Bursa Malaysia Daily Market Report - 18 June

Transcription

1. Monday , 18 June, 2018 TA RESEARCH’S ‘DAILY COMPILED REPORTS’ For Internal Circulation Only N ew s 1 . Da ily M a rk e t C o m m e n ta r y 2 . We e k ly S t ra t e g y 3 . We e k ly T e c h n ic a l O u t lo o k Fu nd a me n tal Rep o r ts 1 . M IS C Be r h a d : Wa it in g f o r I n f le c t io n Po in t in C h a r te r R a te s 2 . P la n t a t io n S e c t o r : E U T o Ph a se O u t Pa lm O il F ro m T ra n sp o rt F u e l By 2 0 3 0 Te ch n ic al R ep o rt s 1 . We e k ly T e c h n ic a l S to c k Wa tc h 2 . Da ily M o n e y F lo w o f T e c h n ic a l S to c k W a tc h FBMKLCI 3 . T o p 1 4 S to c k P ic k s f o r G E 1 4 4 . We e k ly A c e M a r k e t S to c k W a tc h 5 . We e k ly S m a l l C a p S to c k Wa tc h 6 . We e k ly S to c k Sc re e n Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ 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. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my
2. Daily Market Commentary Monday , 18 June 2018 TA Research, e-mail : taresearch@ta.com.my For Internal Circulation Only KLSE Market Statistics (14.06.2018) Volume (mil) +/-chg (RMmn) Main Market 1,081.6 Warrants 249.0 ACE Market 286.8 Bond 0.3 ETF 0.1 LEAP 0.0 Total 1,617.8 Off Market 17.3 -310.7 -203.5 14.9 0.1 0.1 (0.0) 2,921.3 56.2 44.2 0.1 0.2 0.0 3,021.9 -116.3 17.1 1037.5 -32.3 -4.2 0.0 0.2 0.0 -24.4 Major Indices Index +/- chg 1,761.78 -1.79 12,378.78 -13.37 14,578.57 109.34 1,760.50 -5.00 FBMKLCI FBMEMAS FBMSCAP Jun Futures Other Markets DOW JONES 25,090.48 NASDAQ (US) 7,746.38 FTSE (UK) 7,633.91 NIKKEI (JAPAN) 22,851.75 KOSPI (KOREA) 2,404.04 HANG SENG (HK) 30,309.49 FSSTI (S'PORE) 3,356.73 SET (BANGKOK) 1,704.82 JCI (JAKARTA) 5,993.63 SHANGHAI 3,021.90 SHENZHEN 1,691.65 AUSTRALIA 6,094.03 (mn) 10.7 1.7 1.7 1.0 1.0 (RM) @ @ @ @ @ -84.83 -14.66 -131.88 113.14 -19.44 -130.68 -73.96 -5.04 0.00 -22.26 -30.24 77.39 2.70 0.23 0.15 0.19 1.77 0.23 1.87 0.99 224 81 53 1 1 1 361 232 111 27 1 1 0 372 % chg -0.10 -0.11 0.76 -0.28 % YTD chg -1.95 -4.36 -14.50 -1.37 -0.34 -0.19 -1.70 0.50 -0.80 -0.43 -2.16 -0.29 0.00 -0.73 -1.76 1.29 1.50 12.21 -0.70 0.38 -2.57 1.30 -1.36 -2.79 -5.70 -8.63 -10.94 0.48 0.80 1.45 0.22 0.10 4.50 Counter PBBANK CIMB AXIATA DIGI PETGAS GENTING GENM MISC PPB HLFG Mkt Cap. Chg (RM’mn) (RM) 92,830 55,914 43,167 34,832 34,628 32,761 28,802 26,024 23,497 21,439 -0.04 -0.11 -0.03 -0.04 -0.56 -0.09 -0.14 -0.03 -0.06 -0.08 Important Dates CCMDBIO - 4:3 Bonus Issue - BI of up to 371.9m shares. 4 bonus shares for every 3 existing shares held. Ex-Date: 14/06/2018. Entitlement Date: 19/06/2018. LISTING ON: 20/06/2018. Conflicting signals from technical indicators for the FBM KLCI following last week's correction suggests uncertainty in near-term direction, hence investors can expect further choppy trading this week. On the external front, while the hawkish tone from the US Federal Reserve which raised interest rates by 25 basis points, as expected, but guided for total of four rate hikes instead of three this year, should be offset by the more dovish statement by the ECB which proposed a delay in raising rates even after ending its bond buying program by year-end, renewed fears of a global trade war spawned by heavy tariffs on China's imports worth as much as USD50bn by the US which should most certainly trigger retaliatory measures from China, cautious investor sentiment should prevail for another week. On the index, immediate supports remain at the recent intra-day lows of 1,751, 1,738 and 1,725, with crucial support from the Dec 2017 low of 1,708. Immediate resistance stays at 1,802, the recent pivot high matching the 50%FR of the Dec 2017 low of 1,708 to the April 2018 high of 1,896, followed by the 38.2%FR (1,824) and 23.6%FR (1,852). Stock-wise, heavily bashed down construction related counters like Gadang and Sunway Construction offer attractive bargains for recovery upside, while export-related stocks such as Globetronics, Inari, MPI, SKP Resources, Unisem and VS Industry may attract profit-taking to consolidate their recent strong gains. Top 10 KLCI Movers Based on Mkt Cap. Off Market G3 CSCENIC PERMAJU AKNIGHT PMETAL Review & Outlook Value Value/ +/-chg Volume Up Down Vol. (mn) 8.09 19.76 7.69 7.19 1.48 5.73 9.71 3.46 2.61 0.50 News Bites • Hap Seng Plantations Holdings Bhd's plan to acquire a 55% stake in Kretam Holdings Bhd for RM1.2bn has fallen through. • Asdion Bhd's 49% associate Renox Stainless Steel Co Ltd has inked a distribution agreement with Evoguard of the Krones Group AG in Germany. • Dutaland Bhd said it will receive 12 vacant luxury residences worth RM45.4mn as part of a settlement of debt owed to its unit by listed firm Olympia Industries Bhd. • Yinson Holdings Bhd has entered into a heads of terms to engage in exclusive negotiations for the potential supply and charter of a floating production storage and offloading (FPSO) unit to a Nigerian oil and gas company. • Datasonic Group Bhd will have to relook at its initial expectation of surpassing RM100mn mark of net profit in its financial year ending March 31, 2019. • Iris Corporation Bhd expects to raise gross proceeds of RM59.3mn from the proposed issuance and allotment of 494.4mn new ordinary shares. • Nexgram Holdings Bhd has disposed of its entire equity interest in six subsidiaries, in an effort to streamline its business activities with the intention to focus on property development. • JMR Conglomeration Bhd's largest shareholder, JMR Consolidated Holdings Sdn Bhd, has disposed of 14.5mn shares or an 11.4% stake in the group to Mayapada Capital Sdn Bhd. • Bank of Japan maintained its monetary stimulus and lowered its inflation forecast. • President Donald Trump approved tariffs on about $50bn of Chinese goods. Beijing retaliated by targeting high-value American exports. • China's central bank kept its short-term borrowing costs unchanged after the U.S. Federal Reserve decided to hike its rate for the second time this year. • Australian employment rose by less-than-expected in May. • Americans spent a big chunk of their pay checks on retail goods in May. • U.S. household confidence rose in the beginning of June as Americans felt better about their current economic situation. • The governing council of the European Central Bank (ECB) said last Thursday that the bank will leave its interest rates at current levels and it will wind down its current asset purchase program (quantitative easing, or QE) at the end of September. Exchange Rate PASDEC - 2:5 Rights Issue - RI of 114.4m shares together with USD/MYR 3.9995 3.985 114.4m free detachable warrants. USD/JPY 110.65 110.000 2 rights shares for every 5 existing shares held, at an issue price of EUR/USD 1.160 1.1824 RM0.35 per rights share, together with 1 warrant for every 1 rights share subscribed. LISTING ON: 18/06/2018. Disclaimer Commodities Futures Palm Oil (RM/mt) 2,338.00 2338.00 Crude Oil (Brent) 73.03 75.90 Gold ($/tr.oz.) 1,282.00 1305.90 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. Kaladher Govindan, Head of Research MENARA TA ONE, 22 JALAN for TA SECURITIES HOLDINGS BERHAD (14948-M) A PARTICIPATING ORGANISATION OF BURSA MALAYSIA SECURITIES BHD P RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL : 603 - 2072 1277. FAX : 603 - 2032 5048 www.ta.com.my
3. Monday , June 18, 2018 FBMKLCI: 1,761.78 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Weekly Strategy Market View, News in Brief: Corporate, Economy, and Share Buybacks Kaladher Govindan Tel: +603-2167 9609 kaladher@ta.com.my www.taonline.com.my M a r k e t V i e w Trade War to Sustain Downside Pressure The local benchmark FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) pulled back last week, adversely affected by the more hawkish tone from the U.S. Federal Reserve, which raised interest rates by 25 basis points to the target rate of 1.75 to 2 percent. The US central bank also guided for two more rate hikes for this year, shifting up the year’s dot plot from three to four rate hikes, which raised concerns higher rates will adversely impact global growth. Trading for the week totaled three and a half days ahead of the extended weekend holiday to observe the Hari Raya Aidilfitri. For the week, the FBM KLCI shed 16.54 points, or 0.9 percent to 1,761.78, with falls on HLFG (-60sen), Public Bank (-56sen), Petronas Gas (-36sen), CIMB (-35sen) and MISC (29sen) contributing most to the loss. Average daily traded volume and value last week slowed to 2.17 billion shares worth RM2.46 billion, compared to 3.23 billion shares and RM2.84 billion respectively the previous week. The FBMKLCI succeeded in erasing most of its losses last Friday after the US Federal Reserve gave a hawkish guidance by signaling two more hikes for this year after raising rates last week. However, the benchmark index’s ability to absorb foreign selling pressure is expected to be tested again this week with rising geopolitical tension contributing to the unwavering strength of the US dollar. The greenback weakened initially post last Friday’s announcement from the Trump administration to impose tariffs on USD50 billion worth of imports from China effective 6 July but regained its strength after the European Central Bank gave a dovish guidance by postponing its rate hike decision to next summer despite ending its bond buying program this December. Market was expecting it to raise interest rates early next year. Euro’s weakness and US dollar’s strength will be amplified in the coming weeks, if the news about a rift among German’s ruling coalition over its migration policy is true. A breakup between the Christian Democratic Union, which is led by the German Chancellor Angela Merkel, and its sister party Christian Socialist Union will lead to a snap election that should further strengthen the US dollar at the expense of euro as investors switch to other safe haven currencies. The ongoing trade war will add to current uncertainty. In a tit-for-tat move China published its retaliatory list last Saturday to impose tariff on USD34 billion worth of imports from the US. The risk of escalation to a second round of tariff hike is imminent as President Trump has already indicated previously about the possibility of imposing it on additional USD100bn worth of imports. Ability for China to retaliate in equal proportion is limited as its total imports from the US only amounted to USD130 billion in 2017 versus US’ USD506 billion. This trade war will not only affect the world’s two largest economies but everyone. Page 1 of 6
4. 18-Jun-18 As it is , signs of weakness in China’s economy are already emerging, no thanks to the government’s deleveraging measures to reign in on private debts, with retail sales growing by just 8.5% year-on-year in May, the slowest rate in 15 years, and the fixed-asset investment expanding by 6.1% in the first five months, the slowest on record since 1998. So, when the China’s central bank did not react to the US Fed’s recent monetary tightening move, it only strengthened that view that the government does not want to trigger debt defaults and contribute to further economic weakness. However, the decision to stay pat could lead to foreign outflow and yuan volatility that could be stabilized by depleting its foreign reserves, which are already under pressure as the trade surplus it enjoyed for decades should shrink with the US consistently pushing for a more balanced trade. Being a trading nation, with China as it single largest trading partner, and having sizeable foreign exposure in its capital market, Malaysia’s economy and equity market respectively cannot escape the vagaries of the external economy. Thus, the FBMKLCI could remain under foreign selling pressure in the short-term until there is clarity in not only external issues but also on domestic policy measures. On the brighter side, any move by OPEC and its non-OPEC allies to maintain production cuts in the 22 June meeting is positive for crude oil price and ringgit, and vice versa. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ 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. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 2 of 6
5. 18-Jun-18 N e w s I n B r i e f Corporate Hap Seng Plantations Holdings Bhd ’s plan to acquire a 55% stake in Kretam Holdings Bhd for RM1.2bn has fallen through. Hap Seng Plantations said it decided not to proceed with the deal after it found the results of the due diligence of Kretam to be “unsatisfactory and unacceptable”. Accordingly, it said it has exercised its right to terminate the share sale agreements with immediate effect, with which the group will not extend the proposed mandatory general offer for all the remaining Kretam shares not included in the deal, for a cash consideration of 92 sen per share. (Bursa Malaysia / The Edge) Asdion Bhd’s 49% associate Renox Stainless Steel Co Ltd has inked a distribution agreement with Evoguard of the Krones Group AG in Germany to distribute Evoguard's commercial valves in Thailand's food and beverage market. The agreement grants Renox the right to distribute the said products for a year and six months. (Bursa Malaysia / The Edge) Dutaland Bhd said it will receive 12 vacant luxury residences worth RM45.4mn as part of a settlement of debt owed to its unit by listed firm Olympia Industries Bhd. The group said the luxury residences, which come with 39 car park bays, are located within Taman UThant next to Ampang Hilir in Kuala Lumpur. (Bursa Malaysia / The Edge) Yinson Holdings Bhd has entered into a heads of terms to engage in exclusive negotiations for the potential supply and charter of a floating production storage and offloading (FPSO) unit to a Nigerian oil and gas company. The FPSO unit will process the hydrocarbons from the Anyala & Madu fields. The initial term of the bareboat charter is expected to be for seven years and First E&P may extend the term of the charter for another eight years in total. (Bursa Malaysia / The Edge) Datasonic Group Bhd will have to relook at its initial expectation of surpassing RM100mn mark of net profit in its financial year ending March 31, 2019 after the change of government following Pakatan Harapan's victory in the May 9 general election Managing director Datuk Abu Hanifah Noordin remains optimistic that Datasonic's offering will remain appealing to the new government. (Bursa Malaysia / The Edge) Iris Corporation Bhd expects to raise gross proceeds of RM59.3mn from the proposed issuance and allotment of 494.4mn new ordinary shares. Iris said this represented 20% of the total number of issued shares of the company at an issue price of RM0.12 per subscription share to be satisfied in cash. The subscription shares are proposed to be placed out to Datuk Sri Robin Tan Yeong Ching, Chief Executive Officer and Executive Director of Berjaya Corporation Bhd, as well as, two other parties, namely, Datuk Poh Yang Hong and Datuk Rozabil @ Rozamujib Bin Abdul Rahman. (Bursa Malaysia / Bernama) Nexgram Holdings Bhd has disposed of its entire equity interest in six subsidiaries, in an effort to streamline its business activities with the intention to focus on property development. (Bursa Malaysia / The Edge) JMR Conglomeration Bhd's largest shareholder, JMR Consolidated Holdings Sdn Bhd, has disposed of 14.5mn shares or an 11.4% stake in the group to Mayapada Capital Sdn Bhd. Its shareholding in JMR Conglomeration now stands at 12.6mn shares or 9.9%.(Bursa Malaysia / The Edge) Page 3 of 6
6. 18-Jun-18 N e w s I n B r i e f Economy Asia Bank Of Japan Retains Stimulus ; Lowers Inflation Outlook Bank of Japan maintained its monetary stimulus and lowered its inflation forecast, even as other major central banks resorted to tightening last week. Governor Haruhiko Kuroda and his board members decided by an 8-1 majority vote to hold its target of raising the amount of outstanding JGB holdings at an annual pace of about JPY 80 trillion. The bank will purchase government bonds so that the yield of 10-year JGBs will remain at around zero percent. The board also decided to maintain the -0.1 percent interest rate on current accounts that financial institutions maintain at the bank. The economy is forecast to continue its moderate expansion. On the price front, the BoJ said consumer prices will rise in the range of 0.5 percent to 1 percent. Earlier, the bank projected inflation to move around 1 percent. Annual inflation is expected to continue on an uptrend and increase toward 2 percent, mainly on the back of an improvement in the output gap and a rise in medium- to long-term inflation expectations, the bank said. (RTT) China Issues Retaliatory Tariffs as Trade Fight Heats Up Beijing retaliated against planned U.S. tariffs on Chinese goods by targeting high-value American exports—including farm products, cars, and crude oil—bringing the world’s two biggest economies closer to an all-out trade war. Shortly after the Trump administration unveiled plans Friday to impose tariffs of 25% on $50 billion in Chinese products, China’s State Council announced it would levy penalties of the same rate on the U.S. goods of the same value. The U.S. is “provoking the trade war,” China’s Foreign Ministry spokesman Lu Kang said Friday, while pledging to defend the country’s interests. In striking back at the U.S. action, China expanded the list of U.S. products that would be subject to tariffs to 659 types of goods, from some 106 types it originally disclosed in April. Most of the added goods on China’s retaliatory list are agricultural, seafood and energy products. President Donald Trump said earlier Friday that the U.S. would respond with more tariffs if China retaliated. (WSJ) China Retains Borrowing Cost; Industrial Output Growth Eases China's central bank kept its short-term borrowing costs unchanged after the U.S. Federal Reserve decided to hike its rate for the second time this year. Major economic indicators suggested a slowdown in economic activity in May as lending curbs weigh on industrial activity. The People's Bank of China maintained the 7-day reverse repo at 2.55 percent and the rate on 14-day tenor at 2.70 percent. The benchmark one-year lending rate has been unchanged since October 2015. Industrial production climbed 6.8 percent but slower than the 7 percent increase logged a month ago, the National Bureau of Statistics reported. The growth rate was expected to remain unchanged at 7 percent. Likewise, retail sales growth eased to 8.5 percent from 9.4 percent. Economists had forecast a faster increase of 9.6 percent. (RTT) Australia's May Jobs Growth Misses Expectations as Full-Time Employment Falls Australian employment rose by less-than-expected in May with gains led wholly by parttime work while the jobless rate ticked down to its lowest since November, a mixed outcome that points to tepid wages growth. Figures from the Australian Bureau of Statistics released last Thursday showed the unemployment rate eased to 5.4 percent from 5.6 percent in April. It has remained between 5.4 percent and 5.6 percent for almost a year now. According to some estimates, Australia's labour market will be considered at or near full employment when the jobless rate falls to 5 percent or lower. (CNBC) Page 4 of 6
7. 18-Jun-18 United States Donald Trump Approves Tariffs on About $50 Billion of Chinese Goods President Donald Trump approved tariffs on about $50 billion of Chinese goods, people familiar with the decision said, as the U.S. ratchets up its trade fight with Beijing over China’s alleged pressure on U.S. firms to transfer technology to Chinese partners. The approval followed a 90-minute meeting on Thursday of senior White House officials, national-security officials and senior representatives of the Treasury, Commerce Department, U.S. Trade Representative’s Office. USTR expects to announce the goods subject to tariffs on Friday and publish them in the Federal Register next week, the people familiar with the matter said. The affected imports would face 25% tariffs; the products are expected to be similar to those on a preliminary list that USTR released in early April. USTR is expected to cut some of the products from the list and add others, especially hightech items, the people familiar with the matter said. (WSJ) U.S. Retail Sales Soared in May Americans spent a big chunk of their pay checks on retail goods in May, one of several developments helping lift the economy to a stronger phase of growth this year. Sales at U.S. retailers rose 0.8% from a month earlier to $502 billion, the Commerce Department said last Thursday. That marked the biggest one-month jump since November. Some economists project U.S. economic output is expanding at a roughly 4% annual rate in the second quarter, which would mark the strongest growth in several years. Output grew at a 2.2% pace in the first quarter, not far off the average growth of the economic expansion that began in mid-2009. (WSJ) U.S. Industrial Production Unexpectedly Declined in May U.S. industrial production ended three straight months of growth in May with an unexpected decline due in part to a fire at a major Ford Motor Co. supplier. Industrial output, a measure of everything produced by the nation’s factories, mines and utilities, slipped 0.1% in May from April in seasonally adjusted terms. Economists surveyed by The Wall Street Journal had forecast a 0.2% increase. The decline was led by a 0.7% fall in manufacturing output, “largely because truck assemblies were disrupted by a major fire at a parts supplier,” the Fed said. Production of autos and light trucks fell to a seasonally adjusted annual rate of 10.18 million units in May from 11.28 million units in April. (WSJ) U.S. Consumer Sentiment Rose in Early June U.S. household confidence rose in the beginning of June as Americans felt better about their current economic situation, but their expectations for the future dropped, possibly due to concerns about tariffs and rising gas prices. The University of Michigan last Friday said its consumer sentiment index was 99.3 in June, up from a 98.0 final reading for May. Americans’ expectations for the year-ahead inflation rate rose to 2.9% in June, the highest expected inflation rate since 2015. Longer-term inflation expectations rose to 2.6%, after hovering at a 2.5% rate for several months. (WSJ) Europe and Uni ted Kingdom Leaves Interest Rate Alone, Says Asset Purchase Program to End This Year The governing council of the European Central Bank (ECB) said last Thursday that the bank will leave its interest rates at current levels and it will wind down its current asset purchase program (quantitative easing, or QE) at the end of September. The ECB currently purchases €30 billion in euro bonds monthly. In its press release the bank said: Today’s monetary policy decisions maintain the current ample degree of monetary accommodation that will ensure the continued sustained convergence of inflation towards levels that are below, but close to, 2% over the medium term. (247wallst) Page 5 of 6
8. 18-Jun-18 Wage Growth Boosts ECB Confidence on Inflation Target UK retail sales grew more than expected in May as warm weather and royal wedding boosted consumer spending . Retail sales volume including auto fuel, grew 1.3 percent month-on-month, following April's revised 1.8 percent increase, figures from the Office for National Statistics revealed Thursday. This was the second consecutive rise and much bigger than the expected 0.5 percent. Sales excluding auto fuel, climbed 1.3 percent versus an increase of 1.4 percent a month ago. Sales were expected to grow marginally by 0.3 percent. Data showed that food store sales gained 1.1 percent and non-food store sales increased 0.7 percent in May. In three months to May, retail sales climbed only 0.9 percent from the previous three months. (RTT) Eurozone final CPI Arrives at 1.9% YoY in May, Matches Estimates According to Eurostat’s final reading of Eurozone CPI report, the consumer prices came in at 1.9% on a yearly basis, confirming the flash estimate. While the core figures matched the first readout of 1.1%. On a monthly basis, the bloc’s CPI figure for May accelerated to 0.5% versus 0.5% expected and 0.3% previous while the core CPI numbers also edged higher to 0.3% versus 0.3% expected and 0.2% last. Separately, the Eurozone trade balance report for April was released, showing that the trade surplus (seasonally adjusted) in the 19nations bloc arrived at EUR 18.1B versus EUR 20.2B expected and EUR 21.2B last. (Fxstreet) Share Buy-Back: 14 June 2018 Company GBGAQRS MALAKOF MKH SUNWAY SYSCORP UNISEM YTL YTLPOWR Bought Back Price (RM) Hi/Lo (RM) 315,000 330,000 15,000 200,000 470,000 200,000 4,600,000 1,000,000 1.22/1.20 0.88 1.40 1.61 0.34/0.33 2.42 1.07/1.05 0.98 1.22/1.07 0.895/0.875 1.41/1.39 1.61/1.58 0.34/0.31 2.48/2.40 1.08/1.03 1.00/0.95 Total Treasury Shares 15,883,502 72,378,400 15,000 51,933,662 14,439,600 3,996,700 179,353,418 254,152,112 Source: Bursa Malaysia Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ 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. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 6 of 6
9. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) % upside Recom Market Cap. (RMm) BETA EPS (sen) FY18 FY19 PER (X) FY18 FY19 Div Yield (%) FY18 FY19 52weeks 52weeks % Chg High Price % Chg Low Price % Chg YTD 14-Jun-18 AUTOMOBILE BAUTO 2.42 2.64 9.1% Buy 2,811 0.53 12.1 17.6 20.0 13.8 4.3 5.1 2.47 -2.0 1.84 31.5 MBMR 2.49 3.19 28.1% Buy 973 0.62 31.4 31.9 7.9 7.8 3.2 3.2 2.68 -7.1 2.01 23.9 10.0 13.2 PECCA 0.92 1.30 42.1% Buy 168 1.07 6.4 7.7 14.4 11.8 6.6 6.6 1.70 -46.2 0.78 17.3 -41.0 SIME 2.60 2.97 14.2% Buy 17,682 1.62 13.2 16.4 19.7 15.9 1.3 1.6 3.06 -15.0 2.03 28.3 17.6 UMW 6.45 5.45 -15.5% Sell 7,535 1.08 28.4 39.3 22.7 16.4 2.2 3.1 6.98 -7.6 4.70 37.2 24.0 BANKS & FINANCIAL SERVICES ABMB 4.20 4.50 7.1% Hold 6,502 1.06 31.9 34.9 13.2 12.0 3.6 3.8 4.49 -6.5 3.62 16.0 2.9 AFFIN 2.57 2.60 1.2% Hold 4,993 1.02 25.5 26.8 10.1 9.6 3.1 3.1 2.72 -5.4 2.22 15.7 11.3 -13.4 AMBANK 3.82 3.90 2.1% Buy 11,514 1.35 37.6 41.5 10.2 9.2 3.9 4.7 5.12 -25.4 3.40 12.4 CIMB 5.97 6.80 13.9% Buy 55,914 1.64 52.2 55.5 11.4 10.7 4.4 4.7 7.39 -19.2 5.82 2.6 -8.7 HLBANK 19.04 23.30 22.4% Buy 38,948 0.85 129.2 146.1 14.7 13.0 2.5 2.5 20.02 -4.9 14.90 27.8 12.0 MAYBANK 9.60 10.40 8.3% Hold 104,920 1.00 71.4 75.7 13.4 12.7 5.7 5.7 11.08 -13.4 9.10 5.5 -2.0 PBBANK 24.04 27.60 14.8% Buy 92,830 0.72 153.3 166.5 15.7 14.4 2.6 2.7 25.78 -6.7 19.90 20.8 15.7 RHBBANK 5.81 5.60 -3.6% Hold 23,298 1.40 54.3 59.0 10.7 9.9 2.6 2.6 5.88 -1.2 4.71 23.4 16.2 BURSA 7.94 8.07 1.6% Buy 6,402 0.92 29.2 30.0 27.2 26.5 3.0 3.0 8.20 -3.2 6.31 25.8 17.7 ANNJOO 2.26 3.15 39.4% Buy 1,210 1.55 42.1 44.9 5.4 5.0 8.9 10.2 3.98 -43.2 2.00 13.0 -41.5 CHINHIN 0.83 1.15 38.6% Hold 462 1.47 8.3 9.4 10.0 8.8 5.9 5.8 1.42 -41.5 0.73 13.7 -31.4 CMSB 2.74 4.10 49.6% Buy 2,940 1.34 21.3 22.6 12.9 12.1 3.1 3.3 4.42 -38.0 1.74 57.5 -29.7 CSCSTEL 1.34 1.41 5.2% Hold 495 0.83 15.8 17.0 8.5 7.9 6.3 6.8 1.98 -32.2 1.27 5.5 -13.0 ENGTEX 1.02 1.29 26.5% Buy 444 1.13 12.9 15.3 7.9 6.7 2.0 3.0 1.38 -26.1 0.95 7.4 -7.3 GADANG 0.75 1.22 62.7% Buy 496 1.55 14.0 16.6 5.3 4.5 4.0 4.0 1.37 -45.3 0.64 17.2 -32.4 GAMUDA 3.50 4.83 38.0% Buy 8,638 0.94 34.3 35.5 10.2 9.9 3.4 3.4 5.52 -36.6 3.00 16.7 -29.4 IJM 1.80 1.85 2.8% Sell 6,523 1.39 9.6 15.7 18.7 11.4 3.3 3.3 3.53 -49.0 1.60 12.5 -41.0 KAB 0.29 0.37 29.8% Buy 91 na 3.1 3.7 9.2 7.7 3.5 4.2 0.33 -13.6 0.20 42.5 -5.0 PESONA 0.28 0.29 5.5% Buy 191 1.54 3.0 3.9 9.0 7.1 5.5 5.5 0.68 -59.3 0.26 5.8 -38.9 BUILDING MATERIALS CONSTRUCTION SENDAI 1.05 0.70 -33.3% Sell 820 1.49 9.9 8.7 10.7 12.0 1.0 1.0 1.39 -24.5 0.68 54.4 21.4 SUNCON 1.96 1.85 -5.6% Hold 2,533 0.97 12.7 14.2 15.4 13.8 4.1 4.6 2.64 -25.8 1.72 14.0 -21.9 WCT 0.81 1.14 40.7% Buy 1,139 0.63 10.5 10.7 7.7 7.6 3.7 3.7 2.15 -62.3 0.70 16.5 -50.0 LITRAK 4.56 5.01 9.9% Buy 2,407 0.11 43.3 47.1 10.5 9.7 5.5 5.5 6.00 -24.0 3.63 25.6 -17.8 CARLSBG 19.92 20.32 2.0% Hold 6,128 0.69 89.4 93.3 22.3 21.4 4.5 4.7 20.88 -4.6 14.48 37.6 30.9 HEIM 22.00 21.69 -1.4% Hold 6,646 0.51 95.2 103.5 23.1 21.3 4.2 4.6 24.02 -8.4 17.30 27.2 16.4 AEON 2.42 2.53 4.5% Hold 3,398 0.50 7.9 9.2 30.8 26.3 1.9 2.1 2.65 -8.7 1.45 66.9 37.5 AMWAY 7.80 8.47 8.6% Sell 1,282 0.62 35.6 37.5 21.9 20.8 4.5 4.7 8.52 -8.5 6.97 11.9 6.8 F&N 37.12 30.69 -17.3% Sell 13,606 0.61 96.0 114.0 38.7 32.6 1.9 2.0 39.98 -7.2 23.40 58.6 37.5 CONSUMER Brewery Retail HUPSENG 1.09 1.25 14.7% Hold 872 0.56 5.8 6.2 18.7 17.7 5.5 5.5 1.24 -12.1 1.02 6.9 0.0 JOHOTIN 1.00 1.02 2.0% Hold 310 1.41 8.1 8.5 12.3 11.8 6.0 6.5 1.64 -39.0 0.89 12.4 -17.4 NESTLE 148.00 129.90 -12.2% Sell 34,706 0.62 322.2 360.2 45.9 41.1 2.0 2.2 163.00 -9.2 82.70 79.0 43.4 PADINI 5.68 5.77 1.6% Hold 3,737 0.84 25.6 29.1 22.2 19.5 2.2 2.3 5.80 -2.1 3.40 67.0 7.9 POHUAT 1.31 2.01 53.4% Buy 288 0.50 20.1 23.1 6.5 5.7 4.6 6.1 2.07 -36.7 1.15 13.9 -26.8 QL 5.91 5.42 -8.3% Sell 9,589 0.75 12.7 14.0 46.5 42.2 0.8 0.8 5.91 0.0 3.70 59.7 35.9 SIGN 0.56 0.92 64.3% Buy 127 0.94 6.6 8.7 8.5 6.4 4.5 6.3 0.97 -42.0 0.48 16.7 -20.6 35.10 34.72 -1.1% Hold 10,022 1.45 170.8 168.8 20.5 20.8 4.6 4.6 45.60 -23.0 22.46 56.3 -12.3 GENTING 8.55 11.65 36.3% Buy 32,761 1.13 58.9 66.7 14.5 12.8 1.9 1.9 9.90 -13.7 8.40 1.8 -6.3 GENM 5.09 6.77 33.0% Buy 28,802 1.35 29.7 36.7 17.1 13.9 2.4 2.6 6.09 -16.5 4.59 10.9 -8.2 2.59 3.22 24.3% Buy 3,489 0.66 19.9 26.0 13.0 10.0 6.2 6.9 2.62 -1.1 2.06 25.7 15.6 CCMDBIO 1.34 3.54 164.2% Hold 872 0.67 16.2 17.7 8.3 7.6 8.0 8.6 1.47 -8.8 0.84 58.7 23.6 IHH 6.10 6.60 8.2% Sell 50,280 0.67 11.9 12.3 51.4 49.7 0.5 0.5 6.42 -5.0 5.42 12.5 4.1 KPJ 1.06 1.14 7.5% Buy 4,466 0.57 4.0 4.4 26.7 24.1 2.0 2.3 1.15 -7.8 0.84 26.2 9.3 HARTA 5.98 4.52 -24.4% Sell 19,812 0.91 12.6 14.5 47.6 41.3 1.3 1.4 6.64 -9.9 3.19 87.5 12.0 KOSSAN 8.20 9.04 10.2% Buy 5,244 0.51 31.7 36.1 25.9 22.7 1.5 1.7 8.79 -6.7 6.31 30.0 1.1 SUPERMX 4.10 4.30 4.9% Buy 2,688 0.56 20.0 22.6 20.5 18.2 1.9 2.2 4.10 0.0 1.69 142.6 105.0 TOPGLOV 11.24 12.20 8.5% Buy 14,359 0.53 34.7 42.0 32.4 26.8 1.3 1.6 11.98 -6.2 5.33 110.9 40.7 KAREX 0.73 0.54 -26.0% Sell 732 1.17 1.3 1.8 54.4 40.6 0.5 0.6 1.81 -59.7 0.50 46.0 -43.8 SCIENTX 6.55 7.00 6.9% Hold 3,202 0.96 54.8 57.5 12.0 11.4 2.7 2.9 9.85 -33.5 6.51 0.6 -24.4 SKPRES 1.54 2.20 42.9% Buy 1,925 0.85 10.2 11.7 15.1 13.1 3.4 3.9 2.35 -34.5 1.27 21.3 -32.5 ASTRO 1.61 1.65 2.5% Sell 8,394 1.19 12.4 13.8 12.9 11.6 7.8 7.8 2.94 -45.2 1.31 22.9 -39.2 MEDIA PRIMA 0.53 0.38 -28.3% Sell 588 0.85 -6.0 -4.2 na na 0.0 0.0 0.97 -45.1 0.25 112.0 -30.3 STAR 1.16 1.20 3.4% Hold 856 0.95 6.3 5.9 18.5 19.6 7.8 7.8 2.22 -47.7 1.00 16.0 -29.7 Tobacco BAT GAMING Casino NFO BJTOTO HEALTHCARE Hospitals/ Pharmaceutical Rubber Gloves INDUSTRIAL MEDIA
10. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) % upside Recom Market Cap. (RMm) BETA EPS (sen) FY18 FY19 PER (X) FY18 FY19 Div Yield (%) FY18 FY19 52weeks 52weeks % Chg High Price % Chg Low Price % Chg YTD OIL & GAS DNEX 0.43 0.64 48.8% Buy 756 1.81 4.6 4.8 9.3 8.9 2.3 2.3 0.62 -30.1 0.31 41.0 LCTITAN 5.22 7.47 43.1% Buy 11,865 na 47.6 50.5 11.0 10.3 4.0 4.4 6.53 -20.1 4.14 26.1 -11.3 11.1 MHB 0.69 0.81 18.2% Buy 1,096 1.55 -0.1 1.1 na 64.1 0.0 0.0 0.98 -30.1 0.63 9.6 -17.0 MISC 5.83 5.66 -2.9% Sell 26,024 1.04 33.0 40.4 17.7 14.4 5.1 5.1 7.90 -26.2 5.03 15.9 -21.4 PANTECH 0.61 0.77 27.3% Buy 450 1.19 6.3 6.9 9.6 8.8 4.1 4.5 0.74 -18.2 0.51 18.6 -6.2 PCHEM 8.34 9.05 8.5% Under Review 66,720 0.86 54.3 54.3 15.3 15.3 3.2 3.4 8.88 -6.1 6.80 22.6 8.3 SAPNRG 0.65 0.86 32.3% Buy 3,895 2.96 -5.0 -1.5 na na 0.0 0.0 1.87 -65.2 0.40 64.6 -8.5 SERBADK 3.26 4.73 45.1% Buy 4,787 na 27.5 31.4 11.8 10.4 2.8 3.1 3.68 -11.4 1.80 81.1 0.6 VELESTO 0.28 0.35 25.0% Buy 2,300 2.49 0.3 1.0 86.1 28.4 0.0 0.0 0.50 -43.8 0.22 30.2 -8.2 UZMA 1.12 1.47 31.3% Buy 358 1.57 19.8 12.9 5.7 8.7 0.0 0.0 1.73 -35.3 0.93 21.1 -12.5 FGV 1.56 1.93 23.7% Buy 5,691 1.89 1.8 3.0 88.4 52.4 3.2 3.2 2.18 -28.4 1.51 3.3 -7.7 IJMPLNT 2.20 2.25 2.3% Sell 1,937 0.26 7.9 8.6 27.9 25.5 2.3 2.3 3.12 -29.5 2.15 2.3 -19.7 IOICORP 4.70 5.43 15.5% Buy 28,700 0.81 19.0 21.3 24.7 22.1 5.6 3.5 4.81 -2.3 4.21 11.8 6.1 KFIMA 1.54 1.89 22.7% Buy 434 0.67 14.5 13.9 10.6 11.1 5.8 5.8 1.90 -18.9 1.44 6.9 -1.9 KLK 24.94 27.05 8.5% Hold 26,560 0.52 93.1 112.4 26.8 22.2 2.0 2.2 25.98 -4.0 23.80 4.8 -0.2 SIMEPLT 5.51 6.27 13.8% Buy 37,473 na 19.6 20.0 28.1 27.6 2.5 2.9 6.00 -8.2 4.58 20.3 -8.2 TSH 1.15 1.45 26.1% Buy 1,588 0.51 9.3 9.6 12.4 12.0 2.1 2.1 1.78 -35.4 1.15 0.0 -30.3 UMCCA 6.08 6.21 2.1% Sell 1,275 0.40 17.0 22.4 35.9 27.2 2.6 3.0 7.08 -14.1 5.85 3.9 -6.6 GLOMAC 0.46 0.50 8.7% Hold 365 0.61 1.4 2.5 31.7 18.2 3.3 3.3 0.63 -26.7 0.45 2.2 -17.0 HUAYANG 0.46 0.49 7.7% Hold 160 0.73 1.3 3.2 36.4 14.3 0.0 0.0 1.07 -57.5 0.44 3.4 -25.4 IBRACO 0.51 0.58 13.7% Buy 253 na 4.6 7.7 11.2 6.7 3.9 3.9 0.92 -44.6 0.45 13.3 -37.4 IOIPG 1.64 1.95 18.9% Buy 9,030 0.89 14.9 14.7 11.0 11.2 3.7 3.7 2.22 -26.1 1.47 11.6 -11.4 MAHSING 1.12 1.27 13.4% Buy 2,719 0.98 9.4 9.6 11.9 11.7 4.5 4.5 1.64 -31.7 0.98 14.3 -22.8 SIMEPROP 1.24 1.49 20.2% Hold 8,433 na 6.1 5.3 20.2 23.4 3.2 2.4 1.78 -30.3 1.04 19.2 -30.3 SNTORIA 0.58 0.70 21.7% Buy 321 0.59 8.3 8.7 6.9 6.6 1.7 1.7 0.79 -27.3 0.53 8.5 -17.3 SPB 4.28 5.10 19.2% Hold 1,471 0.59 18.7 24.0 22.8 17.8 2.8 2.8 5.50 -22.2 4.14 3.4 -12.7 SPSETIA 2.99 3.37 12.7% Buy 11,632 1.22 16.1 18.1 18.5 16.5 4.0 4.0 4.00 -25.3 2.77 7.9 -25.3 SUNWAY 1.61 1.60 -0.6% Hold 7,838 0.89 11.8 12.5 13.6 12.9 3.7 3.7 1.96 -17.8 1.44 11.8 -1.2 SUNREIT 1.72 1.87 8.7% Hold 5,066 0.95 10.0 10.7 17.1 16.1 5.8 6.2 1.90 -9.5 1.48 16.2 -9.5 CMMT 1.23 1.48 20.3% Buy 2,510 0.59 7.9 8.4 15.5 14.7 6.6 7.0 1.83 -32.8 0.98 25.5 -32.8 PLANTATIONS PROPERTY REIT POWER & UTILITIES MALAKOF 0.90 0.85 -5.0% Sell 4,411 1.03 5.8 6.7 15.4 13.4 7.8 7.8 1.17 -23.5 0.84 7.2 -8.7 PETDAG 25.82 24.13 -6.5% Sell 25,651 0.63 114.1 114.9 22.6 22.5 3.3 3.3 28.18 -8.4 20.81 24.1 7.4 PETGAS 17.50 20.23 15.6% Buy 34,628 0.82 99.3 100.0 17.6 17.5 4.0 4.0 19.50 -10.3 15.82 10.6 0.1 TENAGA 14.50 18.34 26.5% Buy 82,334 0.73 139.7 134.6 10.4 10.8 4.8 4.7 16.34 -11.3 14.02 3.4 -5.0 YTLPOWR 0.98 0.78 -20.0% Hold 7,707 0.92 7.4 7.8 13.1 12.5 5.1 5.1 1.44 -32.3 0.73 33.6 -24.4 TELECOMMUNICATIONS AXIATA 4.77 6.20 30.0% Buy 43,167 1.76 11.9 15.7 39.9 30.4 2.1 2.8 5.82 -18.0 4.07 17.2 -13.1 DIGI 4.48 5.15 15.0% Buy 34,832 1.00 19.6 20.2 22.9 22.1 4.4 4.5 5.10 -12.2 4.20 6.7 -12.2 MAXIS 5.78 5.95 2.9% Sell 45,180 0.92 24.9 24.7 23.2 23.4 3.5 3.5 6.14 -5.9 5.30 9.1 -3.8 TM 3.85 4.05 5.2% Sell 14,468 1.22 17.5 19.6 22.0 19.7 5.2 5.2 6.69 -42.5 3.60 6.9 -38.9 ELSOFT 2.56 3.30 28.9% Buy 707 0.89 13.1 14.9 19.5 17.1 3.6 4.1 2.95 -13.2 2.22 15.3 -5.2 INARI 2.26 2.45 8.4% Hold 7,092 0.26 8.3 10.4 27.3 21.7 2.6 3.3 2.55 -11.3 1.32 71.6 -0.3 MPI 10.42 11.50 10.4% Buy 2,073 0.50 69.5 79.8 15.0 13.1 3.1 3.1 14.52 -28.2 7.57 37.6 -17.4 UNISEM 2.42 2.75 13.6% Buy 1,767 1.10 13.2 18.6 18.4 13.0 4.5 4.5 4.25 -43.1 1.60 51.3 -33.7 TECHNOLOGY Semiconductor & Electronics TRANSPORTATION Airlines AIRASIA 3.20 3.40 6.2% Buy 10,694 0.89 28.3 28.6 11.3 11.2 25.0 2.5 4.75 -32.6 2.96 8.1 -4.5 AIRPORT 8.85 9.20 4.0% Sell 14,684 1.07 33.8 35.7 26.2 24.8 1.7 1.1 9.45 -6.3 7.86 12.6 0.7 Freight & Tankers PTRANS 0.27 0.46 73.6% Buy 349 na 2.3 3.7 11.5 7.1 2.6 4.2 0.38 -30.6 0.23 17.8 -5.4 TNLOGIS 1.00 1.07 7.0% Hold 456 1.04 10.0 4.9 10.0 20.5 0.0 0.0 1.79 -44.3 0.97 3.1 -25.4 WPRTS 3.49 4.06 16.3% Buy 11,901 0.42 15.6 20.0 22.4 17.4 3.3 4.3 3.90 -10.5 3.10 12.6 -5.7 SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price Target Price (S$) (S$) % upside Recom Market Cap. (S$m) Beta EPS (cent) FY18 FY19 PER (X) FY18 FY19 Div Yield (%) FY18 FY19 52week 52week % Chg High Price % Chg Low Price % Chg YTD BANKS & FINANCIAL SERVICES DBS 27.61 36.10 30.7% Buy 70,788 1.17 212.3 246.0 13.0 11.2 2.4 2.5 30.8 -10.2 19.68 40.3 13.0 OCBC 12.13 16.60 36.9% Buy 50,768 1.18 109.5 123.2 11.1 9.8 6.7 7.7 14.0 -13.6 10.45 16.1 -2.1 UOB 26.95 31.70 17.6% Hold 45,016 1.19 216.7 244.0 12.4 12.4 3.0 3.0 30.4 -11.3 22.55 19.5 2.6 PLANTATIONS WILMAR 3.28 3.38 3.0% Hold 20,987 0.77 22.5 25.8 14.6 12.7 2.7 3.0 3.6 -8.4 2.97 10.4 6.1 IFAR 0.24 0.37 54.2% Buy 344 1.08 3.0 3.9 7.9 6.2 1.7 2.2 0.5 -52.5 0.24 2.1 -38.5 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. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.
11. Technical View Monday , June 18, 2018 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Weekly Technical Outlook FBM KLCI: 1,761.78 (-16.54, -0.93%) Chartist : Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my www.taonline.com.my Cautious Tone to Prevail on Trade War Fears The local benchmark FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) pulled back last week, adversely affected by the more hawkish tone from the U.S. Federal Reserve, which raised interest rates by 25 basis points to the target rate of 1.75 to 2 percent. The US central bank also guided for two more rate hikes for this year, shifting up the year’s dot plot from three to four rate hikes, which raised concerns higher rates will adversely impact global growth. Trading for the week totaled three and a half days ahead of the extended weekend holiday to observe the Hari Raya Aidilfitri. For the week, the FBM KLCI shed 16.54 points, or 0.9 percent to 1,761.78, with falls on HLFG (-60sen), Public Bank (-56sen), Petronas Gas (-36sen), CIMB (-35sen) and MISC (29sen) contributing most to the loss. Average daily traded volume and value last week slowed to 2.17 billion shares worth RM2.46 billion, compared to 3.23 billion shares and RM2.84 billion respectively the previous week. The FBM KLCI edged lower on Monday, as selected blue chips weighed on the market, while key regional markets were mixed ahead of an historic U.S.-North Korea summit. The KLCI shed 2.52 points to close at 1,775.80, off an early low of 1,770.83 and high of 1,788.47, as losers edged gainers 488 to 404 on higher trade totaling 2.61bn shares worth RM2.40bn. The local market extended losses the next day, with the index bogged down by selling interest in heavyweights such as Maybank, Tenaga and CIMB, while key regional markets remain muted as investors await details of the summit meeting between Trump and Kim. The KLCI lost 11.64 points, or 0.66%, to close at the day’s low of 1,764.16, off an early high of 1,776.10, as losers beat gainers 571 to 309 on moderate trade totaling 2.35bn shares worth RM2.38bn. The benchmark index ended flat Wednesday, with many investors on the sidelines in tandem with muted regional peers as investors await the conclusion of the Federal Reserve's monetary policy meeting. The KLCI inched down by 0.59 points to close at 1,763.57, off an early low of 1,755.38 and high of 1,764.50, as losers edged gainers 469 to 397 on moderate trade totaling 2.11bn shares worth RM2.02bn. Blue chips trended lower the following day after the more hawkish tone by the U.S. Federal Reserve and guidance for two more rate hikes for the year raised concerns higher rates will adversely impact global growth. Trading momentum also slowed due to the half-day trading ahead of the extended weekend holiday to observe the Hari Raya Aidilfitri. The index eased 1.79 points to close the abbreviated session at 1,761.78, off an early low of 1,745.45 and high of 1,762.22, as losers edged gainers 372 to 361 on total turnover of 1.61bn shares worth RM3.02bn. Trading range for the blue-chip benchmark index shrank further to 42.71 points last week, compared to the 55.67 points range the previous week, as buyers retreated to the sidelines amid further profit-taking from the recent sharp rally to the 1,800 level. For the week, the FBM-EMAS Index slipped 94.29 points or 0.76 percent to 12,378.78, but the FBM-Small Cap Index added 119.67 points, or 0.83 percent to 14,578.57 as small cap stocks benefited from selective bargain hunting after suffering from recent heavy losses. Page 1 of 3
12. 18-Jun-18 On technical momentum indicators for the FBM KLCI , while the daily slow stochastic maintained its hook-up at the neutral region (Chart 1), the weekly indicator continued travelling south. The 14-day Relative Strength Index (RSI) indicator leveled off for a neutral reading of 38.89 following last Thursdays’ rebound from an early sell-off, but the 14-week RSI hooked back down for a weaker reading of 39.75. Chart 1 On trend indicators, the daily Moving Average Convergence Divergence (MACD) sustained a weak buy signal, but the weekly MACD indicator’s signal line crossed below the mid-point to reinforce its bearish position. (Chart 2). As for the 14-day Directional Movement Index (DMI) indicator, the -DI and +DI lines resumed expansion on a leveling ADX line, which implies a pause on the current downtrend. Chart 2 Conclusion Conflicting signals from technical indicators for the FBM KLCI following last week’s correction suggests uncertainty in near-term direction, hence investors can expect further choppy trading this week. On the external front, while the hawkish tone from the US Federal Reserve which raised interest rates by 25 basis points, as expected, but guided for total of four rate hikes instead of three this year, should be offset by the more dovish statement by the ECB which proposed a delay in raising rates even after ending its bond Page 2 of 3
13. 18-Jun-18 buying program by year-end , renewed fears of a global trade war spawned by heavy tariffs on China’s imports worth as much as USD50bn by the US which should most certainly trigger retaliatory measures from China, cautious investor sentiment should prevail for another week. On the index, immediate supports remain at the recent intra-day lows of 1,751, 1,738 and 1,725, with crucial support from the Dec 2017 low of 1,708. Immediate resistance stays at 1,802, the recent pivot high matching the 50%FR of the Dec 2017 low of 1,708 to the April 2018 high of 1,896, followed by the 38.2%FR (1,824) and 23.6%FR (1,852). Stock-wise, heavily bashed down construction related counters like Gadang and Sunway Construction offer attractive bargains for recovery upside, while export-related stocks such as Globetronics, Inari, MPI, SKP Resources, Unisem and VS Industry may attract profittaking to consolidate their recent strong gains. Chart 3 Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ 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. As of Monday, June 18, 2018, the chartist, Stephen Soo, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 3 of 3
14. COMPANY UPDATE Monday , June 18, 2018 FBMKLCI: 1,846.51 Sector: Oil & Gas THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* MISC Berhad TP: RM5.66 (-6.6%) Last Traded: RM6.06 Waiting for Inflection Point in Charter Rates Kylie Chan Sze Zan Tel: +603-2167 9601 SELL kyliechan@ta.com.my Our meeting with management of MISC Bhd yielded the following key takeaways: 1) it costs USD1mn-5mn per vessel to upgrade MISC’s fleet to comply with impending 2020 IMO environmental regulations, 2) negotiations are underway with Yemen LNG to extend the deferral arrangement period for Seri Balhaf & Balqis, which will lapse in Jun-18, 3) Chemical fleet losses are expected to stabilize, on the back of MISC’s entry into a vessel pooling arrangement, 4) MISC’s petroleum fleet is PATAMI loss making at current day rates, but above EBITDA breakeven, 5) Petroleum charter rates are expected to reach inflection point in 12-18 months, and 6) MISC is currently bidding for new DP Shuttle contracts, which has been identified as a new focus area. Maintain Sell on MISC with unchanged TP of RM5.66 based on 14x FY19 P/E. Going Green. Management articulated its strategy to comply with new environmental regulations by the International Marine Organisation (IMO) by 2020. This includes the Ballast Water Management System (BWMS) convention and Global Sulphur Cap (GSC) regulations. To recap, the BWMS treaty aims to stop the transfer of invasive marine species from a ship’s ballast water at the vessel’s destination. A key solution is via installation of on-board ballast water treatment systems. Meanwhile, GSC limits sulphur content for marine fuel to 0.5%. Measures enabling compliance with GSC include: 1) adoption of alternative cleaner fuel, including LNG, 2) installation of exhaust gas cleaning systems, known as scrubbers, or 3) retrofit existing fleet with LNG dual fuel capabilities. Installation costs range at USD2mn-5mn for scrubbers, and USD1mn-2mn for BWMS. Nevertheless, upgrade costs will be capitalized, thus limiting profit impact. Deferral Extension for Yemen LNG. The deferral arrangement with Yemen LNG for Seri Balhaf & Balqis will lapse in Jun-18. Nevertheless, negotiations are underway to extend the deferral period. Given the scenario where deferral is not extended, receivables from Yemen LNG immediately become due. To recap, the original contract for Seri Balhaf & Balqis ends in 2029. However, since Jun16, operations for both vessels have been suspended due to civil unrest at Yemen. Nevertheless, MISC continues to recognize gross deferred income of circa USD32mn-35mn p.a. However, the client only pays laid-up rate of USD5k/day. By Jun-18, the deferred amount (not accounting for prior impairments) will balloon to USD100mn. Stuck at Yemen. Based on a political analyst’s view, management does not expect operations at Yemen to resume before 2020. On the bright side, we estimate that the group has impaired receivables totalling USD53mn. Additionally, Yemen LNG will pay reactivation costs for the vessels, which are currently on cold laid-up. On top of that, we understand that these vessels are bidding for spot charters during this period as they are not being utilized by the client. Any spot charter income will then be used to offset receivables due from Yemen LNG. www.taonline.com.my Share Information Bloomberg Code MISC MK Stock Code 3816 Listing Main Market Share Cap (mn) 4,464 Market Cap (RMmn) 26,024 Par Value 1.00 52-wk Hi/Lo (RM) 5.03/7.90 12-mth Avg Daily Vol ('000 shrs) 1,584.0 Estimated Free Float (%) 19.0 Beta 1.1 Major Shareholders (%) Petronas - 62.7 EPF - 6.3 Skim Amanah Saham Bumiputera - 4.4 Forecast Revision FY18 Forecast Revision (%) Net profit (RMm) Consensus TA's / Consensus (%) Previous Rating (2.5) FY19 (2.3) 1,473.3 1,805.5 1,721 1,878 85.6 96.1 Sell (Maintained) Financial Indicators Net Debt/equity (%) FY18 FY19 Net Cash Net Cash FCFPS (sen) 11.9 20.0 P/CFPS (x) 51.1 30.4 ROE (%) 4.2 5.1 ROA (%) 2.9 3.5 NTA/Share (RM) 7.7 7.8 Price/NTA (x) 0.8 0.8 Share Performance (%) Price Change MISC FBM KLCI 1 mth (14.9) (4.7) 3 mth (19.1) (4.5) 6 mth (18.3) 0.5 12 mth (21.2) (1.6) (12-Mth) Share Price relative to the FBMKLCI Source: Bloomberg Page 1 of 5
15. 18-Jun-18 Chemical Pool Party . Management expects the Chemical segment to deliver marginal losses in FY18. The bulk of the losses largely emanate from the fleet of six L-class carriers, due to expensive in-charter costs. To recap, long term third party in-charter agreements for the carriers will expire in 4-5 years. Nevertheless, losses are expected to stabilize and improve in the near-tomedium term. This is on the back of improved vessel utilization following MISC’s entry into a pooling arrangement with a commercial fleet manager. A large pool of vessels results in economies of scale, and thus increased contract bidding opportunities. As such, MISC had injected four of its L-class carriers (i.e. Bunga Lucerne, Lily, Lavender and Lilac) into a tanker pool. Additionally, the group had also secured time charters for its Akasia class chemical carriers. Drowning in Petroleum. Unfortunately, the outlook for the petroleum fleet in the near-to-medium term remains bleak. Mar-18 spot rates for Aframaxes and VLCCs have dipped to USD8,899 and USD6,224 per day respectively (Figures 1 & 2). This pales in comparison to historical 3–year average rates of USD39,442 and USD22,104 respectively. At current rates, MISC’s petroleum fleet is PATAMI loss-making, but fortunately, above EBITDA breakeven levels. On the bright side, the group has been shifting its contract mix to term charters. This enables MISC to lock-in fleet utilization and reduce exposure to volatile rates. Spot rates have been trending below term rates for the past year, which is typical in downcycles. MISC’s current term: spot mix for its petroleum fleet is 55:45 (4Q16: 43: 57), which reflects a significant reduction from more than a year ago. Nevertheless, on the bright side, moving forward, management expects charter rates to reverse their downwards trajectory, and reach an inflection point in 1218 months. Dipping into DP Shuttles. MISC has identified DP Shuttles (DPS) as a new focus area in-lieu of DCR weakness for generic types of petroleum vessels. According to management, DPS are specialized deepwater vessels that are less susceptible to economic downcycles. This is in contrast to commoditized petroleum vessels (e.g. Aframaxes, workboats) that experience over supply during periods of cyclical downturns. This is given high barriers of entry for this segment, as DPS are significantly more expensive, costing circa USD100mn per vessel. Additionally, these carriers are also custom built to requirements, similar to FPSO (Floating Production Storage Offloading) vessels. As such, DPS are typically locked-in with long term charters (circa 7-10 years) that enable recovery of investment costs. Deepwater Fields Beckon. Recall that in Jun-17, the group secured long term contracts from Norwegian-based Statoil ASA for the provision of two DP Shuttles. The newbuild vessels will be delivered in 2H19 and 1H20, and deployed at the North Sea. The awarded contracts are long term with tenures of 5 and 7 years respectively. On top of this, MISC has an existing mini fleet of four DPS with average age of 4 years. They are currently on 15 year contracts, working for Petrobras and Statoil. In the meanwhile, the group has submitted tenders for new DPS contracts. Sustained Earnings Headwinds. We believe earnings rout for MISC had just begun, mainly underpinned by sustained weakness in petroleum charter rates. Accordingly, management expects a 10% YoY contraction in FY18E core operating cash flow. In spite of this, and despite hefty growth capex requirements, management is optimistic of maintaining FY17 DPS of 30 sen in FY18. On a lighter note, there may be mild relief from newsflow emanating from award of projects tenders. This includes outstanding bids for: 1) two FPSO projects at Vietnam and Chevron’s Ubon field, and 2) on-water FSO vessel (value: USD250mn-280mn) with existing 10 year lease at South East Asia. Page 2 of 5
16. 18-Jun-18 Additionally , the group is also keen to participate in Brazillian FPSO tenders in FY19, via alliances with local partners. Impact We remove contributions from FSO Abu (2018 onwards), FSO Angsi (from Aug18 onwards). This is given management’s fresh guidance that these aged vessels will likely be scrapped after expiry of their respective contracts. As a result, our FY18-20 forecasts are trimmed by 2.3%-2.8%. Correspondingly, our target price (TP) is lowered to RM5.66 (previous: RM5.80) based on unchanged 14x FY19 P/E. Valuation Maintain Sell on MISC (TP: RM5.66). Charter and fleet utilization rates are expected to remain weak in the near-to-medium term. On top of that, orderbook replenishment prospects at the Heavy Engineering segment also appears subdued. Figure 1 : Aframax Time Charter Rates Figure 2 : VLCC Time Charter Rates Spot rate (USD/day) VLCC Charter Rate (USD/day) 3-yr Time Charter (USD/day) 60000 50000 40000 30000 20000 10000 3-yr Time Charter (USD/day) 120000 100000 80000 60000 40000 20000 Oct-17 Jan-18 Apr-18 Oct-16 Jan-17 Apr-17 Jul-17 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Jul-14 Oct-14 Jan-15 Apr-15 Jul-13 Oct-13 Jan-14 Apr-14 Jan-18 Apr-18 Jul-17 Oct-17 Jan-17 Apr-17 Jul-16 Oct-16 Jan-16 Apr-16 Jul-15 Oct-15 Jan-15 Apr-15 Jul-14 Oct-14 Jan-14 Apr-14 Jul-13 Oct-13 Jan-13 Source: Company, TA Securities Jan-13 Apr-13 0 0 Apr-13 Aframax Charter Rate (USD/day) Spot rate (USD/day) Source: Company, TA Securities [ TH E R E M AIN DE R O F TH IS P A GE I S IN TE N TI ON AL L Y L E F T B L AN K] Page 3 of 5
17. 18-Jun-18 Earnings Summary Income Statement Balance Sheet (RM'mn) FYE 31 Dec (RMmn) 2016 Revenue EBITDA Depreciation & Amortisation 2017 2018E 2019F 2020F 9,597.2 10,037.7 8,328.4 9,240.3 9,717.2 PPE 4,250.4 3,439.5 3,784.8 3,818.5 Intangibles 3,955.2 (2,030.1) (2,066.6) (1,941.5) (1,906.7) (1,851.9) Net Financing Cost Associate & JV EI PBT (247.9) (265.0) (245.3) (250.6) (244.3) 288.1 194.8 197.6 201.5 205.6 276.8 92.6 42.2 0.0 0.0 2,814.0 2,003.5 1,534.6 1,829.0 1,927.9 Tax (20.7) (12.9) (11.9) (14.6) (15.4) MI (211.7) (9.2) (7.2) (8.8) (9.3) PAT Core Net Profit 2,581.6 1,981.4 1,515.5 1,805.5 1,903.2 2,304.8 1,888.8 1,473.3 1,805.5 1,903.2 FYE 31 Dec Others Non-current Assets Inventories Trade & Other Receivable Others Cash & Bank Balances 2016 2017 2018E 2019F 2020F 26,127.2 22,982.6 23,049.7 22,659.6 22,324.3 938.7 844.4 827.8 811.2 794.6 17,116.7 16,239.7 16,437.3 16,638.8 16,844.4 44,182.5 40,066.7 40,314.8 40,109.6 39,963.3 213.5 198.6 218.5 240.3 264.3 4,895.3 4,034.5 4,438.0 4,881.7 5,369.9 305.4 264.0 264.0 264.0 264.0 6,559.2 5,900.7 5,879.6 6,028.4 6,193.1 Current Assets 11,973.4 10,397.8 10,800.0 11,414.4 12,091.4 Total Assets 56,155.9 50,464.5 51,114.8 51,524.0 52,054.6 Per Share Data Core EPS (sen) 51.6 42.3 33.0 40.4 42.6 Borrowings DPS (sen) 30.0 30.0 30.0 30.0 30.0 Other Book Value (RM) 8.8 8.0 8.1 8.2 8.3 NTA (RM) 8.3 7.6 7.7 7.8 7.9 Ratios FYE 31 Dec 2016 2017 2018E 2019F 2020F Valuations 5,228.5 3,946.3 4,149.6 3,909.6 726.4 666.5 666.5 666.5 666.5 5,954.9 4,612.8 4,816.1 4,576.1 4,336.1 Borrowings 7,373.0 7,717.6 7,768.4 7,708.4 7,648.4 Trade & Other Payables 3,382.0 2,126.8 2,339.5 2,573.4 2,830.8 115.1 107.9 107.9 107.9 107.9 Non-current Liabilities Others 3,669.6 Current Liabilites 10,870.0 9,952.3 10,215.8 10,389.7 10,587.1 Total Liabilities 16,824.9 14,565.1 15,031.9 14,965.8 14,923.2 Core PER (x) 11.8 14.4 18.5 15.1 Dividend yield (%) 4.9 4.9 4.9 4.9 14.3 4.9 EV/EBITDA (x) 7.8 15.2 17.6 15.8 15.6 P/BV (x) 0.7 0.8 0.8 0.7 0.7 Share Capital 4,463.8 8,923.3 8,923.3 8,923.3 P/NTA (x) 0.7 0.8 0.8 0.8 0.8 Share Premium 4,459.5 0.0 0.0 0.0 0.0 FCFE Yield (%) 7.7 3.6 2.0 3.3 3.3 Others 9,349.0 5,954.2 5,954.2 5,954.2 5,954.2 19,793.4 19,961.3 20,137.7 20,604.1 21,168.1 1,265.3 1,060.6 1,067.8 1,076.6 1,085.9 Retained Earnings Profitability ratios MI EBITDA margin (%) 44.3 39.4 41.3 41.0 39.3 EBIT margin (%) 23.1 18.8 18.0 20.3 20.2 PBT margin (%) 26.4 19.0 17.9 19.8 19.8 Core Net margin (%) 24.0 18.8 17.7 19.5 19.6 ROE (%) 6.3 5.2 4.2 5.1 5.3 ROA (%) 4.4 3.5 2.9 3.5 3.7 Liquidity ratios Total Equity Cash Flow Statement 2016 2017 2018E 2019F 2020F PBT FYE 31 Dec (RMmn) 2,814.0 2,003.5 1,534.6 1,829.0 1,927.9 Depreciation 2,030.1 2,066.6 1,941.5 1,906.7 1,851.9 (x) 1.1 1.0 1.1 1.1 1.1 Taxation Quick Ratio (x) 1.1 1.0 1.0 1.1 1.1 Changes in WC Leverage ratios (x) 0.2 0.2 0.2 0.2 0.2 0.3 0.3 0.3 0.3 0.3 39,331.0 35,899.4 36,082.9 36,558.2 37,131.5 Total Equity + Liabilities 56,155.9 50,464.5 51,114.8 51,524.0 52,054.6 Current Ratio Total Debt/ Assets (20.7) (12.9) (11.9) (14.6) (15.4) (1,523.2) (574.4) (408.2) (433.2) (460.4) Others 1,933.5 1,668.6 0.0 0.0 0.0 CFO 5,233.7 5,151.4 3,056.0 3,287.9 3,303.9 (1,992.0) (1,500.0) (1,500.0) Total Debt/Equity (x) Capex (2,344.1) (2,839.2) Net Gearing (x) Net Cash Net Cash Net Cash Net Cash Net Cash Other (808.9) (330.9) Interest coverage (x) 0.1 0.1 0.2 0.1 0.1 CFI Revenue (%) (12.0) 4.6 (17.0) 10.9 5.2 Net Borrowing EBITDA (%) (13.0) (6.9) (13.0) 10.0 0.9 Others PBT (%) (19.4) (24.7) (21.9) 22.5 5.4 CFF Core Net Profit (%) (24.4) (18.0) (22.0) 22.5 5.4 Core EPS (%) (24.4) (18.0) (22.0) 22.5 5.4 Growth ratios 8,923.3 Dividend Net Cash Flow 0.0 0.0 0.0 (3,152.9) (3,170.1) (1,992.0) (1,500.0) (1,500.0) (1,450.7) (1,830.2) 294.6 254.1 (224.3) (486.5) (1,339.1) 254.1 0.0 (1,339.1) (1,339.1) (300.0) (300.0) 0.0 0.0 (1,380.5) (2,062.6) (1,085.0) (1,639.1) (1,639.1) 700.4 (81.3) (21.1) 148.7 164.8 Page 4 of 5
18. 18-Jun-18 (TH I S P A GE IS IN TE N TI ON AL L Y L E F T B L AN K ) Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ 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. As of Monday, June 18, 2018, the analyst, Kylie Chan Sze Zan, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 5 of 5
19. SECTOR UPDATE Monday , June 18, 2018 FBMKLCI: 1,761.78 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Plantation Sector Overweight EU To Phase Out Palm Oil From Transport Fuel By 2030 Angeline Chin Tel: +603-2167 9611 angelinechin@ta.com.my (Maintained) www.taonline.com.my What’s in the News? Last week, European Union (EU) lawmakers have agreed to raise the target for the proportion of energy it will source from renewables by 2030 to 32%, up from the previous 27% goal. In addition, the European Parliament has also agreed to phase out palm oil from motor fuels by 2030. The use of palm oil would be capped at 2019 levels and, should gradually decline from 2023 onwards until it reaches 0% in 2030. Comments Phase Out Easing into 2030 The phase out of palm oil from motor fuels by 2030 is much later than the initially proposed deadline of 2021. The EU has now given itself 12 years to phase out palm oil for biofuels. Palm oil has been used increasingly as a feedstock for biofuels due to its competitive price compared to other vegetable oils. We believe that the news is negative for the palm oil industry in the longterm. However, the time frame should allow the world’s two biggest producers of palm oil, Malaysia and Indonesia to identify potential new markets. Palm oil may increase its market share in the non-energy markets as the price of the other vegetable oils in the biodiesel market will increase. Palm oil will serve as an alternative option to these markets due to its cheaper price. The EU is Malaysia’s 2nd Biggest Palm Oil Customer The EU is Malaysia’s 2nd biggest palm oil customer, after India. It accounts for about 12% (1.99mn tonnes) of Malaysia’s palm oil export market. Meanwhile, the EU is also the 2nd largest export market for Indonesian palm oil, importing around 5mn tonnes each year. Assuming half of palm oil imports are used for biodiesel, it will lead to excess palm oil supply of approximately 3.5m tonnes (~5% of global palm oil production). These palm oil supplies will need to channel to other existing or new markets. Malaysia’s palm oil statistic data revealed that export to “others” nonmajor-destinations has increased almost double from 4mn tonnes to 7.6mn tonnes between 2004 and 2017 (CAGR of 5%). No Immediate Impact The phase out of palm oil from motor fuels by 2030 should have no immediate impact to the palm oil supply. Demand for biodiesel should not change drastically. However, it may negatively affect market sentiment. Note that Malaysia’s palm oil export to the EU has increased by almost 20% YoY to 907k tonnes for the first five months of 2018. YTD, total exports have accelerated by 10.1% YoY. No change to our average CPO price forecast of RM2,500/tonne in 2018. Maintain Overweight We reiterate our Overweight recommendation on the Plantation sector as we look forward to a stronger market in 2019. Most of the plantation stocks under our coverage are rated as BUYs except IJMP and United Malacca, which remain as Sell. Meanwhile, KLK is rated as Hold. Risk to our sector recommendation include: i) Upgrade revisions in soybean production estimates, ii) Weaker-than-expected demand in China and India, and iii) unfavourable government policies, which will affect the demand for palm oil. Page 1 of 2
20. 18-Jun-18 Figure 1 : Malaysia Export Destinations Figure 2: Malaysia’s Export to EU Source: MPOB, TA Research Source: MPOB, TA Research Figure 3: Peers’ Comparison Table Price TP PER (x) P/BV (x) Dividend Yield (%) CY18 CY19 ROE (%) CY18 CY19 Company Malaysia (RM) SD Plantation IOI Corp KLK FGV IJMP TSH United Malacca KFIMA Call (RM) (RM) CY18 CY19 CY18 CY19 Buy Buy Hold Buy Sell Buy Sell Buy 5.51 4.70 24.94 1.56 2.20 1.15 6.08 1.54 6.27 5.43 27.05 1.93 2.25 1.45 6.21 1.89 27.9 24.1 25.5 88.4 26.0 12.9 29.8 11.0 25.5 22.5 21.8 52.4 23.5 12.3 23.5 9.9 2.7 2.9 2.2 1.0 1.2 0.9 0.7 0.4 2.6 2.8 2.1 1.1 1.1 0.9 0.7 0.4 2.7 4.6 2.1 3.2 2.3 1.9 2.9 5.8 2.9 3.6 2.3 3.2 2.3 2.0 3.1 5.8 9.9 12.7 8.7 1.2 4.5 8.1 2.5 5.2 10.3 12.6 9.8 2.0 4.9 8.0 3.1 5.7 Singapore (SGD) Wilmar IFAR Hold Buy 3.28 0.24 3.38 0.37 18.8 7.9 16.4 6.3 1.3 0.3 1.2 0.3 2.1 1.7 2.4 2.2 6.8 3.7 7.4 4.5 Source: Bloomberg, TA Research 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. Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ 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. As of Monday, June 18, 2018, the analyst, Angeline Chin Swee Tyng, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 2 of 2
21. Monday , 18 June, 2018 TA RESEARCH’S ‘DAILY COMPILED REPORTS’ For Internal Circulation Only L oc al Te ch n ic al R ep o r ts 1. Weekly Technical Stock Watch 2. Daily Money Flow of Technical Stock Watch 3. Technical Stock Watch a. FBMKLCI 4. Top 14 Stock Picks for GE14 5. Weekly Ace Market Stock Watch 6. Weekly Small Cap Stock Watch 7. Weekly Stock Screen Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ 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. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my
22. Technical View Monday , June 18, 2018 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Weekly Technical Stock Watch Malaysia Chartist: Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my GADANG RM0.75 BOLLINGER BANDS Upper Middle Lower RM RM RM SIMPLE MOVING AVERAGES 0.82 0.74 0.66 10-day 30-day 50-day RM RM RM DMI SELL SELL Recent Signal Signal Change GLOBETRONICS RM RM RM BUY RM2.27 BOLLINGER BANDS SIMPLE MOVING AVERAGES 2.47 2.28 2.09 10-day 30-day 50-day DMI Recent Signal Signal Change 0.72 0.76 0.80 DAILY MACD Recent Signal Signal Change Upper Middle Lower www.taonline.com.my RM RM RM 2.32 2.14 2.01 DAILY MACD SELL Recent Signal Signal Change SELL Page 1 of 9
23. 18-Jun-18 INARI RM2 .26 BOLLINGER BANDS Upper Middle Lower RM RM RM SIMPLE MOVING AVERAGES 2.46 2.24 2.03 10-day 30-day 50-day RM RM RM DMI DAILY MACD Recent Signal Signal Change BUY BUY Recent Signal Signal Change MPI RM RM RM SIMPLE MOVING AVERAGES 11.14 9.71 8.29 10-day 30-day 50-day BUY Recent Signal Signal Change DMI Recent Signal Signal Change SELL RM10.42 BOLLINGER BANDS Upper Middle Lower 2.32 2.11 2.01 RM RM RM 10.25 9.11 8.82 DAILY MACD BUY Page 2 of 9
24. 18-Jun-18 SKP RESOURCES RM1 .54 BOLLINGER BANDS Upper Middle Lower RM RM RM SIMPLE MOVING AVERAGES 1.63 1.55 1.46 10-day 30-day 50-day RM RM RM DMI DAILY MACD Recent Signal Signal Change BUY Recent Signal Signal Change SUNCON RM RM RM SIMPLE MOVING AVERAGES 2.15 1.92 1.69 10-day 30-day 50-day DMI Recent Signal Signal Change BUY RM1.96 BOLLINGER BANDS Upper Middle Lower 1.55 1.52 1.51 RM RM RM 1.85 2.03 2.06 DAILY MACD SELL Recent Signal Signal Change BUY Page 3 of 9
25. 18-Jun-18 UNISEM RM2 .42 BOLLINGER BANDS Upper Middle Lower RM RM RM SIMPLE MOVING AVERAGES 2.65 2.33 2.01 10-day 30-day 50-day RM RM RM DAILY MACD BUY Recent Signal Signal Change DMI Recent Signal Signal Change VS IND RM RM RM SIMPLE MOVING AVERAGES 1.94 1.83 1.73 10-day 30-day 50-day DMI Recent Signal Signal Change BUY RM1.70 BOLLINGER BANDS Upper Middle Lower 2.48 2.16 2.25 RM RM RM 1.81 1.83 1.80 DAILY MACD SELL Recent Signal Signal Change SELL Page 4 of 9
26. 18-Jun-18 Close Name 14 /Jun FBMKLCI 1761.78 Change High Low (1.79) 1,762.22 1,745.45 Bollinger Bands RSI Moving Averages DMI MACD DMI Lower Mid Upper 14d 10d 30d 50d DI + DI - ADX Diff Line Signal Diff 1,707.56 1,789.52 1,871.48 39.34 1,765.21 1,809.85 1,831.11 17.46 34.94 32.90 (17.49) (20.51) (21.94) 1.43 AFFIN 2.57 -0.02 2.59 2.57 2.20 2.39 2.57 65.38 2.47 2.37 2.39 31.25 16.64 28.85 14.61 0.04 0.02 ABMB 4.20 -0.04 4.29 4.20 4.13 4.30 4.48 46.98 4.34 4.28 4.29 13.58 18.71 13.91 (5.13) 0.01 0.02 (0.01) 0.02 MACD Recent Signal SELL DMI MACD Signal Change BUY - - BUY BUY - - SELL SELL - SELL AMBANK 3.82 0.01 3.82 3.74 3.40 3.67 3.95 54.41 3.78 3.68 3.76 23.20 16.59 28.04 6.61 0.03 0.00 0.04 BUY BUY - - AXIATA 4.77 -0.03 4.80 4.66 4.04 4.67 5.30 50.53 4.59 4.85 5.06 20.12 30.30 40.73 (10.18) -0.11 -0.17 0.06 SELL BUY - - CIMB 5.97 -0.11 6.09 5.97 5.69 6.28 6.86 37.15 6.15 6.50 6.77 19.90 30.00 38.22 (10.10) -0.18 -0.21 0.03 SELL BUY - - DIGI 4.48 -0.04 4.50 4.35 4.31 4.55 4.78 48.55 4.51 4.56 4.55 17.10 22.76 15.83 (5.66) -0.02 -0.02 0.00 SELL BUY - - GAMUDA 3.50 -0.08 3.58 3.44 3.04 3.82 4.60 37.20 3.52 4.20 4.56 13.11 38.36 47.61 (25.25) -0.32 -0.34 0.02 SELL BUY - - GENTING 8.55 -0.09 8.74 8.55 8.44 8.72 9.00 45.93 8.80 8.73 8.78 19.32 19.40 16.76 (0.08) -0.01 -0.01 (0.01) SELL SELL SELL SELL GENM 5.09 -0.14 5.23 5.09 4.92 5.11 5.30 56.80 5.12 5.07 5.04 24.23 17.77 11.82 6.46 0.03 0.02 0.01 BUY BUY - - IHH 6.10 0.00 6.11 5.99 5.90 6.11 6.31 51.78 6.05 6.08 6.07 13.87 22.58 28.41 (8.71) 0.00 0.00 0.00 SELL BUY - BUY IOICORP 4.70 0.10 4.70 4.56 4.57 4.69 4.81 38.89 4.64 4.71 4.73 7.35 23.10 47.95 (15.75) -0.03 -0.02 (0.01) SELL SELL - - MALAKOFF 0.90 0.01 0.90 0.88 0.85 0.88 0.91 51.56 0.87 0.88 0.89 16.79 16.20 16.63 0.59 0.02 0.03 (0.02) BUY SELL - - MAXIS 5.78 0.01 5.78 5.65 5.71 5.77 5.83 51.06 5.78 5.73 5.74 7.04 16.31 25.96 (9.27) 0.01 0.01 (0.00) SELL SELL - - MAYBANK 9.60 0.00 9.63 9.52 9.14 10.13 11.12 34.66 9.76 10.32 10.41 15.50 32.40 35.01 (16.90) -0.25 -0.21 (0.04) SELL SELL - - MBSB 1.19 0.00 1.21 1.18 1.15 1.19 1.22 52.81 1.19 1.17 1.15 23.43 11.48 33.02 11.95 0.01 0.01 0.00 BUY BUY - - RHBBANK 5.81 0.10 5.81 5.61 5.19 5.50 5.80 67.63 5.59 5.42 5.37 30.93 13.44 24.87 17.50 0.11 0.07 0.03 BUY BUY - - SIME 2.60 0.05 2.60 2.51 2.30 2.59 2.88 46.60 2.48 2.61 2.65 17.14 21.79 21.53 (4.65) -0.05 -0.05 0.00 SELL BUY - BUY TENAGA 14.50 0.10 14.50 14.30 13.70 14.85 15.99 33.71 14.45 15.21 15.50 17.87 30.08 29.14 (12.21) -0.34 -0.34 0.00 SELL BUY - BUY TM 3.85 0.00 3.85 3.74 3.19 4.03 4.88 33.24 3.77 4.40 4.78 17.94 33.44 50.04 (15.50) -0.31 -0.35 0.05 SELL BUY - - WPRTS 3.49 0.03 3.49 3.42 3.33 3.44 3.55 52.79 3.47 3.39 3.41 16.74 15.14 23.10 1.60 0.02 0.02 0.00 BUY BUY - - AEMULUS 0.38 0.01 0.39 0.37 0.31 0.35 0.40 54.80 0.36 0.35 0.34 31.31 21.51 21.78 9.80 0.01 0.00 0.00 BUY BUY - - ARMADA 0.72 0.00 0.74 0.72 0.69 0.77 0.85 38.03 0.74 0.79 0.81 12.66 29.29 31.17 (16.63) -0.03 -0.02 (0.00) SELL SELL - - DIALOG 3.34 -0.02 3.37 3.31 3.15 3.34 3.53 55.44 3.34 3.25 3.18 24.58 17.97 18.92 6.61 0.06 0.07 (0.00) BUY SELL - - DNEX 0.43 0.01 0.43 0.42 0.37 0.40 0.44 57.10 0.42 0.40 0.39 30.24 21.32 17.88 8.91 0.01 0.01 BUY BUY - - FGV 1.56 -0.02 1.58 1.56 1.42 1.65 1.88 43.25 1.57 1.67 1.70 19.86 21.11 19.99 (1.25) -0.04 -0.04 (0.00) SELL SELL - - GADANG 0.75 0.01 0.75 0.74 0.66 0.74 0.82 45.10 0.72 0.76 0.80 25.12 25.65 24.60 (0.53) -0.02 -0.03 SELL BUY SELL - GLOBETRONICS 2.27 0.01 2.27 2.21 2.09 2.28 2.47 54.95 2.32 2.14 2.01 21.58 26.46 30.93 (4.88) 0.07 0.09 (0.03) SELL SELL - - 0.00 0.01 HIAP TECK 0.38 0.00 0.38 0.37 0.36 0.39 0.41 44.39 0.38 0.38 0.39 18.01 26.28 18.08 (8.28) -0.01 0.00 (0.00) SELL SELL - - HIBISCUS 0.91 0.01 0.91 0.89 0.86 0.93 1.00 47.71 0.91 0.90 0.87 23.58 25.27 12.34 (1.69) 0.01 0.01 (0.01) SELL SELL SELL - INARI 2.26 -0.02 2.30 2.26 2.03 2.24 2.46 58.39 2.32 2.11 2.01 24.26 22.95 17.43 1.31 0.09 0.10 (0.01) BUY SELL BUY - 10.42 0.10 10.48 10.30 8.29 9.71 11.14 67.18 10.25 9.11 8.82 28.88 12.56 40.21 16.33 0.50 0.47 0.03 BUY BUY - - MRCB 0.67 0.00 0.68 0.66 0.57 0.67 0.77 37.53 0.64 0.77 0.86 14.75 32.26 42.94 (17.51) -0.06 -0.08 0.01 SELL BUY - - SAPURA ENERGY 0.65 0.01 0.66 0.64 0.52 0.67 0.82 48.40 0.62 0.68 0.66 25.92 25.39 15.53 0.53 -0.01 -0.01 0.00 BUY BUY - BUY SKP RESOURCES 1.54 -0.01 1.57 1.54 1.46 1.55 1.63 51.14 1.55 1.52 1.51 19.70 14.92 18.48 4.78 0.02 0.01 0.00 BUY BUY - - SUNCON 1.96 0.01 1.96 1.90 1.69 1.92 2.15 48.38 1.85 2.03 2.06 18.39 23.95 26.49 (5.57) -0.06 -0.08 0.01 SELL BUY - - UEM SUNRISE 0.75 0.03 0.75 0.72 0.66 0.78 0.90 30.29 0.72 0.82 0.87 17.90 35.63 42.35 (17.74) -0.05 -0.05 0.00 SELL BUY - - VELESTO 0.28 0.01 0.29 0.28 0.26 0.28 0.31 45.38 0.28 0.28 0.28 17.92 22.05 12.03 (4.13) 0.00 0.00 0.00 SELL BUY SELL - UNISEM 2.42 -0.01 2.48 2.40 2.01 2.33 2.65 58.16 2.48 2.16 2.25 27.17 22.56 21.60 4.61 0.09 0.07 0.02 BUY BUY - - MPI VS INDS 1.70 0.07 1.70 1.62 1.73 1.83 1.94 29.52 1.81 1.83 1.80 11.31 42.70 19.01 (31.39) -0.03 -0.01 (0.02) SELL SELL - - WASEONG 1.37 0.02 1.39 1.33 1.22 1.42 1.62 44.71 1.35 1.42 1.42 18.07 22.82 18.87 (4.75) -0.03 -0.03 (0.00) SELL SELL - - The table above is a compilation of actively traded stocks with some popular technical indicators. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. 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. 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. Page 5 of 9
27. 18-Jun-18 LIST OF RECOMMENDED BUY STOCKS FROM MARCH 2018 TO CURRENT Stock AAX AEMULUS AIRASIA AXIATA BUMI ARMADA BUMI ARMADA BUMI ARMADA DIALOG DIALOG DIGI DNEX DNEX DNEX DNEX ECO WORLD ECO WORLD EKOVEST EKOVEST FGV FGV FGV FGV GADANG GADANG GADANG GADANG GENM GENTING GLOBETRONICS * HIAP TECK HIAP TECK HIAP TECK HIAP TECK HIBISCUS HIBISCUS HIBISCUS INARI KIMLUN CORP KKB ENGINEERING KUB KUB KUB MALTON MALTON MALTON MPI MRCB MUDAJAYA MUDAJAYA NAIM SAPURA ENERGY SAPURA ENERGY SAPURA ENERGY SAPURA ENERGY SKP RESOURCES SKP RESOURCES SUNCON TM TM UEM SUNRISE UEM SUNRISE UEM SUNRISE UNISEM UNISEM VELESTO VELESTO VELESTO VELESTO VS IND VS IND WAH SEONG WCT HLGS REC Date 15-Mar 17-May 15-Mar 14-Mar 27-Apr 15-May 1-Jun 15-May 7-Jun 6-Apr 28-Mar 5-Apr 27-Apr 6-Jun 18-Apr 2-May 12-Apr 2-May 29-Mar 10-Apr 8-May 1-Jun 13-Apr 4-May 16-May 12-Jun 13-Mar 13-Mar 22-May 30-Mar 18-Apr 4-May 16-May 28-Mar 5-Apr 6-Jun 23-May 1-Mar 1-Mar 29-Mar 10-Apr 3-May 30-Mar 12-Apr 3-May 22-May 4-Apr 2-Mar 13-Apr 1-Mar 16-Mar 11-Apr 14-May 5-Jun 18-May 8-Jun 12-Jun 14-Mar 6-Apr 4-Apr 17-Apr 8-May 17-May 23-May 16-Mar 11-Apr 14-May 5-Jun 18-May 8-Jun 7-Jun 17-Apr BUY Price 14-Jun-18 Price 0.42 0.36 4.16 5.45 0.82 0.86 0.77 3.07 3.38 4.38 0.41 0.34 0.37 0.40 1.11 1.15 0.90 0.82 1.69 1.73 1.59 1.57 0.88 0.82 0.78 0.76 5.30 8.99 2.18 0.42 0.41 0.37 0.38 0.84 0.71 0.92 2.16 2.15 0.96 0.44 0.42 0.39 0.81 0.84 0.81 8.66 0.96 0.86 0.70 1.01 0.49 0.54 0.67 0.58 1.50 1.60 1.91 5.71 5.13 1.01 0.94 0.89 2.11 2.21 0.32 0.28 0.28 0.27 1.86 1.83 1.37 1.19 0.36 0.38 3.20 4.77 0.72 0.72 0.72 3.34 3.34 4.48 0.43 0.43 0.43 0.43 1.27 1.27 0.63 0.63 1.56 1.56 1.56 1.56 0.75 0.75 0.75 0.75 5.09 8.55 2.27 0.38 0.38 0.38 0.38 0.91 0.91 0.91 2.26 1.38 0.85 0.34 0.34 0.34 0.54 0.54 0.54 10.42 0.67 0.48 0.48 0.65 0.65 0.65 0.65 0.65 1.54 1.54 1.96 3.85 3.85 0.75 0.75 0.75 2.42 2.42 0.28 0.28 0.28 0.28 1.70 1.70 1.37 0.81 Change (+/-) (0.06) 0.02 (0.96) (0.68) (0.10) (0.14) (0.05) 0.27 (0.04) 0.10 0.02 0.09 0.06 0.03 0.16 0.12 (0.28) (0.20) (0.13) (0.17) (0.03) (0.01) (0.13) (0.07) (0.03) (0.01) (0.21) (0.44) 0.09 (0.05) (0.04) 0.01 (0.01) 0.07 0.20 (0.02) 0.10 (0.77) (0.11) (0.11) (0.09) (0.06) (0.28) (0.31) (0.28) 1.76 (0.30) (0.39) (0.23) (0.37) 0.16 0.11 (0.02) 0.07 0.04 (0.06) 0.05 (1.86) (1.28) (0.26) (0.19) (0.14) 0.31 0.21 (0.04) 0.00 0.00 0.01 (0.16) (0.13) 0.00 (0.38) % (14.29) 4.17 (23.08) (12.48) (12.20) (16.28) (6.49) 8.79 (1.18) 2.28 4.88 26.47 16.22 7.50 14.41 10.43 (30.56) (23.78) (7.69) (9.83) (1.89) (0.64) (14.77) (8.54) (3.85) (1.32) (3.96) (4.89) 4.13 (10.71) (8.54) 1.35 (1.32) 8.38 27.46 (1.63) 4.63 (35.81) (11.46) (23.86) (20.24) (14.10) (33.95) (36.31) (33.95) 20.32 (30.73) (44.77) (32.14) (36.14) 32.65 20.37 (2.99) 12.07 2.67 (3.75) 2.62 (32.57) (24.95) (25.74) (20.21) (15.73) 14.69 9.50 (12.50) 0.00 0.00 3.70 (8.60) (7.10) 0.00 (31.93) Upside Targets ** MT 0.41 0.44 0.42 0.49 3.46 3.77 4.82 5.05 0.82 0.90 0.82 0.90 0.82 0.90 3.60 3.78 3.60 3.78 4.85 4.98 0.51 0.58 0.51 0.58 0.51 0.58 0.51 0.58 1.46 1.52 1.46 1.52 0.68 0.76 0.68 0.76 1.77 1.91 1.77 1.91 1.77 1.91 1.77 1.91 0.81 0.92 0.81 0.92 0.81 0.92 0.81 0.92 5.54 5.82 9.33 9.92 2.64 2.84 0.41 0.45 0.41 0.45 0.41 0.45 0.41 0.45 1.06 1.17 1.06 1.17 1.06 1.17 2.40 2.55 1.58 1.74 0.88 0.95 0.36 0.42 0.36 0.42 0.36 0.42 0.63 0.70 0.63 0.70 0.63 0.70 10.85 11.71 0.70 0.77 0.52 0.59 0.52 0.59 0.76 0.83 0.72 0.80 0.72 0.80 0.72 0.80 0.72 0.80 1.66 1.80 1.66 1.80 2.06 2.17 4.29 4.58 4.29 4.58 0.81 0.90 0.81 0.90 0.81 0.90 2.61 2.92 2.61 2.92 0.33 0.38 0.33 0.38 0.33 0.38 0.33 0.38 1.85 2.03 1.85 2.03 1.48 1.65 0.99 1.15 ST LT 0.50 0.60 4.14 5.27 0.95 0.95 0.95 4.10 4.10 5.19 0.64 0.64 0.64 0.64 1.60 1.60 0.90 0.90 2.06 2.06 2.06 2.06 1.00 1.00 1.00 1.00 6.08 10.50 3.00 0.50 0.50 0.50 0.50 1.36 1.36 1.36 2.89 1.90 1.01 0.46 0.46 0.46 0.74 0.74 0.74 12.78 0.87 0.68 0.68 0.94 0.91 0.91 0.91 0.91 1.92 1.92 2.28 4.75 4.75 0.99 0.99 0.99 3.24 3.24 0.48 0.48 0.48 0.48 2.26 2.26 1.76 1.30 ST 13.89 12.00 8.12 1.05 13.89 13.89 13.89 7.78 7.78 8.26 18.60 18.60 18.60 18.60 14.96 14.96 8.80 8.80 13.46 13.46 13.46 13.46 8.00 8.00 8.00 8.00 8.84 9.12 16.30 9.33 9.33 9.33 9.33 17.13 17.13 17.13 6.19 14.49 3.53 7.46 7.46 7.46 17.76 17.76 17.76 4.13 5.26 9.47 9.47 17.83 10.77 10.77 10.77 10.77 7.79 7.79 5.10 11.43 11.43 8.00 8.00 8.00 7.85 7.85 17.86 17.86 17.86 17.86 8.82 8.82 8.03 22.22 % Upside MT 22.22 30.67 17.69 5.87 25.00 25.00 25.00 13.17 13.17 11.16 34.88 34.88 34.88 34.88 19.69 19.69 21.60 21.60 22.44 22.44 22.44 22.44 22.67 22.67 22.67 22.67 14.34 16.02 25.11 20.00 20.00 20.00 20.00 29.28 29.28 29.28 12.83 26.09 11.76 25.37 25.37 25.37 30.84 30.84 30.84 12.38 15.79 24.21 24.21 28.68 23.08 23.08 23.08 23.08 16.88 16.88 10.71 18.96 18.96 20.00 20.00 20.00 20.66 20.66 35.71 35.71 35.71 35.71 19.41 19.41 20.44 41.98 LT 38.89 60.00 29.38 10.48 31.94 31.94 31.94 22.75 22.75 15.85 48.84 48.84 48.84 48.84 25.98 25.98 44.00 44.00 32.05 32.05 32.05 32.05 33.33 33.33 33.33 33.33 19.45 22.81 32.16 33.33 33.33 33.33 33.33 50.28 50.28 50.28 27.88 37.68 18.82 37.31 37.31 37.31 38.32 38.32 38.32 22.65 30.83 43.16 43.16 45.74 40.00 40.00 40.00 40.00 24.68 24.68 16.33 23.38 23.38 32.00 32.00 32.00 33.88 33.88 71.43 71.43 71.43 71.43 32.94 32.94 28.47 60.49 GLOBETRONICS* = share price adjusted for 1:6 bonus issue Total funds invested * Total unrealised profit/(loss) Return 113,365 (7,555) -6.66% Upside Targets ** ST = Short Term (one month) MT = Medium Term (three months) LT = Long Term (above six months) * The portfolio assumes each position consists of 1,000 shares and no deductions for any charges, fees and commision ** Upside Targets are derived from the subsequent Fibonacci Projection levels The above table is a performance summary of our top BUY recommendations from March 2018 to current (sorted by name) together with upside targets, which are taken from subsequent Fibonacci Projection targets which could be achieved in one month (ST), three months (MT) and above six months (LT) from recommendation date. Interpretation: Investors should aim to take profit/sell trading positions when the percentage upside on the last three columns falls to 5% or below (shaded column). A negative percentage value indicates the upside target for the particular time-frame has been breached. Any revision in upside targets will be highlighted in bold. Page 6 of 9
28. 18-Jun-18 Daily Money Flow of Technical Stock Watch Malaysia Chartist : Stephen Soo 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 31 32 33 34 35 37 38 39 39 40 Name Tel: +603-2167 9607 8-Jun 11-Jun 12-Jun 13-Jun (A) Total 5D MF Prv. Chg Total Money Flow (RM'mn) 7-Jun stsoo@ta.com.my (B) Cur. Chg www.taonline.com.my CLOSING PRICE 7-Jun 8-Jun 11-Jun 12-Jun 13-Jun (A+B) DMF Chg FBMKLCI (23.1) (9.2) (20.0) (1.1) 30.5 (22.9) 18.9 31.6 1,786 1,778 1,776 1,764 1,764 (0.59) IN AFFIN ABMB AMBANK AXIATA CIMB DIGI GAMUDA GENTING GENM IHH IOICORP MALAKOFF MAXIS MAYBANK MBSB RHBBANK SIME TENAGA TM WPRTS AEMULUS ARMADA DIALOG DNEX FGV GADANG GTRONIC HIAP TECK HIBISCUS INARI MPI MRCB SAPURA ENERGY SKP RESOURCES SUNCON UEMS VELESTO UNISEM VS IND WASEONG (0.1) (0.3) (0.3) 1.6 (1.6) (0.7) 1.2 (0.6) (0.3) (0.9) (0.6) 0.0 (0.8) 5.0 (0.1) (0.8) (2.0) (2.3) (1.9) (0.4) 0.0 (0.4) 0.3 (0.0) 0.5 0.3 (0.0) (0.1) 0.2 (2.2) 0.3 (0.3) (0.6) 0.8 0.5 (0.1) 0.0 0.4 0.2 (0.0) (0.0) (0.1) (0.6) (0.5) (1.3) (0.1) (0.5) (2.2) 0.2 (0.9) (0.4) (0.0) (0.4) (1.8) (0.4) (0.5) (0.3) (6.2) 0.0 (0.4) (0.0) (0.1) (1.2) (0.0) 0.0 0.1 (1.4) 0.0 0.5 (0.6) 0.0 (0.2) (1.1) 0.2 0.0 (0.1) 0.0 0.1 (0.1) 0.0 (0.0) (0.0) 0.2 0.7 1.2 (0.1) (0.3) (1.4) (0.4) 0.2 (0.3) 0.1 0.3 (0.8) (0.2) (1.6) (0.9) (8.4) (0.3) (0.0) (0.1) (0.3) (3.5) (0.0) (0.2) (0.0) 0.4 (0.0) (0.0) 1.2 0.8 (0.1) 0.4 0.2 (0.0) 0.0 0.0 (0.1) (0.1) (0.0) 0.0 (0.3) (1.3) (0.0) 1.9 (0.5) (0.5) 3.2 (4.3) (2.8) (1.2) (0.0) (0.6) (2.4) (0.4) (0.9) (0.6) 3.0 0.1 (0.0) (0.0) (0.0) 1.3 (0.2) 0.3 (0.1) 0.0 (0.0) (0.1) (1.1) (0.0) (0.1) (4.3) 0.1 (0.1) (0.0) 0.0 (0.0) (0.1) (0.1) (0.0) (0.1) 1.9 0.5 (0.7) (0.0) 1.6 (0.4) 0.8 (0.6) 0.2 (0.0) (0.2) 2.4 (0.1) (0.3) (1.2) (4.9) 0.7 0.0 0.0 (0.1) (0.0) (0.2) (0.0) 0.0 0.1 (0.0) (0.3) 0.1 (0.0) (0.1) 1.3 0.1 0.2 0.0 0.0 (0.1) 1.1 0.0 (0.1) (0.9) 0.0 2.2 (0.6) (1.4) 1.5 (1.3) (3.9) (5.0) (2.3) 0.1 (1.6) 2.5 (1.1) (4.1) (4.9) (18.9) (1.5) (0.8) (0.1) (0.9) (3.1) (0.5) 0.6 0.3 (0.9) (0.1) 0.3 (2.5) 1.1 (0.8) (4.2) 1.3 0.6 (0.2) 0.0 0.2 1.1 (0.1) 0.1 (0.3) (1.4) (0.7) 0.7 (0.4) (0.2) 4.5 (3.9) (3.0) (0.9) (0.2) (0.9) (1.6) (0.2) 0.6 0.3 11.4 0.4 0.0 0.0 0.3 4.8 (0.2) 0.4 (0.0) (0.4) (0.0) (0.0) (2.3) (0.9) 0.0 (4.7) (0.1) (0.0) (0.0) 0.0 0.1 0.0 (0.0) (0.1) 0.3 3.2 0.6 (2.6) 0.5 2.1 (3.5) 5.1 2.2 1.3 0.0 0.4 4.8 0.2 0.7 (0.6) (7.9) 0.6 0.0 0.0 (0.0) (1.3) 0.0 (0.3) 0.1 0.1 0.0 (0.3) 1.2 0.0 0.1 5.6 0.0 0.2 0.1 0.0 (0.1) 1.2 0.1 2.62 4.42 3.85 4.64 6.34 4.56 3.63 8.86 5.16 6.06 4.66 0.89 5.77 9.87 1.22 5.73 2.48 14.56 3.94 3.51 0.39 0.76 3.38 0.45 1.57 0.76 2.41 0.39 0.94 2.37 10.08 0.68 0.64 1.60 1.86 0.74 0.00 2.53 1.83 1.33 2.59 4.43 3.82 4.63 6.32 4.57 3.54 8.78 5.11 6.05 4.63 0.89 5.80 9.80 1.20 5.73 2.49 14.62 3.88 3.50 0.39 0.75 3.40 0.43 1.55 0.76 2.19 0.38 0.93 2.35 10.36 0.67 0.64 1.60 1.90 0.73 0.00 2.54 1.81 1.35 2.61 4.21 3.90 4.79 6.21 4.55 3.40 8.80 5.13 6.09 4.67 0.88 5.74 9.76 1.20 5.75 2.52 14.56 3.88 3.50 0.38 0.75 3.40 0.43 1.60 0.76 2.18 0.38 0.92 2.23 10.38 0.66 0.64 1.58 1.91 0.74 0.00 2.50 1.79 1.35 2.61 4.30 3.90 4.77 6.13 4.49 3.53 8.60 5.13 6.10 4.65 0.88 5.74 9.60 1.20 5.76 2.52 14.40 3.84 3.41 0.37 0.74 3.37 0.42 1.58 0.74 2.21 0.37 0.91 2.26 10.50 0.66 0.67 1.60 1.90 0.74 0.00 2.45 1.80 1.36 2.59 4.24 3.81 4.80 6.08 4.52 3.58 8.64 5.23 6.10 4.60 0.89 5.77 9.60 1.19 5.71 2.55 14.40 3.85 3.46 0.37 0.72 3.36 0.43 1.58 0.74 2.26 0.38 0.90 2.28 10.32 0.67 0.65 1.55 1.95 0.72 0.00 2.43 1.63 1.35 (0.02) (0.06) (0.09) 0.03 (0.05) 0.03 0.05 0.04 0.10 0.00 (0.05) 0.01 0.03 0.00 (0.01) (0.05) 0.03 0.00 0.01 0.05 0.01 (0.02) (0.01) 0.01 0.00 0.01 0.05 0.01 (0.01) 0.02 (0.18) 0.01 (0.02) (0.05) 0.05 (0.02) 0.00 (0.02) (0.17) (0.01) OUT OUT IN OUT OUT IN IN IN IN OUT IN OUT OUT IN IN IN OUT IN IN IN IN IN IN OUT IN IN OUT OUT OUT OUT OUT IN IN OUT IN IN OUT IN IN IN Sources: Bloomberg, TA Securities Daily Money Flow (DMF) Formulation If previous change (A) + current change (B) > 0, then DMF = “IN”; AND if (A) + (B) < 0, then DMF = “OUT”. Money Flow (MF) Calculation The value of money flow is set to zero at the start of the trading day. When a trade is performed, its price is compared to the price of the previous trade (the first trade of the day is compared to the previous day's close). If the prices differ, the money associated with the trade (price times number of shares) is added to or subtracted from the money flow. Additions (inflows, buys) are done on upticks; subtractions (outflows, sells) are done on downticks. Daily Money Flow (DMF) Interpretation In general, money flow trends confirm price trends. As prices rise, money flows are usually positive. As prices fall, money flows are usually negative. A divergence, however, between money flow and price trend can be a signal of a future price trend change. For example, a falling stock price with a positive money flow (IN) can indicate a future rally in the price of the stock. Conversely, a rising stock price with a negative money flow (OUT) implies potential correction in the stock price. Page 7 of 9
29. 18-Jun-18 Daily Money Flow of FBMKLCI Malaysia Chartist : Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my 7-Jun Total Money Flow (RM'mn) 8-Jun 11-Jun 12-Jun 13-Jun 5D MF FBMKLCI (23.1) (9.2) (20.0) (1.1) 30.5 (22.9) 18.9 31.6 1,786 1,778 1,776 1,764 1,764 (0.59) IN 1 MAYBANK 5.0 (1.8) (0.8) (2.4) 2.4 2.5 (1.6) 4.8 9.87 9.80 9.76 9.60 9.60 0.00 IN 2 PBBANK (3.2) 1.1 (4.5) 3.4 10.5 7.3 7.8 7.1 24.80 24.60 24.34 24.30 24.08 (0.22) IN 3 TENAGA (2.3) (6.2) (8.4) 3.0 (4.9) (18.9) 11.4 (7.9) 14.56 14.62 14.56 14.40 14.40 0.00 IN 4 CIMB (1.6) (1.3) 1.2 1.9 (0.7) (0.6) 0.7 (2.6) 6.34 6.32 6.21 6.13 6.08 5 PCHEM (7.6) 1.0 (2.1) 0.6 12.9 4.9 2.7 12.4 8.37 8.39 8.38 8.33 8.34 6 IHH (0.9) (0.9) 0.2 (2.8) (0.6) (5.0) (3.0) 2.2 6.06 6.05 6.09 6.10 7 AXIATA 1.6 (0.5) 0.7 (0.0) 0.5 2.2 (0.7) 0.6 4.64 4.63 4.79 4.77 8 MAXIS (0.8) (0.4) 0.3 (0.6) (0.2) (1.6) (0.9) 0.4 5.77 5.80 5.74 9 HLBANK (0.5) 0.1 (2.9) (0.4) 0.3 (3.4) 2.5 0.7 19.06 19.10 10 SIME PLT (1.1) (1.3) 1.6 (0.5) 2.4 1.1 (2.1) 3.0 5.37 11 DIGI (0.7) (0.1) (0.1) (0.5) (0.0) (1.4) (0.4) 0.5 4.56 12 NESTLE 0.1 0.5 0.3 0.6 0.2 1.7 0.3 (0.4) 13 PETGAS (0.1) (0.3) (0.2) (0.3) 0.2 (0.6) (0.1) 14 GENTING (0.6) (2.2) (1.4) 3.2 (0.4) (1.3) 4.5 15 MISC (3.1) 0.1 0.2 (0.1) (0.2) (3.0) (0.3) 16 IOI CORP (0.6) (0.4) (0.3) (1.2) 0.2 (2.3) 17 GENM (0.3) 0.2 (0.4) (4.3) 0.8 (3.9) 18 KLK (0.0) 4.5 (0.2) 0.4 0.1 No Name Total (A) (B) Prv. Chg Cur. Chg www.taonline.com.my 7-Jun 8-Jun CLOSING PRICE 11-Jun 12-Jun (A+B) 12-Jun Chg DMF (0.05) OUT 0.01 IN 6.10 0.00 OUT 4.80 0.03 OUT 5.74 5.77 0.03 OUT 19.12 19.06 19.02 (0.04) IN 5.23 5.38 5.34 5.46 0.12 IN 4.57 4.55 4.49 4.52 0.03 IN 146.70 145.80 145.70 145.90 144.90 0.4 18.16 17.86 17.74 17.60 18.06 0.46 IN (3.5) 8.86 8.78 8.80 8.60 8.64 0.04 IN (0.1) 6.20 6.12 6.10 6.10 5.86 (0.24) OUT (0.9) 1.3 4.66 4.63 4.67 4.65 4.60 (0.05) IN (3.9) 5.1 5.16 5.11 5.13 5.13 5.23 0.10 IN 4.9 0.6 (0.3) 24.92 24.92 24.90 24.92 24.94 0.02 IN 2.3 1.5 0.3 (0.52) IN (1.00) OUT 19 PETDAG (0.3) (0.0) (0.2) 1.3 1.6 25.14 25.12 25.30 25.46 24.94 20 HAP SENG (0.3) 0.5 0.1 0.4 0.3 0.9 0.3 (0.1) 9.75 9.80 9.80 9.73 9.76 0.03 IN 21 HLFG (0.3) (0.1) (0.1) (0.5) 0.1 (0.8) (0.4) 0.6 19.54 19.60 19.12 18.90 18.80 (0.10) IN 0.0 0.7 1.5 0.02 IN 22 PPB (1.1) (0.3) (0.5) 0.2 1.7 19.86 19.84 19.86 19.86 19.88 23 TM (1.9) 0.0 (0.3) 0.1 0.7 (1.5) 0.4 0.6 3.94 3.88 3.88 3.84 3.85 0.01 IN 24 RHBBANK (0.8) (0.5) (1.6) (0.9) (0.3) (4.1) 0.6 0.7 5.73 5.73 5.75 5.76 5.71 (0.05) IN 0.7 (0.0) 0.4 4.49 4.47 4.46 4.46 4.44 (0.02) IN (4.9) 0.3 (0.6) 2.48 2.49 2.52 2.52 2.55 0.03 OUT 1.01 0.99 0.97 1.02 1.06 0.04 IN (0.05) IN 25 PMETAL 0.4 (0.1) 0.0 (0.0) 0.4 26 SIME (2.0) (0.3) (0.9) (0.6) (1.2) 27 YTLCORP (0.9) 0.1 (0.1) 0.3 1.7 1.0 0.3 1.4 (0.2) (0.0) 0.2 28 KLCCS (0.0) 0.0 (0.1) (0.1) 0.0 7.70 7.76 7.74 7.70 7.65 29 AMBANK (0.3) (0.6) 0.2 (1.3) 1.9 0.0 (1.4) 3.2 3.85 3.82 3.90 3.90 3.81 (0.09) IN 30 ASTRO 1.0 (0.0) 0.0 0.1 0.1 1.2 0.1 0.1 1.65 1.69 1.65 1.58 1.59 0.01 IN 8.0 (31.1) (23.0) 8.2 (17.4) (9.2) 4.7 (24.7) (20.0) 15.3 (16.4) (1.2) 38.9 (8.5) 30.5 75.1 (98.0) (22.9) 5 (25) 11 (19) 10 (20) 13 (17) 21 (9) (RM'mn) INFLOW OUTFLOW NET FLOW COMPANIES INFLOW OUTFLOW Daily Trading Participation Date Retail 7-Jun 8-Jun 11-Jun 12-Jun 13-Jun 23.9% 21.3% 20.1% 23.0% 20.5% Institution Foreign 49.0% 47.5% 48.0% 47.8% 48.7% 27.1% 31.2% 31.9% 29.2% 30.8% Total 100% 100% 100% 100% 100% Sources: Bloomberg, TA Securities Daily Money Flow (DMF) Formulation If previous change (A) + current change (B) > 0, then DMF = “IN”; AND if (A) + (B) < 0, then DMF = “OUT”. Money Flow (MF) Calculation The value of money flow is set to zero at the start of the trading day. When a trade is performed, its price is compared to the price of the previous trade (the first trade of the day is compared to the previous day's close). If the prices differ, the money associated with the trade (price times number of shares) is added to or subtracted from the money flow. Additions (inflows, buys) are done on upticks; subtractions (outflows, sells) are done on downticks. Daily Money Flow (DMF) Interpretation In general, money flow trends confirm price trends. As prices rise, money flows are usually positive. As prices fall, money flows are usually negative. A divergence, however, between money flow and price trend can be a signal of a future price trend change. For example, a falling stock price with a positive money flow (IN) can indicate a future rally in the price of the stock. Conversely, a rising stock price with a negative money flow (OUT) implies potential correction in the stock price. Page 8 of 9
30. 18-Jun-18 Top 14 Stock Picks for Post GE14 Malaysia Chartist : Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my www.taonline.com.my Report Description: This is a new weekly technical product. The table below displays our top 14 stock picks for post GE14. We have chosen these stocks based on price momentum and chart patterns, which are mostly exporters and in the oil & gas sector, and showed very good recovery potential post GE14 given the unprecedented comfortable win by the Pakatan Harapan coalition. The lower table shows the Bloomberg consensus price targets and other key fundamental statistics. No. Bloomberg Ticker Stock Name 14/Jun Upside Targets Price ST MT % Upside LT ST MT Stop ST reward loss ratio LT CALL 1 AMLS MK Equity Aemulus Holdings Bhd 0.38 0.42 0.49 0.60 12.00 30.67 60.00 0.31 0.69 BUY 2 BAB MK Equity Bumi Armada Bhd 0.72 0.82 0.90 0.95 13.89 25.00 31.94 0.69 3.33 BOW 3 DLG MK Equity Dialog Group Bhd 3.34 3.60 3.79 4.10 7.78 13.47 22.75 2.96 0.68 BOW 4 FGV MK Equity Felda Global Ventures Holdings Bhd 1.56 1.77 1.91 2.06 13.46 22.44 32.05 1.40 1.31 BOW 5 GTB MK Equity Globetronics Technology BHD 2.27 2.43 2.65 3.00 7.05 16.74 32.16 2.08 0.84 TP 6 HTVB MK Equity Hiap Teck Venture Bhd 0.38 0.45 0.53 0.61 20.00 41.33 62.67 0.35 3.00 BOW 7 HIBI MK Equity Hibiscus Petroleum Bhd 0.91 1.17 1.36 1.47 29.28 50.28 62.43 0.77 1.96 BUY 8 INRI MK Equity Inari Amertron Bhd 2.26 2.40 2.55 2.90 6.19 12.83 28.32 1.98 0.50 TP 9 MPI MK Equity Malaysian Pacific Industries Bhd 10.42 10.85 11.71 12.78 4.13 12.38 22.65 8.92 0.29 TP 10 SAPE MK Equity Sapura Energy Bhd 0.65 0.71 0.80 0.91 9.23 23.08 40.00 0.47 0.33 BUY 11 SKP MK Equity SKP Resources Bhd 1.54 1.80 1.92 2.08 16.88 24.68 35.06 1.24 0.87 BUY 12 VEB MK Equity Velesto Energy Bhd 0.28 0.33 0.38 0.48 17.86 35.71 71.43 0.21 0.71 BUY 13 UNI MK Equity Unisem M Bhd 2.42 2.61 2.92 3.24 7.85 20.66 33.88 1.80 0.31 TP 14 VSI MK Equity VS Industry Bhd 1.70 2.16 2.26 2.62 27.06 32.94 54.12 1.66 11.50 BOW Notes: No. Bloomberg Ticker Upside Targets are derived from Fibonacci levels Forecast Upside Targets Reward ratio = (ST-SP)/(SP-SL) ST = Short Term (one month) where ST = Short Term upside target MT = Medium Term (three months) SP = current Share Price; SL = Stop loss level LT = Long Term (above six months) Stock Name Target Close Price % upside 52week Price % Chg 2017 EPS ($) 2018 2017 PER(x) 2018 2017 Div Yield(%) 2018 High Low YTD 1 AMLS MK Equity Aemulus Holdings Bhd 0.38 0.38 1% 0.02 0.02 20.83 20.83 na na 0.60 0.26 0.26 2 BAB MK Equity Bumi Armada Bhd 0.72 0.98 26% 0.08 0.08 9.47 8.57 0.7 1.1 0.95 0.67 0.67 3 DLG MK Equity Dialog Group BHD 3.34 3.45 3% 0.08 0.09 41.75 38.39 1.0 1.1 3.57 1.84 1.84 4 FGV MK Equity Felda Global Ventures Holdings Bhd 1.56 1.95 20% 0.05 0.06 31.84 26.44 3.1 3.3 2.18 1.51 1.51 5 GTB MK Equity Globetronics Technology BHD 2.27 2.31 2% 0.12 0.15 18.61 15.23 4.1 5.0 3.00 1.50 1.50 6 HTVB MK Equity Hiap Teck Venture Bhd 0.38 na na na na na na na na 0.53 0.33 0.33 7 HIBI MK Equity Hibiscus Petroleum Bhd 0.91 1.17 23% 0.09 0.18 10.28 5.11 na na 1.17 0.38 0.38 8 INRI MK Equity Inari Amertron Bhd 2.26 2.34 3% 0.09 0.11 25.98 20.93 3.1 3.9 2.55 1.32 1.32 9 MPI MK Equity Malaysian Pacific Industries Bhd 10.42 9.50 -10% 0.71 0.79 14.66 13.22 2.7 3.0 14.52 7.57 7.57 10 SAPE MK Equity Sapura Energy Bhd 0.65 0.87 25% -0.01 0.02 na 36.11 0.3 0.5 1.93 0.40 0.40 11 SKP MK Equity SKP Resources Bhd 1.54 2.04 24% 0.13 0.15 12.13 10.27 4.0 4.9 2.35 1.27 1.27 12 UMWOG MK Equity UMW Oil & Gas Corp Bhd 0.28 0.33 16% 0.00 0.00 na 70.00 0.0 0.0 0.51 0.22 0.22 13 UNI MK Equity Unisem M Bhd 2.42 2.31 -5% 0.14 0.18 16.92 13.60 4.3 4.6 4.25 1.60 1.60 14 VSI MK Equity VS Industry Bhd 1.70 2.36 28% 0.12 0.15 14.41 11.33 3.2 3.8 2.62 1.50 1.50 Note: The above data is based on Bloomberg consensus. Sources: Bloomberg, TA Securities Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ 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. As of Monday, June 18, 2018, the chartist, Stephen Soo, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 9 of 9
31. Technical View Monday , June 18, 2018 Weekly Ace Market Stock Watch Malaysia Chartist: Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my www.taonline.com.my Report Description: The Weekly Ace Market Stock Watch is a compilation of selected stocks aimed at providing trading ideas and guide for momentum trading. The following table is derived from the 109 Ace Market counters currently listed in Bursa Malaysia. This recommendation is based on combination of fundamental and technical analysis. List of 20 Ace Market Stocks Current No Code Name Market Cap (RM) Return on Revenue Net Income Net Income Assets (%) (RMmn) (RMmn) Growth (%) 2Q17 3Q17 2016 2017 2Q17 3Q17 2Q17 3Q17 2Q17 3Q17 2016 2017 2016 2017 0.000 0.000 na na -13.28 -2.16 -29.34 -28.44 52.64 61.82 -33.90 -33.91 na -0.03 MMAG [S] 65,288,686 0.235 0.84 0.81 -0.012 -0.012 na na -3.94 -4.06 -14.09 -12.09 56.85 68.24 -18.72 -21.43 24.22 -14.46 XOX [S] 103,070,679 0.070 0.72 0.54 0.001 0.004 na 35.00 2.15 4.95 -11.01 -6.89 36.82 37.51 -9.58 2.15 1,365.79 122.45 0034 0165 4 0169 5 0020 NETX [S] 6 0017 7 0025 8 0094 9 0109 10 0153 0131 Operating Margin (%) 0.46 3 13 PE Ratio (%) 0.53 2 0072 EPS (RM) 2Q17 3Q17 STERPRO [S] 0026 Ratio 0.230 0140 11 Price (RM) Price to Book 47,480,147 1 12 Closing SMTRACK [S] 19,722,071 0.110 0.07 0.20 -0.059 -0.004 na na -119.86 -7.49 -6.30 -17.08 0.19 2.55 -8.75 na 11.41 na 97,836,333 0.025 0.39 0.76 0.000 0.001 na 55.56 -11.32 49.35 -29.66 -33.69 4.87 3.82 -8.31 1.08 30.23 112.97 M3TECH [S] 70,114,658 0.090 0.15 0.73 -0.001 -0.001 na na 7.94 3.58 -10.03 -9.30 10.97 10.18 -5.93 -6.97 -35.79 -17.58 LNGRES [S] 45,979,047 0.140 0.58 0.57 0.004 0.004 na 17.41 7.09 2.53 -4.19 2.57 14.52 15.72 -5.20 2.57 2.31 149.41 INIX [S] 18,986,569 0.065 0.55 0.55 0.092 -0.088 na na 105.62 -66.11 -31.14 -5.22 0.02 0.00 -4.96 -8.16 -10,257.13 -64.45 SCBUILD 30,907,716 0.025 1.19 0.92 0.000 0.000 na na 2.24 2.84 -10.86 -5.85 4.50 5.72 -3.97 -0.99 40.96 75.02 OVERSEA 47,290,425 0.170 0.68 0.66 0.009 -0.005 na 128.95 11.68 -8.06 -3.55 -2.65 19.09 12.22 -3.09 0.46 620.78 114.87 AT [S] 43,348,815 0.065 0.49 0.41 -0.036 0.002 na na -145.09 10.55 -5.35 -9.36 4.42 5.19 -2.54 -9.05 456.74 -256.00 NOVAMSC [S] 71,740,295 0.130 0.98 0.90 0.000 -0.004 85.59 na 0.48 -16.57 1.00 -3.14 6.48 7.95 0.51 -20.43 -55.94 -4,081.18 0.075 0.90 0.75 0.001 0.000 16.18 42.31 7.49 2.78 3.62 1.88 24.58 20.64 1.40 0.42 -72.70 -70.32 DGSB [S] 122,028,938 14 0133 SANICHI [S] 33,452,931 0.110 0.28 0.38 0.000 -0.008 9.90 na -1.55 -62.82 1.28 -1.21 6.12 9.63 3.78 -3.42 26.41 -190.40 15 0104 GENETEC [S] 45,783,390 1.200 0.58 0.49 -0.017 -0.064 11.17 na 6.33 -6.66 0.58 -2.96 38.78 19.80 4.41 -4.03 -1.14 -191.41 16 0010 17 0096 407,863,906 0.135 0.69 0.45 -0.010 -0.001 na na -12.67 3.51 0.12 -2.12 128.10 145.14 6.05 -292.14 127.62 -4,927.16 NEXGRAM [S] 75,288,179 IRIS [S] 0.040 0.31 0.40 -0.003 0.000 8.20 na -58.93 6.30 1.74 -5.98 25.18 13.64 11.49 -16.19 65.44 18 0060 SKH [S] -240.93 49,899,757 0.070 0.60 0.50 0.001 0.002 na 35.71 1.90 2.87 na na na na na 1.55 na 19 0152 DGB na 59,169,000 0.135 0.20 0.52 0.000 0.002 na 510.20 0.10 291.10 na na 0.39 na na 0.05 na na 20 0154 EAH [S] 139,143,920 0.030 0.87 0.75 0.000 0.000 na 34.09 -75.37 -12.26 na na na na na 3.29 na na Source: Bloomberg This list is sorted first by the lowest price-to-book ratio from the 109 stocks listed in the Bursa Malaysia Ace Market sector which had reported third quarter results. INTERPRETATION OF FUNDAMENTAL INDICATORS: Price to Book: The price-to-book ratio, or P/B ratio, is a financial ratio used to compare a company's current market price to its book value. It is also sometimes known as a Market-to-Book ratio. The calculation can be performed in two ways, but the result should be the same each way. Earnings Per Share (EPS): The portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability. PE Ratio: The price-to-earnings ratio, or P/E ratio, is an equity valuation multiple. It is defined as market price per share divided by annual earnings per share. Revenue: The amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. It is the "top line" or "gross income" figure from which costs are subtracted to determine net income. Net Income: A company's total earnings (or profit). Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses. Page 1 of 2
32. Support & Resistance – Ace Market No. Stock Stock Code Name SL S2 S1 8/Jun R1 R2 R3 Ratio 0140 STERPRO [S] 0.14 0.15 0.18 0.225 0.26 0.29 0.31 0.78 2 0034 MMAG [S] 0.17 0.19 0.21 0.235 0.27 0.30 0.33 1.40 SOS 53.37 0.013 0.495 0.832 50.0 64.3 3 0165 XOX [S] 0.04 0.05 0.06 0.075 0.09 0.10 0.11 1.00 SELL 49.63 15.282 4.855 4.548 66.7 66.7 4 0169 SMTRACK [S] 0.05 0.08 0.10 0.130 0.15 0.18 0.23 0.67 BOW 51.59 0.165 1.692 0.749 57.1 61.1 5 0020 NETX [S] 0.01 0.02 0.02 0.025 0.05 0.06 0.07 5.00 BOW 38.97 30.603 66.076 51.333 33.3 33.3 6 0017 M3TECH [S] 0.06 0.07 0.08 0.090 0.11 0.13 0.15 2.00 BOW 51.08 3.757 2.991 2.765 50.0 83.3 7 0025 LNGRES [S] 0.11 0.12 0.13 0.140 0.17 0.19 0.21 3.00 BOW 45.12 0.139 0.665 0.460 25.0 38.3 1 Stop-loss Support 2 Support 1 Current price Resistance 1 Resistance 2 Resistance 3 Reward Call SELL RSI 44.17 Volume (mn Shares) Stochastics today 5d-avg 20d-avg %K %D 0.060 0.135 0.0 23.8 0.192 8 0094 INIX [S] 0.02 0.03 0.04 0.070 0.08 0.10 0.12 0.33 BOW 52.60 1.350 0.584 0.755 75.0 80.6 9 0109 SCBUILD 0.01 0.02 0.02 0.030 0.05 0.06 0.07 2.00 BOW 53.81 0.050 0.498 0.423 100.0 33.3 10 0153 OVERSEA 0.12 0.14 0.15 0.170 0.21 0.23 0.26 2.00 SOS 49.26 0.002 0.001 0.027 53.8 79.5 11 0072 AT [S] 0.04 0.05 0.06 0.065 0.08 0.10 0.12 3.00 SOS 36.79 0.133 0.595 0.606 50.0 50.0 12 0026 NOVAMSC [S] 0.09 0.10 0.11 0.125 0.15 0.17 0.18 1.67 SOS 66.13 97.478 2.703 1.627 63.6 65.7 13 0131 DGSB [S] 0.02 0.04 0.06 0.080 0.10 0.12 0.14 1.00 SELL 56.32 20.734 7.972 4.415 60.0 61.7 14 0133 SANICHI [S] 0.04 0.06 0.08 0.100 0.14 0.15 0.16 2.00 BOW 51.97 1.868 0.755 1.169 100.0 66.7 15 0104 GENETEC [S] 0.90 1.04 1.18 1.200 1.28 1.40 1.53 4.00 SOS 40.56 0.007 0.020 0.036 18.2 12.1 16 0010 IRIS [S] 0.06 0.08 0.10 0.135 0.15 0.17 0.19 0.43 BOW 45.61 23.541 15.957 13.639 66.7 77.8 17 0096 NEXGRAM [S] 0.01 0.02 0.03 0.040 0.06 0.07 0.08 2.00 BOW 44.98 0.942 5.181 49.416 100.0 83.3 18 0060 SKH [S] 0.02 0.04 0.06 0.075 0.10 0.11 0.12 1.67 BOW 54.82 4.436 7.178 6.463 66.7 77.8 19 0152 DGB 0.04 0.06 0.08 0.120 0.14 0.15 0.16 0.50 SOS 54.52 3.077 3.444 2.473 100.0 77.8 20 0154 EAH [S] 0.01 0.02 0.02 0.030 0.05 0.06 0.07 2.00 SOS 45.70 0.218 4.950 5.208 0.0 0.0 No. Stock Stock Call RSI Code Name SL S2 S1 14/Jun R1 R2 R3 Ratio 1 0140 STERPRO [S] 0.14 0.15 0.18 0.230 0.26 0.29 0.31 0.60 SELL 2 0034 MMAG [S] 0.17 0.19 0.21 0.235 0.27 0.30 0.33 1.40 SOS Stop-loss Support 2 Support 1 Current price Resistance 1 Resistance 2 Resistance 3 Reward Volume (mn Shares) Stochastics today 5d-avg 20d-avg %K 46.34 0.015 0.020 0.094 28.6 %D 9.5 51.86 0.285 0.290 0.628 25.0 47.2 50.0 3 0165 XOX [S] 0.04 0.05 0.06 0.070 0.09 0.10 0.11 2.00 SELL 44.06 5.739 3.877 4.531 50.0 4 0169 SMTRACK [S] 0.03 0.05 0.08 0.110 0.15 0.18 0.23 1.33 BOW 42.67 1.720 2.098 0.977 22.2 7.4 5 0020 NETX [S] 0.01 0.02 0.02 0.025 0.05 0.06 0.07 5.00 BOW 41.99 5.064 26.174 52.877 50.0 66.7 6 0017 M3TECH [S] 0.06 0.07 0.08 0.090 0.11 0.13 0.15 2.00 BOW 50.86 0.632 3.125 2.090 40.0 43.3 7 0025 LNGRES [S] 0.11 0.12 0.13 0.140 0.17 0.19 0.21 3.00 BOW 45.00 0.295 0.274 0.429 25.0 41.7 58.3 8 0094 INIX [S] 0.02 0.03 0.04 0.065 0.08 0.10 0.12 0.60 BOW 47.08 0.000 0.546 0.602 50.0 9 0109 SCBUILD 0.01 0.02 0.02 0.025 0.05 0.06 0.07 5.00 BOW 41.79 0.388 0.137 0.420 0.0 0.0 10 0153 OVERSEA 0.12 0.14 0.15 0.170 0.21 0.23 0.26 2.00 SOS 49.26 0.002 0.000 0.022 53.8 79.5 11 0072 AT [S] 0.04 0.05 0.06 0.065 0.08 0.10 0.12 3.00 SOS 42.73 0.181 0.435 0.555 50.0 33.3 12 0026 NOVAMSC [S] 0.09 0.10 0.11 0.130 0.15 0.17 0.18 1.00 SOS 65.49 19.703 28.272 8.221 72.7 57.6 13 0131 DGSB [S] 0.02 0.04 0.06 0.075 0.10 0.12 0.14 1.67 SELL 49.20 4.771 9.452 5.271 40.0 53.3 14 0133 SANICHI [S] 0.04 0.06 0.08 0.110 0.14 0.15 0.16 1.00 BOW 58.78 40.346 5.071 2.263 62.5 79.2 15 0104 GENETEC [S] 0.90 1.04 1.18 1.200 1.28 1.40 1.53 4.00 SOS 44.81 0.112 0.039 0.042 10.0 41.7 16 0010 IRIS [S] 0.06 0.08 0.10 0.135 0.15 0.17 0.19 0.43 BOW 47.21 21.279 19.776 13.215 66.7 61.1 17 0096 NEXGRAM [S] 0.01 0.02 0.03 0.040 0.06 0.07 0.08 2.00 BOW 47.46 3.040 1.816 33.565 100.0 83.3 18 0060 SKH [S] 0.02 0.04 0.06 0.070 0.10 0.11 0.12 3.00 BOW 45.68 2.190 9.009 4.648 0.0 11.1 19 0152 DGB 0.04 0.06 0.08 0.135 0.14 0.15 0.16 0.09 SOS 63.64 30.727 14.936 5.583 85.7 76.2 20 0154 EAH [S] 0.01 0.02 0.02 0.030 0.05 0.06 0.07 2.00 SOS 45.70 0.285 2.126 3.715 0.0 0.0 Sources: Bloomberg, TA Securities Legend: Reward Ratio = (R1 - CP)/ (CP - S1) where CP = Current Price Call: BUY = outright BUY at current price BOW = Buy on weakness towards S1 TBUY = Trading or Speculative BUY at current price LTBUY = Long-Term BUY at current price SELL = outright SELL at current price SOS = Sell on strength towards R1 NEUTRAL = sideline, not attractive to buy or sell TP = Take Profit Upgrade in price levels shaded dark green and bold Downgrade in price levels lightly shaded RSI: The Relative Strength Index (RSI) is used to measure the velocity of a security's price movement to identify overbought and oversold conditions. RSI reading below 30 indicates an oversold condition, while RSI value greater than 70 indicates overbought condition Stochastics: measures the velocity of a security's price movement to identify overbought and oversold conditions. The indicator measures current price relative to highs and lows over a time period. %K = 100*Closing Range/Total Range %D = N-period moving average of %K where N is the %D period parameter. Page 2 of 2
33. 3131 Technical View Monday , June 18, 2018 Weekly Small Cap Stock Watch Malaysia Chartist: Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my www.taonline.com.my Report Description: The Weekly Small Cap Stock Watch is a compilation of selected stocks aimed at providing trading ideas and guide for momentum trading. The following is derived from the complete listing of Main Market stocks of more than 800 counters currently in Bursa Malaysia. This recommendation is based on combination of fundamental and technical analysis. List of 19 Small Cap Stocks Current Closing Price to Book No Code Name PE Ratio (%) Operating Return on Revenue Net Income Margin (%) Assets (%) (RMmn) (RMmn) Net Income (%) Price (RM) (RM) 2Q17 3Q17 2Q17 3Q17 2016 2017 1 7382 GLBHD [S] 124,423,786 0.500 0.06 0.09 0.00 0.00 2.27 49.59 -298.45 -191.45 9.80 2 6998 53,204,916 0.135 0.15 0.16 0.00 0.00 na na 1.64 0.49 -3.43 -2.20 116.88 121.41 -36.08 -11.68 -697.50 67.64 3 4057 ASIAPAC [S] 170,273,418 0.155 0.20 0.18 0.00 0.00 2.55 21.11 12.83 13.23 5.49 3.74 28.27 47.73 73.85 8.82 -80.39 -88.06 4 7315 49,291,142 0.170 0.24 0.18 0.00 0.00 17.54 59.19 9.62 10.71 5.75 5.04 4.39 4.50 1.83 0.51 na -71.92 5 2429 TANCO [S] 89,322,729 0.105 0.16 0.21 -0.01 -0.01 -349.72 -13.79 -3.24 -3.77 2.55 3.47 -8.72 -11.44 41.38 -31.17 6 6068 35,107,021 0.220 0.29 0.21 7 2097 EASTLND [S] 36,850,196 0.155 0.33 0.22 BINTAI AHB [S] PCCS [S] Ratio EPS (RM) Market Cap 2Q17 3Q17 2Q17 3Q17 2Q17 -1.78 6.04 3Q17 2016 2017 2016 2017 0.93 70.08 2.63 1,715.32 -96.25 na na -0.13 -0.01 na 26.42 4.03 -7.93 -8.33 168.24 130.51 -10.26 -9.24 41.28 9.94 -0.01 -0.01 na na -25.96 -28.86 -1.81 -2.52 6.04 7.54 -4.78 na -154.58 na -449.33 197.59 na na na na na -7.10 na na -5.29 8 2208 PTGTIN [S] 127,957,462 0.395 0.22 0.23 -0.01 0.00 na na 9 8486 LIONFIB [S] 177,704,851 0.535 0.23 0.23 0.00 0.00 na 8.81 10 3395 BJCORP 1,974,617,567 0.330 0.22 0.23 0.03 0.00 na 11.95 11 5145 SEALINK 72,500,000 0.140 0.21 0.25 -0.01 -0.05 na na -22.70 -136.60 -7.62 -10.23 40.39 13.86 -56.66 na -652.53 12 7014 YLI [S] 44,216,845 0.320 0.34 0.26 0.05 -0.01 na 9.17 -5.07 -1.19 1.37 1.89 40.79 26.26 -2.03 5.18 -267.27 355.05 13 4359 TURIYA [S] 43,458,401 0.150 0.34 0.27 0.00 0.00 19.05 na 10.26 44.61 -0.23 -0.04 5.58 5.86 1.91 -1.45 55.65 14 4758 136,637,405 0.490 0.25 0.27 0.00 0.05 na 9.74 4.32 5.13 -0.40 0.77 -1.28 1,038.27 1,027.95 -95.74 -120.90 -305.48 -26.28 ANCOM -0.52 2.29 -45.16 -40.77 158.10 209.24 -387.20 14.75 -287.32 103.81 10.12 0.76 -1.01 -1.02 2,257.13 2,168.23 -177.22 149.29 -119.90 184.24 409.68 331.67 -6.99 na -175.77 17.47 -422.71 349.87 15 5657 PARKSON [S] 661,667,936 0.620 0.34 0.28 0.07 -0.03 na na -3.96 -1.13 -1.11 16 4235 LIONIND [S] 1,089,302,504 0.890 0.21 0.28 0.08 0.07 na 7.81 7.98 9.15 -20.68 -16.27 596.54 697.72 -796.48 105.31 -212.56 113.22 17 3778 MELEWAR [S] 58,635,930 0.195 0.42 0.28 -0.19 -0.08 9.18 na -18.50 -3.74 -7.07 18 4596 SAPRES [S] 131,224,000 0.855 0.43 0.29 -0.02 0.70 70.10 1.29 -24.11 767.59 -1.29 19 9113 SANBUMI [S] 49,802,247 0.150 0.22 0.30 0.00 0.00 na na na -10.46 -8.77 -9.75 146.90 151.77 8.23 -78.22 127.87 -1,049.94 17.17 10.65 11.39 2.71 100.34 -88.51 3,598.38 -8.57 10.51 13.55 -10.62 -5.87 -19.07 -44.72 Source: Bloomberg This list is sorted first by the lowest price-to-book ratio from the Main Market which had reported third quarter results and excludes the FBM100 stocks. INTERPRETATION OF FUNDAMENTAL INDICATORS: Price to Book: The price-to-book ratio, or P/B ratio, is a financial ratio used to compare a company's current market price to its book value. It is also sometimes known as a Market-to-Book ratio. Earnings Per Share (EPS): The portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability. PE Ratio: The price-to-earnings ratio, or P/E ratio, is an equity valuation multiple. It is defined as market price per share divided by annual earnings per share. Revenue: The amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. It is the "top line" or "gross income" figure from which costs are subtracted to determine net income. Net Income: A company's total earnings (or profit). Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses. Page 1 of 2
34. Support & Resistance – Small Cap No. Stock Stock Code Name Stop-loss Support 2 Support 1 Current price Resistance 1 Resistance 2 Resistance 3 Reward SL S2 S1 8/Jun R1 R2 R3 Ratio Call 1 7382 GLBHD [S] 0.30 0.35 0.40 0.475 0.54 0.60 0.66 0.87 SELL 2 6998 BINTAI 0.06 0.08 0.10 0.135 0.16 0.18 0.20 0.71 3 4057 ASIAPAC [S] 0.08 0.10 0.12 0.155 0.16 0.18 0.20 0.14 4 7315 AHB [S] 0.12 0.14 0.16 0.190 0.24 0.26 0.28 5 2429 TANCO [S] 0.06 0.07 0.08 0.100 0.12 0.14 6 6068 PCCS [S] 0.16 0.18 0.20 0.235 0.31 7 2097 EASTLND [S] 0.08 0.10 0.12 0.165 8 2208 PTGTIN [S] 0.30 0.32 0.34 9 8486 LIONFIB [S] 0.42 0.47 10 3395 BJCORP 0.27 0.29 11 5145 SEALINK 0.10 12 7014 YLI [S] 0.25 13 4359 TURIYA [S] 0.08 14 4758 ANCOM RSI Volume (mn Shares) Stochastics today 5d-avg 20d-avg %K %D 30.04 0.001 0.046 0.032 0.0 53.8 BOW 51.40 0.090 0.208 0.106 60.0 40.0 BOW 55.73 0.288 0.584 0.886 66.7 77.8 1.67 SELL 47.20 0.861 1.642 0.754 50.0 72.2 0.16 1.00 SOS 45.31 0.046 0.025 0.188 66.7 69.4 0.35 0.39 2.14 SELL 46.42 0.134 0.465 0.448 41.7 44.4 0.20 0.22 0.24 0.78 SOS 48.70 0.173 3.047 3.679 50.0 62.5 0.395 0.43 0.45 0.48 0.64 SELL 65.41 0.400 0.751 0.192 95.8 95.8 0.52 0.585 0.63 0.68 0.74 0.69 BOW 53.28 0.027 0.049 0.021 85.2 75.2 0.30 0.335 0.34 0.36 0.38 0.14 BOW 60.62 67.915 21.903 31.715 90.9 81.9 0.11 0.12 0.140 0.16 0.17 0.18 1.00 SOS 52.57 0.020 0.019 0.151 75.0 47.2 0.27 0.30 0.320 0.38 0.44 0.49 3.00 BOW 47.01 0.036 0.012 0.025 30.0 48.3 0.10 0.12 0.150 0.18 0.21 0.22 1.00 BOW 32.64 0.005 0.022 0.018 50.0 16.7 0.35 0.40 0.44 0.505 0.59 0.65 0.74 1.31 SOS 47.75 0.095 0.177 0.179 66.7 81.5 15 5657 PARKSON [S] 0.47 0.51 0.55 0.615 0.65 0.70 0.74 0.54 BOW 71.86 0.961 5.325 2.198 80.0 88.4 16 4235 LIONIND [S] 0.66 0.72 0.78 0.875 1.05 1.16 1.28 1.84 BOW 50.59 4.681 4.496 3.152 79.2 79.4 17 3778 MELEWAR [S] 0.12 0.14 0.16 0.195 0.25 0.29 0.32 1.57 BOW 48.07 0.218 0.058 0.046 60.0 40.0 18 4596 SAPRES [S] 0.72 0.76 0.80 0.875 0.93 1.01 1.06 0.73 SOS 52.24 0.021 0.049 0.126 100.0 45.7 19 9113 SANBUMI [S] 0.06 0.09 0.12 0.150 0.18 0.20 0.23 1.00 BOW 45.09 0.040 0.032 0.081 63.6 50.9 Call RSI No. Stock Stock Code Name Stop-loss Support 2 Support 1 Current price Resistance 1 Resistance 2 Resistance 3 Reward SL S2 S1 14/Jun R1 R2 R3 Ratio 1 7382 GLBHD [S] 0.30 0.35 0.40 0.500 0.54 0.60 0.66 0.40 SELL 2 6998 BINTAI 0.06 0.08 0.10 0.135 0.16 0.18 0.20 0.71 3 4057 ASIAPAC [S] 0.08 0.10 0.12 0.155 0.16 0.18 0.20 0.14 4 7315 AHB [S] 0.12 0.14 0.16 0.170 0.20 0.22 0.24 5 2429 TANCO [S] 0.06 0.07 0.08 0.105 0.12 0.14 6 6068 PCCS [S] 0.16 0.18 0.20 0.220 0.31 7 2097 EASTLND [S] 0.08 0.10 0.12 0.155 8 2208 PTGTIN [S] 0.30 0.32 0.34 9 8486 LIONFIB [S] 0.42 0.47 10 3395 BJCORP 0.27 11 5145 SEALINK 12 7014 13 Volume (mn Shares) Stochastics today 5d-avg 20d-avg %K %D 46.97 0.002 0.007 0.031 62.5 62.5 BOW 50.96 0.058 0.221 0.100 60.0 66.7 BOW 55.73 0.507 0.371 0.577 50.0 55.6 3.00 SELL 38.06 0.160 1.397 0.870 22.2 18.5 0.16 0.60 SOS 51.59 0.026 0.064 0.167 100.0 66.7 0.35 0.39 4.50 SELL 38.29 0.045 0.075 0.318 33.3 42.1 0.20 0.22 0.24 1.29 SOS 44.17 0.085 1.477 3.148 25.0 33.3 0.395 0.43 0.45 0.48 0.64 SELL 65.41 0.155 0.183 0.223 92.9 94.3 0.52 0.535 0.63 0.68 0.74 6.33 BOW 45.41 0.041 0.050 0.020 48.1 48.1 0.29 0.30 0.330 0.34 0.36 0.38 0.33 BOW 58.44 10.485 25.184 24.622 80.0 63.0 0.10 0.11 0.12 0.140 0.16 0.17 0.18 1.00 SOS 52.57 0.062 0.016 0.139 75.0 66.7 YLI [S] 0.25 0.27 0.30 0.320 0.38 0.44 0.49 3.00 BOW 47.01 0.036 0.007 0.023 30.0 48.3 4359 TURIYA [S] 0.08 0.10 0.12 0.150 0.18 0.21 0.22 1.00 BOW 40.16 0.020 0.004 0.017 16.7 38.9 14 4758 ANCOM 0.35 0.40 0.44 0.490 0.59 0.65 0.74 2.00 SOS 43.23 0.019 0.058 0.111 14.3 27.4 15 5657 PARKSON [S] 0.47 0.51 0.55 0.620 0.65 0.70 0.74 0.43 BOW 71.27 0.753 1.509 2.344 75.0 80.9 16 4235 LIONIND [S] 0.66 0.72 0.78 0.890 1.05 1.16 1.28 1.45 BOW 52.07 0.816 3.101 2.730 82.1 80.4 17 3778 MELEWAR [S] 0.12 0.14 0.16 0.195 0.25 0.29 0.32 1.57 BOW 48.70 0.010 0.002 0.043 100.0 77.8 18 4596 SAPRES [S] 0.72 0.76 0.80 0.855 0.93 1.01 1.06 1.36 SOS 49.08 0.005 0.010 0.036 60.0 46.7 19 9113 SANBUMI [S] 0.06 0.09 0.12 0.150 0.18 0.20 0.23 1.00 BOW 45.66 0.016 0.026 0.074 77.8 71.9 Sources: Bloomberg, TA Securities Legend: Reward Ratio = (R1 - CP)/ (CP - S1) Where CP = Current Price Call: BUY = outright BUY at current price BOW = Buy on weakness towards S1 TBUY = Trading or Speculative BUY at current price LTBUY = Long-Term BUY at current price SELL = outright SELL at current price SOS = Sell on strength towards R1 NEUTRAL = sideline, not attractive to buy or sell TP = Take Profit Upgrade in price levels shaded dark Green and bold Downgrade in price levels lightly shaded RSI: The Relative Strength Index (RSI) is used to measure the velocity of a security's price movement to identify overbought and oversold conditions. RSI reading below 30 indicates an oversold condition, while RSI value greater than 70 indicates overbought condition Stochastics: measures the velocity of a security's price movement to identify overbought and oversold conditions. The indicator measures current price relative to highs and lows over a time period. %K = 100*Closing Range/Total Range %D = N-period moving average of %K where N is the %D period parameter. Page 2 of 2
35. Technical View Monday , June 18, 2018 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Weekly Stock Screen Malaysia End Day Census of 14.06.2018 Chartist: Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my www.taonline.com.my Report Description: The Weekly 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 20 ‘potential’ breakout stocks which just climbed above the middle Bollinger band, with potential to appreciate toward the upper Bollinger band.This report also includes the top 20 overbought, and top 20 oversold stocks. *Note: To qualify in the list below, 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 daily charts to spot accumulation (volume growth) or breakout patterns. [MIDDLE BOLLINGER RANGEBOUND] List of 20 Potential Breakout Stocks (Short-term BUY for upside toward Upper Bollinger Band or higher to TAKE PROFIT/ SELL) No Stock Name 1 BRITISH AMERICAN TOBACCO BHD 2 NESTLE (MALAYSIA) BERHAD Price Bollinger Band Lower Middle RSI Upper 14-day Moving Average 5-day 10-day 30-day 50-day Vol 20-day avg vol 35.10 30.58 34.00 37.41 63.37 36.26 35.06 30.74 28.19 814,900 661,605 148.00 143.59 146.63 149.67 58.94 145.80 146.39 143.23 145.57 223,600 185,835 25.82 24.28 25.33 26.38 55.57 25.19 25.01 25.80 25.80 970,300 1,325,575 4.77 4.07 4.65 5.23 49.19 4.73 4.59 4.85 5.06 7,688,900 5,779,160 5 MALAYSIA AIRPORTS HLDGS BHD 8.85 8.28 8.69 9.10 53.95 8.81 8.71 8.75 8.85 4,517,300 3,479,390 6 HSS ENGINEERS BHD 7 BURSA MALAYSIA BHD 0.81 7.94 0.43 7.53 0.75 7.84 1.06 8.15 46.58 57.63 0.66 7.87 0.62 7.85 0.96 7.70 1.17 7.53 11,098,600 1,281,800 6,709,920 2,418,110 8 KLUANG RUBBER CO (M) BHD 4.20 3.84 4.10 4.36 52.85 4.06 4.08 4.10 4.21 2,000 2,295 9 TIME DOTCOM BHD 8.35 7.69 8.09 8.50 58.30 8.20 8.05 8.11 8.13 247,900 515,115 3 PETRONAS DAGANGAN BHD 4 AXIATA GROUP BERHAD 10 AMMB HOLDINGS BHD 3.82 3.41 3.68 3.96 55.00 3.86 3.78 3.68 3.76 6,178,300 4,078,240 11 SIME DARBY PLANTATION BHD 12 G3 GLOBAL BHD 5.51 5.25 5.44 5.64 53.25 5.36 5.38 5.46 5.50 24,436,200 4,564,410 0.87 0.64 0.79 0.95 55.33 0.89 0.84 0.80 0.78 167,600 73,155 13 BERJAYA SPORTS TOTO BHD 2.59 2.36 2.51 2.66 65.84 2.57 2.55 2.38 2.27 2,352,200 1,899,050 14 TRANSOCEAN HOLDINGS BHD 0.64 0.46 0.58 0.71 53.48 0.60 0.61 0.59 0.60 5,000 3,500 15 SUPERLON HOLDINGS BHD 1.39 1.18 1.31 1.44 60.31 1.38 1.31 1.28 1.24 135,000 232,960 16 KAREX BHD 0.73 0.48 0.63 0.78 61.29 0.59 0.58 0.68 0.72 8,691,900 2,427,440 17 MYNEWS HOLDINGS BHD 18 MEGA FIRST CORP BHD 1.69 1.47 1.60 1.73 64.37 1.65 1.59 1.56 1.52 327,000 384,285 3.70 3.39 3.57 3.74 67.39 3.58 3.53 3.49 3.42 120,500 87,995 19 GAS MALAYSIA BHD 2.94 2.74 2.86 2.98 56.74 2.89 2.87 2.87 2.84 238,300 453,140 5.81 5.18 5.51 5.85 72.08 5.74 5.59 5.42 5.37 3,341,700 4,968,795 20 RHB BANK BHD Raw data sourced from Bloomberg 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 medium-term 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 3
36. *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 Stock Name Price Bollinger Band Lower Middle RSI Upper 14-day Moving Average 5-day 10-day 30-day 50-day Vol 20-day avg vol 1 SUPERMAX CORP BHD 4.10 2.92 3.40 3.89 82.32 3.60 3.46 3.22 2.99 5,456,600 3,494,760 2 FOCUS LUMBER BHD 1.25 0.95 1.05 1.16 76.97 1.07 1.05 1.05 1.06 144,000 181,875 3 FAVELLE FAVCO BHD 2.66 2.34 2.46 2.59 74.45 2.50 2.45 2.43 2.45 415,100 86,655 4 KAWAN FOOD BHD 2.35 2.03 2.16 2.29 65.46 2.21 2.17 2.12 2.16 41,400 75,140 5 MAGNI-TECH INDUSTRIES BHD 5.47 4.30 4.86 5.42 76.49 5.18 4.95 4.75 4.74 44,500 151,545 6 UMS HOLDINGS BERHAD 2.65 2.11 2.36 2.61 61.78 2.30 2.29 2.39 2.47 100 1,940 7 BERMAZ AUTO BHD 2.42 2.10 2.24 2.38 70.04 2.29 2.23 2.22 2.21 3,467,200 3,159,160 11,674,280 8 GABUNGAN AQRS BHD 1.22 0.59 0.89 1.19 60.85 0.99 0.85 1.09 1.33 3,859,400 9 EVERSENDAI CORP BHD 1.05 0.89 0.96 1.02 67.49 0.96 0.96 0.93 0.94 6,152,300 1,401,510 10 FOUNDPAC GROUP BHD 0.31 0.18 0.24 0.29 74.14 0.27 0.25 0.23 0.23 13,567,800 3,041,430 11 GFM SERVICES BHD 0.60 0.51 0.55 0.58 66.38 0.56 0.55 0.53 0.52 3,169,400 640,655 12 HAP SENG CONSOLIDATED 9.89 9.65 9.76 9.88 59.27 9.77 9.76 9.75 9.75 937,700 457,705 257,170 13 MEDA INC BHD 0.46 0.30 0.37 0.44 70.28 0.40 0.38 0.37 0.38 25,500 14 DKLS INDUSTRIES BERHAD 1.85 1.51 1.67 1.84 60.88 1.73 1.72 1.68 1.69 1,000 1,445 15 BIG INDUSTRIES BHD 0.36 0.27 0.31 0.35 58.61 0.30 0.31 0.31 0.32 19,600 7,690 16 M-MODE BHD 0.35 0.23 0.28 0.34 72.63 0.31 0.29 0.28 0.29 1,148,300 403,860 17 KELINGTON GROUP BHD 0.83 0.72 0.77 0.82 67.60 0.80 0.78 0.76 0.74 808,900 347,280 18 RIVERVIEW RUBBER ESTATES BHD 3.65 3.56 3.60 3.65 55.71 3.61 3.61 3.59 3.62 4,300 2,845 19 YTL POWER INTERNATIONAL BHD 0.98 0.72 0.85 0.97 68.47 0.92 0.88 0.87 0.91 32,139,800 35,383,040 1.66 1.44 1.55 1.66 68.93 1.54 1.52 1.50 1.47 1,401,900 1,035,875 20 EASTERN & ORIENTAL BHD Raw data sourced from Bloomberg *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. [LOWER BOLLINGER BREAKDOWN] Top 20 Breakdown Stocks (Generally BEARISH, but can be short-term BUY guide) No Bollinger Band Stock Name Price 1 PHARMANIAGA BERHAD 3.39 3.49 3.90 2 KLCCP STAPLED GROUP 7.53 7.58 3 BERJAYA ASSETS BHD 0.40 0.41 4 TIEN WAH PRESS HLDGS BHD 1.32 5 BOUSTEAD HEAVY INDUSTRIES CO 1.68 6 UNIMECH GROUP BHD 0.95 7 SUIWAH CORP BHD 2.06 8 KYM HOLDINGS BERHAD 9 COMINTEL CORP BHD 10 TSH RESOURCES BHD 1.15 Lower RSI Middle Upper Moving Average Vol 20-day avg vol 14-day 5-day 10-day 30-day 50-day 4.30 21.55 3.70 3.87 4.01 4.09 7.77 7.95 43.16 7.71 7.74 7.70 7.49 660,000 346,095 0.46 0.51 33.02 0.44 0.45 0.47 0.45 3,313,900 851,095 1.33 1.38 1.43 37.45 1.37 1.38 1.38 1.42 1,000 16,065 1.69 1.81 1.93 31.32 1.73 1.77 1.82 1.83 15,500 31,535 0.96 0.98 1.01 38.10 0.98 0.99 0.97 0.97 7,800 195,630 2.07 2.20 2.33 36.65 2.12 2.15 2.25 2.37 100 405 0.38 0.38 0.44 0.50 36.37 0.43 0.44 0.46 0.47 279,500 14,740 0.17 0.18 0.20 0.23 29.87 0.20 0.20 0.21 0.22 77,900 299,235 1.16 1.21 1.27 22.66 1.19 1.20 1.24 1.30 97,300 76,955 460,000 101,520 11 V.S. INDUSTRY BERHAD 1.70 1.70 1.82 1.94 38.72 1.77 1.81 1.83 1.80 8,464,500 5,479,585 12 WANG-ZHENG BHD 1.39 1.39 1.44 1.49 40.50 1.42 1.44 1.45 1.46 57,400 43,875 13 MENANG CORP MALAYSIA BHD 0.37 0.37 0.41 0.44 24.10 0.39 0.40 0.42 0.42 85,700 168,915 14 DAIMAN DEVELOPMENT BHD 2.01 2.01 2.07 2.13 33.76 2.04 2.06 2.08 2.11 16,800 14,005 15 RESINTECH BHD 0.32 0.32 0.34 0.36 38.99 0.35 0.35 0.33 0.33 5,000 50,300 16 SINOTOP HOLDING BHD 0.37 0.37 0.45 0.54 38.75 0.43 0.45 0.45 0.47 24,000 39,130 17 ACOUSTECH BHD 0.37 0.37 0.39 0.41 38.77 0.39 0.38 0.39 0.40 543,400 254,495 18 MUI PROPERTIES BERHAD 0.27 0.27 0.28 0.30 37.61 0.27 0.28 0.28 0.28 511,000 367,375 19 PINEHILL PACIFIC BHD 0.16 0.16 0.18 0.20 43.35 0.17 0.18 0.18 0.18 1,000 4,905 20 HEKTAR REAL ESTATE INVESTMEN 1.21 1.21 1.23 1.24 44.72 1.23 1.23 1.22 1.21 89,200 116,665 Raw data sourced from Bloomberg Page 2 of 3
37. *Note: The list below is the 20 most overbought of the 1000 over Bursa Malaysia listed stocks with 14-day RSI above 80. It is generally a bearish or SELL list, especially if the readings approach 90. Caveat: The list consists of fundamentally sound stocks, and hence are long-term BUY or HOLD stocks. TOP 20 OVERBOUGHT STOCKS (Generally BEARISH short-term, but are LONG-TERM BUY or HOLD) No Stock Name Bollinger Band Price Lower Middle RSI Upper 14-day Moving Average 5-day 10-day 30-day 50-day Vol 20-day avg vol 1 SUPERMAX CORP BHD 4.10 2.92 3.40 3.89 82.32 3.60 3.46 3.22 2.99 5,456,600 3,494,760 2 GSB GROUP BHD 0.22 0.11 0.16 0.22 78.83 0.20 0.18 0.14 0.12 7,850,300 19,381,200 3 TUNE PROTECT GROUP BHD 0.94 0.67 0.81 0.94 77.81 0.88 0.85 0.77 0.76 3,369,100 3,618,810 4 FOCUS LUMBER BHD 1.25 0.95 1.05 1.16 76.97 1.07 1.05 1.05 1.06 144,000 181,875 5 MAGNI-TECH INDUSTRIES BHD 5.47 4.30 4.86 5.42 76.49 5.18 4.95 4.75 4.74 44,500 151,545 6 CENTRAL INDUSTRIAL CORP BHD 1.30 0.86 1.10 1.33 74.71 1.28 1.19 1.07 1.04 1,000 545 7 FAVELLE FAVCO BHD 2.66 2.34 2.46 2.59 74.45 2.50 2.45 2.43 2.45 415,100 86,655 8 YINSON HOLDINGS BHD 4.74 4.16 4.46 4.75 74.34 4.62 4.53 4.29 4.16 248,100 1,206,640 9 FOUNDPAC GROUP BHD 0.31 0.18 0.24 0.29 74.14 0.27 0.25 0.23 0.23 13,567,800 3,041,430 10 MAGNUM BHD 2.34 2.06 2.20 2.35 73.64 2.27 2.25 2.07 1.96 2,379,000 1,278,790 11 MWE HOLDINGS BERHAD 1.71 1.64 1.68 1.71 73.55 1.70 1.69 1.67 1.66 46,300 181,665 12 M-MODE BHD 0.35 0.23 0.28 0.34 72.63 0.31 0.29 0.28 0.29 1,148,300 403,860 13 MEDIA PRIMA BHD 0.53 0.31 0.43 0.55 72.29 0.50 0.46 0.38 0.37 2,464,800 7,224,035 14 RHB BANK BHD 5.81 5.18 5.51 5.85 72.08 5.74 5.59 5.42 5.37 3,341,700 4,968,795 15 QL RESOURCES BHD 5.91 5.13 5.54 5.96 72.01 5.74 5.64 5.41 5.28 362,900 1,086,075 16 SHIN YANG SHIPPING CORP BHD 0.34 0.23 0.28 0.34 71.97 0.31 0.29 0.27 0.26 3,724,200 2,528,520 17 KOSSAN RUBBER INDUSTRIES 8.20 6.85 7.55 8.25 71.59 7.89 7.75 7.24 7.31 204,300 439,015 18 PARKSON HOLDINGS BHD 0.62 0.43 0.56 0.68 71.27 0.62 0.60 0.50 0.46 752,900 2,344,165 19 APEX HEALTHCARE BHD 6.48 5.58 6.03 6.48 71.26 6.24 6.15 5.89 5.76 31,300 24,370 20 IDEAL UNITED BINTANG INTERNA 0.94 0.57 0.77 0.98 71.20 0.90 0.84 0.72 0.70 117,000 165,700 Raw data sourced from Bloomberg *Note: The list below is the 20 of the most oversold of the 1000 over Bursa Malaysia listed stocks with 14-day RSI close to and below 30, the level below which is considered oversold. It is generally a short-term bullish or BUY list for technical rebound gains, especially if the readings are below 20. Caveat: The list consists of fundamentally weak stocks, and hence could be an AVOID list. TOP 20 OVERSOLD STOCKS (Generally BULLISH short-term, but AVOID fundamentally weak stocks) No Stock Name Price Bollinger Band Lower Middle RSI Upper 14-day Moving Average 5-day 10-day 30-day 50-day Vol 20-day avg vol 1 ARK RESOURCES BHD 2 BLD PLANTATION BHD 0.29 0.27 0.36 0.45 12.25 0.30 0.32 0.38 0.42 1,500 1,075 8.00 7.98 8.02 8.06 13.79 8.00 8.01 8.05 8.13 14,000 1,955 3 MB WORLD GROUP BHD 4 HUME INDUSTRIES BHD 1.85 1.81 1.92 2.02 18.68 1.85 1.87 1.95 1.99 3,000 6,710 1.24 1.18 1.36 1.54 20.03 1.27 1.29 1.45 1.56 5,000 63,210 5 PLS PLANTATIONS BHD 6 MALPAC HOLDINGS BERHAD 0.72 0.70 0.81 0.93 20.47 0.72 0.76 0.84 0.95 5,000 25,830 1.00 0.99 1.09 1.19 20.70 1.02 1.06 1.13 1.19 12,000 600 7 SCIENTEX BHD 8 PHARMANIAGA BERHAD 6.55 6.43 7.20 7.97 20.72 6.81 6.93 7.38 7.57 238,500 253,365 101,520 9 TSH RESOURCES BHD 10 COASTAL CONTRACTS BHD 3.39 3.49 3.90 4.30 21.55 3.70 3.87 4.01 4.09 460,000 1.15 1.16 1.21 1.27 22.66 1.19 1.20 1.24 1.30 97,300 76,955 0.98 0.94 1.11 1.27 23.43 1.03 1.05 1.15 1.17 1,841,400 356,265 545,290 11 KIMLUN CORP BHD 12 MENANG CORP MALAYSIA BHD 13 UNITED U-LI CORP BHD 1.38 1.27 1.62 1.96 23.55 1.46 1.48 1.78 1.91 119,300 0.37 0.37 0.41 0.44 24.10 0.39 0.40 0.42 0.42 85,700 168,915 1.39 1.30 1.54 1.78 25.30 1.40 1.45 1.57 1.60 192,300 171,480 14 PROTASCO BHD 15 AYER HOLDINGS BHD 16 SHH RESOURCES HOLDINGS BHD 0.53 0.48 0.57 0.66 25.42 0.54 0.53 0.63 0.70 496,900 1,305,865 5.50 5.38 5.97 6.57 25.44 5.60 5.75 6.14 6.37 2,000 800 0.71 0.70 0.77 0.85 25.87 0.73 0.74 0.79 0.82 3,000 8,155 17 MALTON BHD 18 MGB BHD 19 MITRAJAYA HOLDINGS BHD 0.54 0.53 0.57 0.61 26.25 0.55 0.56 0.64 0.71 5,308,100 6,994,855 0.93 0.84 1.07 1.31 26.64 0.95 0.98 1.14 1.23 131,100 758,820 0.46 0.42 0.51 0.60 28.00 0.47 0.47 0.54 0.57 168,200 592,600 20 KUMPULAN POWERNET BHD 0.43 0.40 0.57 0.74 28.16 0.48 0.51 0.62 0.67 40,000 5,115 Raw data sourced from Bloomberg Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ 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. As of Monday, June 18, 2018, the chartist, Stephen Soo, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 3 of 3