02 77.90 3.18 31.51 156.44 14.86 76.39 19.96 65.80 21.41 66.29 4.91 45.56 5.89 3.87 9.63 31.59 6.13 41.77 13.11 17.30 9.53 21.04 21.37 13.75 3.67 10.95 10.84 8.27 2.66 2.31 48.61 33.90 39.01 Mid stsoo@ta.com.my Upper 14d 24,260.94 24,634.57 48.96 63.44 86.46 6.35 5.11 9.21 24.10 3.87 115.01 5.76 224.49 195.98 96.44 43.21 6.22 17.99 80.74 3.58 31.98 158.38 15.45 78.12 20.46 67.67 23.51 67.68 5.16 47.99 6.06 4.05 10.36 32.11 6.61 43.26 13.63 18.08 9.76 21.98 22.16 14.31 3.92 11.24 11.14 8.55 3.01 2.39 49.56 35.84 41.84 64.17 90.23 6.50 5.24 9.62 25.23 4.06 117.93 5.90 232.39 199.63 97.94 44.46 6.63 19.96 83.58 3.98 32.45 160.31 16.03 79.85 20.97 69.54 25.60 69.06 5.41 50.42 6.24 4.22 11.08 32.62 7.10 44.74 14.15 18.87 9.98 22.93 22.94 14.87 4.17 11.53 11.44 8.83 3.36 2.47 50.51 37.77 44.67 51.13 40.69 44.70 41.37 55.15 35.65 33.91 63.83 41.14 57.06 45.10 47.76 43.28 61.89 59.00 56.39 30.98 50.09 42.58 63.68 34.10 53.35 51.51 44.30 53.44 44.72 77.80 38.49 53.69 58.22 41.86 33.66 72.57 42.03 60.58 51.91 58.51 57.25 56.60 51.21 40.65 39.43 42.93 33.19 54.12 49.21 63.42 66.49 Moving Averages 10d 24,270.46 63.40 85.78 6.30 5.08 9.38 23.74 3.81 115.84 5.72 226.26 195.47 95.89 43.24 6.39 18.32 81.83 3.43 32.00 158.08 15.69 78.01 20.48 66.87 22.62 67.80 5.07 48.82 6.01 4.05 10.61 32.17 6.44 43.88 13.65 18.20 9.68 21.77 22.48 14.16 3.92 11.23 11.07 8.52 2.89 2.38 49.52 36.68 43.09 30d www.taonline.com.my DMI 50d DI + DMI MACD DI - ADX Diff Line Signal Diff MACD Recent Signal DMI MACD Signal Change 24,065.88 23,922.04 23.51 28.63 21.20 (5.12) 105.04 147.62 (42.577) SELL SELL SELL - 63.36 85.98 6.30 5.07 9.16 23.94 3.86 114.46 5.78 219.60 194.57 96.25 42.63 6.13 17.35 80.16 3.57 31.68 158.57 15.30 78.63 20.22 66.19 23.63 67.99 5.19 47.08 6.07 4.03 10.06 32.09 6.76 42.70 13.57 17.94 9.85 21.62 21.92 14.30 3.97 11.35 11.11 8.53 3.06 2.39 49.48 35.03 40.66 64.54 86.64 6.21 5.02 9.32 23.78 3.83 112.50 5.91 214.92 194.87 94.81 42.16 6.13 16.93 79.06 3.51 31.48 159.70 15.12 79.09 19.98 63.43 23.68 68.91 5.18 45.79 6.05 4.07 9.78 32.56 6.55 41.79 13.29 17.59 9.66 21.28 21.75 14.12 4.03 11.21 11.28 8.44 2.97 2.37 48.92 34.03 38.78 22.51 27.14 23.43 29.46 16.90 28.32 35.45 14.80 24.63 19.68 20.76 21.83 18.73 15.43 20.27 17.25 31.08 26.41 24.73 13.00 30.96 23.44 16.95 24.48 15.03 23.29 12.96 27.73 16.93 15.52 20.16 25.69 11.88 20.30 11.67 19.36 19.66 11.83 15.53 20.43 29.58 26.84 21.44 25.94 17.94 22.03 12.53 9.79 7.76 17.30 16.10 18.29 23.03 17.86 23.21 28.32 16.46 25.04 13.25 22.16 31.35 30.44 29.84 40.33 25.38 19.03 17.79 43.02 13.34 20.65 31.68 23.42 19.34 22.10 39.95 13.63 12.16 40.83 13.90 23.21 51.69 26.05 26.24 18.15 19.53 19.72 17.70 15.54 15.78 21.65 16.70 29.27 27.65 18.38 36.54 52.31 0.98 (9.12) (5.79) (8.29) 10.14 (11.59) (16.97) 9.23 (6.75) 6.46 (3.90) (7.49) 0.05 13.12 10.90 6.07 (16.36) (11.81) (13.33) 10.50 (16.40) 1.59 3.92 (3.43) 4.59 (8.72) 20.98 (11.46) 13.39 7.60 (7.10) (11.35) 21.25 (4.74) 19.28 0.64 9.95 6.26 9.60 4.27 (12.96) (14.79) (2.01) (9.86) 13.13 (1.26) 14.23 17.14 -0.19 -0.29 0.00 0.00 0.06 -0.11 -0.03 1.30 -0.05 3.64 0.26 0.12 0.19 0.12 0.46 0.96 -0.07 0.15 -0.37 0.22 -0.42 0.18 0.76 -0.32 -0.02 -0.04 1.09 -0.03 0.02 0.29 -0.09 -0.12 0.73 0.07 0.28 0.00 0.25 0.26 0.02 0.00 -0.03 -0.07 0.01 -0.08 0.00 0.17 0.89 1.39 0.090 (0.235) (0.027) (0.025) 0.045 (0.157) (0.030) 0.101 0.005 (0.557) (0.235) (0.271) (0.208) 0.026 (0.057) (0.012) (0.047) (0.084) (0.159) 0.022 (0.088) (0.047) (0.503) (0.041) 0.224 (0.015) 0.056 (0.025) 0.015 (0.006) (0.022) (0.069) 0.029 (0.074) 0.042 (0.013) 0.013 (0.010) (0.007) 0.024 (0.030) (0.011) (0.038) (0.056) 0.001 (0.079) 0.096 (0.014) BUY SELL SELL SELL BUY SELL SELL BUY SELL BUY SELL SELL BUY BUY BUY BUY SELL SELL SELL BUY SELL BUY BUY SELL BUY SELL BUY SELL BUY BUY SELL SELL BUY SELL BUY BUY BUY BUY BUY BUY SELL SELL SELL SELL BUY SELL BUY BUY BUY SELL SELL SELL BUY SELL SELL BUY BUY SELL SELL SELL SELL BUY SELL SELL SELL SELL SELL BUY SELL SELL SELL SELL BUY SELL BUY SELL BUY SELL SELL SELL BUY SELL BUY SELL BUY SELL SELL BUY SELL SELL SELL SELL BUY SELL BUY SELL BUY SELL SELL BUY SELL SELL - SELL SELL SELL SELL BUY SELL BUY SELL 23.48 18.02 17.65 21.16 27.04 16.73 18.49 24.04 17.88 26.14 16.86 14.35 18.78 28.55 31.17 23.32 14.71 14.61 11.41 23.50 14.56 25.03 20.87 21.05 19.62 14.57 33.94 16.27 30.32 23.12 13.06 14.33 33.13 15.56 30.95 20.00 29.62 18.09 25.14 24.70 16.62 12.04 19.43 16.09 31.07 20.76 26.77 26.93 -0.28 -0.06 0.03 0.02 0.01 0.05 0.00 1.20 -0.06 4.20 0.50 0.39 0.40 0.09 0.51 0.97 -0.03 0.24 -0.21 0.20 -0.33 0.23 1.26 -0.28 -0.24 -0.03 1.03 -0.01 0.00 0.29 -0.07 -0.05 0.71 0.14 0.24 0.01 0.24 0.27 0.03 -0.02 0.00 -0.06 0.05 -0.02 0.00 0.24 0.80 1.40 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 2
34. 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 63.70 62.70 -2% 0.6 0.6 13.9 12.7 0.8 0.8 69.10 44.50 2.33 84.35 106.47 21% 5.7 6.1 13.2 12.3 3.1 3.4 99.30 80.30 2.62 6.20 7.56 18% 0.9 1.0 5.9 5.5 4.6 4.8 6.55 4.50 3.85 4.97 6.10 19% 0.8 0.8 5.6 5.4 4.7 4.9 5.27 3.82 9.39 11.10 15% 0.6 0.8 N/A 10.7 3.5 3.7 10.88 8.70 -3.20 23.05 28.37 19% 0.9 1.1 22.2 18.3 1.4 1.5 25.50 16.00 14.11 3.69 4.52 18% 0.6 0.6 5.7 5.3 4.8 5.1 4.08 2.90 7.27 116.80 129.67 10% 8.8 9.5 13.3 12.3 3.4 3.6 123.30 85.40 19.18 0.3 0.4 19.7 12.8 1.9 3.0 6.38 6.88 5.68 7.00 19% 4.86 -1.73 225.00 257.19 13% 6.1 7.9 32.6 25.4 0.3 0.4 230.20 152.20 18.61 193.80 197.21 2% 5.7 6.3 34.2 30.8 2.6 2.9 213.20 175.00 5.79 95.55 114.23 16% 9.2 10.0 10.3 9.5 3.0 3.3 103.90 80.60 8.70 42.30 44.95 56.85 26% 3.7 4.1 10.2 9.3 1.7 1.8 32.50 9.02 6.41 7.36 13% 0.4 0.5 12.9 11.3 3.9 4.5 6.57 4.96 16.55 18.24 19.12 5% 1.5 1.5 10.5 10.9 3.1 3.1 19.78 11.40 24.93 81.20 79.27 -2% 5.0 5.2 16.1 15.6 3.5 3.6 84.35 69.65 13.96 3.27 3.17 -3% 0.0 0.0 15.0 13.6 0.8 0.8 5.15 3.24 -4.11 31.75 35.85 11% 2.6 2.9 12.1 11.1 4.2 4.4 32.55 21.01 14.41 156.60 154.98 -1% 9.3 10.2 4.3 164.40 127.60 8.52 15.68 12.85 -22% 0.6 0.6 26.3 25.2 2.4 2.5 15.92 12.93 14.12 76.00 77.17 2% 5.0 5.2 15.3 14.5 3.6 3.8 94.40 72.20 2.63 20.45 19.66 -4% 1.2 1.1 17.0 18.9 66.20 66.22 0% 4.7 4.8 14.2 13.7 3.3 3.5 69.95 40.05 28.42 22.95 28.85 20% 3.2 3.6 7.1 6.3 3.7 4.2 27.85 20.15 11.68 68.35 74.22 8% 3.4 3.5 20.0 19.3 4.1 4.1 75.73 62.78 6.96 5.05 4.93 -2% 0.4 0.4 11.2 11.2 4.9 4.9 5.79 4.07 15.83 49.80 48.82 -2% 3.3 3.2 15.5 3.1 3.1 50.20 39.64 5.91 6.08 3% 0.9 0.9 5.9 5.6 4.6 4.9 6.44 4.46 5.35 4.11 4.62 11% 0.3 0.3 13.3 13.7 1.9 1.7 4.88 2.92 11.68 10.58 12.18 13% 0.2 0.4 40.9 22.7 0.8 1.4 11.20 7.70 17.17 31.65 25.72 14.5 17.9 3.0 2.6 34.75 26.35 16.9 15.1 15.4 4.0 3.7 3.7 20.95 13.64 24.39 20.73 -23% 2.2 1.8 6.15 5.89 -4% 0.0 0.2 N/A 38.2 0.0 1.2 7.62 5.34 0.99 44.45 39.58 -12% 1.6 1.6 28.0 27.2 7.4 2.5 44.70 35.53 17.90 13.28 13.64 3% 0.8 0.8 15.8 16.0 3.8 3.9 14.48 10.96 14.29 18.58 18.95 2% 0.6 0.7 29.2 25.1 1.1 1.2 19.22 13.29 20.65 9.76 11.22 13% 0.8 0.8 12.6 11.9 4.5 4.5 10.46 6.91 19.02 22.35 28.19 21% 2.8 3.2 8.1 7.0 22.40 24.61 9% 1.6 1.7 13.8 13.4 3.3 3.6 24.95 18.80 16.42 14.44 14.78 2% 1.4 1.5 10.3 9.6 5.7 5.9 15.50 10.70 17.21 24.06 3.5 4.1 23.85 16.50 6.57 28.15 3.97 4.49 12% 0.2 0.2 17.7 16.2 0.3 0.5 4.45 2.25 10.98 10.03 -9% -0.1 0.2 N/A 44.6 0.5 0.8 13.50 10.00 7.65 10.92 12.35 12% 1.6 1.7 7.0 6.5 3.1 3.9 12.78 10.54 -1.62 8.32 9.10 9% 0.1 0.1 13.6 12.4 0.4 0.4 9.48 7.28 6.80 3.07 43.4 13.9 0.4 0.5 2.31 10.20 12% 0.0 0.0 2.40 2.45 2% 0.0 0.0 N/A N/A 0.0 0.0 3.00 2.00 6.19 49.30 2.70 56.81 13% 0.4 0.4 17.1 15.5 0.3 0.3 54.15 3.35 42.30 12.69 36.85 38.10 3% 0.2 0.2 24.3 21.8 0.7 0.7 39.30 24.60 9.35 43.05 43.16 0% 1.6 1.8 26.4 24.4 1.1 1.3 44.05 21.73 28.17 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
35. T e c h n i c a l TA Securities V i e w Wednesday , April 12, 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: 3,174.75 (-6.70, -0.21%) 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 11-Apr Lower Mid Upper 14d 3,174.75 (6.70) 3,186.46 3,164.21 3,121.72 3,162.62 3,203.52 57.55 3.88 19.16 9.59 21.97 65.70 3.49 7.73 3.67 1.07 6.91 7.58 10.19 2.30 0.18 10.47 41.91 3.56 45.98 0.37 3.70 1.95 2.00 3.15 1.87 2.63 2.87 3.69 0.50 1.16 (0.01) 0.03 (0.06) 0.00 (1.08) (0.03) (0.04) (0.02) (0.01) (0.05) (0.05) (0.02) 0.00 (0.00) 0.20 0.41 0.06 0.58 (0.01) 0.03 (0.01) 0.02 0.01 0.01 0.00 0.03 0.02 (0.01) 0.01 3.91 19.19 9.64 22.01 66.44 3.54 7.80 3.72 1.08 6.95 7.65 10.23 2.31 0.19 10.49 41.91 3.56 46.38 0.38 3.70 1.96 2.00 3.16 1.89 2.63 2.89 3.69 0.52 1.18 3.88 19.01 9.55 21.75 65.68 3.49 7.70 3.65 1.05 6.85 7.53 10.10 2.29 0.18 10.39 41.42 3.50 45.24 0.37 3.66 1.94 1.98 3.14 1.87 2.59 2.84 3.67 0.49 1.15 3.86 18.64 9.49 21.54 64.09 3.47 6.97 3.61 0.97 6.69 7.47 9.89 2.07 0.18 10.10 38.78 3.50 43.62 0.37 3.60 1.85 1.92 3.09 1.83 2.46 2.82 3.65 0.50 1.10 3.92 19.07 9.64 21.88 65.72 3.55 7.45 3.68 1.01 6.85 7.64 10.10 2.26 0.19 10.34 41.13 3.55 44.93 0.38 3.68 1.91 1.96 3.16 1.88 2.57 2.87 3.68 0.52 1.13 3.99 19.51 9.80 22.22 67.35 3.64 7.93 3.75 1.06 7.01 7.80 10.31 2.45 0.21 10.57 43.49 3.61 46.24 0.39 3.76 1.98 1.99 3.23 1.92 2.67 2.92 3.71 0.54 1.17 42.01 54.15 47.03 58.92 52.25 38.67 69.95 52.33 71.15 54.64 46.95 56.78 61.52 36.07 61.68 57.68 53.78 60.49 36.54 55.72 51.91 66.66 46.59 54.15 63.98 50.58 54.18 32.02 61.03 stsoo@ta.com.my Moving Averages 10d 30d 50d DI + 3,178.51 3,152.47 3,127.05 24.29 DI 24.00 ADX 17.15 3.91 19.23 9.70 22.02 65.49 3.54 7.68 3.68 1.03 6.90 7.69 10.19 2.32 0.19 10.29 42.03 3.56 45.11 0.38 3.68 1.94 1.97 3.16 1.88 2.61 2.87 3.69 0.52 1.15 18.28 24.32 25.12 22.68 16.70 22.88 9.80 14.56 9.63 21.75 20.48 17.35 15.61 27.04 15.35 12.77 20.61 13.29 21.55 22.32 15.48 8.10 19.50 19.88 15.33 21.15 10.37 29.65 8.70 10.76 (1.23) -0.01 11.54 (0.87) 0.08 12.45 (8.41) 0.03 21.81 (2.04) 0.14 16.95 1.76 0.39 22.55 (9.47) -0.04 45.02 22.96 0.20 22.21 5.12 0.03 26.38 20.85 0.02 19.09 7.01 0.04 17.73 0.18 0.03 12.47 (0.49) 0.07 39.45 19.77 0.05 23.06 (12.95) -0.01 33.34 14.79 0.14 35.83 16.14 0.72 24.35 1.04 0.01 14.96 13.28 0.59 20.05 (7.81) -0.01 16.96 3.20 0.02 21.87 1.23 -0.01 19.78 9.48 0.01 12.24 (0.65) -0.01 29.14 10.93 0.02 19.89 8.78 0.04 12.15 (2.65) 0.00 21.11 3.16 0.01 11.93 (15.31) -0.01 44.86 16.75 0.03 3.92 19.07 9.61 21.76 65.65 3.57 7.29 3.66 1.01 6.89 7.59 10.05 2.20 0.20 10.17 40.61 3.53 44.63 0.38 3.68 1.94 1.95 3.19 1.90 2.55 2.87 3.69 0.52 1.12 3.93 18.92 9.59 21.48 64.67 3.68 7.09 3.60 1.00 6.74 7.58 9.98 2.16 0.20 9.87 39.62 3.51 43.53 0.39 3.60 1.98 1.96 3.19 1.76 2.50 2.85 3.67 0.53 1.03 17.06 23.46 16.71 20.64 18.47 13.41 32.75 19.69 30.48 28.76 20.66 16.86 35.38 14.09 30.14 28.91 21.65 26.58 13.74 25.52 16.71 17.58 18.85 30.81 24.11 18.50 13.53 14.34 25.45 DMI www.taonline.com.my Diff 0.29 MACD DMI MACD DMI MACD Line Signal Diff Recent Signal Signal Change 16.46 17.67 (1.212) BUY SELL 0.00 0.09 0.04 0.16 0.42 -0.04 0.18 0.04 0.01 0.05 0.04 0.06 0.05 0.00 0.16 0.81 0.01 0.53 -0.01 0.02 -0.02 0.00 -0.01 0.03 0.03 0.00 0.01 0.00 0.04 (0.006) (0.012) (0.009) (0.019) (0.031) 0.005 0.014 (0.006) 0.005 (0.004) (0.011) 0.002 (0.003) (0.000) (0.028) (0.092) (0.006) 0.054 (0.001) (0.009) 0.012 0.004 (0.002) (0.011) 0.006 (0.003) (0.003) (0.002) (0.005) SELL SELL SELL SELL BUY SELL BUY BUY BUY BUY BUY SELL BUY SELL BUY BUY BUY BUY SELL BUY BUY BUY SELL BUY BUY SELL BUY SELL BUY SELL SELL SELL SELL SELL SELL BUY BUY SELL BUY SELL SELL BUY SELL SELL SELL SELL SELL BUY BUY SELL SELL BUY BUY SELL SELL BUY SELL SELL SELL SELL - - 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
36. 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 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 3.88 4.24 19.16 9.59 YZJSGD SP YZJ % upside EPS ($) PER(x) Div Yield(%) % Chg 52week Price 2017 2018 2017 2018 2017 2018 High Low YTD 9% 0.2 0.3 16.0 15.0 4.6 4.8 4.36 3.59 6.30 19.44 1% 1.789 1.963 10.7 9.8 3.2 3.3 19.42 14.63 10.50 9.57 0% 0.9 0.9 11.2 10.2 3.8 4.0 9.78 8.21 7.51 21.97 21.18 -4% 1.9 2.1 11.4 10.6 3.3 3.4 22.15 17.41 7.70 65.70 63.99 -0.03 4.1 4.4 16.0 14.9 2.4 2.5 67.27 52.42 18.91 3.49 3.86 10% 0.2 0.2 12.6 11.8 2.0 2.2 4.00 2.96 -2.79 7.73 7.43 -4% 0.4 0.4 19.7 19.0 2.5 2.5 7.80 5.79 22.12 3.67 4.06 10% 0.2 0.2 17.3 17.8 2.8 2.8 3.79 2.85 21.52 1.07 1.06 -1% 0.0 0.0 30.4 28.0 2.7 2.8 1.09 0.69 17.68 6.91 6.99 1% 0.5 0.6 13.7 12.5 3.2 3.5 7.23 5.10 19.34 7.58 7.94 5% 0.3 0.4 22.6 20.9 3.9 4.2 8.05 6.96 5.87 10.19 9.76 -4% 0.4 0.4 23.1 23.5 3.5 2.6 11.67 9.60 5.38 2.30 2.19 -5% 0.1 0.1 29.9 30.3 1.9 1.9 2.41 1.92 10.05 0.18 0.22 0.17 0.0 0.0 8.7 5.9 0.0 0.0 0.36 0.11 7.65 10.47 10.78 3% 0.6 0.7 16.3 15.1 1.4 1.4 10.65 7.86 26.45 41.91 41.25 -2% 2.8 3.0 15.2 14.1 0.8 0.8 43.78 27.35 26.23 3.56 3.19 -12% 0.2 0.2 23.3 23.3 4.8 4.6 4.13 3.45 0.85 45.98 50.63 9% 2.2 2.5 14.7 13.4 1.9 2.1 46.38 31.60 11.52 0.37 0.39 6% 0.0 0.0 16.2 14.4 1.9 1.9 0.45 0.33 -15.12 3.70 3.62 -2% 0.2 0.2 21.4 20.4 4.2 4.3 3.78 3.01 14.55 1.95 1.99 2% 0.1 0.1 14.4 13.9 2.5 2.5 2.17 1.58 -1.02 2.00 2.13 6% 0.1 0.1 17.5 17.1 5.5 5.5 2.25 1.87 5.84 3.15 3.56 11% 0.2 0.3 13.2 10.9 2.9 3.3 3.38 2.44 10.53 1.87 1.66 -12% 0.1 0.1 35.3 27.1 1.4 1.7 2.09 1.22 35.51 2.63 2.94 11% 0.2 0.2 16.8 16.1 4.2 4.6 3.02 2.37 6.48 2.87 2.61 -10% 0.2 0.2 17.7 18.6 5.6 5.5 3.97 2.73 2.14 3.69 3.55 -4% 0.2 0.2 24.0 23.8 4.1 4.0 3.91 3.35 9.50 0.50 0.59 16% 427 500 11.0 9.4 14958 16737 0.60 0.44 -5.71 1.16 1.07 -8% 0.5 0.5 11.7 12.2 16.9 16.9 1.19 0.71 41.72 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 2 of 2