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Bursa Malaysia Daily Market Report - 23 March

Mohd Noordin
By Mohd Noordin
4 years ago
Bursa Malaysia Daily Market Report - 23 March

Ard, Dinar, Iman, Mal, Commenda, Provision, Reserves, Sales


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  1. Thursday , 23 March, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED REPORTS’ News 1. Daily Market Commentary 2. Daily Brief Fundamental Reports 1. Poh Huat Resources Holdings Bhd: Record Quarterly Revenue 2. Scientex Berhad: Earnings Picking Up Technical Reports 1. Daily Technical Stock Picks 2. Daily Stock Screen 3. Foreign Technical Stock Watch (AUS, HK & FSSTI) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research
  2. Daily Note Daily Market Commentary TA Research e-mail : taresearch@ta.com.my For Internal Circulation Only KLSE Market Statistics (22.03.2017) (mil) Main Market 2,452.1 Warrants 202.0 ACE Market 485.5 Bond 25.3 ETF 0.0 Total 3,164.8 Off Market 54.0 Volume +/-chg (RMmn) -655.4 2,638.1 -94.7 26.4 -596.1 85.0 -67.3 3.3 -0.04 0.0 2,752.8 -33.0 37.6 Value +/-chg -441.8 -7.0 -76.3 -8.7 -0.05 -267.6 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP March Futures Other Markets DOW JONES NASDAQ (US) FTSE (UK) NIKKEI (JAPAN) KOSPI (KOREA) HANG SENG (HK) FSSTI (S'PORE) SET (BANGKOK) JCI (JAKARTA) SHANGHAI SHENZHEN AUSTRALIA 1,748.30 12,372.13 16,905.39 1,751.00 (mn) 26.1 9.4 4.5 4.0 2.9 2.8 1.7 -6.37 -34.22 -50.37 -12.00 Value/ Volume 1.08 0.13 0.18 0.13 1.50 0.87 0.70 @ @ @ @ @ @ @ Up Down 240 426 58 97 28 74 1 8 1 0 328 605 % chg % YTD chg -0.36 -0.28 -0.30 -0.68 6.49 7.90 14.88 7.06 5,821.64 -14846.37 -71.83 7,324.72 1530.90 26.42 19,041.38 11663.04 158.07 2,168.30 -17287.58 -88.86 24,320.41 22142.03 1016.44 3,118.19 -21474.93 -87.32 1,566.66 -1591.91 -50.40 5,534.09 3965.31 252.76 3,245.22 -2297.87 -41.45 2,037.89 -1223.73 -37.52 5,684.51 3640.57 178.12 5,684.51 -90.11 -1.56 -70.54 36.07 166.58 -88.66 1100.14 -85.83 -45.62 258.67 -38.73 -34.34 188.68 0.33 Top 10 KLCI Movers Based on Mkt Cap. Off Market HALEX LUSTER IGB DESTINI VIZIONE IRETEX AMTEL (A Participating Organisation of Bursa Malaysia Securities Bhd) Menara TA One, 22 Jalan P Ramlee, 50250 Kuala Lumpur Tel : 603 - 2072 1277. Fax : 603 - 2032 5048 Thursday, 23 March 2017 (RM) 0.61 0.13 2.65 0.80 0.10 0.21 0.60 Counter Mkt Cap. (RM’mn) MAYBANK 91,128 TENAGA 77,550 PBBANK 77,075 SIME 62,976 PCHEM 59,840 CIMB 49,663 AXIATA 45,406 GENTING 36,306 GENM 31,176 KLK 26,411 Chg Vol. (RM) (mn) -0.06 15.06 -0.06 8.41 -0.12 8.25 -0.04 6.02 -0.10 5.43 -0.05 22.44 -0.01 9.86 -0.05 3.79 -0.18 26.32 -0.02 1.22 Review & Outlook The local stock market recovered from an earlier selloff Wednesday sparked by the overnight Wall Street correction due to overvaluation concerns, as local funds returned to bargain hunt while rotational plays on lower liners cushioned falls. The KLCI ended down 6.37 points at the day's high of 1,748.3, off an earlier low of 1,738.4, as losers swarmed gainers 605 to 328 on much lower turnover of 3.16bn shares worth RM2.75bn. A profit-taking consolidation should follow, which is welcomed as it is healthy for the market to consolidate recent strong gains and rebuild support for uptrend resumption ahead. Immediate uptrend supports for the index are at 1,733 and 1,716, representing the rising 10 and 30-day moving averages. A convincing breach above 1,758, the 23.6%FR of the 1,310 to 1,896 upswing matching Tuesday's high, should aim for 1,782, the 76.4%FR of the 1,867 to 1,503 correction, followed by 1,800 and the 18/5/15 high of 1,823. Hook-down momentum indicators on CIMB point to a near-term overbought correction, with better supports from the mid Bollinger band (RM5.35) and 30-day moving average (RM5.27) to cushion downside, while immediate overhead resistance is from the recent 20/3/17 high (RM5.83). Similarly, an overbought profit-taking correction is expected on Maybank towards the 76.4%FR (RM8.79), with stronger support seen from the 30-day ma (RM8.63), while overhead resistance is from recent high of RM9.00 and the 13/4/16 high (RM9.20). • • • • • • • • • • • • • Exchange Rate USD/MYR 4.4267 0.0020 USD/JPY 111.30 -1.2500 EUR/USD 1.080 -0.0005 Commodities Futures Palm Oil (RM/mt) 2,827.00 16.00 Crude Oil ($/Barrel) 48.16 0.66 Gold ($/tr.oz.) 1,248.60 4.00 • • Important Dates IOIPG - 1:4 Rights Issue - RI of up to 1,109.9m shares. 1 rights share for every 4 existing shares held, at an issue price of RM1.38 per rights share. Application Closed: 17/03/2017. LISTING ON: 31/03/2017. • • News Bites Bank Negara Malaysia's international reserves stood at US$94.9bn or RM425.6bil as at March 15, 2017. It is sufficient to finance 8.3 months of retained imports and was 1.1 times the short-term external debt. Eco World International Bhd's IPO, worth RM2.6bn, will be the largest in Malaysia since June 2015 with price fixed at RM1.20 per share following the close of the institutional offering of 449.5mn shares. Boustead Heavy Industries Corp Bhd is teaming up with Technology Depository Agency Bhd to develop a Malaysian national airspace policy, as well as to set up a national airspace management centre for the aviation/aerospace industry. Tenaga Nasional Bhd's joint-venture power project with Indonesia's PT Perusahaan Listrik Negara has hit a snag the construction of the multi-billion ringgit 2x600 megawatt power plant in Riau could be delayed by three years. Petronas Carigali Sdn Bhd has awarded Uzma Bhd's subsidiary a contract for the provision of fishing equipment and services. Anzo Holdings Bhd's unit has received a letter of intent for a RM109.3mn contract worth up to RM109.3mn to undertake Phase 2 of the Porto De Melaka Hotel and Resort development. AmBank (M) Bhd aims to see a minimum of 15% growth in loans to small and medium enterprises for this year, said its group chief executive officer Datuk Sulaiman Mohd Tahir. Malayan Banking Bhd and CIMB Bank Bhd are partnering with Ant Financial Services Group, which operates the world's largest online and mobile payment platform Alipay, to enable the Alipay mobile wallet in Malaysia. AirAsia (India) Ltd, AirAsia Bhd's joint-venture with the Tata group, has filed a police report following a probe into irregular personal expense claims and certain company charges. Metronic Global Bhd has terminated its JV with Northern Paradise Sdn Bhd to build a mixed development project with a gross development value of RM80.0mn, after their agreement lapsed. Felda Global Ventures Holdings Bhd, to date, has never discussed private share placements with China's biggest food trader, China National Cereals, Oils and Foodstuffs Corp, said FGV group president and chief executive officer Datuk Zakaria Arshad. Geely Automobile Holdings' president, An Conghui, has confirmed that Geely has withdrawn its bid to buy a controlling stake in Malaysian carmaker Proton Holdings Bhd. Leon Fuat Bhd has been offered a total of RM45.8mn by the government for the compulsory acquisition of the plots of land it owns in Sungai Besi. Luster Industries Bhd is planning to undertake a private placement of new shares representing up to a 10% stake in the company to raise as much as RM27.1mn to fund its property development expenditure and working capital Scientex Bhd's net profit grew 1% to RM65.2mn in the as the company recorded higher revenue from its manufacturing and property business. It was within expectations. Poh Huat Resources Holdings Bhd's 1QFY17 net profit of RM17.7mn came in above our expectation, accounting for 37.0% of our full-year estimate. The US existing home sales declined 3.7% from January to a seasonally adjusted annual rate of 5.48 million last month as tight inventory and rising prices frustrated would-be buyers and damped sales activity. DISCLAIMER The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD Kaladher Govindan, Head of Research
  3. TA Securities Thursday , March 23, 2017 FBMKLCI: 1,748.30 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Daily Brief Market View, News In Brief: Corporate, Economy, and Share Buybacks THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TA Research Team Coverage Market View Tel: +603-2072 1277 taresearch@ta.com.my www.taonline.com.my Healthy Profit-Taking Consolidation to Ensue The local stock market recovered from an earlier selloff Wednesday sparked by the overnight Wall Street correction due to overvaluation concerns, as local funds returned to bargain hunt while rotational plays on lower liners cushioned falls. The KLCI ended down 6.37 points at the day’s high of 1,748.3, off an earlier low of 1,738.4, as losers swarmed gainers 605 to 328 on much lower turnover of 3.16bn shares worth RM2.75bn. Uptrend Supports at 1,733, Then 1,716 A profit-taking consolidation should follow, which is welcomed as it is healthy for the market to consolidate recent strong gains and rebuild support for uptrend resumption ahead. Immediate uptrend supports for the index are at 1,733 and 1,716, representing the rising 10 and 30-day moving averages. A convincing breach above 1,758, the 23.6%FR of the 1,310 to 1,896 upswing matching Tuesday’s high, should aim for 1,782, the 76.4%FR of the 1,867 to 1,503 correction, followed by 1,800 and the 18/5/15 high of 1,823. Take Profit on CIMB & Maybank Hook-down momentum indicators on CIMB point to a near-term overbought correction, with better supports from the mid Bollinger band (RM5.35) and 30-day moving average (RM5.27) to cushion downside, while immediate overhead resistance is from the recent 20/3/17 high (RM5.83). Similarly, an overbought profit-taking correction is expected on Maybank towards the 76.4%FR (RM8.79), with stronger support seen from the 30-day ma (RM8.63), while overhead resistance is from recent high of RM9.00 and the 13/4/16 high (RM9.20). Japan Slump 2% after North Korea Missile Test Japanese stocks sold off on Wednesday, weighed by a stronger yen and after an apparent North Korea missile test that reports said failed. The benchmark Nikkei 225 tumbled down 2.13 percent or 414.5 points at 19,041.38 while the Topix index dropped 2.12 percent or 33.2 points to 1,530.2. Australia's S&P/ASX 200 closed down 1.56 percent or 90.1 points at 5,684.5, seeing heavy losses in its energy, materials and financials sectors. Australia's Big Four banks were hit hard, with shares of Australia and New Zealand Banking Group down 2.57 percent, Commonwealth Bank fell 2.03 percent, Westpac slipped 2.42 percent and National Australia Bank was 1.58 percent lower. The Shanghai composite finished down 0.5 percent or 16.2 points at 3,245.4 and Shenzhen composite dropped 0.29 percent or 6.1 points to 2,037.89. Hong Kong's Hang Seng index declined by 1.1 percent. House Republicans are expected to vote on repealing and replacing the Affordable Care Act on Thursday with the votes needed for passage in doubt. The markets also noted comments from Cleveland Federal Reserve President Loretta Mester on Tuesday in the U.S. that if economic data holds up she would support a reduction in the Fed's USD4.5 trillion balance sheet. During Asian hours, U.S. crude fell 0.1 percent to USD48.18 a barrel, while Brent crude was flat at USD50.94. Late Tuesday in the U.S., the American Petroleum Institute reported a 4.53 million barrels build in crude stocks at the end of last week, nearly double the expected gain. Page 1 of 7
  4. TA Securities 23-Mar-17 A Member of the TA Group Choppy Session on Wall Street Ahead of Healthcare Legislation Wall Street ended mixed after a choppy session on Wednesday as traders eagerly awaited a vote on the House 's health care proposal and monitored oil prices. Trump and Republican lawmakers appeared to be losing the support they need for controversial healthcare legislation scheduled for a vote in the House of Representatives on Thursday. Losing or delaying the vote would bruise investors' confidence in Trump's legislative ability and his ability to keep his big promises to business. Also on investors' minds were oil prices, which continued falling after of the Energy Information Administration said U.S. inventories rose by 5 million barrels last week. U.S. crude futures for May delivery fell 0.41 percent to settle at USD48.04 per barrel and hit its lowest level since November. Tech’s advance helped major indexes steady after Tuesday’s selloff. Microsoft climbed 1.3 percent to USD65.03, the most in the Dow, while Apple rose 1.1 percent, to USD141.42 and Intel gained 0.9 percent, to USD35.37. The Dow Jones Industrial Average declined 6.71 points, or 0.02 percent, to 20,661.30 the S&P 500 gained 4.43 points, or 0.19 percent, to 2,348.45 and the Nasdaq Composite added 27.82 points, or 0.48 percent, to 5,821.64. Page 2 of 7
  5. TA Securities 23-Mar-17 A Member of the TA Group News In Brief Corporate Eco World International Bhd ’s (EWI) initial public offering (IPO), worth RM2.6bn, will be the largest in Malaysia since June 2015, with a fixed price of RM1.20 per share. EWI said the IPO price was fixed following the close of the institutional offering of 449.5mn IPO shares to Malaysian and foreign institutional and selected investors. The company said it just completed the balloting of applications for the 48mn IPO shares offered under the retail offering to the Malaysian public. (New Straits Times) Boustead Heavy Industries Corp Bhd (BHIC) is teaming up with Technology Depository Agency Bhd (TDA) to develop a Malaysian national airspace policy, as well as to set up a national airspace management centre for the aviation/aerospace industry. In a filing with Bursa Malaysia, BHIC said it has entered into a two-year memorandum of understanding (MoU) with TDA, an agency under the Ministry of Finance, to jointly establish the Malaysian national airspace policy and the centre and its related infrastructure and systems. (The Edge) Tenaga Nasional Bhd’s (TNB) joint-venture power project with Indonesia’s PT Perusahaan Listrik Negara (PLN) has hit a snag. Construction of the multi-billion ringgit 2x600 megawatt power plant in Riau, Sumatra, which was expected to kick off early this year, could be delayed by three years, said sources. A source close to TNB said the estimated US$1.6bn (RM7.1bn) project was expected to be revisited in three years to see whether it was still viable. (New Straits Times) Petronas Carigali Sdn Bhd has awarded Uzma Bhd’s subsidiary, Uzma Engineering Sdn Bhd (UESB), a contract for the provision of fishing equipment and services. The contract would run for a duration of two years, starting from February 2017 to February 2019, with an extension option of one year for fishing services across Petronas Carigali’s area of operations. (StarBiz) Anzo Holdings Bhd’s unit, Harvest Court Construction Sdn Bhd, has received a letter of intent for a RM109.3mn contract worth up to RM109.3mn to undertake Phase 2 of the Porto De Melaka Hotel and Resort development. The construction and timber product manufacturing group said the contract involved the turnkey design and construction for a 216-room hotel complete with interior fit-out and furnishings and associated infrastructure works. (StarBiz) AmBank (M) Bhd aims to see a minimum of 15% growth in loans to small and medium enterprises (SMEs) for this year, said its group chief executive officer Datuk Sulaiman Mohd Tahir. He said the target would be driven by retail, corporate and SME asset financing as well as an increase in infrastructure loan demand amid progressive Malaysian economic background. (StarBiz) Malayan Banking Bhd (Maybank) and CIMB Bank Bhd are partnering with Ant Financial Services Group, which operates the world’s largest online and mobile payment platform Alipay, to enable the Alipay mobile wallet in Malaysia. CIMB Group said in a statement that it would act as the settlement and merchant acquirer bank, allowing Chinese visitors to pay for their transactions in yuan without concern about exchange rates. This is done through a simple barcode-scanning method that they are used to in their country. (StarBiz) AirAsia (India) Ltd (AAIL), AirAsia Bhd’s joint-venture with the Tata group, has filed a police report following a probe into irregular personal expense claims and certain company charges. In a filing with Bursa Malaysia, AirAsia Bhd said that as a result of investigations by AAIL, which were conducted by an external agency, AAIL had been recommended to lodge the police report on the findings of the probe. (StarBiz) Page 3 of 7
  6. TA Securities 23-Mar-17 A Member of the TA Group Metronic Global Bhd has terminated its joint venture (JV) with Northern Paradise Sdn Bhd to build a mixed development project with a gross development value of RM80.0mn, after their agreement lapsed. Metronic said the JV agreement, dated Nov 15, 2013, lapsed after the parties failed to procure the approvals and consents from the authorities within the period provided for in the agreement. The slowdown in the property market was also cited as a factor. It added that the license to develop the said development project could not be obtained on time. (The Edge) Felda Global Ventures Holdings Bhd, (FGV) to date, has never discussed private share placements with China's biggest food trader, China National Cereals, Oils and Foodstuffs Corp (COFCO), said FGV group president and chief executive officer Datuk Zakaria Arshad. However, Zakaria said FGV remains open to investor purchase of its shares. (New Straits Times) Geely Automobile Holdings’ president, An Conghui, has confirmed that Geely has withdrawn its bid to buy a controlling stake in Malaysian carmaker Proton Holdings Bhd, which is DRB-Hicom Bhd's wholly-owned automotive unit. According to South China Morning Post, An did not elaborate on the reasons for the decision to withdraw the bid, but Li Shufu, its chairman, had said in an interview with Bloomberg earlier this month that the Malaysian company kept changing its mind. (The Edge) Some minority shareholders of Halex Holdings Bhd (Halex) are understood to be questioning whether a proposed related party transaction (RPT) had gone unnoticed at the company. They assert that Datuk Yip Yee Foo, a prominent businessman in the 1990s, could have a 20% stake in Halex and also control of Kensington Development Sdn Bhd (KDSB), which the agrochemical company had tried to take over. If the minorities were right, Yee Foo, who has been a substantial shareholder in Halex via Olive Park Development Sdn Bhd (OPDSB) since May 2014, should have disclosed his interest when the takeover was announced. Other than that, Halex has received a conditional mandatory general offer from Waras Dinamik Sdn Bhd and Datuk Ong Soon Ho to acquire all the remaining ordinary shares in Halex not held by them at 64 sen per share in cash. The offer price is 4.5% below yesterday’s closing of 67 sen. The MGO came after Waras Dinamik acquired an additional 26.1mn Halex shares or a 24.6% stake through direct business transactions at the price between 60 sen and 62 sen yesterday, following which Waras Dinamik’s shareholding in Halex rose to 39.2%. (The Edge) Leon Fuat Bhd has been offered a total of RM45.8mn by the government for the compulsory acquisition of the plots of land it owns in Sungai Besi. Leon Fuat said it had received the Form H from the Land Administrator of Wilayah Persekutuan Kuala Lumpur on its notice of award of compensation in respect of the compulsory acquisition, which is subject to the acceptance of the company. (The Edge) Luster Industries Bhd is planning to undertake a private placement of new shares representing up to a 10% stake in the company to raise as much as RM27.1mn to fund its property development expenditure and working capital. In a filing, Luster said it intends to place the shares to independent third-party investors to be identified later. (The Edge) Stretch film maker Scientex Bhd’s net profit grew 1% to RM65.2mn in the second quarter ended Jan 31, 2017 (2QFY17), from RM64.6mn a year ago, as the company recorded higher revenue from its manufacturing and property business. A filing with Bursa Malaysia showed its quarterly revenue rose 7% to RM586.3mn, from RM545.4mn. Scientex said its property business registered higher profit, consistent with higher sales, though its manufacturing business profit slipped, mainly due to lower product margins from both industrial and consumer packaging segments. (The Edge, Bursa) Berjaya Land Bhd (BLand) posted a net profit of RM33.8mn for its third financial quarter ended Jan 31, 2017 (3QFY17), against RM21.0mn in net losses a year ago. A higher share of profit from its associate companies, especially Berjaya Kyoto Development (S) Ltd from the Page 4 of 7
  7. TA Securities 23-Mar-17 A Member of the TA Group sale of residences , and lower finance costs in the quarter were also cited as contributing factors. Quarterly revenue climbed 3.8% to RM1.5bn from RM1.5bn a year ago. (The Edge, Bursa) Poh Huat Resources Holdings Bhd has declared a dividend of two sen per share, following 25% growth in net profit in the first financial quarter ended Jan 31, 2017 (1QFY17) to RM17.7mn, from RM14.1mn in the same period last year. Poh Huat attributed its better performance to higher turnover, besides a one-off gain from investment disposal of RM435k, and a recognised foreign exchange (forex) gain of about RM93k, compared with forex losses of RM2.6mn in the previous corresponding quarter. Its quarterly revenue climbed 8% to RM163.5mn, from RM151.1mn a year ago. (The Edge, Bursa) Managepay Systems Berhad (MPAY) entered into a sale of shares agreement (“SSA”) with Messrs Mok Chuang Siang, Tan Han Qiang and Cheng Wen Jie for the proposed acquisition of 35k ordinary shares, representing 29.2% of the issued share capital in Stark Events Sdn Bhd for a total cash consideration of RM45.2k subject to the terms and conditions of the SSA. Upon the successful transfer of the Sale Shares to MPAY, MPAY would subscribe for an additional 90k ordinary shares in Stark Events to become a 59.52% subsidiary of MPAY. (Bursa) Page 5 of 7
  8. TA Securities 23-Mar-17 A Member of the TA Group News In Brief Economy Asia Malaysia Needs More Transformational Leaders , Says PEMANDU CEO Malaysia needs more great leaders, especially transformational leaders, who have the ability to conquer fear and are brave enough to take steps in transforming an organisation, said Performance Management and Delivery Unit (PEMANDU) president and chief executive officer Datuk Seri Idris Jala. “In everything that I do, I want to make it quick, and with better results. That is my obsession in life,” he said during a one-hour session entitled Transformational Road Less Travelled at the Global Transformation Forum. Transformational leadership is about the leader connecting with people to inspire positive change in transforming the organisation and changing its culture. Sharing his experience as a transformation guru who relishes the task of overseeing Malaysia’s transformation into a high-income country by 2020, Idris recounted his experience with the Shell and Malaysia Airlines turnaround. (The Star) Malaysia GDP in 2017 to be Slightly Higher than 4.2% Malaysia expects to record a slightly higher Gross Domestic Product (GDP) growth this year from 4.2% achieved last year, Prime Minister Datuk Seri Najib Tun Razak said. “We expect a slightly higher figure this year, and for it (growth) to rise in 2018,” he said. The government had forecast that the economy would grow between 4.0% and 5.0% in 2017. These figures showed that the Malaysian economy was growing more than double the rates the International Monetary Fund had predicted for advanced economies over the same time period, he said in a keynote address at the Global Transformation Forum. Najib reiterated that Malaysia was firmly on the path to become a high-income nation. (The Star) Bank Negara Malaysia’s International Reserves at US$94.9bil Bank Negara Malaysia’s international reserves stood at US$94.9bil or RM425.6bil as at March 15, 2017. The central bank said the reserves position was sufficient to finance 8.3 months of retained imports and was 1.1 times the short-term external debt. Bank Negara said the reserves were made up of US$88.3bil in foreign currency reserves, US$0.8bil International Monetary Fund reserves position, US$1.1bil in holdings of Special Drawing Rights (SDRs), US$1.4bil in gold and US$3.3bil consisted of other assets. The international reserves were marginally lower when compared with the US$95bil or US$426.3bil as at Feb 28. The reserves position then was enough to finance 8.5 months of retained imports and was 1.1 times the short-term external debt. (The Star) Australia's Leading Index Falls Slightly in February Australia's leading index softened in February but it continued to signal above trend growth momentum, the Westpac Institutional Bank said. The Westpac-Melbourne Institute Leading Index, which indicates the likely pace of economic activity relative to trend three to nine months into the future, fell to 1.02% in February from 1.34% in January. This was the seventh consecutive month where the growth rate has been at or above trend, the agency said. The latest reading pointed to above trend momentum carrying through the middle of 2017 consistent with Westpac's forecast for 3% growth for the full year. The main components that pushed up growth over the last six months were commodity prices, in the Australian dollar terms, the yield spread, and a reduced drag from hours worked. (RTT News) Japan February Trade Surplus Y813.389 Billion Japan posted a merchandise trade surplus of 813.389 billion yen in February that surpassed expectations for 807.2 billion yen following the downwardly revised 1,087.9 billion yen deficit (originally -1,086.9 billion yen) in January. Exports jumped 11.3% on year to 6.346 trillion yen, beating forecasts for 10.1% following the 1.3% gain in the previous month. Exports to Asia surged 20.9% on year to 3.485 trillion yen, while exports to China alone advanced an annual 28.2% to 1.196 trillion yen. Exports to the United States added an annual 0.4% to 1.223 trillion yen, and exports to the European Union gained 3.3% to 700.579 billion yen. Imports added an annual 1.2% to 5.533 trillion yen, missing Page 6 of 7
  9. TA Securities 23-Mar-17 A Member of the TA Group expectations for 1 .3% and down from 8.5% a month earlier. (RTT News) Other news in Japan: • The all industry activity index rose 0.1% in January from December, when it dropped 0.2%. Economists had forecast the indicator to remain flat in January. The overall growth was contributed by construction, expanding 4.1%. Meanwhile, industrial output dropped 0.4% and tertiary industry activity remained flat. • Japan's supermarket sales declined in February from a year ago, a report from the Chain Store Association showed. Supermarket sales, after store adjustment, fell 3.3% year-over-year in February. Before adjustment, sales decreased 3.4%. U.S. Home Sales Slide on Tight Supply, Higher Prices Existing home sales declined in February as tight inventory and rising prices frustrated would-be buyers and damped sales activity heading into the critical spring selling season. Purchases of previously owned homes, which account for the vast majority of U.S. sales, decreased 3.7% from January to a seasonally adjusted annual rate of 5.48 million last month, the National Association of Realtors said. The decline followed a strong performance in January, when sales rose 3.3%. February’s sale pace was 5.4% above the same month a year earlier. Economists said the combination of rising prices and mortgage rates is expected to push some buyers out of the market this year, especially in expensive coastal markets where first-time purchasers are already stretching to afford homes. (The Wall Street Journal) Europe Eurozone Current Account Surplus Shrinks to 15-month Low The Eurozone’s current account surplus has narrowed to its lowest level since October 2015, the European Central Bank said. Fresh figures show the surplus fell to €24.1bn in January, down from a revised €30.8bn the previous month. The current account, which measures the Eurozone’s balance in goods and income, has swung into surplus since the Eurozone’s sovereign debt crisis calmed around 2012. A record surplus in Germany helped the Eurozone to hit its own current account surplus record in November at €36.1bn – but the surplus has since been shrinking. January’s figure reflected surpluses for goods, primary income and service that were partly offset by a deficit for secondary income, the ECB said. (Financial Times) Share Buy-Back: 22 Mar 2017 Company BKAWAN SIGN SNTORIA TEXCHEM Bought Back Price (RM) Hi/Lo (RM) 11,100 200,000 50,000 1,000 19.42/19.40 0.90/0.89 0.725/0.715 1.46 19.42/19.38 0.90/0.89 0.725/0.71 1.46/1.43 Total Treasury Shares 31,859,131 10,570,200 731,000 2,530,200 Source: Bursa Malaysia Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 7 of 7
  10. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company AUTOMOBILE BAUTO MBMR UMW Share Price (RM) 22-Mar-17 2.05 2.51 6.19 Target Price BETA (RM) EPS (sen) PER (X) FY17 FY18 FY17 FY18 Div Yield (%) 52weeks 52weeks FY17 FY18 High Price % Chg Low Price % Chg % Chg YTD 2.36 2.04 5.12 0.98 0.56 1.22 10.8 22.7 17.7 15.8 23.8 27.6 19.0 11.1 35.0 13.0 10.6 22.5 5.8 3.6 1.8 7.7 3.6 2.9 2.44 2.70 7.03 -16.0 -7.0 -11.9 1.95 1.95 4.43 5.1 28.7 39.7 -3.8 17.3 35.4 3.90 3.20 5.00 5.60 14.90 8.60 20.90 4.40 8.50 1.25 0.93 1.26 1.32 0.66 0.93 0.80 1.26 0.70 35.8 29.4 46.4 50.6 101.3 73.7 136.6 49.0 36.4 37.7 33.1 50.6 55.6 109.8 82.8 140.4 51.7 38.2 11.4 9.9 10.6 11.1 13.6 12.1 14.6 11.0 27.2 10.8 8.7 9.7 10.1 12.5 10.8 14.2 10.4 25.9 3.7 2.8 3.3 3.6 3.0 5.6 2.8 2.2 3.4 3.7 2.8 3.7 4.0 3.0 5.6 2.9 2.2 3.4 4.37 2.92 5.03 5.83 13.80 9.20 20.28 5.39 9.93 -6.4 -0.7 -2.6 -3.9 -0.4 -2.8 -1.6 -0.2 -0.3 3.60 2.08 3.90 4.11 12.70 7.50 18.48 4.42 8.20 13.6 39.4 25.6 36.2 8.2 19.2 8.0 21.6 20.7 9.9 21.3 13.7 24.2 1.8 9.0 1.2 14.2 11.9 0.45 1.25 5.15 3.52 0.64 1.76 1.83 5.86 0.49 1.45 5.62 3.27 0.58 1.90 1.50 5.58 0.79 0.71 1.03 1.07 1.14 na 1.04 0.14 6.0 12.9 32.9 16.8 9.6 12.6 12.8 44.4 6.0 13.2 36.7 20.9 9.9 12.5 12.7 45.8 7.5 9.7 15.6 20.9 6.6 13.9 14.3 13.2 7.5 9.5 14.0 16.8 6.5 14.0 14.4 12.8 0.0 2.2 2.3 2.7 1.6 3.1 1.6 4.3 2.2 2.2 2.3 2.7 1.6 3.1 1.6 4.3 0.51 1.35 5.20 3.61 0.76 1.81 1.98 6.06 -11.8 -7.5 -1.0 -2.4 -15.2 -2.8 -7.6 -3.3 0.36 0.76 4.59 3.07 0.41 1.42 1.41 5.02 25.0 65.3 12.2 14.7 58.0 23.9 29.8 16.7 3.4 19.0 7.7 10.0 11.3 3.5 5.8 -0.3 2.00 2.00 0.47 15.4 15.6 13.0 12.8 5.0 5.0 2.40 -16.7 1.93 3.6 -0.5 14.68 17.84 15.41 21.08 0.58 0.58 69.6 93.1 77.5 21.1 101.9 19.2 18.9 17.5 4.7 4.7 5.3 5.1 15.20 18.74 -3.4 -4.8 12.38 13.60 18.6 31.2 5.5 8.9 2.36 7.69 24.50 78.20 2.98 2.01 4.56 0.90 2.23 9.59 26.14 83.60 4.00 2.74 4.17 1.10 0.46 0.33 0.34 0.39 0.47 0.68 0.49 0.58 6.5 35.9 97.9 291.3 23.5 25.1 12.7 9.6 7.5 40.5 119.6 318.0 26.5 25.3 15.8 13.2 36.3 21.4 25.0 26.8 12.7 8.0 35.9 9.4 31.3 19.0 20.5 24.6 11.2 7.9 28.9 6.8 0.8 3.9 2.6 3.6 5.0 4.0 1.0 5.6 1.0 4.9 3.1 3.9 6.0 4.0 1.1 5.6 3.00 9.58 27.00 81.80 3.08 2.03 4.70 1.07 -21.3 -19.7 -9.3 -4.4 -3.2 -1.0 -3.0 -15.7 2.11 7.31 19.66 73.84 1.92 1.42 4.14 0.78 11.8 5.2 24.6 5.9 55.4 41.5 10.1 15.4 -8.2 4.9 4.3 0.0 16.9 16.2 5.3 13.2 47.70 54.22 1.02 271.1 271.8 17.6 17.6 5.5 5.5 55.64 -14.3 40.31 18.3 8.0 9.75 5.50 10.34 6.10 1.34 1.26 45.0 25.7 51.0 27.9 21.6 21.4 19.1 19.7 0.5 1.5 0.6 1.6 9.90 5.68 -1.5 -3.2 7.50 4.17 30.0 31.8 22.7 21.7 2.91 0.13 3.81 0.10 0.71 1.28 22.1 0.2 24.6 0.3 13.2 55.5 11.8 41.4 5.5 0.0 6.5 0.0 3.42 0.13 -14.9 -3.8 2.86 0.05 1.7 150.0 -1.7 150.0 6.00 4.08 6.40 4.61 0.77 0.50 13.9 13.3 17.9 16.5 43.2 30.6 33.4 24.8 0.7 1.5 0.8 1.9 6.79 4.37 -11.6 -6.6 5.78 3.85 3.8 6.0 -5.5 -2.4 4.95 6.30 2.01 5.05 2.06 4.50 6.80 1.90 5.05 2.55 0.54 0.12 0.36 -0.21 0.29 18.2 35.8 16.2 26.6 4.3 21.2 40.5 18.2 30.2 7.1 27.2 17.6 12.4 19.0 48.0 23.3 15.6 11.0 16.7 29.2 1.7 2.8 2.4 2.7 0.5 1.9 3.2 2.7 3.0 0.9 5.03 7.07 2.88 5.45 2.74 -1.6 -10.9 -30.2 -7.3 -24.8 3.81 5.90 1.98 4.20 1.96 29.9 6.8 1.5 20.2 5.1 2.5 -4.4 -4.7 -5.6 -12.7 INDUSTRIAL SCIENTX SKPRES 7.25 1.30 8.50 1.75 0.54 0.55 67.9 9.3 78.0 14.4 10.7 14.0 9.3 9.0 2.8 3.4 3.2 5.3 7.61 1.44 -4.7 -9.7 5.75 1.12 26.1 16.1 8.2 0.8 MEDIA ASTRO MEDIA PRIMA STAR 2.85 1.18 2.47 3.30 0.85 1.95 1.05 0.68 0.57 11.9 7.7 15.0 13.5 8.0 15.8 23.9 15.2 16.5 21.2 14.8 15.6 4.4 5.2 7.3 4.6 5.4 7.3 3.02 1.54 2.70 -5.6 -23.4 -8.5 2.56 1.00 2.20 11.3 18.0 12.3 9.6 2.6 10.3 OIL & GAS EATECH MHB MISC PANTECH PCHEM SKPETRO UMWOG UZMA 0.67 0.98 7.45 0.53 7.48 1.88 0.65 1.78 0.45 0.96 8.16 0.52 7.91 1.92 0.54 1.40 na 1.78 0.86 1.24 1.13 2.40 1.95 1.37 11.5 -0.4 49.5 3.7 34.7 5.3 -14.7 11.3 11.9 1.1 56.1 4.3 39.3 4.6 -12.4 12.2 5.8 na 15.0 14.1 21.6 35.8 na 15.8 5.6 87.3 13.3 12.2 19.0 40.5 na 14.6 5.0 0.0 4.0 2.9 2.5 0.0 0.0 0.0 6.0 0.0 4.0 3.2 2.9 0.0 0.0 0.0 1.25 1.34 9.00 0.55 7.69 2.09 1.04 2.04 -46.4 -27.2 -17.2 -3.7 -2.7 -10.0 -38.0 -12.7 0.45 0.84 6.88 0.44 5.95 1.29 0.61 1.30 50.6 16.1 8.3 20.7 25.7 45.7 6.6 36.9 8.1 6.6 1.4 18.0 7.2 16.0 -26.3 4.7 BANKS & FINANCIAL SERVICES AFG 4.09 AFFIN 2.90 AMBANK 4.90 CIMB 5.60 HLBANK 13.74 MAYBANK 8.94 PBBANK 19.96 5.38 RHBBANK BURSA 9.90 CONSTRUCTION BPURI GADANG GAMUDA IJM SENDAI SUNCON WCT LITRAK Building Materials WTHORSE CONSUMER Brewery CARLSBG HEIM Retail AEON AMWAY F&N NESTLE PADINI POHUAT QL SIGN Tobacco BAT GAMING Casino GENTING GENM NFO BJTOTO LUSTER HEALTHCARE Hospitals IHH KPJ Rubber Gloves HARTA KOSSAN SUPERMX TOPGLOV KAREX
  11. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price (RM) PLANTATIONS FGV IJMPLNT IOICORP KLK SIME UMCCA 2.05 3.22 4.77 24.80 9.26 6.15 Target Price BETA (RM) 1.53 3.88 3.93 22.75 8.24 6.53 1.74 0.46 1.06 0.93 1.25 0.50 EPS (sen) PER (X) FY17 FY18 FY17 FY18 6.3 13.7 18.7 111.8 30.8 25.8 11.1 15.7 21.1 119.1 35.3 32.0 32.3 23.5 25.4 22.2 30.1 23.8 18.5 20.5 22.6 20.8 26.2 19.2 Div Yield (%) 52weeks 52weeks FY17 FY18 High Price % Chg Low Price % Chg 2.4 2.2 2.1 2.2 2.4 2.6 2.4 2.5 2.5 2.4 3.0 2.6 2.52 3.74 4.96 25.50 9.43 6.20 -18.7 -13.9 -3.8 -2.7 -1.8 -0.8 1.31 3.15 4.07 22.62 7.10 5.53 56.5 2.2 17.2 9.6 30.4 11.2 % Chg YTD 32.3 -5.3 8.4 3.3 14.3 2.5 PROPERTY GLOMAC 0.72 0.69 0.65 3.4 7.0 20.7 10.2 5.6 5.6 0.84 -14.9 0.68 5.1 2.9 HUAYANG 1.15 1.09 0.64 20.0 17.4 5.8 6.6 3.5 3.0 1.43 -19.7 1.05 9.5 1.8 IBRACO 0.93 1.00 0.32 7.3 11.2 12.8 8.3 3.8 4.3 1.10 -15.5 0.91 2.2 -7.0 IOIPG 2.09 2.10 0.91 14.7 15.3 14.2 13.6 3.3 3.6 2.46 -15.0 1.85 13.1 7.2 Note: IOIPG 1 for 4 rights issue share, at an issue price of RM1.38 per rights share. Ex-Target price RM1.98. For more detail please refer to 21.11.16 report. MAHSING 1.49 1.60 0.68 14.5 12.5 10.3 11.9 4.0 3.7 1.70 -12.4 1.34 11.2 4.2 SNTORIA 0.72 0.80 0.28 6.4 9.7 11.3 7.4 1.4 1.4 0.86 -16.3 0.69 4.3 -10.0 SPSETIA 3.40 3.82 0.67 27.7 24.5 12.3 13.9 4.1 4.1 3.59 -5.3 2.80 21.4 8.6 SUNWAY 3.21 3.40 0.50 31.2 33.3 10.3 9.6 3.7 3.7 3.25 -1.2 2.87 11.8 5.9 REIT SUNREIT 1.73 1.79 0.55 8.9 10.1 19.5 17.1 5.1 5.8 1.84 -6.0 1.51 14.6 0.6 CMMT 1.65 1.78 0.62 8.1 8.5 20.4 19.4 5.5 5.7 1.72 -4.1 1.43 15.4 7.8 POWER & UTILITIES MALAKOF PETDAG PETGAS TENAGA YTLPOWR 1.17 23.60 19.98 13.72 1.50 1.45 20.19 19.64 17.19 1.81 na 0.78 0.78 1.02 0.59 6.9 98.4 89.4 129.4 8.8 8.3 102.3 91.6 132.7 10.6 16.9 24.0 22.3 10.6 17.1 14.1 23.1 21.8 10.3 14.2 6.0 3.1 3.2 2.6 6.7 5.0 3.2 3.0 2.6 6.7 1.80 25.70 22.66 14.90 1.64 -35.0 -8.2 -11.8 -7.9 -8.5 1.14 22.16 19.56 13.00 1.38 2.6 6.5 2.1 5.5 8.7 -14.6 -0.8 -6.2 -1.3 0.7 TELECOMMUNICATIONS AXIATA DIGI MAXIS TM 5.06 5.13 6.43 6.36 5.25 4.90 5.95 6.95 1.26 0.97 0.72 0.69 16.7 20.8 25.1 21.4 17.6 21.1 25.4 22.3 30.3 24.6 25.6 29.7 28.7 24.3 25.3 28.5 1.7 4.1 3.1 3.0 1.8 4.1 3.1 3.2 5.99 5.18 6.49 6.90 -15.5 -1.0 -0.9 -7.8 4.11 4.31 5.36 5.81 23.1 19.0 20.0 9.5 7.2 6.2 7.5 6.9 TECHNOLOGY Semiconductor & Electronics IRIS 0.16 INARI 1.96 MPI 10.96 UNISEM 3.19 0.14 2.05 10.55 3.15 1.35 0.76 0.45 0.79 -1.2 10.7 88.9 26.9 0.9 na 12.8 18.3 101.9 12.3 29.1 11.8 17.2 15.3 10.8 11.0 0.0 2.1 2.1 3.8 0.0 2.5 2.1 3.8 0.24 2.01 11.02 3.23 -35.4 -2.5 -0.5 -1.2 0.10 1.28 6.86 2.12 55.0 52.9 59.8 50.5 40.9 18.1 47.9 35.2 2.81 7.28 3.02 7.68 1.18 1.44 33.5 9.8 34.9 10.2 8.4 74.0 8.1 71.6 0.0 1.4 0.0 1.4 3.30 7.30 -14.8 -0.3 1.76 5.76 59.7 26.4 22.7 20.1 1.71 4.00 1.88 4.51 0.85 0.71 15.5 19.3 21.7 17.4 11.0 20.7 7.9 23.0 3.2 3.6 4.1 3.3 1.76 4.59 -2.8 -12.9 1.22 3.74 40.2 7.0 7.5 -7.0 TRANSPORTATION Airlines AIRASIA AIRPORT Freight & Tankers TNLOGIS WPRTS SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price (S$) BANKS & FINANCIAL SERVICES DBS 18.67 OCBC 9.45 UOB 21.53 PLANTATIONS WILMAR IFAR 3.51 0.53 Target Price Beta (S$) EPS (cent) PER (X) FY17 FY18 FY17 FY18 Div Yield (%) 52week 52week FY17 FY18 High Price % Chg Low Price % Chg % Chg YTD 16.70 8.50 19.40 1.21 1.12 1.08 173.8 87.8 195.7 190.2 10.7 92.5 10.8 209.4 11.0 9.8 10.2 10.3 3.2 5.7 3.3 3.2 6.7 3.3 19.4 9.8 22.0 -3.6 -3.4 -2.3 14.63 8.84 17.41 27.6 15.1 23.7 7.7 5.9 5.5 3.45 0.51 0.91 1.11 28.9 3.9 31.1 4.3 11.3 12.3 2.3 1.8 2.6 2.0 4.0 0.6 -12.3 -16.0 2.96 0.44 18.6 19.3 -2.2 0.0 12.1 13.4 BUY : Total return within the next 12 months exceeds required rate of return by 5%-point. HOLD : Total return within the next 12 months exceeds required rate of return by between 0-5%-point. SELL : Total return is lower than the required rate of return. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.
  12. TA Securities R E S U L T S U P D A T E Thursday , March 23, 2017 FBMKLCI: 1,748.30 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +60320325048 Sector: Consumer Poh Huat Resources Holdings Bhd TP: RM2.74(+36.3%) g Last traded: RM2.01 Record Quarterly Revenue BUY THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Ooi Beng Hooi +603-2167 9612 benghooi@ta.com.my Results Review Pohuat’s 1QFY17 net profit of RM17.7mn came in above our expectation, accounting for 37.0% of our full-year estimate. The variance was due mainly to higher-than-expected revenue arising from stronger-than-expected volume and US Dollar vs Malaysia Ringgit, and lower taxation. Pohuat has declared a first interim dividend of 2sen/share, maintaining the same amount last year. YoY, 1QFY17 net profit surged 25.0%. This was boosted largely by increased revenue (+8.2%), better other income and lower tax rate (3.3% pts). Sales for both Vietnam and Malaysia plants improved by 8.5% and 8.4% respectively, attributable to higher volume, favourable forex and introduction of new panel based bedroom sets at its factories in Malaysia in the previous quarter. QoQ, the core profit was 4.8% higher, in tandem with the 7.5% jump in quarterly revenue to RM163.5mn, the highest quarterly revenue ever recorded by the group. This was in spite of the slightly lower revenue achieved by its Vietnam division following the pre-festive peak shipment in the immediate preceding quarter. The strong revenue was boosted by the sales of new range of panel based bedroom sets which gained traction in the US. Impact Following the stronger-than-expected results, we raise our output volume assumptions and raise FY17/18/19 earnings forecasts by 9.7%, 10.5% and 5.5% respectively. www.taonline.com.my Share Information Bloomberg Code Bursa Stock Code Listing Share Cap (mn) Market Cap (RMmn) Par Value 52-wk Hi/Lo (RM) 12-mth Avg Daily Vol ('000 shrs) Estimated Free Float (%) Beta (x) Major Shareholders (%) PHR MK POHUAT 7088 Main Market 226.8 455.9 0.50 2.03/1.42 388.4 36.7 0.68 Tay Kim Huat - 24.11 Lim Pei Tiam - 13.30 Forecast Revision Forecast Revision (%) Net profit (RMm) Consensus (RM'mn) TA's / Consensus (%) Previous Rating FY17 9.7 53.6 NA FY18 10.5 54.0 NA Buy (Maintained) - Scorecard vs TA vs Consensus % of FY 37.0 na Above na Financial Indicators FY17 FY18 Net Debt / Equity (%) CFPS (sen) Price / CFPS (x) ROA (%) NTA/Share (RM) Price/NTA (x) net cash 13.2 15.2 13.8 1.2 1.6 net cash 14.7 13.7 12.7 1.4 1.5 Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth POHUAT 9.2 19.6 31.4 37.7 FBM KLCI 2.4 7.7 4.7 1.4 Outlook With signs of sustained economy recovery and healthy job numbers in the US, coupled with the uptrend in the US housing starts, a bellwether for the group’s furniture export to US, we expect Pohuat’s earnings prospects to remain robust in the foreseeable future. (12-Mth) Share Price relative to the FBM KLCI Source: Bloomberg Page 1 of 3
  13. TA Securities 23-Mar-17 A Member of the TA Group Exhibit 1 : US Housing Starts Source: Bloomberg, TA Research Valuation We raise the PE target multiple for POHUAT from 10x to 12x, given: i) Positive business outlook especially in the US market; ii) Potential growth from the launch of panel based bedroom sets in Malaysia plant and the expanded capacity in Vietnam plant after the commissioning of new spray line; iii) The group being more investor friendly, by increasing dividend payout and paying dividend on a more regularly basis, from one dividend payment a year in FY12 to quarterly dividend payment since FY16; and iv) Its market capitalization has crossed above US$100mn, and likely to fall on radars of more international small cap funds. Subsequent to the earnings forecasts revision and re-rating in the target PE multiple, we raise the target price from RM2.08 to RM2.74, based on 12x CY17 EPS. Reiterate our BUY call on POHUAT. Earnings Summary FYE Oct (RMmn) Revenue Gross profit EBITDA EBITDA margin EBIT Core PBT PAT Core net profit Core EPS* PER Gross dividend* Dividend yield ROE (%) (sen) (x) (sen) (%) (%) 2015 453.9 90.4 56.5 12.4 54.5 52.6 39.2 44.4 20.8 9.7 5.0 2.5 23.0 2016 535.2 107.0 68.0 12.7 60.4 56.4 47.1 44.9 20.1 10.0 8.0 4.0 19.6 2017F 562.3 118.1 76.0 13.5 67.0 65.9 53.6 53.6 23.0 8.8 8.0 4.0 20.2 2018F 571.4 120.0 77.9 13.6 69.1 68.6 54.0 54.0 22.2 9.1 8.0 4.0 17.4 Note: *Adjust for 1 into 2 share split in Oct 2015 Page 2 of 3 2019F 576.3 121.0 79.2 13.8 70.6 70.3 54.5 54.5 21.5 9.4 8.0 4.0 15.3
  14. TA Securities 23-Mar-17 A Member of the TA Group 1QFY17 Results Analysis FYE Oct (RMmn) Revenue Cost of Sales Gross profit Operating profit Finance Costs Core PBT Income tax expense Non-controlling interests Net profit Core net profit Reported EPS (sen) EPS (sen) Dividend (sen) Margin (%): - PBT - PAT - Effective tax rate 1Q16 4Q16 151.1 152.0 (118.5) (116.8) 32.6 35.2 16.7 25.1 (0.5) (0.4) 16.2 20.3 (2.2) (5.7) (0.1) (0.1) 14.1 19.1 14.1 16.9 6.6 6.6 2.0 10.7 9.3 13.5 8.9 7.9 2.0 14.8 12.5 25.3 1Q17 QoQ (%) YoY (%) 163.5 7.5 8.2 (129.1) 10.5 9.0 34.3 (2.5) 5.3 20.0 (20.5) 19.6 (0.5) 10.6 (3.8) 19.5 (3.9) 20.2 (2.0) (65.2) (9.4) (0.2) 167.9 44.2 17.7 (7.3) 25.0 17.7 4.8 25.0 8.3 8.3 2.0 (7.3) 4.8 0.0 25.1 25.1 0.0 11.9 10.7 10.2 % pts (2.9) (1.8) (15.2) % pts 1.2 1.4 (3.3) 3MFY16 3MFY17 YoY (%) 151.1 163.5 8.2 (118.5) (129.1) 9.0 32.6 34.3 5.3 16.7 20.0 19.6 (0.5) (0.5) (3.8) 16.2 19.5 20.2 (2.2) (2.0) (9.4) (0.1) (0.2) 44.2 14.1 17.7 25.0 14.1 17.7 25.0 6.6 6.6 2.0 10.7 9.3 13.5 8.3 8.3 2.0 25.1 25.1 0.0 11.9 10.7 10.2 % pts 1.2 1.4 (3.3) Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD(14948-M) (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 3 of 3
  15. RESULTS UPDATE TA Securities A Member of the TA Group Thursday , March 23, 2017 FBMKLCI: 1,748.3 Sector: Industrail MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Scientex Berhad TP: RM8.50 (+17.2%) Earnings Picking Up Last Traded: RM7.25 BUY THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TA Research Team Coverage Tel : +603-2072 1277 ext. 9602 damia@ta.com.my Review Scientex Berhad’s 1HFY17 adjusted net profit came in at RM116.1mn (11.9% YoY) after excluding exceptional items of RM0.6mn. This was at 34% of our full-year forecast and 38% of the consensus estimates. We consider the results within expectation as the second BOPP line had started the commercial run in Dec-16 and production is expected to continue ramping up from the current utilisation rate of 35%. Manufacturing: Revenue in 1HFY17 reduced by 0.3% to RM791.6mn on the back of weaker Asia Pacific market activity, which led to lower exports for the industrial packaging segment. Operating profit for 1HFY17 declined by 29.6% to RM54.0mn because of lower product margin from the penetrative pricing strategy. Whereas 2QFY17 experienced higher revenue by 2.5% YoY and 8.5% QoQ due to stronger exports and higher contribution from the consumer packaging segment. Operating profit for this quarter improved by 27.2% QoQ due to stronger product margin. Property: 1HFY17 revenue improved by 9.0% to RM329.4mn as the development projects were seeing stable sales and construction progress. This has translated to better operating profit, which increased by 16.1% YoY. 2QFY17 operating profit also increased to RM52.3mn (+16.1% QoQ, +43.8% YoY) in line with the improvement in revenue (+12.5% QoQ, +21.5% YoY). Note that unbilled sales stood at RM600.0mn as of Jan-17 to be recognized over the next two to three years. www.taonline.com.my Share Information Bloomberg Code Stock Code Listing Share Cap (mn) Market Cap (RMmn) Par Value 52-wk Hi/Lo (RM) 12-mth Avg Daily Vol ('000 shrs) Estimated Free Float (%) Beta Major Shareholders (%) Scientex Holdings Sdn Bhd Scientex Leasing Sdn Bhd Lim Teck Meng Sdn Bhd TM Lim Sdn Bhd Forecast Revision Forecast Revision (%) Core Net Profit (RMmn) Consensus TA's / Consensus (%) Previous Rating SCI MK 4731 Main Market 460.9 3,341.5 0.5 7.61/5.75 331.1 33.0 0.5 21.4 10.0 8.1 5.3 FY17 FY18 0.0 0.0 346.5 381.9 307.8 350.3 112.6 109.0 Buy (Maintained) Financial Indicators FY17 47.1 23.1 12.1 2.2 3.3 FY18 46.9 21.4 11.3 2.7 2.7 vs TA vs Consensus % of FY17 34 38 Within Within Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth SCIENTEX FBM KLCI 2.1 2.4 7.6 7.7 17.7 4.7 12.1 1.4 Net debt/ equity (%) ROE (%) ROA (%) NTA/Share (RM) Price/NTA (x) Scorecard No dividend was proposed for this quarter. Impact No change to our earnings forecast. Outlook We are positive on the prospects of the manufacturing division due to i) continuing operational efficiencies, ii) industrial packaging segment is expanding presence in existing and new markets, iii) capacity expansion for consumer packaging segment and iii) continuing efforts by Scientex to ramp up sales. (12-Mth) Share Price relative to the FBM KLCI The property division is also showing signs of resiliency especially from those affordable homes projects. Note that Scientex has launched its property developments in Ipoh with potential GDV of RM745.0mn (Meru and Klebang projects). Source: Bloomberg Page 1 of 3
  16. TA Securities 23-Mar-17 A Member of the TA Group Valuation FY17 earnings are expected to be back-end loaded as the new BOPP plant is expected to make its maiden contribution in 2HFY17 . Target price is maintained at RM8.50/share based on SOP valuation. Maintain Buy on Scientex. 2QFY17 Results Analysis (RMmn) FYE July (RM'mn) Revenue ~ Manufacturing ~ Property Operating Profit ~ Manufacturing ~ Property Interest Expense Interest Income Extra-ordinary Items Reported PBT Adj. PBT Taxation MI Reported Profit Adj. Net Profit EPS (sen) Adj EPS (sen) DPS (sen) EBIT Margin (%) ~ Manufacturing ~ Property PBT Margin (%) Net Margin (%) Tax rate (%) *Restated 2QFY16* 545.4 402.0 143.4 81.3 38.7 36.4 (2.6) 3.9 (2.7) 79.9 82.6 (13.2) (2.0) 64.6 67.3 14.3 14.9 0.0 1QFY17* 534.7 379.7 155.0 69.0 23.8 45.1 (3.5) 1.0 (0.1) 66.4 66.5 (13.4) (0.9) 52.1 52.3 11.3 11.4 0.0 2QFY17 586.2 411.9 174.3 81.9 30.2 52.3 (3.6) 2.9 0.7 81.8 81.1 (15.5) (1.1) 65.2 63.8 14.1 13.8 0.0 14.9 9.6 25.4 15.1 12.3 16.5 12.9 6.3 29.1 12.4 9.8 20.2 14.0 7.3 30.0 13.8 10.9 19.0 QoQ (%) 9.6 8.5 12.5 18.7 27.2 16.1 4.9 178.2 nm 23.2 22.0 15.5 21.2 25.2 22.0 24.5 21.3 nm %-pts 1.1 1.1 0.9 1.4 1.1 (1.3) YoY (%) 7.5 2.5 21.5 0.7 (21.9) 43.8 39.5 (25.5) nm 2.5 (1.7) 17.5 (44.5) 0.9 (5.2) (1.4) (7.4) nm %-pts (0.9) (2.3) 4.6 (1.3) (1.5) 2.4 1HFY16* 1,096.0 794.0 302.0 166.9 76.7 83.9 (5.7) 5.7 (6.3) 160.6 166.9 (31.2) (3.9) 125.5 131.8 27.8 29.2 0.0 1HFY17 1,120.9 791.6 329.4 150.8 54.0 97.4 (7.1) 4.0 0.6 148.2 147.7 (28.9) (2.1) 117.2 116.1 25.4 25.2 0.0 15.2 9.7 27.8 15.2 12.0 19.4 13.5 6.8 29.6 13.2 10.4 19.5 Earnings Summary (RMmn) FYE July (RMmn) Revenue EBITDA EBITDA margin Reported pre-tax profit Reported net profit Core net profit EPS (sen) Core EPS (sen) PE (x) Adj. DPS (sen) Div. yield (%) FY15 1,801.7 264.6 14.7 221.0 158.2 157.6 34.4 34.3 21.1 11.0 1.5 FY16 2,201.0 367.1 16.7 306.3 240.9 242.7 52.4 52.8 13.8 16.0 2.2 FY17E 3,221.7 529.5 16.4 441.0 346.5 346.5 75.3 75.3 9.6 21.0 2.4 FY18F 3,693.6 585.0 15.8 486.1 381.9 381.9 83.0 83.0 8.7 24.0 3.0 Page 2 of 3 FY19F 3,871.5 608.0 15.7 507.0 398.3 398.3 86.6 86.6 8.4 26.0 3.4 YoY (%) 2.3 (0.3) 9.0 (9.6) (29.6) 16.1 24.7 (30.8) nm (7.7) (11.5) (7.3) (47.7) (6.6) (11.9) (8.5) (13.7) nm %-pts (1.8) (2.8) 1.8 (2.1) (1.7) 0.1
  17. TA Securities 23-Mar-17 A Member of the TA Group (THIS PAGE IS INTENTIONALLY LEFT BLANK) Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy 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. This report has been prepared by TA SECURITIES HOLDINGS BERHAD for purposes of CMDF-Bursa Research Scheme ("CBRS") administered by Bursa Malaysia Berhad and will be compensated to undertake the scheme. TA SECURITIES HOLDINGS BERHAD has produced this report independent of any influence from the CBRS or the subject company. For more information about CBRS and other research reports, please visit Bursa Malaysia’s website at: http://www.bursamalaysia.com/market/listed-companies/research-repository/research-reports for TA SECURITIES HOLDINGS BERHAD(14948-M) (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 3 of 3
  18. Thursday , 23 March, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED LOCAL TECHNICAL REPORTS’ Local Technical Reports 1. Daily Technical Stock Picks 2. Daily Stock Screen Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research
  19. T e c h n i c a l TA Securities V i e w Thursday , March 23, 2017 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Daily Technical Stock Picks Malaysia FBM KLCI: 1,748.30 (-6.37, -0.36%) THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Name FBMKLCI AFFIN AFG AMBANK AXIATA CIMB DIGI GAMUDA GENTING GENM IHH IOICORP MALAKOFF MAXIS MAYBANK MBSB RHBBANK SIME TENAGA TM WPRTS AIRASIA AIRASIA X ARMADA BINAPURI CMSB DIALOG ECO WORLD GADANG HSL ISKANDAR KIMLUN KKBE MUDAJAYA MRCB NAIM SKPETRO SUNCON UEMS WASEONG WCT Close 22-Mar 1748.30 2.90 4.09 4.90 5.06 5.60 5.13 5.15 9.75 5.50 6.00 4.77 1.17 6.43 8.94 1.24 5.38 9.26 13.72 6.36 4.00 2.81 0.40 0.76 0.45 4.32 1.70 1.50 1.25 1.70 2.60 2.19 1.24 1.02 1.62 1.53 1.88 1.76 1.29 0.89 1.83 Change (6.37) 0.01 -0.03 0.00 -0.01 -0.05 0.00 0.03 -0.05 -0.18 0.01 0.07 0.00 0.05 -0.06 0.00 0.09 -0.04 -0.06 -0.06 0.00 -0.02 0.00 0.01 -0.01 0.00 -0.01 -0.01 -0.02 0.00 -0.02 -0.01 -0.01 0.05 -0.02 0.00 0.00 0.01 -0.01 -0.01 -0.03 Tel: +603-2167-9607 High Low 1,748.30 1,738.40 2.90 4.12 4.92 5.07 5.63 5.14 5.15 9.78 5.63 6.00 4.77 1.18 6.43 9.00 1.25 5.38 9.29 13.72 6.46 4.03 2.82 0.40 0.77 0.46 4.35 1.70 1.51 1.27 1.70 2.70 2.20 1.25 1.03 1.64 1.53 1.88 1.76 1.30 0.90 1.87 2.87 4.08 4.82 4.96 5.55 5.09 5.09 9.65 5.44 5.95 4.66 1.16 6.26 8.90 1.22 5.23 9.14 13.56 6.34 3.91 2.77 0.40 0.73 0.45 4.27 1.68 1.48 1.25 1.68 2.55 2.16 1.24 0.97 1.60 1.52 1.81 1.72 1.27 0.88 1.82 Bollinger Bands Lower Mid Upper 1,684.69 1,721.26 1,757.83 2.44 3.82 4.59 4.27 4.90 4.98 4.82 8.84 5.10 5.80 4.61 1.15 6.28 8.49 1.11 4.84 8.96 13.48 6.09 3.83 2.59 0.39 0.69 0.43 4.09 1.61 1.46 1.05 1.66 0.59 2.08 1.20 0.79 1.38 1.47 1.77 1.68 1.10 0.85 1.82 2.76 4.00 4.84 4.70 5.35 5.08 5.00 9.41 5.36 5.95 4.70 1.18 6.37 8.76 1.17 5.13 9.16 13.66 6.27 3.95 2.78 0.40 0.73 0.45 4.20 1.66 1.51 1.20 1.70 1.93 2.21 1.26 0.90 1.50 1.55 1.91 1.73 1.20 0.87 1.87 3.08 4.18 5.08 5.13 5.79 5.18 5.18 9.97 5.61 6.11 4.79 1.22 6.47 9.04 1.24 5.42 9.35 13.84 6.46 4.07 2.97 0.41 0.77 0.47 4.31 1.72 1.56 1.35 1.74 3.26 2.34 1.33 1.00 1.62 1.62 2.04 1.78 1.30 0.90 1.91 stsoo@ta.com.my RSI Moving Averages 14d 10d 30d 50d 68.10 1,733.15 1,716.14 1,699.85 DMI DI + DI - ADX 40.72 18.19 41.19 Diff 22.54 78.34 60.68 62.64 64.58 70.32 59.96 68.64 70.42 59.73 47.73 60.16 35.65 59.68 66.81 70.88 73.67 61.21 54.29 60.82 50.46 54.45 48.05 63.18 50.28 62.87 65.33 50.30 61.85 51.73 80.37 48.89 43.14 71.88 71.37 42.67 50.72 58.00 73.05 55.99 43.08 32.43 27.47 26.81 32.69 38.91 17.69 22.45 33.26 29.90 18.05 24.21 13.37 15.70 30.20 29.00 28.56 23.35 11.81 24.02 17.28 21.04 17.07 27.91 25.53 25.21 28.23 21.63 30.26 23.52 43.35 21.75 21.16 45.66 36.90 19.16 20.32 16.03 32.84 26.82 15.02 22.55 15.82 10.23 12.58 26.01 (1.51) 6.96 26.40 16.46 (2.64) 8.86 (8.69) (3.85) 14.01 19.44 12.59 1.58 (11.88) 14.77 (6.72) 1.62 3.43 10.02 12.98 17.09 17.09 6.95 17.63 (2.54) 28.31 0.18 (9.02) 32.88 30.25 (4.21) (8.48) 5.13 26.00 11.15 (12.62) 2.87 4.06 4.88 4.84 5.51 5.13 5.06 9.63 5.42 5.95 4.69 1.18 6.40 8.85 1.19 5.24 9.21 13.73 6.35 3.92 2.87 0.40 0.72 0.45 4.21 1.67 1.51 1.27 1.70 2.56 2.19 1.25 0.93 1.54 1.53 1.87 1.74 1.24 0.87 1.86 2.67 3.97 4.75 4.78 5.27 5.08 4.98 9.18 5.27 6.05 4.68 1.21 6.38 8.63 1.17 5.12 9.14 13.62 6.23 4.01 2.74 0.40 0.72 0.45 4.21 1.64 1.51 1.17 1.70 1.65 2.20 1.29 0.90 1.49 1.59 1.90 1.73 1.19 0.88 1.88 2.58 3.89 4.65 4.79 5.11 5.03 4.96 8.82 5.09 6.16 4.61 1.25 6.26 8.48 1.13 5.04 8.97 13.67 6.17 4.10 2.64 0.40 0.68 0.45 4.16 1.60 1.46 1.13 1.68 1.34 2.17 1.30 0.89 1.47 1.60 1.82 1.72 1.15 0.86 1.86 9.88 11.65 16.57 20.11 12.91 19.20 15.48 6.86 13.44 20.69 15.35 22.06 19.55 16.20 9.56 15.97 21.77 23.69 9.25 24.00 19.41 13.63 17.99 15.50 12.23 11.14 14.68 12.64 26.05 15.04 21.57 30.18 12.77 6.65 23.37 28.81 10.90 6.84 15.67 27.64 51.71 35.20 36.26 22.51 41.06 14.97 19.22 64.19 44.74 18.44 20.42 23.24 17.21 36.61 36.10 26.02 20.61 19.95 25.47 53.41 23.37 18.79 20.24 23.69 17.27 43.14 34.23 47.93 13.69 60.42 23.54 16.51 27.14 43.76 25.69 27.09 24.45 42.55 17.70 19.81 www.taonline.com.my Line 14.14 0.10 0.06 0.08 0.07 0.16 0.03 0.05 0.29 0.13 -0.05 0.03 0.01 0.03 0.14 0.03 0.08 0.09 0.03 0.07 -0.05 0.06 0.00 0.01 0.00 0.03 0.02 0.01 0.05 0.01 0.44 0.01 -0.02 0.02 0.04 -0.02 0.01 0.01 0.04 0.00 0.00 MACD Signal Diff 11.83 2.309 0.10 0.05 0.09 0.02 0.14 0.03 0.04 0.28 0.11 -0.07 0.03 0.02 0.04 0.14 0.02 0.06 0.09 0.02 0.06 -0.06 0.07 0.00 0.01 0.00 0.02 0.02 0.02 0.05 0.01 0.38 0.01 -0.02 0.01 0.02 -0.02 0.02 0.00 0.03 0.00 0.00 0.001 0.007 (0.009) 0.053 0.020 0.002 0.016 0.014 0.011 0.022 (0.002) (0.003) (0.009) 0.004 0.005 0.018 0.002 0.010 0.007 0.015 (0.005) (0.000) 0.000 0.000 0.008 0.000 (0.003) 0.002 (0.001) 0.061 (0.007) (0.000) 0.011 0.012 0.000 (0.011) 0.003 0.008 0.001 (0.003) DMI MACD Recent Signal BUY BUY DMI MACD Signal Change - BUY BUY BUY BUY BUY SELL BUY BUY BUY SELL BUY SELL SELL BUY BUY BUY BUY SELL BUY SELL BUY BUY BUY BUY BUY BUY BUY BUY SELL BUY BUY SELL BUY BUY SELL SELL BUY BUY BUY SELL SELL SELL - BUY BUY SELL BUY BUY BUY BUY BUY BUY BUY SELL SELL SELL BUY BUY BUY BUY BUY BUY BUY SELL SELL BUY BUY BUY BUY SELL BUY SELL BUY SELL SELL BUY BUY BUY SELL BUY BUY BUY SELL SELL BUY BUY SELL BUY - The table above is a compilation of actively traded stocks with some popular technical indicators. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. INTERPRETATION OF TECHNICAL INDICATORS: Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average, and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Page 1 of 4
  20. Technical Comments : Hook-down momentum indicators on CIMB point to a near-term overbought correction, with better supports from the mid Bollinger band (RM5.35) and 30-day moving average (RM5.27) to cushion downside, while immediate overhead resistance is from the recent 20/3/17 high (RM5.83). Similarly, an overbought profit-taking correction is expected on Maybank towards the 76.4%FR (RM8.79), with stronger support seen from the 30-day ma (RM8.63), while overhead resistance is from recent high of RM9.00 and the 13/4/16 high (RM9.20). CIMB Upper Middle RM5.60 (-0.05) BOLLINGER BANDS RM RM 5.79 5.35 10-day 30-day RM 4.90 50-day Lower DMI Recent Signal BUY 5.11 Recent Signal BUY Signal Change MAYBANK Recent Signal Signal Change RM DAILY MACD Signal Change Upper Middle Lower SIMPLE MOVING AVERAGES RM 5.51 RM 5.27 BOLLINGER BANDS RM RM RM DMI RM8.94 (-0.06) 9.04 8.76 8.49 BUY SIMPLE MOVING AVERAGES RM 8.85 RM 8.63 RM 8.48 DAILY MACD Recent Signal BUY Signal Change 10-day 30-day 50-day Page 2 of 4
  21. T e c h n i c a l TA Securities V i e w Thursday , March 23, 2017 FBMKLCI: 1,748.30 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Daily Stock Screen s Malaysia End Day Census of 22.03.2017 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my www.taonline.com.my Report Description: The Daily Stock Screen is a retail product which can be a very useful guide for momentum trading and trading ideas .The following list is derived from the screening of more than 1000 stocks currently listed on Bursa Malaysia to identify: the top 20 breakout, 20 breakdown, and 30 ‘potential’ breakout stocks which just climbed above the middle Bollinger band, with potential to appreciate toward the upper Bollinger band. [MIDDLE BOLLINGER RANGEBOUND] List of 30 Potential Breakout Stocks (Short-term BUY for upside toward Upper Bollinger Band or higher to TAKE PROFIT/SELL) No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Stock Name Price PDZ HOLDINGS BHD SUMATEC RESOURCE OLYMPIA INDS BHD PWORTH HO WAH GENTING LUSTER INDUSTRIE AT SYSTEMATIZATI BUMI ARMADA BHD GENTING MALAYSIA ALAM MARITIM RES CIMB GROUP HOLDI NEXTNATION COMM MALAYAN BANKING MALAYSIA BUILDNG MY EG SERVICES JADI IMAGING FELDA GLOBAL VEN AIRASIA BHD SCOMI GROUP BHD GREEN PACKET BHD D&O GREEN TECH EKOVEST BHD GAMUDA BHD AXIATA GROUP BER SILK HOLDINGS BH BORNEO OIL BHD BIO OSMO BHD DIALOG GROUP BHD JOHAN HLDGS BHD PUBLIC BANK BHD 0.07 0.08 0.18 0.20 0.07 0.13 0.05 0.76 5.50 0.31 5.60 0.05 8.94 1.24 1.89 0.08 2.05 2.81 0.19 0.30 0.67 1.33 5.15 5.06 0.48 0.18 0.09 1.70 0.20 19.96 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 0.06 0.07 0.06 0.07 0.05 0.07 0.03 0.69 5.10 0.27 4.90 0.04 8.49 1.11 1.60 0.07 1.72 2.59 0.16 0.26 0.30 1.12 4.82 4.27 0.43 0.16 0.04 1.61 0.15 19.75 0.07 0.07 0.12 0.15 0.06 0.10 0.04 0.73 5.36 0.30 5.35 0.04 8.76 1.17 1.78 0.07 1.89 2.78 0.17 0.29 0.53 1.30 5.00 4.70 0.46 0.17 0.07 1.66 0.19 19.95 0.07 0.08 0.17 0.23 0.07 0.13 0.05 0.77 5.61 0.33 5.79 0.05 9.04 1.24 1.96 0.08 2.06 2.97 0.19 0.31 0.75 1.48 5.18 5.13 0.48 0.19 0.10 1.72 0.23 20.15 53.77 57.85 73.42 68.62 56.53 73.83 61.70 63.18 59.73 55.57 70.32 54.66 66.81 70.88 70.28 59.28 65.71 54.45 60.91 58.59 72.31 59.93 68.64 64.58 60.73 56.31 61.07 65.33 51.90 48.63 0.07 0.07 0.14 0.19 0.06 0.11 0.05 0.72 5.42 0.29 5.51 0.04 8.85 1.19 1.84 0.07 1.94 2.87 0.18 0.30 0.63 1.37 5.06 4.84 0.47 0.18 0.08 1.67 0.20 19.94 0.07 0.08 0.12 0.14 0.06 0.10 0.04 0.72 5.27 0.31 5.27 0.04 8.63 1.17 1.72 0.07 1.88 2.74 0.18 0.28 0.48 1.23 4.98 4.78 0.45 0.17 0.07 1.64 0.18 20.00 0.07 0.08 0.11 0.13 0.06 0.09 0.04 0.68 5.09 0.30 5.11 0.04 8.48 1.13 1.67 0.07 1.84 2.64 0.17 0.27 0.42 1.12 4.96 4.79 0.44 0.17 0.06 1.60 0.18 20.05 Vol 66,991,200 58,061,500 52,990,100 51,228,600 38,417,000 35,269,800 34,351,900 27,978,600 26,319,000 25,246,400 22,443,200 15,122,800 15,062,600 14,200,300 12,462,600 11,673,300 11,654,700 11,386,500 11,049,900 10,927,100 10,829,900 10,686,700 10,222,000 9,860,600 9,293,900 9,083,000 8,699,200 8,305,600 8,263,000 8,247,000 20-day avg vol 6,065,890 14,083,130 26,845,510 66,362,260 17,856,850 25,728,530 30,681,010 30,624,090 9,371,705 4,690,620 20,921,160 9,614,490 16,836,740 13,191,570 17,201,590 2,643,785 15,633,800 15,351,800 4,159,205 8,691,485 15,031,320 25,047,940 6,053,645 10,162,930 2,378,565 70,558,490 12,115,780 16,880,780 8,372,010 6,021,585 Raw data sourced from Bloomberg *Note: To qualify in this list above, the first sorting criteria is stock price must have just climbed or stayed ABOVE the middle Bollinger Band, followed by a second criteria that trading volume for the day must be significantly strong. This is a good watch list for momentum traders looking for short-term BUY ideas, as they are laggards with good upside potential towards the upper Bollinger band or higher to TAKE PROFIT/SELL. Caveat: Some stocks may continue to stay range bound and trade sideways, hence traders should refer to their respective charts to spot accumulation (volume growth) or breakout patterns. INTERPRETATION OF TECHNICAL INDICATORS: Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The mediumterm trend is positive if share price stays above the 30-day, and negative if it remains below this average. 14-day RSI: A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-day SMA should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day SMA is bearish and imply further near-term downside risk. Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders will buy on price breaks above the upper band, and sell when price breaks below the lower band. Alternatively, a sharp move that originates at one band tends to go all the way to the other band, a useful observation when projecting price targets. Page 1 of 2
  22. TA Securities A Member of the TA Group *Note: To qualify in the breakout list below, the first sorting criteria is stock price must close ABOVE the upper Bollinger Band, followed by a second criteria that trading volume for the day must be significantly higher than the 20-day average volume, which signal a bullish breakout. Caveat: We would caution momentum traders that a highly overbought 14-day RSI reading (> 80) and share price pullback BELOW the upper Bollinger Band are early warning signals to exit buy breakout trades. [UPPER BOLLINGER BREAKOUT] Top 20 Breakout Stocks (Generally BULLISH, but can be short-term TAKE PROFIT/SELL guide) No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Stock Name Price ASIA BRANDS BHD DAYA MATERIALS FARLIM GROUP NAIM INDAH CORP CAB CAKARAN CORP MTOUCHE TECH ALLIANZ MALAYSIA KUMPULAN H&L HIG KUMPULAN PERANGS DATAPREP HLDGS JADI IMAGING GD EXPRESS CARRI EDARAN BHD AMCORP PROPERTIE INDUSTRONICS BHD GEORGE KENT MALA AMEDIA MMC CORP BHD DIVERSIFIED GATE 1.11 0.10 0.58 0.11 1.91 0.20 11.92 1.12 1.60 0.62 0.08 1.98 0.37 0.84 0.24 3.67 0.13 2.54 0.06 1.02 MUDAJAYA GROUP Raw data sourced from Bloomberg 20 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 0.84 0.06 0.49 0.08 1.56 0.15 11.08 0.86 0.94 0.06 0.07 1.45 0.16 0.78 0.15 2.70 0.10 2.48 0.03 0.79 0.97 0.07 0.52 0.09 1.70 0.17 11.49 0.96 1.24 0.30 0.07 1.71 0.26 0.81 0.18 3.10 0.11 2.50 0.04 0.90 1.10 0.08 0.55 0.10 1.83 0.20 11.91 1.06 1.53 0.54 0.08 1.97 0.35 0.83 0.22 3.49 0.12 2.53 0.05 1.00 72.17 71.59 72.41 66.68 76.20 64.68 70.49 70.74 77.41 84.11 59.28 85.70 72.80 64.01 84.84 85.04 67.67 69.13 71.81 71.88 0.96 0.07 0.53 0.09 1.72 0.17 11.63 0.98 1.30 0.36 0.07 1.80 0.29 0.81 0.19 3.22 0.11 2.50 0.04 0.93 0.98 0.07 0.52 0.09 1.70 0.17 11.50 0.98 1.23 0.28 0.07 1.68 0.26 0.82 0.18 3.02 0.11 2.49 0.04 0.90 0.98 0.07 0.52 0.09 1.66 0.16 11.04 1.00 1.23 0.26 0.07 1.68 0.27 0.82 0.17 3.02 0.11 2.41 0.04 0.89 Vol 33,500 81,197,200 1,538,100 75,303,300 1,991,700 3,305,000 418,700 11,300 15,984,900 112,522,500 11,673,300 3,625,100 40,500 266,600 990,400 5,039,000 2,897,000 6,255,400 5,412,400 2,239,400 20-day avg vol 2,490 9,253,895 186,785 9,533,630 392,530 682,323 86,525 2,405 3,427,725 25,419,220 2,643,785 847,720 9,490 79,820 305,795 1,767,120 1,049,315 2,325,865 2,112,885 990,290 p *Note: As for the top 20 breakdown list below, the sole sorting criteria is stock price must close significantly BELOW the lower Bollinger Band, with the largest distance from the lower band at the top of the table, signaling a severe sell-off which is bearish. Caveat: A stock should bottom out if share price moves ABOVE the falling lower Bollinger Band, which can be a good buy signal for technical rebound upside after the sharp sell-off. p [LOWER BOLLINGER BREAKDOWN] Top 15 Breakdown Stocks (Generally BEARISH, but can be short-term BUY guide) No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Stock Name Price IMASPRO CORP BHD CAN-ONE BHD ANN JOO RESOURCE MEDA INC BHD ASIA FILE BHD FIMA CORP BHD SKP RESOURCES BH BERJAYA ASSETS B ANALABS RES BHD HB GLOBAL LTD COMPUTER FORMS MNC WIRELESS BHD GREENYIELD BHD BINA DARULAMAN MEXTER TECHNOLOG 1.95 3.33 2.49 0.47 3.43 2.20 1.30 0.85 2.25 0.06 1.06 0.06 0.22 0.80 0.24 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 1.97 3.34 2.50 0.48 3.43 2.20 1.30 0.85 2.25 0.06 1.06 0.06 0.22 0.80 0.24 2.02 3.40 2.61 0.49 3.50 2.23 1.35 0.86 2.30 0.08 1.11 0.06 0.22 0.81 0.24 2.07 3.47 2.72 0.50 3.57 2.26 1.40 0.88 2.36 0.09 1.16 0.07 0.23 0.83 0.25 29.39 38.68 41.59 25.67 36.06 42.69 34.92 38.50 41.46 41.52 32.25 41.88 44.20 53.90 46.60 2.00 3.39 2.57 0.49 3.50 2.22 1.34 0.86 2.30 0.07 1.09 0.06 0.22 0.81 0.24 2.02 3.40 2.56 0.49 3.51 2.24 1.36 0.87 2.31 0.08 1.12 0.06 0.23 0.80 0.24 2.03 3.39 2.50 0.49 3.52 2.18 1.34 0.87 2.28 0.07 1.18 0.06 0.23 0.75 0.24 Vol 100,000 749,600 436,800 151,000 175,000 21,000 480,900 35,100 14,000 75,400 10,000 2,093,200 174,700 1,262,300 281,800 20-day avg vol 22,350 276,945 599,860 104,050 65,355 28,895 2,784,115 17,105 6,660 233,165 750 6,648,520 406,020 956,140 321,730 16 17 18 19 20 Raw data sourced from Bloomberg Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 2 of 2
  23. Thursday , 23 March, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED FOREIGN TECHNICAL REPORTS’ Asian Technical Reports 1. Foreign Technical Stock Watch (AUS) 2. Foreign Technical Stock Watch (HK) 3. Foreign Technical Stock Watch (FSSTI) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research
  24. TA Securities T e c h n i c a l V i e w Thursday , March 23, 2017 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Foreign Technical Stock Watch Australia ASX: 5,684.51 (-90.10, -1.56%) THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Name ASX 200 BHP BILLITON RIO TINTO COMMONW BK AUSTR WESTPAC BANKING AUST AND NZ BANK NATL AUST BANK WESFARMERS WOODSIDE PETRO NEWCREST MINING WESTFIELD GROUP FORTESCUE METALS QBE INSURANCE ORIGIN ENERGY AMP SANTOS MACQUARIE GROUP SUNCORP GROUP ORICA OIL SEARCH COCA-COLA AMATIL AMCOR STOCKLAND ALUMINA COMPUTERSHARE QANTAS AIRWAYS SIMS METAL MGMT Tel: +603-2167 9607 stsoo@ta.com.my www.taonline.com.my Close Bollinger Bands RSI Moving Averages DMI MACD DMI MACD DMI MACD Change High Low 22-Mar Lower Mid Upper 14d 10d 30d 50d DI + DI - ADX Diff Line Signal Diff Recent Signal Signal Change 5684.51 -90.10 5774.60 5681.00 5694.31 5753.47 5812.63 40.08 5763.08 5759.77 5725.28 21.44 27.37 19.79 (5.93) 8.27 14.82 (6.550) SELL SELL SELL 23.92 -0.72 24.15 23.92 23.44 24.80 26.17 38.70 24.28 25.33 25.85 27.06 40.68 15.41 (13.62) -0.42 -0.42 0.002 SELL BUY 60.00 -1.60 60.55 59.65 58.47 61.58 64.70 40.79 60.78 63.71 64.09 24.29 40.29 22.27 (16.00) -0.93 -1.00 0.066 SELL BUY 82.71 -1.71 83.40 82.48 82.09 83.69 85.28 42.21 84.25 83.83 83.34 19.37 26.52 13.41 (7.15) 0.24 0.32 (0.083) SELL SELL SELL SELL 33.49 -0.83 33.92 33.39 33.44 34.37 35.30 41.77 34.63 34.04 33.34 19.89 32.05 22.64 (12.16) 0.26 0.41 (0.155) SELL SELL SELL 30.76 -0.81 31.15 30.74 30.65 31.40 32.14 44.08 31.63 30.97 30.49 19.16 21.76 25.82 (2.60) 0.27 0.39 (0.111) SELL SELL SELL 31.71 -0.51 31.94 31.60 31.52 32.35 33.18 44.02 32.51 32.05 31.47 18.58 27.20 26.60 (8.62) 0.20 0.35 (0.149) SELL SELL 43.29 -0.63 43.74 43.14 42.38 43.49 44.61 50.63 43.96 43.14 42.32 19.90 18.41 25.46 1.48 0.43 0.50 (0.078) BUY SELL 30.68 -0.55 31.00 30.57 30.46 31.15 31.84 41.02 31.07 31.31 31.56 15.89 29.54 21.07 (13.66) -0.11 -0.13 0.015 SELL BUY 22.52 0.38 22.96 22.48 20.46 21.94 23.42 58.03 21.85 22.23 22.12 30.83 22.37 14.06 8.46 0.01 -0.07 0.083 BUY BUY 8.51 -0.03 8.60 8.49 8.39 8.67 8.94 36.98 8.55 8.79 8.88 13.02 26.27 30.10 (13.25) -0.11 -0.11 (0.001) SELL SELL 6.27 -0.35 6.35 6.15 6.08 6.50 6.93 43.36 6.44 6.62 6.54 21.03 34.05 15.38 (13.02) -0.02 -0.02 0.002 SELL BUY 12.55 -0.37 12.74 12.52 12.20 12.70 13.19 46.61 12.81 12.66 12.53 28.40 25.99 17.02 2.41 0.09 0.10 (0.011) BUY SELL - SELL 6.58 -0.07 6.64 6.52 6.22 6.52 6.81 47.09 6.55 6.71 6.88 30.08 26.92 17.25 3.16 -0.06 -0.10 0.038 BUY BUY 4.94 -0.05 4.95 4.90 4.82 4.97 5.11 44.37 5.00 5.04 5.05 16.94 25.80 15.50 (8.86) -0.01 -0.02 0.002 SELL BUY 3.61 -0.10 3.66 3.58 3.47 3.69 3.92 41.26 3.63 3.78 3.88 19.47 30.50 26.02 (11.04) -0.07 -0.08 0.013 SELL BUY 86.44 -2.16 87.53 85.92 85.79 87.77 89.75 43.49 88.46 87.32 86.27 17.35 26.19 14.36 (8.84) 0.52 0.68 (0.154) SELL SELL SELL SELL 12.94 -0.21 13.04 12.85 13.05 13.31 13.57 35.58 13.28 13.35 13.32 15.67 32.36 13.44 (16.69) -0.05 -0.01 (0.040) SELL SELL 17.39 -0.52 17.70 17.37 17.15 18.33 19.51 36.04 17.84 18.39 18.47 16.15 32.44 21.99 (16.30) -0.24 -0.13 (0.104) SELL SELL 6.83 -0.10 6.85 6.78 6.72 6.97 7.21 42.12 6.88 7.00 7.04 14.89 27.47 20.46 (12.57) -0.05 -0.04 (0.006) SELL SELL 10.35 -0.11 10.45 10.34 10.15 10.39 10.63 52.52 10.40 10.27 10.12 29.16 19.57 17.60 9.59 0.07 0.09 (0.021) BUY SELL 14.55 -0.07 14.61 14.50 14.01 14.33 14.65 54.48 14.43 14.47 14.50 21.33 21.40 13.16 (0.07) 0.01 -0.04 0.048 SELL BUY 4.52 0.01 4.57 4.50 4.41 4.62 4.82 45.70 4.53 4.59 4.51 17.30 18.80 18.73 (1.50) -0.01 0.01 (0.021) SELL SELL 1.75 -0.04 1.78 1.73 1.74 1.86 1.98 34.76 1.82 1.90 1.89 20.69 31.25 15.35 (10.56) -0.03 -0.02 (0.013) SELL SELL 13.50 -0.38 13.65 13.19 13.37 13.80 14.22 44.85 13.92 13.66 13.27 18.20 24.34 28.98 (6.14) 0.16 0.22 (0.065) SELL SELL SELL 3.82 -0.02 3.86 3.79 3.67 3.77 3.87 62.40 3.81 3.66 3.57 23.88 15.97 27.34 7.91 0.08 0.09 (0.006) BUY SELL 12.33 -0.40 12.43 12.22 12.16 12.66 13.16 46.11 12.53 12.53 12.31 23.41 24.20 22.19 (0.79) 0.06 0.09 (0.032) SELL SELL SELL - The table below consists of the top 30 ASX 200 Index component stocks, weighted by market capitalization in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. Stock names and technical statistics in bold highlight stocks that have changes in BUY/SELL signals on the DMI and MACD on the given date. Page 1 of 2
  25. TA Securities A Member of the TA Group INTERPRETATION OF TECHNICAL INDICATORS : Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Fundamentals of Foreign Technical Picks Bloomberg Ticker Stock Name BHP AU BHP BILLITON LTD RIO AU RIO TINTO LTD CBA AU COMMONW BK AUSTR WBC AU WESTPAC BANKING ANZ AU AUST AND NZ BANK NAB AU NATL AUST BANK WES AU WESFARMERS LTD WPL AU WOODSIDE PETRO NCM AU NEWCREST MINING WFD AU WESTFIELD GROUP FMG AU FORTESCUE METALS QBE AU QBE INSURANCE ORG AU ORIGIN ENERGY AMP AU AMP LTD STO AU SANTOS LTD MQG AU MACQUARIE GROUP SUN AU SUNCORP GROUP LT ORI AU ORICA LTD OSH AU OIL SEARCH LTD CCL AU COCA-COLA AMATIL AMC AU AMCOR LTD SGP AU STOCKLAND AWC AU ALUMINA LTD CPU AU COMPUTERSHARE LT QAN AU QANTAS AIRWAYS SGM AU SIMS METAL MGMT EPS ($) Div Yield(%) PER(x) 52week Price % Chg Close Target Price % upside 23.92 28.37 16% 60.00 71.60 16% 4.41 3.21 10.4 14.3 4.377 3.280 69.80 41.51 0.17 82.71 83.80 1% 5.64 5.81 14.7 14.2 5.123 5.236 86.09 69.22 0.36 33.49 34.03 2% 2.41 2.50 13.9 13.4 5.566 5.548 35.26 27.57 2.73 30.76 30.99 1% 2.39 2.43 12.9 12.7 5.247 5.312 32.05 22.06 1.12 31.71 32.17 1% 2.41 2.46 13.2 12.9 6.165 6.039 33.28 23.90 3.39 43.29 43.35 0% 2.61 2.64 16.6 16.4 5.100 5.174 46.06 38.62 2.73 30.68 33.23 8% 1.31 1.49 18.0 15.8 3.289 3.748 32.59 23.82 -1.54 22.52 22.94 2% 0.74 0.93 23.3 18.5 0.764 1.110 27.20 15.88 11.21 8.51 9.37 9% 0.33 0.36 19.8 18.2 3.020 3.067 11.14 8.21 -9.28 6.27 6.72 7% 0.84 0.49 5.7 9.8 5.231 3.190 7.27 2.47 6.45 12.55 13.66 8% 0.64 0.80 15.0 12.0 3.394 3.992 13.28 9.22 1.05 6.58 7.36 11% 0.32 0.55 20.4 11.9 0.000 1.337 7.47 4.42 -0.15 4.94 5.31 7% 0.36 0.37 13.9 13.3 5.870 6.134 5.96 4.39 -1.98 3.61 4.42 18% 0.14 0.20 19.4 14.2 0.997 2.133 5.07 3.30 -10.20 86.44 88.37 2% 6.12 6.36 14.1 13.6 4.916 5.131 89.88 61.05 -0.78 12.94 13.90 7% 0.91 0.98 14.2 13.3 5.657 6.066 13.95 11.27 -4.29 17.39 16.66 -4% 1.05 1.13 16.6 15.4 3.059 3.324 19.49 12.04 -1.64 -4.74 2017 2018 2017 2018 2017 2018 High Low YTD 1.47 1.23 12.5 14.9 3.462 2.997 27.96 15.85 -4.55 6.83 7.98 14% 0.21 0.26 24.9 20.3 1.230 1.567 7.75 5.98 10.35 9.92 -4% 0.57 0.59 18.1 17.4 4.638 4.763 10.70 7.94 2.27 14.55 15.90 8% 0.61 0.65 18.4 17.2 2.942 3.285 16.66 13.62 -2.68 4.52 4.82 6% 0.31 0.33 14.4 13.7 5.686 5.907 5.11 4.03 -1.31 1.75 1.87 7% 0.11 0.10 12.6 14.1 5.903 5.903 2.04 1.19 -4.64 13.50 13.19 -2% 0.55 0.60 19.0 17.1 1.970 2.081 14.28 8.63 8.35 3.82 4.34 12% 0.53 0.53 7.26 7.18 3.822 4.660 4.22 2.58 14.71 12.33 12.58 2% 0.63 0.71 19.6 17.3 3.106 3.195 13.62 7.40 -3.90 Note : The above data is based on Bloomberg consensus. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 2 of 2
  26. T e c h n i c a l TA Securities V i e w Thursday , March 23, 2017 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Foreign Technical Stock Watch Hong Kong HSI: 24,320.41 (-272.71, -1.11%) THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Tel: +603-2167 9607 Stock Close Name 22-Mar HANG SENG 24,320.41 (272.71) 24,380.42 24,207.10 HSBC CH MOBILE CCONB ICBC CNOOC CH LIFE BOC SHK PROP PETRO CH TENCENT HKSE CK HUTCHISON PING AN SINOPEC CORP CH SHENHUA CLP LI & FUNG BOC HK HS BANK HK&CH GAS SWIRE HL PROP WHARF CH OV LAND POWER ASSETS BELLE HENDERSON BOCOMM CH COAL CH UNICOM BK EASIA ESPRIT MTR SINO LAND CH RES NEW WORLD CH RES LAND CH MERCHANT CH RES POWER ALCORP CATHAY CITIC COSCO FIH MOBILE LTD GENHK AIA SANDS CHINA GALAXY 63.10 90.35 6.36 5.14 8.93 24.30 3.93 114.90 5.79 225.20 196.40 96.45 43.25 6.10 18.78 80.35 3.72 31.80 158.40 15.30 77.30 20.55 68.05 24.35 67.00 5.16 48.05 6.09 4.11 10.08 31.80 6.58 42.85 13.84 18.50 9.85 22.05 21.70 14.60 3.85 11.02 11.28 8.61 3.07 2.35 49.90 35.05 41.30 (0.60) 0.00 (0.14) (0.08) (0.16) (0.90) (0.06) (0.20) (0.11) (3.60) (3.30) (0.50) (0.95) (0.01) (0.12) (0.15) (0.09) (0.35) (1.60) 0.16 (0.45) (0.20) (0.45) (0.45) (1.10) (0.08) 0.55 (0.10) (0.08) (0.10) (0.25) (0.24) (0.45) (0.10) (0.16) (0.12) (0.35) (0.30) (0.44) (0.07) (0.34) (0.24) (0.08) (0.04) (0.05) (0.25) (0.25) (0.15) 63.30 90.40 6.44 5.17 8.96 24.90 3.94 115.10 5.82 227.00 197.50 97.50 43.75 6.11 18.78 80.50 3.81 31.95 161.00 15.30 77.75 20.90 68.35 24.55 68.05 5.20 49.30 6.15 4.17 10.18 32.40 6.79 43.10 13.94 18.72 9.98 22.15 21.95 14.70 3.88 11.38 11.44 8.63 3.11 2.40 50.20 35.15 41.45 62.90 88.80 6.34 5.07 8.87 24.25 3.89 113.80 5.76 223.40 195.70 96.40 43.25 6.01 18.54 79.75 3.69 31.55 157.30 15.12 76.95 20.30 67.65 23.75 66.85 5.10 47.00 6.06 4.03 10.00 31.60 6.58 42.60 13.64 18.30 9.75 21.70 21.55 14.38 3.81 10.82 11.24 8.50 3.03 2.35 49.70 34.55 40.70 Change High RSI Bollinger Bands Low Lower 23,284.82 62.43 82.08 6.04 4.88 8.76 22.90 3.75 111.60 5.61 200.76 187.85 93.92 40.44 5.77 14.45 76.90 3.37 30.47 156.44 14.80 77.20 19.22 58.79 23.17 66.75 5.12 44.03 5.94 3.84 9.02 31.30 6.59 40.68 12.96 17.22 9.71 20.10 21.14 13.86 3.79 11.00 10.84 8.33 2.94 2.30 48.28 31.67 36.22 Mid stsoo@ta.com.my Upper 14d 23,919.88 24,554.95 61.67 63.43 86.06 6.30 5.07 9.08 24.07 3.90 113.75 5.86 214.43 194.43 95.97 42.10 5.99 16.54 78.94 3.62 31.38 159.24 15.03 79.47 19.97 64.88 24.24 68.49 5.30 45.72 6.12 4.05 9.65 32.15 7.01 41.89 13.44 17.80 9.99 21.44 21.58 14.35 4.02 11.44 11.18 8.51 3.13 2.40 49.38 33.78 39.00 64.42 90.05 6.57 5.26 9.40 25.24 4.05 115.90 6.10 228.10 201.00 98.02 43.76 6.20 18.63 80.98 3.86 32.28 162.04 15.26 81.74 20.72 70.97 25.31 70.23 5.49 47.41 6.31 4.26 10.28 33.00 7.42 43.10 13.93 18.38 10.27 22.78 22.02 14.85 4.25 11.88 11.51 8.69 3.32 2.49 50.48 35.88 41.79 42.37 70.42 56.09 57.19 37.76 54.74 55.69 63.03 43.32 68.89 54.13 60.19 62.89 56.51 72.14 63.96 59.05 58.51 47.85 64.00 36.83 64.29 73.66 52.59 34.76 46.63 80.18 50.60 53.55 67.25 44.26 43.10 66.53 65.23 67.66 53.41 57.86 54.01 57.55 42.76 43.07 50.31 57.37 51.29 44.17 58.53 63.22 72.31 Moving Averages 10d 24,053.44 63.62 86.50 6.32 5.10 8.97 24.33 3.91 113.75 5.78 219.18 194.94 96.45 42.55 5.94 16.83 78.81 3.70 31.68 158.93 15.05 78.64 20.25 67.61 24.62 67.74 5.27 46.20 6.09 4.01 9.86 31.90 6.85 42.30 13.40 17.87 9.88 21.82 21.58 14.44 3.96 11.36 11.19 8.53 3.17 2.43 49.52 34.63 39.92 30d www.taonline.com.my DMI 50d DI + DMI MACD DI - ADX Diff Line Signal Diff MACD Recent Signal DMI MACD Signal Change 23,911.99 23,576.58 37.63 21.00 31.15 16.63 221.84 166.86 54.977 BUY BUY - - 64.67 86.58 6.27 5.06 9.23 24.14 3.90 112.25 5.94 212.42 196.02 94.84 42.10 6.03 16.47 78.53 3.56 31.37 160.42 14.99 79.68 19.86 62.96 24.19 69.11 5.28 45.15 6.13 4.09 9.56 32.61 6.70 41.41 13.22 17.68 9.78 21.42 21.68 14.28 4.08 11.35 11.34 8.52 3.07 2.38 48.94 33.25 38.13 64.84 86.60 6.09 4.93 9.45 23.16 3.75 109.96 6.03 208.01 192.51 93.59 41.35 6.06 16.34 77.44 3.50 30.93 158.18 14.82 79.13 19.37 60.96 23.62 68.78 5.09 44.29 5.97 4.04 9.36 32.48 6.44 40.52 13.04 16.80 9.46 20.51 21.27 13.90 3.95 11.04 11.37 8.23 2.85 2.35 48.27 33.69 37.16 28.40 16.51 18.26 20.46 28.82 21.83 20.33 13.36 27.46 12.34 18.94 14.14 12.17 18.35 13.71 15.19 14.94 20.12 21.45 11.03 19.15 10.93 10.83 25.86 25.68 25.41 8.24 22.71 23.32 11.89 17.97 21.38 7.56 13.53 12.76 19.40 18.65 18.94 18.14 22.10 26.61 16.21 10.43 15.88 26.27 17.95 15.79 9.51 14.32 32.24 23.03 26.23 27.17 31.41 28.52 37.71 22.18 23.13 20.40 28.30 30.57 13.68 25.94 36.70 20.38 18.74 18.34 23.97 15.51 30.91 43.54 28.28 18.88 28.00 35.21 15.46 14.61 35.61 15.33 37.46 55.39 29.84 23.47 28.93 28.27 11.49 31.61 20.19 26.93 24.59 21.31 45.75 43.69 29.09 29.47 35.24 (1.63) 16.62 9.61 11.62 (9.70) 11.12 8.88 14.24 (6.13) 23.76 8.18 11.58 24.05 6.65 34.57 18.52 12.33 4.32 (1.45) 13.80 (2.74) 15.58 23.33 (2.42) (8.45) (4.29) 31.96 4.13 4.74 23.91 2.96 4.04 25.13 17.26 16.61 1.94 10.53 (0.87) 6.78 3.19 (9.79) 4.64 11.23 0.75 14.61 15.80 14.69 22.87 -0.39 0.66 0.09 0.06 -0.13 0.42 0.05 1.35 -0.06 5.14 1.09 0.97 0.54 -0.01 0.51 0.67 0.08 0.32 0.11 0.10 -0.39 0.34 2.44 0.33 -0.40 0.04 0.84 0.04 0.01 0.21 -0.19 0.09 0.66 0.19 0.34 0.11 0.48 0.14 0.22 -0.02 0.04 -0.02 0.08 0.07 0.02 0.47 0.57 1.20 0.045 0.682 0.008 0.009 0.024 0.043 (0.000) (0.055) 0.010 1.365 0.513 (0.048) 0.180 0.019 0.332 0.103 0.017 0.046 (0.165) 0.011 (0.327) 0.037 0.222 (0.007) (0.114) (0.028) 0.192 (0.005) 0.015 0.064 (0.010) (0.065) 0.073 0.032 0.022 (0.048) 0.053 0.009 0.020 (0.030) (0.082) 0.046 (0.001) (0.031) (0.005) (0.003) 0.217 0.224 SELL BUY BUY BUY SELL BUY BUY BUY SELL BUY BUY BUY BUY BUY BUY BUY BUY BUY SELL BUY SELL BUY BUY SELL SELL SELL BUY BUY BUY BUY BUY BUY BUY BUY BUY BUY BUY SELL BUY BUY SELL BUY BUY BUY BUY BUY BUY BUY BUY BUY BUY BUY BUY BUY SELL SELL BUY BUY BUY SELL BUY BUY BUY BUY BUY BUY SELL BUY SELL BUY BUY SELL SELL SELL BUY SELL BUY BUY SELL SELL BUY BUY BUY SELL BUY BUY BUY SELL SELL BUY SELL SELL SELL SELL BUY BUY SELL SELL SELL SELL SELL - SELL SELL SELL SELL BUY SELL - 26.77 33.13 27.87 32.08 19.12 32.95 29.22 27.60 21.33 36.10 27.12 25.72 36.22 25.00 48.27 33.71 27.27 24.44 20.01 24.83 16.41 26.51 34.16 23.44 17.24 21.12 40.20 26.84 28.06 35.80 20.93 25.42 32.69 30.79 29.37 21.34 29.18 18.07 24.92 25.29 16.82 20.85 21.67 16.63 40.87 33.75 30.48 32.38 -0.43 -0.02 0.08 0.05 -0.15 0.38 0.05 1.41 -0.07 3.77 0.58 1.02 0.36 -0.02 0.18 0.56 0.07 0.27 0.28 0.09 -0.07 0.30 2.22 0.34 -0.29 0.07 0.65 0.04 -0.01 0.15 -0.18 0.16 0.59 0.16 0.31 0.16 0.43 0.13 0.20 0.01 0.12 -0.07 0.08 0.11 0.03 0.47 0.35 0.98 The table above consists of the 45 HKSE Hang Seng Index component stocks, sorted by market capitalization in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. Stock names and technical statistics in bold highlight stocks that have changes in BUY/SELL signals on the DMI and MACD on the given date. Page 1 of 2
  27. TA Securities A Member of the TA Group INTERPRETATION OF TECHNICAL INDICATORS : Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Fundamentals of Foreign Technical Picks Bloomberg Ticker 5 941 939 1398 883 2628 3988 16 857 700 388 1 2318 386 1088 2 494 2388 11 3 19 101 4 688 6 1880 12 3328 1898 762 23 330 66 83 291 17 1109 144 836 2600 293 267 1199 2038 678 1299 1928 27 HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK EPS ($) PER(x) Div Yield(%) 52week Price % Chg Stock Name Close Target Price % upside 2017 2018 2017 2018 2017 2018 High Low YTD HSBC CH MOBILE CCONB ICBC CNOOC CH LIFE BOC SHK PROP PETRO CH TENCENT HKSE CK HUTCHISON PING AN SINOPEC CORP CH SHENHUA CLP LI & FUNG BOC HK HS BANK HK&CH GAS SWIRE HL PROP WHARF CH OV LAND POWER ASSETS BELLE HENDERSON BOCOMM CH COAL CH UNICOM BK EASIA ESPRIT MTR SINO LAND CH RES NEW WORLD CH RES LAND CH MERCHANT CH RES POWER ALCORP CATHAY CITIC COSCO FIH MOBILE LTD GENHK AIA SANDS CHINA LTD GALAXY 63.10 64.29 2% 0.6 0.7 13.6 12.3 0.8 0.8 69.10 44.50 1.37 90.35 109.11 17% 5.3 5.7 15.1 14.0 2.6 2.9 99.30 80.30 9.91 6.36 7.41 14% 0.9 0.9 6.2 6.0 4.3 4.4 6.55 4.50 6.53 5.14 6.10 16% 0.8 0.8 5.9 5.8 4.5 4.5 5.27 3.82 10.54 8.93 11.14 0.6 N/A 13.3 3.6 10.88 8.46 24.30 27.79 13% 0.7 0.9 32.5 24.0 1.0 1.3 25.50 16.00 20.30 3.93 4.46 12% 20% 0.6 0.0 0.6 6.1 6.0 4.4 2.9 4.4 4.08 2.90 14.24 114.90 129.67 11% 8.8 9.5 13.1 12.1 3.5 3.6 123.30 85.40 17.24 5.79 7.15 19% 0.0 0.3 104.8 17.7 0.7 2.2 6.38 4.76 0.17 225.20 242.32 7% 6.1 7.7 32.9 26.1 0.3 0.4 229.80 152.20 18.71 196.40 193.21 -2% 5.6 6.1 35.2 31.9 2.6 2.8 213.20 175.00 7.21 96.45 113.86 15% 8.2 8.9 11.7 10.9 2.8 3.0 103.90 80.60 9.73 43.25 55.67 22% 3.4 3.5 11.1 11.0 1.3 1.4 32.50 11.47 6.10 7.13 14% 0.3 0.4 16.4 12.7 2.9 3.6 6.34 4.66 10.91 18.78 19.00 1% 1.5 1.5 11.0 11.3 3.0 3.1 19.78 11.40 28.63 80.35 79.08 -2% 5.0 5.2 16.0 15.5 3.6 3.7 84.35 68.75 12.77 3.72 3.34 -11% 0.0 0.0 14.1 13.3 0.8 0.8 5.15 3.24 9.09 31.80 34.37 7% 2.2 2.5 14.3 12.7 5.6 4.0 32.40 21.01 14.59 158.40 155.88 -2% 9.3 10.2 4.2 164.40 127.60 9.77 15.30 12.88 -19% 0.6 0.6 25.6 24.6 2.5 2.6 15.50 12.73 11.35 77.30 78.15 1% 4.8 5.1 16.0 15.1 3.4 3.7 94.40 72.20 4.39 20.55 19.34 -6% 1.2 1.1 17.2 18.9 68.05 64.32 -6% 4.6 4.8 14.8 14.1 3.2 3.3 69.95 39.00 32.01 24.35 29.00 16% 3.5 3.9 7.1 6.2 3.4 4.0 27.85 20.15 18.49 67.00 75.13 11% 3.4 3.5 19.5 18.9 4.1 4.2 75.73 62.78 4.85 5.16 4.92 -5% 0.4 0.4 11.4 11.4 4.8 4.7 5.79 4.07 18.35 48.05 48.43 1% 3.3 3.3 14.7 3.2 3.2 49.30 39.64 6.09 5.98 -2% 0.9 0.9 6.1 6.1 4.2 4.3 6.44 4.46 8.56 4.11 4.47 8% 0.1 0.3 26.2 14.1 0.5 1.6 4.88 2.92 11.68 10.08 11.65 13% 0.2 0.4 39.9 22.1 0.8 1.5 10.48 7.70 11.63 31.80 17.1 14.8 18.2 4.0 3.7 16.48 -26% 2.1 1.7 6.11 -8% 0.0 0.2 N/A 40.9 0.0 1.1 7.62 5.34 8.05 -9% 1.6 1.6 27.1 26.4 7.7 2.6 44.50 34.92 13.66 13.84 13.64 -1% 0.8 0.8 16.5 16.7 3.7 3.7 14.48 10.96 19.10 18.50 19.30 4% 0.6 0.7 28.6 25.0 1.0 1.1 18.90 12.85 20.13 9.85 11.22 12% 0.8 0.8 12.7 11.9 4.5 4.5 10.46 6.91 20.12 22.05 27.69 20% 3.2 8.0 21.70 23.35 7% 1.4 1.6 15.6 13.6 3.1 3.4 24.95 18.80 12.79 14.60 14.38 -1% 1.9 1.4 7.9 10.2 5.6 5.3 15.50 10.70 18.51 20.31 23.85 26.35 25.00 39.24 3.9 34.75 13.64 25.31 3.4 2.6 20.90 6.58 6.9 2.9 3.7 42.85 2.8 15.5 15.6 44.40 -7.94 16.50 7.07 26.43 3.85 4.40 12% 0.0 0.2 121.9 19.2 0.0 0.2 4.45 2.25 11.02 9.97 -10% -0.1 0.2 N/A 46.7 0.5 0.8 13.56 10.00 11.28 12.25 8% 1.4 1.5 8.1 7.3 2.9 3.0 12.78 10.54 1.62 8.61 9.09 5% 0.1 0.1 14.4 13.7 1.1 0.4 9.48 7.28 10.53 19.8 17.2 0.4 0.4 2.31 25.31 3.07 3.15 3.38 8.04 3% 0.0 0.0 2.35 2.45 4% 0.0 0.0 N/A N/A 0.0 0.0 3.00 2.00 3.98 49.90 56.69 12% 0.4 0.4 17.5 15.7 0.2 0.3 54.15 41.50 14.06 35.05 37.84 7% 0.2 0.2 22.9 20.9 0.7 0.7 39.30 24.60 4.01 41.30 42.36 3% 1.6 1.7 25.9 24.0 1.2 1.3 41.75 21.87 22.19 Note : The above data based on Bloomberg consensus. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 2 of 2
  28. T e c h n i c a l TA Securities V i e w Thursday , March 23, 2017 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 • Foreign Technical Stock Watch FSSTI: 3,118.19 (-40.38, -1.28%) Singapore THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Stock Name FSSTI SINGTEL DBS OCBC UOB JARDINE M. WILMAR HK LAND CAPLAND GENSP KEPPEL SGX SIA FNN NOBLE CITY DEV JARDINE S. SG PRESS JARDINE C&C GOLDEN AGRI SG TECH OLAM INT CAP TRUST SEMBCORP SEMCORP M. CMFT DELGRO STARHUB SIA ENG IFOOD AGRI YZJ Tel: +603-2167 9607 Close Bollinger Bands RSI Change High Low 22-Mar Lower Mid Upper 14d 3,118.19 (40.38) 3,131.92 3,114.33 3,096.29 3,134.71 3,173.13 49.17 3.92 18.67 9.45 21.53 65.45 3.51 7.24 3.66 0.98 6.72 7.49 9.96 2.13 0.18 10.23 39.45 3.57 44.31 0.39 3.63 1.87 1.94 3.10 1.86 2.50 2.85 3.66 0.53 1.11 (0.02) (0.33) (0.17) (0.27) (1.30) (0.04) (0.02) (0.07) (0.02) (0.11) (0.10) (0.08) 0.02 (0.01) (0.22) (0.44) (0.01) (1.04) 0.00 (0.04) (0.04) (0.01) (0.09) (0.04) (0.01) (0.04) (0.05) 0.00 (0.03) 3.94 18.77 9.55 21.61 66.18 3.55 7.32 3.70 1.00 6.77 7.55 10.01 2.14 0.19 10.33 39.70 3.58 44.86 0.39 3.67 1.90 1.96 3.14 1.87 2.51 2.88 3.69 0.53 1.12 3.89 18.61 9.45 21.45 65.39 3.51 7.17 3.63 0.98 6.72 7.46 9.93 2.12 0.18 10.18 39.40 3.54 43.85 0.38 3.62 1.87 1.93 3.10 1.84 2.47 2.83 3.65 0.52 1.09 3.88 18.68 9.42 21.31 62.30 3.52 6.70 3.54 0.97 6.57 7.40 9.86 2.05 0.18 9.14 37.32 3.43 40.75 0.37 3.61 1.85 1.91 3.11 1.73 2.44 2.81 3.65 0.51 0.92 3.94 18.99 9.56 21.62 65.04 3.62 7.01 3.65 0.99 6.91 7.53 9.95 2.10 0.22 9.96 39.17 3.50 43.74 0.38 3.67 1.98 1.94 3.23 1.89 2.50 2.86 3.69 0.52 1.07 4.01 19.30 9.70 21.92 67.78 3.71 7.32 3.76 1.02 7.24 7.66 10.04 2.15 0.25 10.78 41.02 3.57 46.73 0.40 3.73 2.11 1.97 3.35 2.06 2.56 2.92 3.73 0.54 1.23 47.53 42.78 42.93 51.75 54.72 33.10 65.59 56.26 47.13 48.72 46.16 51.38 54.71 36.00 58.88 54.82 61.95 54.76 44.47 51.66 28.75 47.69 39.55 55.65 51.51 47.95 48.82 46.67 60.06 stsoo@ta.com.my Moving Averages 10d 30d 50d DI + 3,145.55 3,122.15 3,086.97 26.83 DI 29.49 ADX 27.63 3.95 19.02 9.59 21.63 65.68 3.59 7.12 3.68 0.99 6.78 7.56 9.98 2.11 0.20 10.31 39.49 3.52 44.51 0.38 3.67 1.92 1.94 3.19 1.89 2.51 2.86 3.69 0.53 1.12 22.63 30.91 25.98 19.85 18.54 28.79 13.13 21.95 16.58 27.94 24.51 15.74 10.71 30.56 17.98 14.69 11.88 25.62 16.27 16.99 30.03 14.20 26.09 21.38 23.34 23.96 13.28 20.81 16.51 16.52 (3.88) 0.01 17.16 (7.90) 0.08 12.43 (5.65) 0.03 24.66 6.61 0.16 30.62 7.03 0.89 27.17 (13.97) -0.06 31.97 16.90 0.11 39.54 6.01 0.07 20.50 1.78 0.01 29.35 2.48 0.06 14.87 (2.47) 0.02 14.03 0.88 0.03 12.37 5.50 0.00 22.67 (13.91) 0.00 44.12 14.93 0.30 27.48 7.42 0.46 29.37 16.02 0.02 14.31 (0.12) 0.78 26.59 (3.92) -0.01 24.27 6.47 0.04 33.16 (19.00) -0.04 13.76 (0.24) -0.01 25.35 (2.74) 0.00 39.95 12.24 0.07 12.23 (7.63) 0.01 13.72 (2.40) 0.00 33.36 0.42 0.02 13.80 (0.99) 0.00 45.63 14.84 0.06 3.95 18.86 9.56 21.43 64.63 3.71 6.94 3.60 0.99 6.77 7.55 9.92 2.11 0.22 9.76 38.95 3.49 43.21 0.40 3.62 2.01 1.95 3.21 1.77 2.48 2.84 3.68 0.53 1.02 3.90 18.75 9.50 21.19 63.13 3.77 6.88 3.46 0.97 6.55 7.52 9.92 2.11 0.20 9.49 38.24 3.51 42.52 0.41 3.50 2.01 1.96 3.18 1.66 2.47 2.90 3.61 0.54 0.94 18.75 23.01 20.33 26.46 25.56 14.82 30.02 27.96 18.36 30.42 22.04 16.62 16.21 16.64 32.91 22.11 27.90 25.50 12.35 23.45 11.03 13.96 23.34 33.62 15.71 21.56 13.69 19.82 31.35 DMI www.taonline.com.my MACD DMI MACD DMI MACD Diff Line Signal Diff Recent Signal Signal Change (2.66) 19.22 22.57 (3.341) SELL SELL SELL 0.02 0.13 0.04 0.17 0.95 -0.06 0.09 0.07 0.01 0.10 0.02 0.03 0.00 0.00 0.28 0.52 0.00 0.72 -0.01 0.06 -0.03 -0.01 0.01 0.09 0.02 0.00 0.03 0.00 0.06 (0.004) (0.048) (0.009) (0.012) (0.065) (0.002) 0.023 (0.007) (0.002) (0.043) 0.000 0.003 0.005 (0.005) 0.026 (0.058) 0.012 0.055 0.002 (0.014) (0.011) 0.001 (0.016) (0.019) (0.000) 0.003 (0.008) 0.001 (0.005) SELL SELL SELL BUY BUY SELL BUY BUY BUY BUY SELL BUY BUY SELL BUY BUY BUY SELL SELL BUY SELL SELL SELL BUY SELL SELL BUY SELL BUY SELL SELL SELL SELL SELL SELL BUY SELL SELL SELL BUY BUY BUY SELL BUY SELL BUY BUY BUY SELL SELL BUY SELL SELL SELL BUY SELL BUY SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL - SELL SELL SELL SELL SELL - The table above consists of the revamped 30 SGX FTSE Straits Times Index component stocks, sorted by market capitalization in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. Stock names and technical statistics in bold highlight stocks that have changes in BUY/SELL signals on the DMI and MACD on the given date. Page 1 of 3
  29. Corporate News : Singapore’s relaxation of stamp duty on sellers is unlikely to stimulate speculative demand, as new buyers still need to pay duty after selling their homes within three years of the purchase date. The rates have been lowered by four percentage points to 12% for new home buyers selling their units within a year. – Bloomberg. Technical Comments: Hook-down momentum indicators on Capitaland shares implies profit-taking correction potential towards the 76.4%FR (SGD3.52), with stronger support seen from the 61.8%FR (SGD3.36), while significant overhead resistance is found near the 28/4/15 peak (SGD3.79). CAPITALAND SGD3.66 (-0.07) \\ Upper Middle Lower Recent Signal Signal Change BOLLINGER BANDS SGD SGD SGD DMI 3.76 3.65 3.54 BUY SIMPLE MOVING AVERAGES SGD 3.68 SGD 3.60 SGD 3.46 DAILY MACD Recent Signal SELL Signal Change 10-day 30-day 50-day Page 2 of 3
  30. INTERPRETATION OF TECHNICAL INDICATORS : Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Fundamentals of Foreign Technical Picks Bloomberg Ticker ST DBS OCBC UOB JM WIL HKL CAPL GENS KEP SGX SIA FNN NOBL CIT JS SPH JCNC GGR STE OLAM CT SCI SMM CD STH SIE IFAR SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP EPS ($) PER(x) Div Yield(%) % Chg 52week Price Stock Name Close Target Price SINGTEL DBS OCBC UOB JARDINE M. WILMAR HK LAND CAPLAND GENSP KEPPEL SGX SIA FNN NOBLE CITY DEV JARDINE S. SG PRESS JARDINE C&C GOLDEN AGRI SG TECH OLAM INT CAP TRUST SEMBCORP SEMCORP M. CMFT DELGRO STARHUB SIA ENG IFOOD AGRI 3.92 4.25 18.67 9.45 21.53 21.18 -2% 1.9 2.1 11.1 10.4 3.4 3.5 22.04 17.41 5.54 65.45 64.57 -0.01 4.1 4.3 16.1 15.1 2.4 2.5 67.27 52.42 18.46 3.51 3.80 8% 0.2 0.2 12.6 11.7 2.1 2.3 4.00 2.96 -2.23 7.24 7.38 2% 0.4 0.4 18.3 17.9 2.7 2.7 7.35 5.77 14.38 3.66 4.01 9% 0.2 0.2 17.8 18.4 2.8 2.8 3.79 2.85 21.19 0.98 1.06 7% 0.0 0.0 28.0 25.1 3.0 3.1 1.04 0.69 8.29 6.72 6.89 2% 0.5 0.6 13.0 12.1 3.2 3.5 7.23 5.10 16.06 7.49 7.83 4% 0.3 0.4 22.4 20.7 3.9 4.2 8.05 6.96 4.61 9.96 9.71 -3% 0.4 0.4 22.3 22.9 3.5 2.7 11.67 9.60 3.00 2.13 2.03 -5% 0.1 0.1 28.8 28.4 2.0 2.1 2.23 1.92 1.91 YZJSGD SP YZJ % upside 2017 2018 2017 2018 2017 2018 High Low YTD 8% 0.2 0.3 16.1 15.2 4.5 4.7 4.36 3.59 7.40 19.44 4% 1.789 1.963 10.4 9.5 3.3 3.4 19.37 14.63 7.67 9.56 1% 0.9 0.9 11.0 10.1 3.9 4.1 9.78 8.21 5.94 0.18 0.22 0.16 0.0 0.0 8.8 6.0 0.0 0.0 0.37 0.11 8.24 10.23 10.70 4% 0.6 0.7 15.9 14.8 1.4 1.4 10.65 7.63 23.55 39.45 39.98 1% 2.7 2.9 14.6 13.7 0.8 0.8 40.56 27.35 18.83 3.57 3.19 -12% 0.2 0.2 23.3 23.3 4.8 4.6 4.13 3.45 1.13 44.31 49.97 11% 2.1 2.3 14.8 13.5 1.8 2.0 46.23 31.60 7.47 0.39 0.39 1% 0.0 0.0 17.2 14.5 1.8 1.8 0.45 0.33 -10.47 3.63 3.62 0% 0.2 0.2 21.0 20.1 4.2 4.4 3.77 3.01 12.38 1.87 1.99 7% 0.1 0.1 14.0 14.0 2.4 2.5 2.17 1.58 -5.33 1.94 2.13 9% 0.1 0.1 17.0 16.6 5.7 5.7 2.25 1.87 2.92 3.10 3.53 12% 0.2 0.3 12.9 10.8 3.0 3.4 3.38 2.44 8.77 1.86 1.65 -13% 0.1 0.1 34.4 26.1 1.4 1.7 2.09 1.22 34.42 2.50 2.94 15% 0.2 0.2 15.9 15.3 4.4 4.8 3.02 2.37 1.21 2.85 2.64 -8% 0.2 0.2 17.7 18.5 5.6 5.5 3.97 2.73 1.42 3.66 3.55 -3% 0.2 0.2 23.8 23.6 4.2 4.0 3.91 3.35 8.61 0.53 0.58 9% 436 583 11.4 8.6 12299 17959 0.63 0.44 0.00 1.11 1.07 -3% 0.5 0.5 11.2 11.7 17.6 17.6 1.19 0.71 35.58 Note : The above data based on Bloomberg consensus. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 3 of 3