Bursa Malaysia Daily Market Report - 24 March

Transcription

1. Friday , 24 March, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED REPORTS’ News 1. Daily Market Commentary 2. Daily Brief Fundamental Reports 1. Banking Sector: More Stability Envisaged 2. Gamuda Berhad: Not All Smooth Sailing 3. Malaysian Economy: BNM Annual Report 2016 Technical Reports 1. Daily Technical Stock Picks 2. Daily Stock Screen 3. Foreign Technical Stock Watch (AUS, HK & FSSTI) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research
2. Daily Note Daily Market Commentary (A Participating Organisation of Bursa Malaysia Securities Bhd) Menara TA One, 22 Jalan P Ramlee, 50250 Kuala Lumpur Tel : 603 - 2072 1277. Fax : 603 - 2032 5048 Friday, 24 March 2017 TA Research e-mail : taresearch@ta.com.my For Internal Circulation Only KLSE Market Statistics (23.03.2017) Volume (mil) +/-chg (RMmn) Main Market 3,259.2 807.1 3,389.6 Warrants 210.2 8.2 27.2 ACE Market 1,278.2 792.7 244.8 Bond 31.1 5.8 3.9 ETF 0.0 -0.01 0.0 Total 4,778.6 3,665.6 Off Market 112.5 58.5 209.4 Value +/-chg 751.6 0.8 159.8 0.6 -0.02 171.8 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 (mn) 60.0 15.0 13.5 6.8 4.8 3.0 2.6 2.5 1.3 Review & Outlook Up Down 402 290 88 60 99 21 6 5 1 2 596 378 % chg % YTD chg 1,747.00 12,381.11 16,974.95 1,753.50 -1.30 8.98 69.56 2.50 -0.07 0.07 0.41 0.14 6.41 7.98 15.35 7.21 20,656.58 5,817.69 7,340.71 19,085.31 2,172.72 24,327.70 3,126.93 1,568.72 5,563.76 3,248.55 2,038.60 5,707.95 -4.72 -3.95 15.99 43.93 4.42 7.29 8.74 2.06 29.67 3.33 0.71 23.44 -0.02 -0.07 0.22 0.23 0.20 0.03 0.28 0.13 0.54 0.10 0.03 0.41 4.52 8.07 2.77 -0.15 7.22 10.58 8.55 1.67 5.04 4.67 3.53 0.74 Top 10 KLCI Movers Based on Mkt Cap. Off Market MULPHA HAPSENG APFT HALEX DANCO ENGTEX MAYBANK EFORCE TIGER Value/ Volume 1.04 0.13 0.19 0.12 1.43 0.77 1.86 @ @ @ @ @ @ @ @ @ (RM) 0.27 7.75 0.01 0.64 1.46 1.28 8.99 1.63 0.05 Exchange Rate USD/MYR 4.4279 0.0012 USD/JPY 111.03 -0.2700 EUR/USD 1.079 -0.0008 Counter IHH MAXIS AXIATA PETGAS GENTING MISC GENM IOICORP HLBANK KLK Mkt Cap. (RM’mn) 49,308 47,841 44,867 39,021 36,083 32,764 30,893 29,491 27,827 26,283 Chg Vol. (RM) (mn) -0.01 8.72 -0.06 6.73 -0.06 10.56 -0.26 1.30 -0.06 3.98 -0.11 2.43 -0.05 23.23 -0.08 7.19 -0.18 1.31 -0.12 1.28 Commodities Futures Palm Oil (RM/mt) 2,771.00 -56.00 Crude Oil ($/Barrel) 47.67 -0.49 Gold ($/tr.oz.) 1,245.00 -3.60 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. While blue chips closed weaker due to profit-taking interest on Thursday, small cap penny and ACE Market stocks were actively traded with selective counters staging sharp rallies on hopes they will benefit from the launch of the Digital Free Trade Zone. The KLCI ended 1.3 points down at the day's low of 1,747, off an earlier high of 1,753.76, as gainers led losers 596 to 378 on robust trade totaling 4.78bn shares worth RM3.66bn. Blue chips should continue to stay range bound on profit-taking mode, while active rotational plays sustain in ICT or internet related small cap stocks on speculation of involvement in the DFTZ. Immediate uptrend supports for the index are at 1,736 and 1,718, 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. The oversold daily stochastics momentum on Malakoff supports rebound upside towards RM1.26 to the 23.6%FR (RM1.30), with a confirmed breakout to aim for the 38.2%FR (RM1.39) and 50%FR (RM1.47) ahead. Crucial support rests at the 27/2/17 low (RM1.14). Meanwhile, any dips on Westports will be attractive to bargain for longer-term upside towards the 50%FR (RM4.10), 61.8%FR (RM4.22) and 76.4%FR (RM4.36) going forward, while good retracement support is found at the 23.6%FR (RM3.85). News Bites • • • • • • • • • • • • • • • • • • Axiata Group Bhd has denied reports of an impending merger with Telekom Malaysia Bhd. Malaysia Airlines Bhd plans to seal deals for as many as 42 wide-body jets over the next few months following a surge in demand. Proton Holdings Bhd's (Proton) will be announcing a strategic partner come May. Iris Corp Bhd is being sued for RM169.5mn. Aeon Credit Service (M) Bhd is seeking to raise RM432.0mn through a proposed rights issue. The closing date and time for acceptance of the conditional mandatory takeover offer of Tanco Holdings Bhd have been extended to 5pm April 7, 2017. Gamuda Bhd's net profit for the second quarter ended Jan 31, 2017 rose 3.84% to RM166.3mn from RM160.1mn a year ago mainly due to cost savings. PLB Engineering Bhd has been awarded a contract for a large-scale solar photovoltaic plant (LSSPV) of 20MW in Penang by the Energy Commission (ST). Scomi Group Bhd has taken up a 30% interest in renewable energy company Strong Elegance Sdn Bhd. Berjaya Land Bhd plans to acquire 70% of Hotel Integrations Sdn Bhd (HISB), which specialises in providing consultation and related services in the hotel industry, for RM1.4mn. Integrated Logistics Bhd's wholly-owned unit IL Solar Sdn Bhd has received approval to construct a large-scale solar photovoltaic plant in Bandar Bukit Kayu Hitam, Kedah. Systech Bhd plans to acquire 51% of Singapore-based Postlink Pte Ltd for RM9.8mn. ML Global Bhd's unit Delta Gallery Sdn Bhd is partnering with Alaf Cahaya Development Sdn Bhd to develop a leasehold plot in Seri Kembangan, Selangor. Singapore's consumer price inflation accelerated slightly in February, in line with expectations. The number of Americans applying for unemployment benefits rose last week. U.S. new home sales increased sharply for the second consecutive month in February. U.K. retailers enjoyed a better February than economists expected. UK retailers reported a steady pace of expansion in sales volume in March and forecast it to accelerate in April. DISCLAIMER The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD Kaladher Govindan, Head of Research
3. TA Securities Friday , March 24, 2017 FBMKLCI: 1,747.00 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 ICT Stocks to Outperform as Blue Chips Congest While blue chips closed weaker due to profit-taking interest on Thursday, small cap penny and ACE Market stocks were actively traded with selective counters staging sharp rallies on hopes they will benefit from the launch of the Digital Free Trade Zone. The KLCI ended 1.3 points down at the day’s low of 1,747, off an earlier high of 1,753.76, as gainers led losers 596 to 378 on robust trade totaling 4.78bn shares worth RM3.66bn. Uptrend Supports at 1,736, Then 1,718 Blue chips should continue to stay range bound on profit-taking mode, while active rotational plays sustain in ICT or internet related small cap stocks on speculation of involvement in the DFTZ. Immediate uptrend supports for the index are at 1,736 and 1,718, 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. Buy Dips on Malakoff & Westports The oversold daily stochastics momentum on Malakoff supports rebound upside towards RM1.26 to the 23.6%FR (RM1.30), with a confirmed breakout to aim for the 38.2%FR (RM1.39) and 50%FR (RM1.47) ahead. Crucial support rests at the 27/2/17 low (RM1.14). Meanwhile, any dips on Westports will be attractive to bargain for longer-term upside towards the 50%FR (RM4.10), 61.8%FR (RM4.22) and 76.4%FR (RM4.36) going forward, while good retracement support is found at the 23.6%FR (RM3.85). Asian Markets Stabilize Ahead of US Healthcare Vote Asian markets stabilized on Thursday after skidding a day earlier, though investors were on edge ahead of a U.S. vote on a health-care bill that could be a barometer for future Trump administration policies. Later on Thursday in the U.S., the House is expected to vote on House Speaker Paul Ryan's healthcare plan, but the Obamacare replacement has seen resistance not just from Democrats, but from conservative GOP members too. The market's concern is that a prolonged battle in Congress to repeal and replace Obamacare could delay tax reform, deregulation and government spending. Japan's Nikkei 225 wavered for most of the session and fell below the 19,000 mark, but closed up as support from a weaker yen helped offset a political scandal centered on the wife of Japan's prime minister. The Nikkei ended 0.2 percent higher at 19,085.31 points, after traversing in negative and positive territory. In down under, the ASX 200 finished up 0.41 percent or 23.5 points at 5,708, underpinned by strength in its materials and energy sub-indexes. Meanwhile, China stocks also ended slightly higher on Thursday, despite a slump in Shanghai B shares amid worries over tight liquidity and stepped-up regulation. The blue-chip CSI300 index rose 0.4 percent, to 3,461.98 points, while the Shanghai Composite Index added 0.1 percent, to 3,248.55 points. Page 1 of 8
4. TA Securities 24-Mar-17 A Member of the TA Group Wall Street Down as House Postpones Health-Care Vote Wall Street declined on Thursday as House Republicans postponed voting on a health-care bill , raising speculation the Trump administration’s pro-growth policies will face hurdles in Congress. Major indexes rose through most of the session, then turned lower in afternoon trading after House Republicans postponed Thursday’s planned vote on a bill designed to dismantle the Affordable Care Act. The bill, if signed into law, would effectively repeal and replace Obamacare, thus accomplishing one of President Donald Trump's first legislative goals. Failure to pass the American Health Care Act would cast doubt on Trump's ability to deliver other parts of his agenda that need the cooperation of the Republican-controlled Congress, including ambitious plans to overhaul the tax code and invest in infrastructure. Google-parent Alphabet fell 1.19 percent as more firms pull YouTube ads on fears they may appear alongside offensive videos. The stock was the biggest drag on the S&P 500 and the Nasdaq. The Dow Jones Industrial Average ended down 4.72 points, or 0.02 percent, to 20,656.58, while the S&P 500 lost 2.49 points, or 0.11 percent, to 2,345.96 and the Nasdaq Composite slipped 3.94 points, or 0.07 percent, to 5,817.69. Page 2 of 8
5. TA Securities 24-Mar-17 A Member of the TA Group News In Brief Corporate Axiata Group Bhd has denied reports of an impending merger with Telekom Malaysia Bhd . In a filing with Bursa Malaysia, the company said that an online daily’s article reporting of a likely merger between the two companies was merely speculative. "Axiata wishes to specifically deny that it is currently engaged in any discussions with TM on a possible merger.” (New Straits Times, Bursa) Malaysia Airlines Bhd plans to seal deals for as many as 42 wide-body jets over the next few months as the unprofitable carrier seeks to rebuild its long-haul network following a surge in demand. Terms should be agreed in the next six to eight weeks for the lease of up to a dozen used Airbus Group SE A330 or Boeing Co. 777 aircraft, Chief Executive Officer Peter Bellew said in an interview. That could be followed later in the first half by an order for 25 to 30 new Boeing 787s or A330neos, as the upgraded Airbus model is known, potentially worth more than US$7.0bn. (New Straits Times) Proton Holdings Bhd’s (Proton) will be announcing a strategic partner come May which will allow the national car manufacturer to compete locally and internationally with better quality cars said Second International Trade and Industry Minister Datuk Seri Ong Ka Chuan. To succeed and sustain the nation’s automobile industry, Proton cannot rely solely on the local market, he pointed out. (New Straits Times) Iris Corp Bhd, whose e-passport deal in Guinea has come under the scrutiny of the Malaysian Anti-Corruption Commission, is now being sued for RM169.5mn over alleged commission payable on the passport contract’s value. In a filing with Bursa Malaysia, the epassport and smart card provider said Roxwell Group Sdn Bhd had filed a suit at the KL High Court against Iris and four individuals, including group managing director/CEO Datuk Tan Say Jim and deputy managing director Datuk Hamdan Mohd Hassan (both men are on leave of absence). (StarBiz, Bursa) Aeon Credit Service (M) Bhd is seeking to raise RM432.0mn through a proposed rights issue to improve its capital adequacy ratio and financial flexibility. Aeon told Bursa Malaysia that the proposed rights issue would be undertaken following a proposed 1-for-2 bonus issue at an issue price of 50 sen each. The proposed rights issue of the three-year irredeemable convertible unsecured loan stocks (Iculs) is, however, not conditional on the proposed bonus issue. It involves issuing 432 million Iculs at 100% of its nominal value of RM1 each in cash based on 2 Iculs for each Aeon Credit share held. (StarBiz, Bursa) The closing date and time for acceptance of the conditional mandatory takeover offer of Tanco Holdings Bhd have been extended to 5pm April 7, 2017. In a filing with Bursa Malaysia, Tanco said the joint offerors have received valid acceptances of about 58.9mn shares representing 9.34% of the issued share capital of Tanco as of Wednesday. The joint offerors have also received acceptances of about 3.3mn shares representing 0.53% of the issued share capital of Tanco as of Wednesday, subject to verification. (SunBiz, Bursa) Utusan Melayu Malaysia Bhd is teaming up with two Indian companies — Krishna Industrial Corp Ltd, Coimbatore Institute of Technology — and a local firm, Primainfo Technologies Sdn Bhd, to venture into the business of information and technology in Malaysia. The MoU is effective for a period of three years. (The Edge) Gamuda Bhd’s net profit for the second quarter ended Jan 31, 2017 rose 3.84% to RM166.3mn from RM160.1mn a year ago mainly due to cost savings, which resulted in a higher pre-tax profit. In a filing with Bursa Malaysia, the company said its pre-tax profit rose 13.8% to RM218.6mn from RM192.2mn a year ago due to cost savings from the nearcompletion of underground works of Klang Valley Mass Rapid Transit (KVMRT) Line 1. Revenue for the quarter rose 61.9% to RM853.9mn from RM527.4mn a year ago mainly due to the higher work progress of underground and elevated works of the KVMRT Line 2. Page 3 of 8
6. TA Securities 24-Mar-17 A Member of the TA Group (SunBiz, Bursa) PLB Engineering Bhd has been awarded a contract for a large-scale solar photovoltaic plant (LSSPV) of 20MW in Penang by the Energy Commission (ST). The project is to be developed at the levelised price of 40.80 sen/kWh for 21 years. PLB Engineering said the letter of award (LoA) was received and accepted by PLB Green Solar Sdn Bhd, a 60% owned subsidiary of PLB Terang Sdn Bhd, which in turn is a 65% owned subsidiary of PLB Engineering. PLB Green Solar is required to substitute the bid bond with a substitute bond of RM5.0mn in the form of a bank guarantee issued by a licensed bank in Malaysia, no later than next Tuesday. (SunBiz, Bursa) Scomi Group Bhd has taken up a 30% interest in renewable energy company Strong Elegance Sdn Bhd to provide itself an avenue to undertake new businesses related to the construction and development of solar photovoltaic plants. Scomi said the remaining interest in Strong Elegance is held by Synergy Generated Sdn Bhd (40%), which owns and operates a five-megawatt solar photovoltaic plant in Setiu, Terengganu, and Lembaga Tabung Angkatan Tentera (30%). (The Edge) Mitrajaya Holdings Bhd’s 60%-owned unit Mitrajaya Equipment Resource Sdn Bhd is acquiring a 0.86 hectares plot of leasehold land in Sepang for RM4.2mn. The acquisition, Mitrajaya said, was from Visible Profit Sdn Bhd, and will enlarge its property division's landbank for future developments. (The Edge) Berjaya Land Bhd plans to acquire 70% of Hotel Integrations Sdn Bhd (HISB), which specialises in providing consultation and related services in the hotel industry, for RM1.4mn. Its wholly-owned subsidiary Berjaya Vacation Club Bhd entered into a share purchase agreement with HISB to gain a controlling stake in it, Berjaya Land said in a filing with Bursa Malaysia. HISB also does market analysis and feasibility studies, provides technical assistance services, hotel pre-opening/take-over services and hotel operations management services. (The Edge) Hiap Teck Venture Bhd posted a net profit of RM3.9mn, for the second quarter ended Jan 31, 2017 (2QFY17), from a net loss of RM22.8mn a year earlier mainly due to improved margins and higher other income. Quarterly revenue, however, was down 2.2% to RM269.1mn YoY on lower sales volume for the trading division. For the cumulative 1HFY17, it has a net profit of RM3.0mn compared to a net loss of RM60.0mn a year ago. Revenue was 7.5% lower YoY at RM548.5mn in 1HFY17. Going forward, Hiap Teck said the outlook for the steel industry in Malaysia will remain volatile due to the widening of the import-export gap, shrinking market share and growing capacities in ASEAN countries. (The Edge) Integrated Logistics Bhd’s wholly-owned unit IL Solar Sdn Bhd has received approval to construct a large-scale solar photovoltaic plant in Bandar Bukit Kayu Hitam, Kedah, which has the capacity to produce 10 megawatts of electricity. It has also signed a 21-year power purchase agreement with Tenaga Nasional Bhd at a levelised price fixed at 43 sen per kiloWatt hour, with no increase throughout agreement period. The plant will start commercial operations by Jan 1, 2018. (The Edge) Systech Bhd, whose share price has hit a one-year high of 29 sen, plans to acquire 51% of Singapore-based Postlink Pte Ltd for RM9.8mn. Postlink is involved in the mailing house, transport, design and information system service business. (The Edge) Jaycorp Bhd’s net profit in 2QFY17 contracted by 24.3% YoY to RM4.6mn due to lower operating profit. Jaycorp's revenue in 2QFY17, however, grew 5.4% at RM79.6mn from 2QFY16. In 1HFY17, Jaycorp's net profit fell 12.7% to RM10.1mn from RM11.56 million in 1HFY16, whereas revenue was marginally higher by 1% at RM153.6mn versus RM152.2mn last year. "The furniture industry remains the group's core business. The group will Page 4 of 8
7. TA Securities 24-Mar-17 A Member of the TA Group continue to focus on controlling cost structure and exploring new markets for products in order to achieve better profits and business growth ," Jaycorp said with regards to its outlook. (The Edge, Bursa) DRB-Hicom Bhd's subsidiary, Composities Technology Research Malaysia Sdn Bhd (CTRM), is looking to expand into the manufacture of composites-based interior segment as a new revenue stream. Chief Operating Officer Shamsuddin Mohamed Yusof said the company had identified aircraft seats as its first product in the interior segment. CTRM would collaborate with Aerospace Malaysia Innovation Centre (AMIC), Airgo Design Pte Ltd and University of Malaya on the research and development of the seat prototype. (Bernama) ML Global Bhd’s unit Delta Gallery Sdn Bhd is partnering with Alaf Cahaya Development Sdn Bhd to develop a leasehold plot in Seri Kembangan, Selangor, into a mixed project with an estimated gross development value of RM270.0mn. The plot measures 18,965.7 sq metres. ML Global plans to develop 74 commercial units and 398 service apartments on the land, over five years. ML Global said the land sits on a strategic location, surrounded by several mature townships and is easily accessible via Lebuhraya Bukit Jalil and Lebuhraya Damansara Puchong. (The Edge) Page 5 of 8
8. TA Securities 24-Mar-17 A Member of the TA Group News In Brief Economy Asia BNM Annual Report 2016 : Economic Growth Projected to Pick Up Bank Negara expects the economy to record a sustained growth of 4.3% to 4.8% this year, up from 4.2% in 2016. In its 2016 annual report released, it said the gradual improvement in global growth, recovery in global commodity prices and the continued growth of domestic demand would together support the growth performance. Domestic demand will continue to be the main driver of growth, underpinned by private sector activity. Headline inflation is projected to average higher in the range of 3.0% to 4.0% in 2017, compared with 2.1% in the last two years. This is given the prospect of higher global commodity and energy prices, and the impact of the depreciation of the ringgit exchange rate. These costpush factors, however, are not expected to cause significant spillovers to broader price trends, given the stable domestic demand conditions. Core inflation is, therefore, expected to increase modestly. Despite the higher inflation, Bank Negara expected private consumption growth to be sustained by continued wage growth and the increase in disposable income due. This is based on selected Government measures and higher global commodity prices. Both exports and imports are forecast to strengthen in 2017, underpinned by the projected improvements in global growth, higher commodity prices and sustained domestic demand. Nonetheless, Bank Negara foresaw import growth would continue to outpace export growth, resulting in a lower trade surplus. The services account is projected to record a larger deficit, in line with higher trade and improvement in investment activity. Overall, Bank Negara forecast the current account would register a surplus of 1.0% to 2.0% of gross national income in 2017. On the supply side, all economic sectors are projected to register positive growth this year. Bank Negara said the services and manufacturing sectors would be the key contributors to overall growth. The agriculture sector, meanwhile, is expected to rebound as yields recover from the El Niño weather phenomenon. (The Star) Bank Negara Governor: Be Steadfast in Pursuing Reforms The dynamic and challenging environment facing the global economy and the financial markets calls for new strategies and approaches to support the existing monetary and fiscal policies, said Bank Negara governor Datuk Muhammad Ibrahim. While new developments have brought renewed optimism that fiscal policies would move centre stage to support economic growth, he cautioned that the policies might lose their effectiveness as the governments’ fiscal positions get more stretched. In his inaugural introduction to a Bank Negara annual report, Muhammad stressed the need to consider and renew our resolve. “First, there is a need to reflect on and examine the current state of play and policy choices at hand,” he said in the 2016 report released, noting that there were limits to monetary and fiscal policies. “With greater challenges, new strategies and policies are therefore needed to support existing policies.” Muhammad suggested that the use of technology would most likely give alternative sources of growth. (The Star) Malaysia-EU trade to grow by 20%-30% with FTA The proposed Malaysia-European Union (EU) Free-Trade Agreement (FTA) is expected to boost total trade by 20% to 30% from the current 10%, said EU Ambassador and head of delegation to Malaysia Maria Castillo Fernandez. She said this was based on the EU’s FTA with South Korea for the past five years, which rose 35%. “We (EU) have similar volume in terms of trade with Malaysia, so, certainly it will increase to that level. “This will also create a win-win situation for both sides as we favour an open, free and sustainable trade,” she told reporters on the sidelines of the two-day ASEAN Regional Seminar on Transit and Transhipment in Petaling Jaya. Asked when the FTA can be concluded, Castillo said it would be before year-end based on a constructive meeting between European Trade Commissioner Cecilia Malmstrm and International Trade and Industry Minister Datuk Seri Mustapa Mohamed in Manila on March 10. (The Star) Page 6 of 8
9. TA Securities 24-Mar-17 A Member of the TA Group Singapore Inflation Accelerates as Expected in February Singapore 's consumer price inflation accelerated slightly in February, in line with expectations, figures from the Ministry of Trade and Industry showed. The consumer price index climbed 0.7% year-over-year in February, faster than the 0.6% increase in January. The figure also matched consensus estimate. It was the third successive monthly rise. Inflation was mainly driven by a stronger pickup in private road transport costs. Services inflation slowed to 1.5% in February from 1.9% a month ago, largely because of a fall in air fares and a more modest increase in holiday expenses. Similarly, food inflation moderated to 1.3% from 1.9 %. MAS core inflation came in at 1.2% in February, down from 1.5% in the previous month. The slowdown was resulted from lower services and food inflation. (RTT News) U.S. U.S. Jobless Claims Rise to 258,000 The number of Americans applying for unemployment benefits rose last week, though the overall level remained consistent with a labor market that’s adding jobs. Initial jobless claims, a proxy for layoffs across the U.S., increased by 15,000 to a seasonally adjusted 258,000 in the week ended March 18, the Labor Department said. Economists surveyed by The Wall Street Journal had expected 240,000 new claims last week. The figure for the prior week was revised to 243,000 from 241,000. Data on unemployment applications can be volatile from week to week. A more stable measure, the four-week moving average of initial claims, rose by 1,000 last week to 240,000. (The Wall Street Journal) Jump in U.S. New Home Sales Defies Expectations U.S. new home sales increased sharply for the second consecutive month in February, an indication that growing demand and a pickup in construction activity could help propel a strong spring selling season for this segment of the market. Purchases of newly built, singlefamily houses, which account for a small share of overall U.S. home sales, jumped 6.1% from January to a seasonally adjusted annual rate 592,000 last month, the Commerce Department said. That marked the second-strongest month since the housing-market expansion began in 2012. Economists surveyed by The Wall Street Journal expected new home sales to increase by 1.4% to 563,000 sales. “Builders are seeing strong traffic,” said Brad Hunter, chief economist at HomeAdvisor, a home-improvement website. “We are expecting strong sales going into the spring.” The data were clouded by a margin of error of 17 percentage points, much larger than the reported increase. Still, momentum appears to be building in the market. New home sales increased in January by 3.7% compared with a month earlier. (The Wall Street Journal) U.K. U.K. Retail-Sales Jump Doesn't Dispel Concern About Consumers U.K. retailers enjoyed a better February than economists expected, but that hasn’t been enough to dispel concern about the outlook for consumers as inflation accelerates. While sales rose 1.4% from January, beating the 0.4% median forecast, underlying figures show volumes are falling at the fastest pace in seven years. As the weaker pound pushes up import costs, that will leave households further squeezed by higher food and fuel prices, bad news for an economy that relies heavily on domestic demand. The rapid acceleration in inflation -- which is seen reaching 3 percent later this year -- is largely due to the pound’s sharp drop since the Britain’s June vote to leave the European Union. Speaking on Thursday, Bank of England Deputy Governor Ben Broadbent said that while exporters were in a “sweet spot” because of the weaker currency, there would be a hit on consumers and that the negatives from the pound will “marginally outweigh” the positives. The February retail data from the Office for National Statistics showed that sales fell 1.4% in the past three months, the most since early 2010. Sales will decline this quarter unless March sees an unprecedented 3.3% gain. They haven’t declined in a calendar quarter in more than three years. (Bloomberg) British Retail Sales Expand at Steady Pace: CBI UK retailers reported a steady pace of expansion in sales volume in March and forecast it to accelerate in April, according to the latest monthly Distributive Trades Survey. The retail sales balance came in at +9 percent in March, the same as in February, but well above the Page 7 of 8
10. TA Securities 24-Mar-17 A Member of the TA Group expected level of 4 percent , data published by the Confederation of British Industry revealed. A balance of 6% said the sales volume was poor for the time of the year, the lowest since July 2016. Further, the survey showed that a net 10% said they placed fewer orders with suppliers. (RTT News) Europe Eurozone Survey Data Point to Robust First Quarter, ECB Says Economic recovery in the eurozone is gaining ground and some data point to robust momentum in the first quarter despite uncertainty over Brexit, China's rebalancing and new U.S. policies clouding the outlook, the European Central Bank said. "Incoming data, notably survey results, have increased the Governing Council’s confidence that the ongoing economic expansion will continue to firm and broaden," the ECB said in its regular economic bulletin. "Surveys point to a robust growth momentum in the first quarter of 2017." Global trade, a key contributor to growth, also seems to be picking up momentum and despite increasingly protectionist rhetoric from Washington world trade is expected to expand broadly in line with global activity, the ECB added. The United States has recently backed away from a pledge for free and open trade, calling for a review of some trade agreements and proposing in import duty tax, arguing for "fair" trade. Indeed, the ECB said that uncertainty remains elevated, particularly due to the lack of clarity regarding the new U.S. administration's "America First" policies and their impact on the rest of the world. But even as growth picks up, the ECB warned that the rise in inflation will be more subdued with oil futures implying stable crude prices and suggesting only a "very limited" impact from energy prices on inflation. (Reuters) German Consumer Sentiment Set to Fall in April Germany's consumer sentiment index is set to weaken in April, survey data from the market research group GfK showed. The forward-looking consumer confidence index dropped to 9.8 in April from 10.0 in March. The indicator was forecast to remain unchanged at 10.0. While economic expectation and the propensity to buy picked up again after a decline in the previous month, income expectations dropped marginally. The economic expectations index rose 8.4 points to 18.1 in March. After a very strong economic year in 2016 with an economic growth of 1.9 percent, consumers generally have positive expectations concerning economic development this year, GfK said. (RTT News) Share Buy-Back: 23 Mar 2017 Company ANNJOO ASTINO SIGN SNTORIA TEXCHEM WTHORSE Bought Back Price (RM) Hi/Lo (RM) 80,000 112,000 200,000 50,000 2,000 30,000 2.49 0.74/0.73 0.92/0.90 0.725/0.72 1.46 2.00 2.55/2.49 0.755/0.73 0.925/0.89 0.725/0.72 1.46/1.43 2.00/1.98 Total Treasury Shares 22,593,200 788,837 10,770,200 781,000 2,532,200 10,988,300 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 8 of 8
11. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company AUTOMOBILE BAUTO MBMR UMW Share Price (RM) 23-Mar-17 2.03 2.50 6.14 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 18.8 11.0 34.8 12.9 10.5 22.3 5.9 3.6 1.8 7.7 3.6 2.9 2.44 2.70 7.03 -16.8 -7.4 -12.7 1.95 1.95 4.43 4.1 28.2 38.6 -4.7 16.8 34.4 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 13.4 12.2 14.6 10.8 27.4 10.8 8.7 9.7 10.1 12.3 10.9 14.2 10.3 26.1 3.7 2.8 3.3 3.6 3.0 5.6 2.8 2.3 3.4 3.7 2.8 3.7 4.0 3.0 5.6 2.9 2.3 3.4 4.37 2.92 5.03 5.83 13.80 9.20 20.28 5.39 9.99 -6.9 -0.7 -2.6 -3.9 -1.7 -2.2 -1.6 -1.7 -0.2 3.60 2.08 3.90 4.11 12.70 7.50 18.48 4.42 8.20 13.1 39.4 25.6 36.2 6.8 20.0 8.0 19.8 21.6 9.4 21.3 13.7 24.2 0.4 9.8 1.2 12.5 12.7 0.45 1.28 5.25 3.50 0.66 1.79 1.86 5.75 0.49 1.45 5.49 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 31.6 16.8 9.6 12.6 12.8 44.4 6.0 13.2 36.5 20.9 9.9 12.5 12.7 45.8 7.4 9.9 16.6 20.8 6.9 14.2 14.5 13.0 7.4 9.7 14.4 16.7 6.7 14.3 14.6 12.6 0.0 2.2 2.3 2.7 1.5 3.1 1.6 4.3 2.2 2.2 2.3 2.7 1.5 3.1 1.6 4.3 0.51 1.35 5.31 3.61 0.75 1.81 1.98 6.06 -12.7 -5.3 -1.1 -3.0 -12.0 -1.1 -6.1 -5.1 0.36 0.76 4.59 3.07 0.41 1.42 1.41 5.02 23.6 69.3 14.4 14.0 63.0 26.1 31.9 14.5 2.3 21.9 9.8 9.4 14.8 5.3 7.5 -2.2 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 14.70 17.86 15.41 21.08 0.58 0.58 69.6 93.1 77.5 21.1 101.9 19.2 19.0 17.5 4.7 4.7 5.3 5.1 15.20 18.74 -3.3 -4.7 12.38 13.60 18.7 31.3 5.6 9.0 2.43 7.48 24.28 78.46 2.96 1.95 4.54 0.92 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 37.4 20.8 24.8 26.9 12.6 7.8 35.8 9.6 32.2 18.5 20.3 24.7 11.2 7.7 28.8 7.0 0.8 4.0 2.6 3.6 5.1 4.1 1.0 5.5 0.9 5.1 3.1 3.9 6.1 4.1 1.1 5.5 3.00 9.58 27.00 81.80 3.08 2.04 4.70 1.07 -19.0 -21.9 -10.1 -4.1 -3.9 -4.4 -3.4 -14.3 2.11 7.31 19.66 73.84 1.92 1.42 4.14 0.78 15.2 2.3 23.5 6.3 54.4 37.3 9.6 17.3 -5.4 2.1 3.4 0.3 16.1 12.7 4.8 15.1 47.20 54.22 1.02 271.1 271.8 17.4 17.4 5.6 5.6 55.64 -15.2 40.31 17.1 6.9 9.69 5.45 10.34 6.10 1.34 1.26 45.0 25.7 51.0 27.9 21.5 21.2 19.0 19.5 0.5 1.5 0.6 1.7 9.90 5.68 -2.1 -4.0 7.50 4.17 29.2 30.6 22.0 20.6 2.93 0.12 3.81 0.10 0.71 1.28 22.1 0.2 24.6 0.3 13.3 53.3 11.9 39.7 5.5 0.0 6.5 0.0 3.42 0.13 -14.3 -7.7 2.86 0.05 2.4 140.0 -1.0 140.0 5.99 4.00 6.40 4.61 0.77 0.50 13.9 13.3 17.9 16.5 43.1 30.0 33.4 24.3 0.7 1.5 0.8 1.9 6.79 4.37 -11.8 -8.5 5.78 3.85 3.6 3.9 -5.7 -4.3 4.97 6.30 2.00 5.06 2.13 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 27.3 17.6 12.4 19.0 49.7 23.4 15.6 11.0 16.7 30.1 1.6 2.8 2.4 2.6 0.5 1.9 3.2 2.7 3.0 0.8 5.03 7.07 2.88 5.45 2.74 -1.2 -10.9 -30.6 -7.2 -22.3 3.81 5.90 1.98 4.20 1.96 30.4 6.8 1.0 20.5 8.7 2.9 -4.4 -5.2 -5.4 -9.7 INDUSTRIAL SCIENTX SKPRES 7.29 1.32 8.50 1.75 0.54 0.55 67.9 9.3 78.0 14.4 10.7 14.2 9.3 9.2 2.7 3.3 3.2 5.2 7.61 1.44 -4.2 -8.3 5.75 1.12 26.8 17.9 8.8 2.3 MEDIA ASTRO MEDIA PRIMA STAR 2.84 1.15 2.49 3.30 0.85 1.95 1.05 0.68 0.57 11.9 7.7 15.0 13.5 8.0 15.8 23.8 14.9 16.6 21.1 14.4 15.7 4.4 5.4 7.2 4.6 5.5 7.2 3.02 1.54 2.70 -6.0 -25.3 -7.8 2.56 1.00 2.20 10.9 15.0 13.2 9.2 0.0 11.2 OIL & GAS EATECH MHB MISC PANTECH PCHEM SKPETRO UMWOG UZMA 0.69 0.98 7.34 0.53 7.51 1.87 0.65 1.80 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 5.9 na 14.8 14.2 21.7 35.6 na 16.0 5.7 87.3 13.1 12.3 19.1 40.3 na 14.7 4.9 0.0 4.1 2.8 2.5 0.0 0.0 0.0 5.9 0.0 4.1 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 -45.2 -27.2 -18.4 -2.8 -2.3 -10.5 -38.0 -11.8 0.45 0.84 6.88 0.44 5.95 1.29 0.61 1.30 53.9 16.1 6.7 21.8 26.2 45.0 6.6 38.5 10.5 6.6 -0.1 19.1 7.6 15.4 -26.3 5.9 BANKS & FINANCIAL SERVICES AFG 4.07 AFFIN 2.90 AMBANK 4.90 CIMB 5.60 HLBANK 13.56 MAYBANK 9.00 PBBANK 19.96 5.30 RHBBANK BURSA 9.97 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
12. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price (RM) PLANTATIONS FGV IJMPLNT IOICORP KLK SIME UMCCA 2.04 3.18 4.69 24.68 9.50 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 32.2 23.2 25.0 22.1 30.9 23.8 18.4 20.2 22.3 20.7 26.9 19.2 Div Yield (%) 52weeks 52weeks FY17 FY18 High Price % Chg Low Price % Chg 2.5 2.2 2.1 2.2 2.3 2.6 2.5 2.5 2.6 2.4 2.9 2.6 2.52 3.74 4.86 25.50 9.55 6.20 -19.0 -15.0 -3.5 -3.2 -0.5 -0.8 1.31 3.15 4.07 22.62 7.10 5.53 55.7 1.0 15.2 9.1 33.8 11.2 % Chg YTD 31.6 -6.5 6.6 2.8 17.3 2.5 PROPERTY GLOMAC 0.73 0.69 0.65 3.4 7.0 21.0 10.3 5.5 5.5 0.84 -13.7 0.68 6.6 4.3 HUAYANG 1.14 1.09 0.64 20.0 17.4 5.7 6.5 3.5 3.1 1.43 -20.4 1.05 8.6 0.9 IBRACO 0.94 1.00 0.32 7.3 11.2 12.9 8.4 3.7 4.3 1.10 -14.5 0.91 3.3 -6.0 IOIPG 2.07 2.10 0.91 14.7 15.3 14.1 13.5 3.4 3.6 2.46 -15.9 1.85 12.0 6.2 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 0.73 0.80 0.28 6.4 9.7 11.4 7.5 1.4 1.4 0.86 -15.7 0.69 5.1 -9.4 SPSETIA 3.45 3.82 0.67 27.7 24.5 12.5 14.1 4.1 4.1 3.59 -3.9 2.80 23.2 10.2 SUNWAY 3.26 3.40 0.50 31.2 33.3 10.4 9.8 3.7 3.7 3.28 -0.6 2.87 13.6 7.6 REIT SUNREIT 1.75 1.79 0.55 8.9 10.1 19.7 17.3 5.1 5.8 1.84 -4.9 1.52 15.1 1.7 CMMT 1.66 1.78 0.62 8.1 8.5 20.5 19.5 5.4 5.7 1.72 -3.5 1.43 16.1 8.5 POWER & UTILITIES MALAKOF PETDAG PETGAS TENAGA YTLPOWR 1.17 23.84 19.72 13.72 1.51 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 24.2 22.1 10.6 17.3 14.1 23.3 21.5 10.3 14.3 6.0 3.1 3.2 2.6 6.6 5.0 3.2 3.0 2.6 6.6 1.80 25.70 22.66 14.90 1.64 -35.0 -7.2 -13.0 -7.9 -7.9 1.14 22.16 19.56 13.00 1.38 2.6 7.6 0.8 5.5 9.4 -14.6 0.2 -7.4 -1.3 1.3 TELECOMMUNICATIONS AXIATA DIGI MAXIS TM 5.00 5.14 6.37 6.35 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 29.9 24.7 25.4 29.6 28.4 24.4 25.0 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 -16.5 -0.8 -1.8 -8.0 4.11 4.31 5.36 5.81 21.7 19.3 18.8 9.3 5.9 6.4 6.5 6.7 TECHNOLOGY Semiconductor & Electronics IRIS 0.16 INARI 2.04 MPI 11.24 UNISEM 3.26 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 19.0 101.9 12.6 29.1 12.1 17.2 15.9 11.0 11.2 0.0 2.0 2.0 3.7 0.0 2.4 2.0 3.7 0.24 2.08 11.50 3.30 -35.4 -1.9 -2.3 -1.2 0.10 1.28 6.86 2.12 55.0 59.1 63.8 53.8 40.9 22.9 51.7 38.1 2.88 7.20 3.02 7.68 1.18 1.44 33.5 9.8 34.9 10.2 8.6 73.2 8.3 70.8 0.0 1.4 0.0 1.4 3.30 7.30 -12.7 -1.4 1.77 5.76 62.7 25.0 25.8 18.8 1.68 3.99 1.88 4.51 0.85 0.71 15.5 19.3 21.7 17.4 10.8 20.6 7.8 22.9 3.3 3.6 4.2 3.3 1.76 4.59 -4.5 -13.1 1.22 3.74 37.7 6.7 5.7 -7.2 TRANSPORTATION Airlines AIRASIA AIRPORT Freight & Tankers TNLOGIS WPRTS SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price (S$) BANKS & FINANCIAL SERVICES DBS 18.65 OCBC 9.50 UOB 21.61 PLANTATIONS WILMAR IFAR 3.54 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 10.3 10.3 3.2 5.7 3.2 3.2 6.7 3.2 19.4 9.8 22.0 -3.7 -2.9 -2.0 14.63 8.84 17.41 27.5 15.7 24.1 7.6 6.5 5.9 3.45 0.51 0.91 1.11 28.9 3.9 31.1 4.3 11.4 12.3 2.3 1.8 2.5 2.0 4.0 0.6 -11.5 -16.0 2.96 0.44 19.6 19.3 -1.4 0.0 12.2 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.
13. TA Securities A Member of the TA Group SECTOR REPORT Friday , March 24, 2017 FBM KLCI: 1,747.00 Sector: Finance MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Banking Sector More Stability Envisaged THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Team Coverage Tel: +603-2167 9610 liwong@ta.com.my Domestic spending to fuel growth In a briefing in Bank Negara Malaysia (BNM) yesterday, we felt that the central bank’s outlook for Malaysia’s economy appears to be more positive. Guiding for better GDP growth of between 4.3% and 4.8%, private consumption and private investments are expected to fuel the increase while stronger exports will give an added boost to the economy. BNM noted Malaysia’s household (HH) capacity to spend remains healthy as the country’s HH Liquid Financial Assets to Total HH Debt Ratio remained stable at 140.4% in 2016. Corporates sentiments still wary but improving BNM noted that business sentiments remained relatively dampened although optimism among businesses have improved. In particular, businesses related to exports should benefit for the weak but more stable MYR and USD exchange rate, which BNM has projected could range between RM4.30 – RM4.40 per USD. Regionally, Asia’s exports should remain on a rising trend. The global production and manufacturing indices also appears to be bottoming out. The central bank expects real private investment to grow by 4.1% in 2017 (2016: +4.4%). Debt profile has improved Overall debt profile for the country has improved. Despite an overall difficult year for Malaysia in 2016 due to subdued global trade and weak oil prices, asset quality remains intact. In 2016, impaired loans ratio of HH sector and impaired loans ratio of business sector strengthened to 1.1% and 2.4% vs. 1.5% and 3.0% in 2012. Total household debt as a proportion of gross domestic product (GDP) was lower at 88.4% (from 89.1% in 2015) while the debt to equity ratio for the corporate sector increased slightly, but manageable at 43.6%. In terms of the distribution of household debt, 40% of debt is owed by individuals in the top 20 income group (i.e. individuals earnings >RM8,000 per month) while borrowers in more vulnerable income segments, accounted for only 11.4% of total debt. According to BNM, a large share of the top 20 income group debt is secured, with 77% of debt taken out for the purchase of properties and principal guaranteed investments which contribute towards individual’s wealth accumulation. Modest loan growth in 2017 Taken together, we maintain our loan growth projection of 5% for 2017 (2016: +5.3% YoY). In tandem with BNM’s view of higher private consumption and domestic demand for the year, we forecast consumer and business loans to widen by 5.3% and 4.9% respectively. Nevertheless, bulk of the increase in consumer loans will be driven by property loans as banks upkeep stringent lending policies in growing the unsecured loan segment. Adding strength to Malaysia’s household debt profile, we note that total consumer loans, excluding property loans, broadened by only 0.5% YoY in 2016 from 1.9% YoY in 2017. We predict unchanged growth of 0.5% in 2017 for this segment. Page 1 of 3 TA Research Team Coverage
14. TA Securities 24-Mar-17 A Member of the TA Group Higher OPR to support margins We are raising our OPR forecast for this year – expecting a 25 basis point rate hike in the first half of 2017 to 3.25%. We preciously predict OPR to maintain at 3.00% throughout the year. Supporting our view is economic growth which is expected to improve due to better performance of the external sector, challenged by higher inflation as well as volatile capital flows amid an on-going US Fed tightening cycle. The new inflation projection range of 3.0% to 4.0% implies that real policy rate will be negative, which could prompt a tightening bias in the monetary policy. We expect the increase in rate to augur well for the banking sector as margins are compressed by competitive pressures. BNM remains cautiously optimistic Despite the more optimistic outlook, BNM remains wary of the challenges ahead for some businesses and households. The central bank foresee possible deterioration in loan performance, but this is not expected to be broad-based given the stable labour market conditions and continued economic growth. While asset quality risks appear benign, the central bank will intensify its surveillance and supervision on the oversupply of office and retail spaces, heightened financial market volatility, external exposures of financial institutions and corporate borrowers as well as cyber threats and conduct issues. Upgrade to OVERWEIGHT Projecting stronger sector earnings growth of 6.9% and 8.5% for CY17 and CY18, we foresee healthier earnings visibilities for the banking sector post the BNM’s briefing yesterday. In addition to sustained loan expansion, steadier margins and benign asset quality - expectations of a more vibrant debt securities market and higher fee income from increased M&A activities and efforts by BNM to accelerate the migration to epayment could lead to better topline growth. Elsewhere, the banking system’s capital buffers remained ample with CET1 and Total Capital Ratio of 13.1% and 16.9%. The liquidity coverage ratio (LCR) stood at a healthy 128%. Maintaining earnings projections, we reduce our market risk premium assumption to 5.5% from 6.0% and raise the target prices of the stocks under our coverage. Given the wider potential upside, we raise Public Bank, Hong Leong and AMMB from hold to BUY, and Alliance from sell to HOLD. Maintain our BUY recommendation on CIMB and Affin. Reiterate HOLD on Maybank and SELL on RHB Bank. With that, we upgrade the banking sector to OVERWEIGHT from neutral. Table 1: Peers comparison Ma yba nk CIMB Publ i c Ba nk Hong Leong AMMB RHB Bank Al l ia nce Affin Simple average Price (RM) 9.00 5.60 19.96 13.58 TP (RM) 9.20 6.10 22.10 15.80 HOLD BUY BUY BUY 4.63 4.84 3.81 2.49 5.40 4.70 4.10 3.40 BUY SELL HOLD BUY Mkt Cap RM mil 91,738.8 49,663.0 77,075.5 27,868.9 Net Profit FY17 FY18 (sen) (sen) 7,517.4 8,440.7 4,486.3 4,933.4 5,272.9 5,421.8 2,077.9 2,253.7 Profit growth FY17 FY18 (%) (%) 11.5 12.3 25.9 10.0 1.3 2.8 9.2 8.5 FY17 (x) 12.2 11.1 14.6 13.4 FY18 (x) 10.9 10.1 14.2 12.4 13,955.7 19,408.4 5,809.9 4,837.8 36,294.8 1,399.4 1,963.5 546.1 570.9 2,979.3 7.5 16.8 4.6 1.2 10.9 10.0 9.9 10.6 8.5 11.3 9.2 9.4 10.1 7.5 10.5 Page 2 of 3 1,524.8 2,071.7 575.4 644.1 3,233.2 9.0 5.5 5.4 12.8 8.5 PER
15. TA Securities 24-Mar-17 A Member of the TA Group P /BV Ma yba nk CIMB Publ i c Ba nk Hong Leong AMMB RHB Ca p Al li a nce Affi n Simple average FY17 (x) 1.2 1.1 2.1 1.2 0.9 0.9 1.1 0.7 1.1 ROE FY18 (x) 1.1 1.0 1.9 1.2 0.8 0.8 1.1 0.6 1.1 FY17 (%) 10.7 9.7 14.8 9.5 8.9 8.7 11.3 7.3 10.1 ROA FY18 (%) 11.3 10.1 13.9 9.8 9.1 8.6 11.1 8.8 10.3 FY17 (%) 1.0 0.9 1.4 1.1 1.0 0.8 1.0 0.8 1.0 DPS FY18 (%) 1.1 0.9 1.3 1.1 1.1 0.8 1.0 0.9 1.0 FY17 (sen) 50.0 20.2 56.0 41.0 16.0 12.0 15.0 8.0 27.3 FY18 (sen) 50.0 22.3 58.0 41.0 18.0 12.0 15.0 8.0 28.0 Div yield FY17 FY18 (%) (%) 5.6% 5.6% 3.6% 4.0% 2.8% 2.9% 3.0% 3.0% 3.5% 3.9% 2.5% 2.5% 3.9% 3.9% 3.2% 3.2% 3.5% 3.6% Source: TA Research, Bursa M alaysia, B loomberg 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
16. TA Securities RESULTS UPDATE Friday , 24 March, 2017 FBMKLCI: 1,747.00 Sector: Construction A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 \ Gamuda Berhad TP: RM5.49(+4.6%) Last traded: RM5.25 Not All Smooth Sailing Sell THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Ooi Beng Hooi +603-2167-9612 benghooi@ta.com.my Review Gamuda’s 1HFY17 net profit of RM328.4mn came in below our expectation but within consensus forecasts, accounting for 41.1% and 46.7% of our and street’s FY17 full-year estimates. The variance was due mainly to lower-than-expected contributions from JVs and associates. YoY, 1HFY17 net profit improved marginally by 2.2% to RM328.4mn, despite the 1HFY17 revenue jumped 30.6% to RM1,358.8mn. This was results of higher taxation (tax rate +5.6% pts to 16.5%) and lower contribution from JVs (-43.2%), especially the property division. QoQ, similar trend was observed. 2QFY17 net profit was slightly higher by 2.5% at RM166.3mn, in spite of a 69.1% jump in the revenue to RM853.9mn. The earnings were dragged by lower operating margins across all divisions, lower contribution JVs (-39.7%), and higher taxation (+3.1% pts to 18%). Forecast Following the weaker-than-expected earnings, earnings forecasts for FY17/18/19 were cut by 3.9%/0.7%/0.8% respectively. Outlook The outstanding construction order book stood at RM8.3bn. Going forward, we expect stronger contribution from the construction division as construction activities at MRT line 2 and Pan Borneo Highway package accelerate. As for MRT line 1, it has achieved 98% completion and on track to complete on schedule by July 2017. There is a delay in the implementation of Penang Transport Master Plan. Additional social and economic studies were requested by the Federal DOE and Majlis Perancang Fizikal Negara. Consequently, the validity of Letter of Award was extended to 31 August 2017. Separately, Gamuda expects the review of the railway scheme submitted to SPAD to be completed by September 2017. Meanwhile, the final EIA report will be submitted to DOE for review and approval in April 2017. www.taonline.com.my Share Information Bloomberg Code Bursa 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 (%) GAM MK GAMUDA 5398 Main Market 2427.1 12742.1 1.00 5.31/4.59 3623.0 58.30 1.03 EPF - 11.19 KWAP - 5.99 Lembaga Tabung Haji - 5.48 Forecast Revision Forecast Revision (%) Net profit (RMm) Consensus TA's / Consensus (%) Previous Rating FY17 FY18 (3.9) (0.7) 767.6 884.3 703.3 793.4 109.1 111.5 Buy (Downgraded) Financial Indicators Net Debt / Equity (%) CFPS (sen) Price / CFPS (x) ROA (%) NTA/Share (RM) Price/NTA (x) FY17 44.0 32.7 16.1 5.4 3.1 1.7 FY18 44.2 (1.2) (440.1) 5.9 3.3 1.6 % of FY 41.1 46.7 Below Within GAMUDA 7.4 9.4 7.1 9.1 FBM KLCI 2.9 8.0 4.5 1.8 Scorecard vs TA vs Consensus Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth (12-Mth) Share Price relative to the FBM KLCI The group recorded property sales of RM353mn in 2QFY17 (1QFY17: RM430), bringing the 1HFY17 property sales to RM783mn (1HFY16: RM385). Unbilled was a tad higher at RM2.0bn versus RM1.9bn a quarter ago. The group has a full-year sales target of RM2.1bn. We maintain our FY17 sales assumption of RM1.8bn. As for the takeover offer of SPLASH, the Federal Government and the State Government are still in negotiation to finalise the deal. Source: Bloomberg Page 1 of 3
17. TA Securities 24 /03/17 A Member of the TA Group Valuation Subsequent to earnings downgrade, we lower GAMUDA’s target price from RM5.62 to RM5.49, based on unchanged 18xCY17 construction earnings, 14xCY17 property earnings and 16xCY17 earnings from toll road and water concessions. The adjusted share price closed near record high after the recent run-up. As the stock is trading near its fair value, we downgrade GAMUDA from BUY to SELL. Earnings Summary FYE 31 Jul Revenue EBITDA EBITDA margin PBT Adj PBT Net profit Adj net profit Adj EPS EPS Growth (Core) PER GDPS Div Yield EV/EBITDA ROE (%) (sen) (%) (x) (sen) (%) (x) (%) 2015 2399.9 704.6 29.4 858.2 858.2 682.1 682.1 28.9 (6.6) 18.1 12.0 2.3 13.4 11.6 Page 2 of 3 2016 2121.9 615.7 29.0 780.7 780.7 626.1 626.1 26.0 (10.2) 20.2 12.0 2.3 14.2 9.5 2017F 2781.8 752.8 27.1 966.3 966.3 767.6 767.6 31.3 20.6 16.8 12.0 2.3 12.5 10.7 2018F 3399.3 845.9 24.9 1113.3 1113.3 884.3 884.3 35.7 13.8 14.7 12.0 2.3 10.9 11.3 2019F 3517.3 856.7 24.4 1137.4 1137.4 902.8 902.8 36.0 0.9 14.6 12.0 2.3 11.3 10.6
18. TA Securities 24 /03/17 A Member of the TA Group 2QFY17 Results Analysis YE 31 Jul (RMmn) Turnover - Construction - Property - Water and toll 2Q16 1Q17 2Q17 QoQ YoY 1HFY16 1HFY17 YoY 527.4 235.3 183.8 108.3 504.9 196.3 183.0 125.6 853.9 400.6 332.1 121.2 69.1 104.1 81.5 (3.5) 61.9 70.3 80.7 11.8 1040.2 468.0 359.3 212.9 1358.8 596.9 515.1 246.8 30.6 27.5 43.4 15.9 EBIT Finance costs JV Associates Adj PBT - Construction - Property - Water and toll 109.5 (29.2) 58.6 53.3 192.2 39.6 47.3 105.4 133.7 (26.5) 43.2 55.3 205.6 51.4 40.9 113.4 168.2 (29.1) 26.1 53.4 218.6 71.7 43.2 103.8 25.9 9.6 (39.7) (3.4) 6.3 39.5 5.6 (8.5) 53.6 (0.4) (55.5) 0.3 13.8 81.2 (8.7) (1.5) 218.7 (59.4) 122.0 103.4 384.7 82.3 98.7 203.7 301.9 (55.6) 69.3 108.7 424.3 123.0 84.0 217.2 38.1 (6.4) (43.2) 5.1 10.3 49.5 (14.9) 6.6 Taxation MI Reported Net Profit Core Net Profit Core EPS GDPS (sen) (sen) (sen) (22.2) 9.9 160.1 160.1 6.7 0.0 (30.6) 12.9 162.1 162.1 6.7 6.0 (39.4) 12.9 166.3 166.3 6.9 0.0 28.8 0.3 2.5 2.5 2.4 (100.0) 77.9 30.5 3.8 3.8 3.2 na (41.9) 21.5 321.3 321.3 13.4 6.0 (70.0) 25.8 328.4 328.4 13.6 6.0 67.4 19.9 2.2 2.2 1.6 0.0 (%) (%) (%) (%) 20.8 36.4 30.4 11.5 26.5 40.7 32.1 14.9 19.7 25.6 19.5 18.0 % pts (6.8) (15.1) (12.6) 3.1 % pts (1.1) (10.8) (10.9) 6.5 21.0 37.0 30.9 10.9 22.2 31.2 24.2 16.5 % pts 1.2 (5.8) (6.7) 5.6 EBIT Margin Core PBT Margin Core Net Margin Tax Rate 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
19. TA Securities ECONOMIC REPORT Friday , March 24, 2017 FBMKLCI: 1,747.00 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Malaysian Economy BNM Annual Report 2016 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Shazma Juliana Abu Bakar Tel: +603-2617 9608 shazma@ta.com.my www.taonline.com.my Summary: • Bank Negara Malaysia (BNM) released its Annual Report 2016 yesterday. Key takeaways are as below: Real GDP is expected to grow by 4.3% to 4.8% in 2017, within our forecast of 4.5%, with risks remained to the downside. Domestic demand is expected to spur growth, but the pace of expansion is expected to be moderate at 4.4% this year. But, net exports is expected to rebound strongly at 5.3% after reporting a contraction in 2016. On the supply side, the central bank forecasts positive growth across sub-sectors led by resilient performance in the services and manufacturing sectors. Agriculture production is expected to rebound as crude palm oil yields to recover from the adverse impact of the ElNino. Current account balance to remain in surplus position of about 1% to 2% of gross national income (GNI). Gross exports are forecast to expand by 5.5% in 2016 supported by diversified trade structure as well as broad-based expansion in both E&E and non E&E exports. There were no changes on our fiscal policy direction amid challenging external and domestic conditions. Fiscal deficit is expected to remain at 3.0% of GDP in 2017 (2016: 3.1% of GDP) underpinned by sustained growth in revenue and a modest expansion in operating expenditure. We are in the same page with Bank Negara on inflation outlook – inflationary pressures are building up this year. BNM projects inflation rate to be higher, ranging between 3.0% to 4.0% in 2017 (2016: 2.1%). The forecast beats our projection of 2.7%, which is at the upper range of 2.0% to 3.0% of the Ministry of Finance’s target announced during Budget 2017 last year. Trend wise, higher inflation is expected to be in the first half of 2017 before subsiding in the second half. The increase in inflation was primarily due to the impact of higher global oil prices on local fuel costs. This implies that real policy rate (OPR) will be negative, which could prompt a tightening bias in the monetary policy. As such, we are changing our OPR forecast for this year – expecting a 25 basis point rate hike in the first half of 2017 to 3.25%. The next MPC meeting is on 12 May 2017. Recent measures undertaken by the central bank has not only helped stem the ringgit’s decline, but has gradually stabilised the currency. The ringgit is now at 4.43-4.42 versus the US dollar and to gradually improve to 4.30 to 4.40 for 2017, according to Bank Negara. Figure 1: Key Macroeconomics Projections Indicators 2016 BNM Annual Report 2016 2017E Economic Report 2016/17 4.0 - 5.0 4.5 14.8 0.5 - 1.5 2.0 – 3.0 -3.0 - 2.7 -3.0 4.20 – 4.30 Real GDP, % YoY 4.2 4.3 – 4.8 Current Account Balance RM bn 25.2 17.4 % of GNI 2.1 1.0 – 2.0 Consumer Prices, % YoY 2.3 3.0 – 4.0 Fiscal Balance, % of GDP -3.1 -3.0 Ringgit vs USD 4.144 4.30 – 4.40 Source; Bank Negara Annual Report 2016, Economic Report 2016/2017, TA Securities Page 1 of 6 TA
20. TA Securities 24-Mar-17 A Member of the TA Group Resilient Growth in 2017 The Malaysian economy is projected to register a sustained growth of 4 .3% to 4.8% this year, according to Bank Negara. The projection range is smaller than the Ministry of Finance’s (MOF) target of 4.0% to 5.0%, announced during the Budget 2017 last year, and broadly in line with our GDP projection of 4.5%. The Malaysian economy expanded by 4.2% YoY in 2016. Positive prospects for the Malaysian economy in 2017 are premised on an improving global economy, recovery in global commodity prices and the continued growth in domestic demand. Figure 2: Malaysia’s Real GDP (2011 – 2017E) % YoY 6.5 BNM forecast: 4.3% - 4.8% 6.0 6.0 5.5 5.3 5.5 5.0 5.0 4.7 4.5 4.5 4.2 4.0 3.5 3.0 2011 2012 2013 2014 2015 2016 2017f Source: Bank Negara, TA Securities Risks Skewed More towards the Downside The outlook for international economic and financial landscape is likely to remain challenging and will be a key factor that will influence the Malaysian economic prospects. Growth remains affected by growth prospects of its key trading partners, conditions in the financial markets and the state of investor and consumer confidence. We concur with the central bank that risks remained to the downside (rather than upside), mainly driven from the external side. While there are indications of more sustained growth in the major economies in 2017, downside risks to global growth continue to prevail, arising from the volatility in commodity prices, policy uncertainties and growth prospects of the major developed economies (such as monetary policy divergence between the US and other major economies), heightened risk aversions in the global financial markets as well as geopolitical developments. There is also the risk of protectionist policies in the US that could derail the recovery in global trade, which may jeopardize our trade outlook going forward. In addition, the uncertainty over the length and outcome of the UK and EU negotiations may also negatively affect business sentiments, trade activity and investments. Domestic Demand to Spearhead Growth, Net Exports to Rebound Domestic demand will continue to be as the main driver of growth at 4.4% in 2017 (the same rate as in 2016), underpinned primarily by private sector activity. Meanwhile, net exports is expected to rebound to 5.3% in 2017, a turnaround from 1.8% contraction in 2016, in line with gradual improvement in global growth and trade. Private consumption growth is expected to be sustained at 6.0% in 2017 driven by continued wage growth, a stable labour market, increase in disposable income following various government measures (such as higher BR1M amount, higher minimum wage since July last year, temporary reduction in EPF employee’s contribution by 3% until end of this year) as well as improving global commodity prices. These positive factors have yet to lead improving MIER’s consumer sentiment index (CSI), which has decreased further to 69.8 points in 4Q16 (3Q16: 73.6 points). We expect private consumption to be stronger at 6.6% level this year. Indeed, household Page 2 of 6
21. TA Securities 24-Mar-17 A Member of the TA Group debt has sustained its moderating growth , with the total annual growth of 5.4% in 2016 (2015: +7.3%). At a proportion of GDP, household debt dropped to 88.4% down from 89.1% in 2015. Meanwhile, private investment is projected to register a modest growth of 4.1% in 2017 (2016: 4.4%), as firms are expected to remain cautious amidst continued uncertainty in the economic environment. This has been reflected by weakening business sentiment index, which dived below the 100-point threshold for the second consecutive quarter to settle at 81.2 points in 4Q16 (3Q16: 83.9). But, there is a sense of optimism going forward, as suggested by higher new orders. Nevertheless, private investment will remain supported by implementation of on-going and new projects, particularly in the services and manufacturing sectors. On the public sector, total expenditure is expected to remain moderate at 0.5% in 2017 (2016: 0.4%). Private consumption growth is expected to register a marginal contraction of 0.2% this year in tandem with the government’s commitment to more prudent spending with reprioritize spending and reduce non-critical expenditure continues. On the other hand, public investment is projected to turn around to register a positive growth of 1.5% this year (2016: -0.5% YoY) driven by higher capital expenditure by both the government and public corporations. This reflects the continued implementation of key infrastructure projects in diversified sectors, including the in the utilities and transportation sub-sectors as well as the downstream oil and gas sector. Figure 3: Real GDP by Expenditure (2014 – 2017F) Demand Government Consumption Private Consumption Public Investment Private Investment Net Exports Exports Imports Real GDP 2014 4.3 7.0 -4.7 11.1 13.2 5.0 4.0 6.0 2015 4.4 6.0 -1.0 6.4 -3.8 0.6 1.2 5.0 TA forecast Economic Report 2016/2017 BNM Annual Report 2016 2017f 1.6 6.6 1.1 5.9 2.1 2.9 4.5 2017f 0.4 6.3 1.1 5.8 2.5 2.6 4.0-5.0 2017f -0.2 6.0 1.5 4.1 5.3 2.2 1.8 4.3 - 4.8 2016 1.0 6.1 -0.5 4.4 -1.8 0.1 0.4 4.2 Source; Bank Negara Annual Report 2016, Economic Report 2016/2017, TA Securities Broad-based Expansion Across Sector By supply side, the central bank forecasts positive growth across sub-sectors. The services sector continued to remain as the key driver of growth, although it expected to expand moderately at 4.9% YoY (2016: 5.6% YoY) following a slowdown in the finance and insurance sub-sector in tandem with moderate loan growth. Growth will be supported by steady domestic consumption and stronger tourism activities spurred by measures to attract higher tourist arrivals as well as boosting domestic tourism. That projection was in contrast with the MOF’s projection as per Economic Report 2016/2017, where the services sector is expected to improve to 5.7%. With respect to the manufacturing, the sector is envisaged to record sustained expansion at 4.3% in 2017 (2016: 4.4%). Growth will be driven largely by the export-oriented industries, particularly in the electronics segment, reflecting a recovery in the semiconductors. On the domestic front, growth will be supported by resilient consumer spending on food products and firm growth in the construction-related cluster, despite subdued demand for motor vehicles. Agriculture production is expected to rebound as crude palm oil yields to recover from the adverse impact of the El-Nino. Meanwhile, the mining sector is expected to remain steady at 2.7% in 2017, the same rate as in 2016, supported by higher output of natural gas despite lower production of crude oil production. Activities in the construction sector is expected to remain robust (2017E: 8.0%). Growth will be mostly be supported by new and existing civil engineering projects in the utilities, transportation and petrochemical segments. Page 3 of 6
22. TA Securities 24-Mar-17 A Member of the TA Group Figure 4 : Real GDP by Supply Side (2014 – 2017F) Supply Agriculture Mining Manufacturing Construction Services Real GDP 2014 2.1 3.5 6.2 11.7 6.6 6.0 2015 1.2 4.7 4.9 8.2 5.1 5.0 TA forecast Economic Report 2016/2017 BNM Annual Report 2016 2017f 0.5 1.2 4.7 8.1 5.3 4.5 2017f 1.5 1.4 4.1 8.3 5.7 4.0-5.0 2017f 4.0 2.7 4.3 8.0 4.9 4.3 - 4.8 2016 -5.1 2.7 4.4 7.4 5.6 4.2 Source; Bank Negara Annual Report 2016, Economic Report 2016/2017, TA Securities Current Account Balance to Narrow but Remain in Surplus As for the current account of the balance of payments, BNM said it was projected to remain in a surplus position albeit at a lesser pace than in 2016. Current account position is expected to register a surplus of RM17.4bn, or 1% to 2% of Gross National Income (GNI). This is compared to RM25.2bn surplus in 2016, or equivalent to 2.1% last year. As the largest components of the current account, developments in trade will significantly influence the current account position. Both exports and imports are expected to strengthen this year, underpinned by the projected improvements in global growth, commodity prices and sustained domestic demand. However, import growth is expected to continue to outpace export growth given the firm domestic demand. Gross nominal exports (including goods and services) are forecast to expand by 5.5% in 2017 (2016: 1.1% YoY) supported by diversified trade structure as well as broad-based expansion in both E&E and non E&E exports. Meanwhile, while gross nominal imports (including goods and services is expected to strengthen by 6.4% (2016: 1.9% YoY). Fiscal Consolidation to Continue There were no changes on our fiscal policy direction amid challenging external and domestic conditions. Fiscal deficit is expected to remain at 3.0% of GDP in 2017 (2016: -3.1% of GDP) underpinned by sustained growth in revenue and a modest expansion in operating expenditure. Fiscal policy in 2017 will focus on further strengthening of the government’s fiscal position, while ensuring continued support for domestic growth and promoting economic inclusiveness. Fiscal resources have been strategically prioritized towards high impact infrastructure projects and programmes for capacity building. Higher Inflation Due to Cost Push Factors We are in the same page with Bank Negara on inflation outlook – inflationary pressures are building up this year. BNM projects inflation rate to be higher, ranging between 3.0% to 4.0% in 2017 (2016: 2.1%). The forecast beats our projection of 2.7%, which is at the upper range of 2.0% to 3.0% of the Ministry of Finance’s target announced during Budget 2017 last year. Trendwise, higher inflation is expected to be in the first half of 2017 before subsiding in the second half. February’s consumer prices (CPI) is expected to register 3.8% YoY in February 2017, up from an already high reading of 3.2% YoY in January 2017. The Statistics Department will announce the Feb consumer prices data today. The increase in inflation was primarily due to the impact of higher global oil prices on local fuel costs. Despite unchanged retail pump prices for RON 97 and RON 95 in March 2017 at RM2.60 per liter and RM2.30 respectively, it was still higher than March last year. The difference was 65 sen for RON 97; 70 sen for RON 95; and 85 sen higher for diesel. Under Transport subsector, fuel & lubricants contributes about 7.8% of total CPI basket. On average, the pump price of RON95 petrol was higher at RM2.23 per liter in 1Q17, significantly above the average price of RM1.76 per liter recorded in 2016. Low base effect, coupled with high share of fuel expenditure in the consumption basket of Malaysian households, will have a noticeable effect on overall inflation this year. Page 4 of 6 d o m e s
23. TA Securities 24-Mar-17 A Member of the TA Group Figure 5 : Annual Consumer Prices (2010 –2017E) % YoY 4.5% 4.0% 4.0% 3.5% 3.0% 3.0% 2.5% 2.1% 2.0% 1.5% 1.0% 0.5% 0.0% 2010 2011 2012 2013 2014 2015 2016 2017f Source: Department of Statistics, TA Securities Brent crude oil is expected to increase to be between USD50 to USD60 per barrel, according to Bank Negara, which is still within our forecast of USD55 to USD50 per barrel. During the Q&A session, Deputy Governor Dr Sukudhew (Sukhdave) Singh commented that there is a possibility of inflation rate to go beyond 4.0% level, especially if global crude oil price to be beyond than projection. The weakening of Ringgit, which has dropped by 7% against the US dollar in the past 6 months, also contributed to faster inflation this year. In addition, the strength of growth in both Malaysia and its trading partners can create upward pressures on domestic inflation, although the pass through impact will be mitigated by the fact that domestic production and consumption contain relatively modest content. Imported finished consumer goods excluding fuel only account for 7.2% of the CPI basket while imported intermediate inputs accounts for 20% of the gross output, according to BNM. These cost-push factors, however, are not expected to cause significant spillovers to broader price trends, given the stable domestic demand conditions. Core inflation is, therefore, expected to increase modestly. With the absence of strong enabling demand conditions, firms’ willingness and ability to pass on increases in costs to consumers are expected to be more limited. Domestic sources of inflationary pressures are also expected to be contained. OPR to Increase? The new inflation projection range of 3.0% to 4.0% implies that real policy rate (OPR) will be negative, which could prompt a tightening bias in the monetary policy. In the last MPC meeting, Bank Negara held its policy rate steady at 3.00%. As such, we are changing our OPR forecast for this year – expecting a 25 basis point rate hike in the first half of 2017 to 3.25%. We preciously predict OPR to maintain at 3.00% throughout the year. Supporting our view is economic growth is expected to improve due to better performance of the external sector, challenged by higher inflation as well as volatile capital flows amid an on-going US Fed tightening cycle. BNM continued to pledge to focus on ensuring monetary conditions remain supportive of the sustainable growth of the domestic economy and price stability. Monetary policy will also continue to consider the risk of destabilizing financing imbalances, although these have largely remained contained. Given the expectation of periods of volatility in capital flows, BNM’s monetary operations will continue to ensure that domestic liquidity in the financial system will remain sufficient to support the orderly functioning of the domestic financial markets. The next MPC meeting is on 12 May 2017. Page 5 of 6
24. TA Securities 24-Mar-17 A Member of the TA Group Ringgit to Stabilise The impact of measures announced in early December 2016 has been significant and the ringgit has been very stable the last two months and the volatility has improved . Among the significant measures introduced on 2nd December 2016 was to ask exporters to convert 75% of their export proceeds into ringgit. Conversion of exports proceeds, year to date, stood at RM2bn compared with -RM500,000 in 2016 and -RM8.4bn in 2015. The Ringgit has hit a near 19-year low of 4.496 on 4th January, though so far in 2017 it was strengthened 1.5% against the dollar. During the Q&A session, Dr Sukhdave said the ringgit is to gradually improve to 4.30 to 4.40 for 2017. Following the tightening path in the US monetary, we do not foresee Ringgit to deteriorate significantly as markets have factored in another 3 rate hike this year. Future weakness from the potential additional hike in the fed fund rate could be shielded by improving economic fundamentals, especially exports. We currently maintain our Ringgit forecast at 4.25. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD(14948-M) (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 6 of 6
25. Friday , 24 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
26. T e c h n i c a l TA Securities V i e w Friday , March 24, 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: 1,747.00 (-1.30, -0.07%) 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 23-Mar 1747.00 2.90 4.07 4.90 5.00 5.60 5.14 5.25 9.69 5.45 5.99 4.69 1.17 6.37 9.00 1.23 5.30 9.50 13.72 6.35 3.99 2.88 0.40 0.75 0.45 4.30 1.71 1.51 1.28 1.69 2.60 2.19 1.25 1.02 1.68 1.52 1.87 1.79 1.30 0.89 1.86 Change (1.30) 0.00 -0.02 0.00 -0.06 0.00 0.01 0.10 -0.06 -0.05 -0.01 -0.08 0.00 -0.06 0.06 -0.01 -0.08 0.24 0.00 -0.01 -0.01 0.07 -0.01 -0.01 -0.01 -0.02 0.01 0.01 0.03 -0.01 0.00 0.00 0.01 0.00 0.06 -0.01 -0.01 0.03 0.01 -0.01 0.03 Tel: +603-2167-9607 High Low 1,753.76 1,747.00 2.91 4.11 4.94 5.09 5.70 5.17 5.31 9.75 5.55 6.01 4.77 1.19 6.45 9.04 1.25 5.38 9.55 13.74 6.40 4.05 2.91 0.41 0.76 0.46 4.32 1.72 1.52 1.28 1.70 2.64 2.20 1.25 1.04 1.70 1.52 1.88 1.80 1.31 0.89 1.87 2.88 4.07 4.89 5.00 5.60 5.13 5.11 9.66 5.44 5.97 4.68 1.17 6.37 8.95 1.22 5.28 9.28 13.64 6.33 3.99 2.81 0.40 0.75 0.45 4.28 1.69 1.50 1.25 1.68 2.59 2.19 1.24 1.00 1.62 1.51 1.86 1.74 1.29 0.89 1.84 Bollinger Bands Lower Mid Upper 1,686.03 1,723.39 1,760.74 2.48 3.83 4.62 4.28 4.93 4.98 4.82 8.89 5.10 5.82 4.63 1.15 6.28 8.55 1.11 4.86 8.93 13.50 6.11 3.83 2.59 0.39 0.69 0.43 4.10 1.62 1.46 1.07 1.66 0.66 2.09 1.20 0.78 1.37 1.48 1.77 1.68 1.10 0.85 1.82 2.78 4.01 4.85 4.72 5.37 5.08 5.02 9.44 5.36 5.95 4.70 1.18 6.37 8.79 1.18 5.15 9.17 13.67 6.28 3.95 2.79 0.40 0.73 0.45 4.21 1.67 1.51 1.21 1.70 1.99 2.21 1.26 0.90 1.51 1.54 1.91 1.73 1.21 0.87 1.86 3.08 4.19 5.08 5.16 5.81 5.19 5.22 9.99 5.62 6.07 4.78 1.22 6.46 9.03 1.25 5.43 9.42 13.84 6.45 4.07 2.98 0.41 0.76 0.47 4.32 1.72 1.55 1.36 1.74 3.33 2.34 1.32 1.02 1.65 1.60 2.04 1.78 1.32 0.90 1.91 stsoo@ta.com.my RSI Moving Averages 14d 10d 30d 50d 67.01 1,736.11 1,718.09 1,701.43 DMI DI + DI - ADX 42.58 17.34 41.25 Diff 25.23 78.34 58.23 62.64 60.53 70.32 61.54 75.26 66.92 56.98 47.05 51.74 35.65 52.03 69.30 67.14 63.54 72.05 54.29 59.51 49.52 59.46 43.25 59.69 47.76 60.37 67.15 52.08 66.29 49.10 80.37 48.89 45.33 71.88 76.60 40.65 49.52 64.10 74.39 54.02 49.46 32.47 26.33 27.35 32.14 40.86 20.76 32.38 31.87 28.04 18.26 22.31 15.17 16.27 30.93 27.20 26.42 33.07 12.21 22.63 18.08 27.15 22.17 26.80 24.48 24.26 30.91 22.65 30.45 22.16 42.41 21.41 20.60 43.92 41.32 18.27 19.86 22.06 33.50 26.33 13.99 23.02 14.13 11.46 13.09 28.76 2.59 19.57 25.30 15.43 (1.82) 8.17 (5.81) (2.07) 15.93 18.24 11.65 14.49 (10.33) 13.09 (4.73) 9.46 9.94 9.61 12.49 20.55 20.55 8.50 18.56 (2.39) 27.69 0.18 (8.78) 32.22 35.44 (6.35) (8.29) 12.45 26.92 10.95 (11.75) 2.87 4.06 4.88 4.88 5.53 5.13 5.09 9.67 5.43 5.96 4.69 1.18 6.39 8.88 1.20 5.25 9.25 13.73 6.35 3.92 2.87 0.40 0.73 0.45 4.22 1.67 1.51 1.27 1.70 2.64 2.19 1.25 0.94 1.56 1.53 1.86 1.75 1.25 0.88 1.85 2.69 3.98 4.76 4.78 5.29 5.08 5.00 9.22 5.28 6.04 4.68 1.21 6.39 8.66 1.17 5.13 9.16 13.63 6.24 4.00 2.75 0.40 0.72 0.45 4.21 1.64 1.51 1.17 1.70 1.70 2.20 1.29 0.90 1.50 1.58 1.90 1.74 1.19 0.88 1.88 2.59 3.90 4.66 4.79 5.13 5.03 4.96 8.85 5.11 6.15 4.61 1.25 6.27 8.49 1.13 5.05 8.99 13.67 6.17 4.09 2.65 0.40 0.68 0.45 4.17 1.60 1.46 1.13 1.68 1.38 2.17 1.30 0.89 1.47 1.60 1.83 1.72 1.16 0.87 1.86 9.45 12.20 15.89 19.04 12.10 18.17 12.81 6.57 12.61 20.08 14.14 20.98 18.34 15.00 8.97 14.77 18.58 22.54 9.54 22.81 17.69 12.23 17.27 14.87 11.77 10.36 14.15 11.89 24.55 14.71 21.23 29.39 11.70 5.88 24.61 28.15 9.60 6.58 15.38 25.74 51.94 35.30 35.57 22.73 42.00 14.38 20.94 64.31 44.26 17.46 20.56 22.73 16.41 36.47 37.12 26.18 21.14 20.65 26.56 50.43 23.21 19.51 20.34 23.74 18.51 43.62 33.43 47.63 13.08 59.56 21.89 16.59 29.34 46.00 24.91 26.39 25.51 44.30 18.31 20.51 www.taonline.com.my Line 14.11 0.10 0.06 0.07 0.07 0.15 0.03 0.07 0.28 0.12 -0.04 0.03 0.01 0.03 0.14 0.03 0.08 0.10 0.03 0.06 -0.04 0.06 0.00 0.01 0.00 0.03 0.03 0.01 0.05 0.01 0.42 0.00 -0.02 0.03 0.04 -0.02 0.01 0.01 0.04 0.00 0.00 MACD Signal Diff 12.29 1.823 0.10 0.05 0.08 0.03 0.14 0.03 0.04 0.28 0.11 -0.06 0.03 0.01 0.04 0.14 0.02 0.07 0.09 0.02 0.06 -0.06 0.07 0.00 0.01 0.00 0.02 0.02 0.01 0.05 0.01 0.38 0.01 -0.02 0.01 0.03 -0.02 0.02 0.01 0.03 0.00 0.00 (0.001) 0.003 (0.009) 0.047 0.014 0.002 0.021 (0.000) 0.002 0.021 (0.004) (0.003) (0.010) 0.005 0.005 0.014 0.015 0.007 0.003 0.017 (0.004) (0.001) 0.001 (0.000) 0.010 0.001 (0.003) 0.001 (0.002) 0.038 (0.007) 0.001 0.014 0.016 0.000 (0.011) 0.005 0.008 0.001 (0.002) DMI MACD Recent Signal BUY BUY DMI MACD Signal Change - BUY BUY BUY BUY BUY BUY 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 BUY - SELL BUY SELL BUY BUY BUY BUY SELL BUY BUY SELL SELL SELL BUY BUY BUY BUY BUY BUY BUY SELL SELL BUY SELL BUY BUY SELL BUY SELL BUY SELL BUY BUY BUY BUY SELL BUY BUY BUY SELL SELL SELL 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
27. Technical Comments : The oversold daily stochastics momentum on Malakoff supports rebound upside towards RM1.26 to the 23.6%FR (RM1.30), with a confirmed breakout to aim for the 38.2%FR (RM1.39) and 50%FR (RM1.47) ahead. Crucial support rests at the 27/2/17 low (RM1.14). Meanwhile, any dips on Westports will be attractive to bargain for longer-term upside towards the 50%FR (RM4.10), 61.8%FR (RM4.22) and 76.4%FR (RM4.36) going forward, while good retracement support is found at the 23.6%FR (RM3.85). MALAKOFF Upper Middle RM1.17 (UNCH) BOLLINGER BANDS RM RM 1.22 1.18 10-day 30-day RM 1.15 50-day Lower DMI Recent Signal SELL 1.25 Recent Signal BUY Signal Change WESTPORTS Recent Signal Signal Change RM DAILY MACD Signal Change Upper Middle Lower SIMPLE MOVING AVERAGES RM 1.18 RM 1.21 BOLLINGER BANDS RM RM RM DMI RM3.99 (-0.01) 4.07 3.95 3.83 SELL SIMPLE MOVING AVERAGES RM 3.92 RM 4.00 RM 4.09 DAILY MACD Recent Signal BUY Signal Change 10-day 30-day 50-day Page 2 of 4
28. T e c h n i c a l TA Securities V i e w Friday , March 24, 2017 FBMKLCI: 1,747.00 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 23.03.2017 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 BORNEO OIL BHD LUSTER INDUSTRIE OLYMPIA INDS BHD PWORTH PUC FOUNDER MSC FRONTKEN CORP HO WAH GENTING CIMB GROUP HOLDI GENTING MALAYSIA PERISAI PETROLEU BIO OSMO BHD NOVA MSC BHD MALAYAN BANKING MQ TECHNOLOGY BH JOHAN HLDGS BHD IJM CORP BHD MY EG SERVICES RGB INTERNATIONA MALAYSIAN RES CO IRIS CORP BHD PRESS METAL BHD MINETECH RESOURC CENSOF HOLDINGS NEXTNATION COMM FELDA GLOBAL VEN DIALOG GROUP BHD SERSOL BHD PLASTRADE TECHNO AIRASIA BHD GHL SYSTEMS BHD Price 0.18 0.12 0.17 0.20 0.13 0.25 0.06 5.60 5.45 0.07 0.09 0.09 9.00 0.06 0.20 3.50 1.87 0.29 1.68 0.16 2.57 0.15 0.32 0.05 2.04 1.71 0.19 0.30 2.88 1.18 RSI Bollinger Band Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 0.16 0.07 0.06 0.08 0.06 0.21 0.05 4.93 5.10 0.06 0.04 0.08 8.55 0.04 0.15 3.31 1.62 0.27 1.37 0.10 2.34 0.09 0.29 0.04 1.72 1.62 0.15 0.15 2.59 0.99 0.17 0.10 0.12 0.16 0.11 0.24 0.06 5.37 5.36 0.07 0.07 0.09 8.79 0.05 0.19 3.41 1.79 0.28 1.51 0.13 2.52 0.12 0.32 0.04 1.90 1.67 0.17 0.23 2.79 1.09 0.19 0.13 0.18 0.24 0.15 0.27 0.07 5.81 5.62 0.07 0.10 0.09 9.03 0.06 0.23 3.51 1.96 0.30 1.65 0.16 2.70 0.15 0.34 0.05 2.08 1.72 0.18 0.31 2.98 1.19 56.31 67.22 67.42 68.62 62.54 57.25 49.89 70.32 56.97 50.65 63.95 52.50 69.30 56.97 53.79 62.00 66.07 45.93 76.60 70.96 61.40 85.56 58.92 61.02 64.42 67.15 67.62 74.90 59.46 67.65 0.18 0.11 0.14 0.19 0.12 0.25 0.06 5.53 5.43 0.07 0.08 0.09 8.88 0.05 0.21 3.44 1.85 0.29 1.56 0.14 2.49 0.13 0.32 0.04 1.96 1.67 0.17 0.27 2.87 1.12 0.17 0.10 0.12 0.14 0.10 0.23 0.06 5.29 5.28 0.07 0.07 0.09 8.66 0.05 0.19 3.42 1.73 0.30 1.50 0.13 2.46 0.11 0.29 0.04 1.88 1.64 0.17 0.22 2.75 1.05 0.17 0.09 0.11 0.13 0.09 0.21 0.06 5.13 5.11 0.07 0.07 0.09 8.49 0.05 0.18 3.40 1.68 0.30 1.47 0.13 2.27 0.11 0.26 0.04 1.84 1.60 0.16 0.19 2.65 1.00 Vol 81,126,800 50,152,200 47,211,100 39,355,100 34,204,900 32,759,100 25,588,300 24,000,000 23,228,500 21,805,900 17,713,600 16,963,600 16,531,600 15,848,900 15,742,600 14,812,600 14,581,700 14,190,100 14,164,700 13,994,000 13,279,700 13,014,800 12,913,300 12,836,100 12,729,900 12,620,400 12,595,700 12,023,200 11,022,400 10,786,500 20-day avg vol 74,174,890 27,830,630 29,148,080 68,255,100 29,555,340 31,739,980 18,880,460 21,680,140 9,826,780 8,180,870 12,863,930 2,756,385 17,295,390 11,678,320 9,120,070 7,458,210 17,430,060 17,617,220 6,548,530 16,059,460 10,562,100 9,297,055 16,130,140 10,234,700 15,893,830 16,766,280 1,679,160 3,394,095 14,730,660 2,536,750 Raw data sourced from Bloomberg *Note: To qualify in this list above, the first sorting criteria is stock price must have just climbed or stayed ABOVE the middle Bollinger Band, followed by a second criteria that trading volume for the day must be significantly strong. This is a good watch list for momentum traders looking for short-term BUY ideas, as they are laggards with good upside potential towards the upper Bollinger band or higher to TAKE PROFIT/SELL. Caveat: Some stocks may continue to stay range bound and trade sideways, hence traders should refer to their respective charts to spot accumulation (volume growth) or breakout patterns. INTERPRETATION OF TECHNICAL INDICATORS: Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The mediumterm trend is positive if share price stays above the 30-day, and negative if it remains below this average. 14-day RSI: A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-day SMA should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day SMA is bearish and imply further near-term downside risk. Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders will buy on price breaks above the upper band, and sell when price breaks below the lower band. Alternatively, a sharp move that originates at one band tends to go all the way to the other band, a useful observation when projecting price targets. Page 1 of 2
29. TA Securities A Member of the TA Group *Note: To qualify in the breakout list below, the first sorting criteria is stock price must close ABOVE the upper Bollinger Band, followed by a second criteria that trading volume for the day must be significantly higher than the 20-day average volume, which signal a bullish breakout. Caveat: We would caution momentum traders that a highly overbought 14-day RSI reading (> 80) and share price pullback BELOW the upper Bollinger Band are early warning signals to exit buy breakout trades. [UPPER BOLLINGER BREAKOUT] Top 20 Breakout Stocks (Generally BULLISH, but can be short-term TAKE PROFIT/SELL guide) No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Stock Name Price EFFICIENT E-SOLU ASIA BRANDS BHD DIVERSIFIED GATE CUSCAPI BHD GREEN PACKET BHD SUPERCOMNET TECH FARM'S BEST BHD CCM DUOPHARMA SYSTECH BHD SERSOL BHD MNC WIRELESS BHD KINSTEEL BHD KARYON INDUS BHD MPAY GPA HOLDINGS BHD PRIVASIA TECHNOL FARLIM GROUP DAYA MATERIALS PLABS 0.50 1.11 0.07 0.32 0.36 0.17 0.80 2.40 0.29 0.19 0.07 0.06 0.27 0.28 0.12 0.19 0.59 0.09 0.28 0.75 FIBON BHD Raw data sourced from Bloomberg 20 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 0.15 0.84 0.03 0.16 0.25 0.12 0.70 2.13 0.23 0.15 0.06 0.03 0.22 0.19 0.09 0.14 0.48 0.06 0.23 0.67 0.27 0.97 0.04 0.22 0.29 0.14 0.75 2.22 0.25 0.17 0.06 0.04 0.24 0.23 0.10 0.16 0.52 0.07 0.25 0.70 0.38 1.10 0.06 0.28 0.33 0.16 0.80 2.31 0.28 0.18 0.07 0.05 0.26 0.27 0.11 0.19 0.56 0.09 0.27 91.04 72.17 79.49 76.25 80.59 68.97 64.56 78.99 65.99 67.62 62.40 72.92 71.70 72.06 66.98 62.07 74.54 65.64 66.86 62.53 0.28 0.96 0.05 0.24 0.31 0.14 0.76 2.24 0.26 0.17 0.06 0.05 0.25 0.24 0.10 0.17 0.53 0.07 0.26 0.70 0.26 0.98 0.04 0.22 0.28 0.14 0.76 2.22 0.25 0.17 0.06 0.04 0.24 0.23 0.10 0.17 0.53 0.07 0.25 0.72 0.26 0.98 0.04 0.20 0.27 0.14 0.73 2.15 0.25 0.16 0.06 0.04 0.22 0.22 0.10 0.18 0.52 0.07 0.25 0.69 0.74 Vol 208,037,500 33,500 69,284,700 93,917,400 141,968,900 22,669,800 1,156,900 609,800 38,851,400 12,595,700 68,125,600 27,703,200 32,285,000 91,284,100 9,585,200 19,176,700 1,273,600 62,940,400 4,798,800 2,470,100 20-day avg vol 11,350,960 2,490 5,552,120 8,564,785 15,617,840 2,731,285 140,270 76,245 5,126,725 1,679,160 9,997,225 4,278,250 5,053,960 14,884,640 1,626,270 3,626,740 241,765 12,298,990 997,095 514,215 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 10 Breakdown Stocks (Generally BEARISH, but can be short-term BUY guide) No 1 2 3 4 5 6 7 8 9 10 Stock Name Price LINGKARAN TRANS ENG KAH CORP BHD HONG LEONG INDS IMASPRO CORP BHD SCC LII HEN IND BHD COMPUTER FORMS HB GLOBAL LTD FIMA CORP BHD KOBAY TECHNOLOGY 5.75 1.43 9.41 1.95 1.70 3.17 1.05 0.06 2.20 0.87 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 5.80 1.45 9.43 1.97 1.71 3.17 1.05 0.06 2.20 0.87 5.91 1.55 9.51 2.02 1.75 3.25 1.11 0.08 2.23 0.89 6.03 1.65 9.59 2.07 1.78 3.32 1.16 0.09 2.26 0.91 34.64 29.76 39.69 29.39 41.03 42.24 30.53 41.52 42.69 38.90 5.90 1.52 9.49 2.00 1.74 3.22 1.09 0.07 2.22 0.88 5.91 1.58 9.52 2.02 1.73 3.24 1.12 0.08 2.24 0.90 5.89 1.63 9.53 2.03 1.73 3.19 1.17 0.07 2.19 0.91 Vol 622,600 800 14,800 100,000 10,000 1,209,200 2,500 75,400 12,500 42,800 20-day avg vol 417,975 3,520 28,450 21,720 12,140 806,530 875 215,510 27,375 33,410 11 12 13 14 15 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
30. Friday , 24 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
31. T e c h n i c a l TA Securities V i e w Friday , March 24, 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: 5,707.95 (+23.44, +0.41%) 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 23-Mar Lower Mid Upper 14d 10d 30d 50d DI + DI - ADX Diff Line Signal Diff Recent Signal Signal Change 5707.95 23.44 5708.00 5684.50 5689.13 5749.63 5810.14 44.20 5759.75 5761.21 5724.01 20.58 26.27 19.25 (5.69) 3.76 12.61 (8.847) SELL SELL 24.19 0.27 24.34 24.11 23.42 24.72 26.02 41.85 24.30 25.29 25.81 28.12 38.31 15.40 (10.19) -0.42 -0.42 (0.000) SELL SELL - SELL 60.00 0.00 61.10 59.99 58.72 61.30 63.88 40.79 60.76 63.53 64.05 25.69 38.06 22.07 (12.36) -0.98 -0.99 0.015 SELL BUY 82.95 0.24 82.95 82.31 82.04 83.66 85.28 44.23 84.19 83.86 83.30 18.39 26.52 13.75 (8.12) 0.14 0.28 (0.148) SELL SELL 33.44 -0.05 33.49 33.26 33.32 34.33 35.34 41.18 34.47 34.08 33.34 19.15 33.00 22.92 (13.85) 0.17 0.37 (0.198) SELL SELL 30.77 0.01 30.86 30.65 30.59 31.38 32.17 44.27 31.54 31.03 30.48 18.50 22.48 24.67 (3.98) 0.20 0.35 (0.146) SELL SELL 31.76 0.05 31.76 31.53 31.47 32.33 33.20 44.97 32.40 32.08 31.47 17.86 27.32 26.20 (9.47) 0.14 0.30 (0.163) SELL SELL 43.40 0.11 43.49 43.01 42.39 43.50 44.62 51.97 43.94 43.22 42.35 18.76 18.91 23.67 (0.15) 0.37 0.48 (0.106) SELL SELL SELL 30.83 0.15 30.90 30.60 30.45 31.11 31.76 43.73 31.07 31.29 31.55 15.15 28.18 21.71 (13.02) -0.13 -0.13 0.000 SELL BUY 22.55 0.03 22.55 22.21 20.55 21.90 23.25 58.40 22.00 22.21 22.14 29.47 24.90 13.65 4.57 0.06 -0.04 0.100 BUY BUY 8.52 0.01 8.54 8.46 8.39 8.65 8.91 37.77 8.54 8.77 8.86 12.43 26.78 30.57 (14.35) -0.11 -0.11 0.001 SELL BUY - BUY 6.26 -0.01 6.41 6.25 6.06 6.47 6.89 43.14 6.44 6.62 6.54 21.83 32.40 15.68 (10.57) -0.04 -0.03 (0.013) SELL SELL - SELL 12.57 0.02 12.65 12.53 12.22 12.70 13.18 47.12 12.81 12.68 12.54 27.47 25.14 16.12 2.33 0.07 0.10 (0.028) BUY SELL 6.72 0.14 6.74 6.57 6.24 6.51 6.79 52.89 6.59 6.70 6.88 32.32 24.83 16.96 7.49 -0.04 -0.09 0.042 BUY BUY 4.95 0.01 4.95 4.90 4.83 4.97 5.11 45.26 5.00 5.03 5.05 16.24 24.74 15.87 (8.50) -0.02 -0.02 (0.000) SELL SELL - SELL 3.66 0.05 3.68 3.61 3.49 3.68 3.86 44.89 3.64 3.77 3.87 20.34 28.88 25.40 (8.54) -0.06 -0.08 0.014 SELL BUY 86.85 0.41 87.29 86.52 85.77 87.77 89.76 46.24 88.42 87.43 86.27 16.53 24.96 14.79 (8.43) 0.39 0.62 (0.230) SELL SELL 12.94 0.00 12.96 12.88 12.99 13.30 13.60 35.58 13.23 13.34 13.30 15.19 31.38 14.97 (16.18) -0.07 -0.02 (0.049) SELL SELL 17.66 0.27 17.75 17.35 17.08 18.28 19.49 41.35 17.79 18.37 18.46 15.88 30.11 22.63 (14.23) -0.24 -0.16 (0.089) SELL SELL 6.98 0.15 7.00 6.81 6.75 6.95 7.16 50.92 6.88 7.01 7.03 20.67 24.97 19.67 (4.29) -0.04 -0.04 0.003 SELL BUY - BUY 10.44 0.09 10.52 10.32 10.16 10.38 10.60 55.84 10.41 10.29 10.12 29.66 17.90 18.11 11.77 0.07 0.09 (0.017) BUY SELL 14.66 0.11 14.68 14.59 13.99 14.34 14.68 58.17 14.48 14.48 14.50 22.72 20.48 12.59 2.23 0.03 -0.02 0.052 BUY BUY BUY 4.51 -0.01 4.53 4.49 4.40 4.61 4.81 44.68 4.51 4.59 4.51 16.61 19.38 17.95 (2.77) -0.01 0.00 (0.018) SELL SELL 1.79 0.04 1.79 1.73 1.74 1.85 1.97 40.95 1.81 1.89 1.89 20.52 29.12 15.49 (8.59) -0.03 -0.02 (0.012) SELL SELL 13.62 0.12 13.81 13.57 13.36 13.78 14.21 48.93 13.90 13.69 13.29 20.68 22.54 27.22 (1.86) 0.13 0.20 (0.075) SELL SELL 3.86 0.04 3.86 3.81 3.67 3.78 3.88 65.33 3.82 3.68 3.58 23.25 15.24 26.88 8.01 0.08 0.08 (0.005) BUY SELL 12.46 0.13 12.64 12.28 12.14 12.64 13.14 48.75 12.52 12.58 12.30 26.09 22.34 21.15 3.75 0.04 0.08 (0.038) BUY SELL BUY - The table below consists of the top 30 ASX 200 Index component stocks, weighted by market capitalization in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. Stock names and technical statistics in bold highlight stocks that have changes in BUY/SELL signals on the DMI and MACD on the given date. Page 1 of 2
32. TA Securities A Member of the TA Group INTERPRETATION OF TECHNICAL INDICATORS : Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Fundamentals of Foreign Technical Picks Bloomberg Ticker Stock Name BHP AU BHP BILLITON LTD RIO AU RIO TINTO LTD CBA AU COMMONW BK AUSTR WBC AU WESTPAC BANKING ANZ AU AUST AND NZ BANK NAB AU NATL AUST BANK WES AU WESFARMERS LTD WPL AU WOODSIDE PETRO NCM AU NEWCREST MINING WFD AU WESTFIELD GROUP FMG AU FORTESCUE METALS QBE AU QBE INSURANCE ORG AU ORIGIN ENERGY AMP AU AMP LTD STO AU SANTOS LTD MQG AU MACQUARIE GROUP SUN AU SUNCORP GROUP LT ORI AU ORICA LTD OSH AU OIL SEARCH LTD CCL AU COCA-COLA AMATIL AMC AU AMCOR LTD SGP AU STOCKLAND AWC AU ALUMINA LTD CPU AU COMPUTERSHARE LT QAN AU QANTAS AIRWAYS SGM AU SIMS METAL MGMT EPS ($) PER(x) Div Yield(%) 52week Price % Chg Close Target Price % upside 24.19 28.37 15% 60.00 71.60 16% 4.41 3.21 10.4 14.3 4.377 3.280 69.80 41.51 0.17 82.95 83.80 1% 5.64 5.81 14.7 14.3 5.108 5.221 86.09 69.22 0.66 33.44 34.03 2% 2.41 2.50 13.9 13.4 5.574 5.556 35.26 27.57 2.58 30.77 30.99 1% 2.39 2.43 12.9 12.7 5.245 5.310 32.05 22.06 1.15 31.76 32.17 1% 2.41 2.46 13.2 12.9 6.156 6.030 33.28 23.90 3.55 43.40 43.35 0% 2.61 2.64 16.6 16.5 5.088 5.161 46.06 38.62 2.99 30.83 33.23 7% 1.31 1.49 18.1 15.9 3.273 3.730 32.59 23.82 -1.06 22.55 22.94 2% 0.74 0.93 23.3 18.6 0.763 1.109 27.20 15.88 11.36 8.52 9.37 9% 0.33 0.36 19.8 18.2 3.016 3.063 11.14 8.21 -9.17 6.26 6.72 7% 0.84 0.49 5.7 9.8 5.224 3.195 7.27 2.47 6.28 12.57 13.66 8% 0.64 0.80 15.1 12.0 3.373 3.986 13.28 9.22 1.21 6.72 7.33 8% 0.32 0.55 20.9 12.2 0.000 1.310 7.47 4.42 1.97 4.95 5.31 7% 0.36 0.37 13.9 13.3 5.859 6.121 5.96 4.39 -1.79 3.66 4.42 17% 0.14 0.20 19.6 14.4 0.984 2.104 5.07 3.30 -8.96 86.85 88.37 2% 6.12 6.36 14.2 13.7 4.892 5.107 89.88 61.05 -0.31 12.94 13.90 7% 0.91 0.98 14.2 13.3 5.657 6.066 13.95 11.27 -4.29 17.66 16.66 -6% 1.05 1.13 16.9 15.6 3.012 3.273 19.49 12.04 -0.11 -2.65 2017 2018 2017 2018 2017 2018 High Low YTD 1.47 1.23 12.7 15.1 3.423 2.964 27.96 15.85 -3.47 6.98 7.98 13% 0.21 0.26 25.5 20.7 1.203 1.533 7.75 5.98 10.44 9.92 -5% 0.57 0.59 18.3 17.6 4.598 4.722 10.70 7.94 3.16 14.66 15.90 8% 0.61 0.65 18.5 17.3 2.913 3.261 16.66 13.62 -1.94 4.51 4.82 7% 0.31 0.33 14.4 13.7 5.698 5.920 5.11 4.03 -1.53 1.79 1.87 5% 0.11 0.10 12.9 14.4 5.770 5.770 2.04 1.19 -2.46 13.62 13.19 -3% 0.55 0.60 19.1 17.3 1.946 2.063 14.28 8.63 9.31 3.86 4.34 11% 0.53 0.53 7.34 7.26 3.782 4.611 4.22 2.58 15.92 12.46 12.58 1% 0.63 0.71 19.8 17.5 3.074 3.162 13.62 7.40 -2.88 Note : The above data is based on Bloomberg consensus. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 2 of 2
33. T e c h n i c a l TA Securities V i e w Friday , March 24, 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: 24,327.70 (+7.29, +0.03%) THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Stock Close Name 23-Mar HANG SENG 24,327.70 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 63.00 87.25 6.40 5.17 8.89 24.30 3.94 114.90 5.79 223.00 196.40 97.80 43.65 6.13 18.60 80.45 3.71 31.80 158.10 15.40 77.15 20.65 69.00 23.95 66.95 5.18 48.90 6.11 4.05 10.12 32.15 6.52 42.75 13.98 18.04 9.92 22.35 21.80 14.52 3.90 11.00 11.24 8.68 3.13 2.33 50.20 35.25 41.70 Change Tel: +603-2167 9607 High Lower 7.29 (0.10) (3.10) 0.04 0.03 (0.04) 0.00 0.01 0.00 0.00 (2.20) 0.00 1.35 0.40 0.03 (0.18) 0.10 (0.01) 0.00 (0.30) 0.10 (0.15) 0.10 0.95 (0.40) (0.05) 0.02 0.85 0.02 (0.06) 0.04 0.35 (0.06) (0.10) 0.14 (0.46) 0.07 0.30 0.10 (0.08) 0.05 (0.02) (0.04) 0.07 0.06 (0.02) 0.30 0.20 0.40 24,466.73 24,271.26 63.40 91.00 6.46 5.21 9.01 24.80 3.95 115.30 5.87 223.60 197.80 97.95 44.95 6.18 18.80 80.50 3.75 32.00 159.30 15.40 77.90 20.95 69.10 24.25 67.85 5.19 49.20 6.15 4.08 10.18 32.35 6.68 43.15 14.00 18.50 9.95 22.65 21.90 14.86 3.97 11.10 11.36 8.68 3.18 2.38 50.50 35.80 42.35 63.00 87.15 6.36 5.13 8.88 24.25 3.90 114.50 5.76 218.20 196.00 96.45 43.65 6.10 18.46 80.05 3.66 31.70 157.50 15.26 77.05 20.45 68.00 23.80 66.90 5.14 48.60 6.10 4.01 9.95 31.90 6.51 42.75 13.74 18.00 9.84 21.95 21.65 14.44 3.82 10.96 11.18 8.59 3.04 2.33 50.00 34.95 41.00 RSI Bollinger Bands Low 23,275.92 62.41 82.09 6.05 4.88 8.76 22.90 3.75 111.59 5.62 200.67 188.17 94.76 40.37 5.78 14.37 76.94 3.37 30.47 156.49 14.79 76.90 19.20 58.90 23.14 66.57 5.11 43.73 5.96 3.85 9.04 31.35 6.53 40.72 12.95 17.22 9.70 20.08 21.14 13.87 3.79 10.94 10.86 8.33 2.95 2.30 48.30 31.85 36.41 Mid stsoo@ta.com.my Upper 14d 23,930.53 24,585.13 61.82 63.38 86.11 6.30 5.07 9.05 24.07 3.90 113.80 5.84 214.84 194.23 96.24 42.16 5.98 16.65 79.05 3.62 31.39 159.05 15.06 79.28 20.00 65.18 24.22 68.36 5.29 45.90 6.11 4.04 9.69 32.11 6.99 41.96 13.48 17.80 9.98 21.47 21.58 14.37 4.01 11.42 11.16 8.52 3.14 2.40 49.44 33.93 39.25 64.34 90.13 6.56 5.26 9.34 25.23 4.04 116.00 6.06 229.01 200.28 97.71 43.94 6.18 18.92 81.17 3.87 32.32 161.61 15.33 81.66 20.81 71.46 25.30 70.15 5.47 48.07 6.27 4.23 10.33 32.86 7.45 43.20 14.01 18.39 10.25 22.86 22.02 14.86 4.23 11.90 11.47 8.72 3.32 2.49 50.58 36.00 42.08 41.72 52.59 57.99 59.00 36.35 54.74 56.49 63.03 43.32 64.06 54.13 67.98 65.96 58.16 69.51 64.51 58.09 58.51 46.90 66.89 36.02 65.73 76.45 47.69 34.40 47.70 83.43 51.95 49.94 68.26 48.98 41.10 64.80 67.72 57.47 55.89 60.41 55.93 55.60 45.46 42.62 49.03 60.00 55.85 41.67 60.84 64.88 74.10 Moving Averages 10d 24,136.06 63.64 86.76 6.35 5.12 8.97 24.42 3.93 113.98 5.78 220.50 195.54 96.68 42.77 5.96 17.09 78.98 3.71 31.77 159.06 15.11 78.53 20.35 68.29 24.62 67.67 5.27 46.62 6.11 4.02 9.92 31.93 6.82 42.39 13.48 17.92 9.88 21.98 21.65 14.47 3.96 11.30 11.21 8.54 3.15 2.42 49.58 34.77 40.27 30d www.taonline.com.my DMI 50d DI + DMI MACD DI - ADX Diff Line Signal Diff MACD Recent Signal DMI MACD Signal Change 23,938.74 23,608.24 38.02 19.74 31.19 18.29 221.86 177.86 43.997 BUY BUY - - 64.56 86.54 6.28 5.07 9.21 24.16 3.91 112.45 5.93 213.05 196.05 95.06 42.17 6.03 16.57 78.61 3.57 31.39 160.37 15.01 79.61 19.90 63.32 24.17 68.98 5.28 45.33 6.13 4.09 9.59 32.58 6.71 41.51 13.24 17.70 9.80 21.44 21.69 14.31 4.07 11.35 11.33 8.53 3.09 2.38 49.04 33.37 38.36 64.84 86.67 6.10 4.94 9.44 23.22 3.76 110.17 6.02 208.51 192.69 93.73 41.43 6.07 16.40 77.54 3.51 30.99 158.37 14.84 79.12 19.43 61.18 23.66 68.79 5.10 44.41 5.98 4.04 9.38 32.49 6.45 40.60 13.07 16.85 9.48 20.59 21.30 13.93 3.96 11.05 11.37 8.25 2.86 2.35 48.35 33.68 37.28 27.34 20.92 17.14 19.18 27.09 20.28 19.39 12.95 25.43 19.72 18.12 12.92 10.19 17.45 14.13 14.62 16.09 19.17 20.18 10.31 18.18 10.00 10.24 24.11 23.49 24.81 7.41 21.83 23.13 12.59 16.90 22.67 7.13 12.66 16.28 18.56 17.30 18.06 16.47 20.54 25.72 17.25 10.04 14.28 27.41 17.00 14.54 8.63 13.38 30.91 23.02 26.27 26.26 30.61 27.87 37.59 20.94 23.15 20.31 28.69 32.73 14.36 27.89 36.78 20.55 18.21 17.28 25.55 14.75 31.77 44.41 26.61 18.94 26.66 37.40 14.95 14.04 36.29 14.78 34.95 55.94 30.64 23.58 27.21 28.41 10.84 30.98 19.81 26.62 23.29 22.58 43.67 41.68 29.45 30.24 37.08 (0.63) 6.66 10.25 14.02 (6.81) 10.33 9.40 14.57 (2.32) 12.08 8.55 13.16 31.62 10.60 32.06 17.82 9.48 4.90 (1.36) 17.57 (1.71) 15.11 25.77 (2.26) (7.73) (4.19) 28.73 3.97 3.34 20.68 2.78 1.09 24.42 17.64 10.90 1.85 14.94 (0.83) 9.67 7.19 (9.46) 2.34 12.88 5.72 10.07 17.60 19.57 26.95 -0.41 0.61 0.08 0.06 -0.13 0.38 0.05 1.33 -0.06 5.03 1.06 1.02 0.58 0.01 0.58 0.71 0.08 0.30 0.02 0.12 -0.48 0.35 2.43 0.26 -0.46 0.03 0.99 0.03 0.01 0.22 -0.17 0.06 0.65 0.22 0.32 0.11 0.49 0.14 0.21 -0.02 0.01 -0.02 0.09 0.07 0.01 0.49 0.58 1.25 0.016 0.504 0.005 0.007 0.017 0.003 (0.002) (0.059) 0.009 1.005 0.383 (0.004) 0.174 0.024 0.324 0.120 0.009 0.024 (0.208) 0.022 (0.334) 0.037 0.171 (0.061) (0.135) (0.031) 0.268 (0.007) 0.011 0.054 0.011 (0.079) 0.047 0.045 0.004 (0.043) 0.047 0.007 0.004 (0.029) (0.089) 0.037 0.003 (0.029) (0.010) 0.012 0.186 0.218 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 BUY SELL BUY BUY BUY SELL BUY BUY BUY SELL SELL BUY BUY SELL SELL BUY BUY BUY - BUY BUY BUY - 26.71 27.58 27.39 33.20 20.28 30.61 28.79 27.52 23.11 31.80 26.67 26.09 41.81 28.05 46.19 32.43 25.57 24.07 18.82 27.88 16.48 25.11 36.01 21.85 15.76 20.63 36.14 25.80 26.47 33.27 19.68 23.76 31.55 30.30 27.18 20.41 32.24 17.23 26.13 27.73 16.26 19.59 22.93 20.00 37.48 34.60 34.11 35.58 -0.43 0.10 0.08 0.06 -0.15 0.38 0.05 1.39 -0.06 4.03 0.68 1.02 0.41 -0.02 0.26 0.59 0.07 0.28 0.22 0.10 -0.15 0.31 2.26 0.32 -0.32 0.06 0.72 0.04 -0.01 0.16 -0.18 0.14 0.60 0.17 0.31 0.15 0.44 0.13 0.20 0.01 0.10 -0.06 0.09 0.10 0.02 0.47 0.40 1.03 The table above consists of the 45 HKSE Hang Seng Index component stocks, sorted by market capitalization in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. Stock names and technical statistics in bold highlight stocks that have changes in BUY/SELL signals on the DMI and MACD on the given date. Page 1 of 3
34. TA Securities A Member of the TA Group Corporate News : AIA Group Ltd.’s strong solvency and capacity to make acquisitions will remain its biggest levers to win future business. Mainland China should be AIA’s biggest source of new business growth as the nation’s middle class become wealthier. It may expand to other provinces in China, one of CEO-designate Ng Keng Hooi’s core markets. – Bloomberg. Technical Comments: Fresh MACD buy signal and positive technical momentum should enhance upside momentum on AIA shares towards the 76.4%FR (HKD53.16) and the high of 10/04/15 (HKD55.00), with a confirmed breakout to re-test the peak of 09/04/15 (HKD58.20). Key uptrend support is capped at the lower Bollinger band (HKD48.30). AIA GROUP LTD HKD50.20 (+0.30) \\ Upper Middle Lower Recent Signal Signal Change BOLLINGER BANDS HKD HKD HKD DMI 50.58 49.44 48.30 BUY SIMPLE MOVING AVERAGES HKD 49.58 HKD 49.04 HKD 48.35 DAILY MACD Recent Signal BUY Signal Change BUY 10-day 30-day 50-day Page 2 of 3
35. 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 63.00 63.17 0% 0.6 0.7 13.6 12.4 0.8 0.8 69.10 44.50 1.20 87.25 109.11 20% 5.7 6.2 13.5 12.6 3.0 3.2 99.30 80.30 6.14 6.40 7.41 14% 0.9 0.9 6.2 6.1 4.3 4.3 6.55 4.50 7.20 5.17 6.10 15% 0.8 0.8 5.9 5.9 4.4 4.5 5.27 3.82 11.18 8.89 11.14 0.8 N/A 9.9 3.9 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 3.94 4.46 12% 20% 0.6 0.6 0.6 6.1 6.0 4.3 3.5 4.4 4.08 2.90 14.53 -8.35 114.90 129.67 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 0.17 223.00 253.09 12% 6.2 7.8 32.0 25.4 0.3 0.4 229.80 152.20 17.55 196.40 193.21 -2% 5.6 6.1 35.2 31.9 2.6 2.8 213.20 175.00 7.21 97.80 114.56 15% 9.0 10.0 10.9 9.8 2.9 3.2 103.90 80.60 11.26 43.65 44.95 55.90 22% 3.5 3.9 11.0 9.9 1.5 1.7 32.50 12.50 6.13 7.13 14% 0.3 0.4 16.5 12.8 2.9 3.6 6.34 4.66 11.45 18.60 19.00 2% 1.5 1.5 10.9 11.2 3.0 3.1 19.78 11.40 27.40 80.45 79.08 -2% 5.0 5.2 16.0 15.5 3.6 3.7 84.35 68.75 12.91 3.71 3.34 -11% 0.0 0.0 14.0 13.3 0.8 0.8 5.15 3.24 8.80 31.80 34.47 8% 2.2 2.5 14.3 12.7 5.6 4.0 32.40 21.01 14.59 158.10 154.98 -2% 9.3 10.2 4.2 164.40 127.60 9.56 15.40 12.85 -20% 0.6 0.6 25.8 24.7 2.4 2.6 15.50 12.73 12.08 77.15 78.15 1% 4.8 5.1 16.0 15.0 3.4 3.7 94.40 72.20 4.19 20.65 19.34 -7% 1.2 1.1 17.3 19.0 69.00 65.30 -6% 4.6 4.8 14.9 14.3 3.2 3.3 69.95 39.00 33.85 23.95 28.63 16% 3.3 3.7 7.3 6.4 3.6 4.2 27.85 20.15 16.55 66.95 75.13 11% 3.4 3.5 19.5 18.9 4.1 4.2 75.73 62.78 4.77 5.18 4.92 -5% 0.4 0.4 11.5 11.5 4.7 4.7 5.79 4.07 18.81 48.90 48.82 0% 3.3 3.2 15.2 3.2 3.2 49.30 39.64 6.11 5.98 -2% 0.9 0.9 6.1 6.1 4.2 4.3 6.44 4.46 8.91 4.05 4.51 10% 0.3 0.3 13.7 13.7 1.7 1.5 4.88 2.92 10.05 10.12 11.65 13% 0.2 0.4 40.1 22.2 0.8 1.5 10.48 7.70 12.07 32.15 17.0 14.9 3.7 2.9 3.6 18.55 -25% 2.1 1.8 6.11 -7% 0.0 0.2 N/A 40.5 0.0 1.1 7.62 5.34 7.06 -9% 1.6 1.6 27.1 26.3 7.7 2.6 44.50 34.92 13.40 13.98 13.64 -3% 0.8 0.8 16.6 16.9 3.7 3.7 14.48 10.96 20.31 18.04 19.19 6% 0.6 0.7 28.1 24.2 1.0 1.2 18.90 12.85 17.14 9.92 11.22 12% 0.8 0.8 12.8 12.1 4.4 4.5 10.46 6.91 20.98 22.35 28.03 20% 8.0 7.0 21.80 23.35 7% 1.4 1.6 15.6 13.7 3.1 3.4 24.95 18.80 13.31 14.52 14.03 -3% 1.4 1.6 10.1 9.1 5.4 5.5 15.50 10.70 17.86 21.88 23.85 26.35 25.61 39.12 4.0 34.75 13.64 25.72 3.4 2.6 20.95 6.52 3.2 18.2 4.0 42.75 2.8 15.5 15.6 16.50 8.25 28.15 3.90 4.40 11% 0.0 0.2 123.5 19.4 0.0 0.2 4.45 2.25 11.00 9.97 -10% -0.1 0.2 N/A 46.6 0.5 0.8 13.50 10.00 11.24 12.45 10% 1.5 1.7 7.3 6.7 3.0 3.9 12.78 10.54 1.26 8.68 9.09 5% 0.1 0.1 14.5 13.8 1.1 0.4 9.48 7.28 11.42 20.1 17.5 0.4 0.4 2.31 27.76 3.13 3.15 3.38 7.84 1% 0.0 0.0 2.33 2.45 5% 0.0 0.0 N/A N/A 0.0 0.0 3.00 2.00 3.10 50.20 56.69 11% 0.4 0.4 17.6 15.8 0.2 0.3 54.15 41.50 14.74 35.25 37.84 7% 0.2 0.2 23.0 21.0 0.7 0.7 39.30 24.60 4.60 41.70 42.36 2% 1.6 1.7 26.2 24.3 1.2 1.3 42.35 21.87 23.37 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
36. T e c h n i c a l TA Securities V i e w Friday , March 24, 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: 3,126.93 (+8.74, +0.28%) 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 23-Mar Lower Mid Upper 14d 3,126.93 8.74 3,131.23 3,117.63 3,095.63 3,134.18 3,172.72 51.44 3.89 18.65 9.50 21.61 66.32 3.54 7.25 3.65 1.00 6.76 7.50 10.04 2.22 0.19 10.22 41.14 3.57 44.22 0.39 3.64 1.87 1.95 3.13 1.85 2.50 2.86 3.66 0.53 1.11 (0.03) (0.02) 0.05 0.08 0.87 0.03 0.01 (0.01) 0.02 0.04 0.01 0.08 0.09 0.00 (0.01) 1.69 0.00 (0.09) 0.01 0.01 0.00 0.01 0.03 (0.01) 0.00 0.01 0.00 0.00 0.00 3.94 18.73 9.52 21.66 66.35 3.56 7.25 3.69 1.00 6.81 7.56 10.04 2.22 0.19 10.31 41.14 3.58 44.57 0.39 3.67 1.89 1.96 3.16 1.88 2.53 2.89 3.70 0.54 1.13 3.87 18.61 9.45 21.42 65.06 3.51 7.16 3.62 0.99 6.76 7.50 9.90 2.14 0.18 10.15 39.25 3.55 43.83 0.39 3.63 1.86 1.94 3.12 1.85 2.50 2.84 3.66 0.53 1.11 3.88 18.64 9.42 21.32 62.58 3.51 6.72 3.54 0.97 6.56 7.41 9.86 2.04 0.18 9.17 37.37 3.43 41.19 0.37 3.61 1.84 1.92 3.11 1.73 2.45 2.81 3.65 0.51 0.93 3.94 18.98 9.55 21.61 65.21 3.61 7.03 3.65 0.99 6.90 7.53 9.96 2.11 0.21 9.99 39.33 3.50 43.90 0.38 3.67 1.96 1.94 3.22 1.89 2.50 2.87 3.69 0.52 1.08 4.00 19.32 9.69 21.89 67.83 3.70 7.34 3.76 1.01 7.23 7.65 10.05 2.18 0.24 10.80 41.28 3.58 46.62 0.39 3.73 2.09 1.97 3.33 2.06 2.56 2.92 3.73 0.54 1.23 43.21 42.23 46.88 54.01 59.00 37.39 66.03 55.12 53.07 50.54 47.02 57.12 67.31 38.23 58.57 66.48 61.95 54.08 49.12 52.76 28.75 49.87 43.25 55.01 51.51 49.44 48.82 46.67 60.06 stsoo@ta.com.my Moving Averages 10d 30d 50d DI + 3,146.36 3,123.72 3,089.49 25.75 DI 28.31 ADX 25.99 3.95 19.00 9.59 21.65 65.69 3.58 7.15 3.69 0.99 6.77 7.56 9.99 2.12 0.20 10.37 39.68 3.53 44.61 0.38 3.67 1.91 1.94 3.18 1.88 2.51 2.86 3.69 0.53 1.12 23.18 29.76 24.77 18.58 19.05 27.13 13.03 21.41 15.45 26.64 22.99 14.05 8.80 29.15 18.02 12.51 11.24 24.35 15.65 16.15 30.23 13.28 24.43 20.57 22.12 22.40 12.34 19.60 15.90 16.44 (6.17) 0.01 16.98 (7.60) 0.05 12.41 (5.39) 0.02 24.10 7.52 0.14 29.21 4.64 0.88 27.26 (12.01) -0.06 32.35 15.50 0.11 37.41 4.59 0.06 19.74 3.36 0.00 27.80 4.43 0.05 14.04 (1.44) 0.01 13.22 0.79 0.03 15.32 20.41 0.01 22.93 (12.12) 0.00 42.89 13.30 0.28 28.47 17.64 0.56 30.15 15.17 0.02 13.32 (0.26) 0.70 25.67 (3.77) -0.01 23.67 6.15 0.04 34.29 (19.87) -0.04 12.83 (0.22) 0.00 23.61 (0.46) -0.01 38.88 13.69 0.06 12.02 (3.74) 0.01 12.89 (0.94) 0.00 31.55 2.15 0.02 13.16 1.98 0.00 44.78 16.13 0.05 3.95 18.86 9.56 21.45 64.76 3.69 6.96 3.61 0.99 6.79 7.55 9.93 2.11 0.22 9.78 39.09 3.50 43.28 0.39 3.62 2.00 1.95 3.21 1.78 2.48 2.84 3.68 0.53 1.03 3.91 18.77 9.50 21.21 63.26 3.77 6.89 3.47 0.97 6.56 7.52 9.92 2.12 0.20 9.52 38.34 3.50 42.58 0.41 3.51 2.01 1.96 3.18 1.67 2.47 2.90 3.61 0.54 0.95 17.01 22.16 19.39 26.10 23.69 15.12 28.53 26.01 18.81 31.07 21.56 14.84 29.21 17.03 31.32 30.15 26.42 24.08 11.88 22.29 10.36 13.06 23.98 34.25 18.38 21.46 14.49 21.58 32.03 DMI www.taonline.com.my MACD DMI MACD DMI MACD Diff Line Signal Diff Recent Signal Signal Change (2.55) 16.59 21.37 (4.782) SELL SELL 0.02 0.11 0.03 0.16 0.94 -0.06 0.09 0.07 0.01 0.09 0.02 0.03 0.00 0.00 0.28 0.52 0.01 0.72 -0.01 0.05 -0.03 -0.01 0.01 0.08 0.01 0.00 0.03 0.00 0.06 (0.008) (0.064) (0.013) (0.021) (0.059) (0.002) 0.020 (0.011) (0.002) (0.041) (0.004) 0.005 0.010 (0.005) 0.003 0.033 0.012 (0.017) 0.003 (0.015) (0.011) 0.001 (0.017) (0.021) (0.002) 0.002 (0.009) 0.001 (0.007) 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 BUY BUY SELL SELL SELL SELL SELL SELL BUY SELL SELL SELL SELL BUY BUY SELL BUY BUY BUY SELL BUY SELL SELL BUY SELL SELL SELL BUY SELL BUY SELL BUY - SELL BUY SELL - The table above consists of the revamped 30 SGX FTSE Straits Times Index component stocks, sorted by market capitalization in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. Stock names and technical statistics in bold highlight stocks that have changes in BUY/SELL signals on the DMI and MACD on the given date. Page 1 of 2
37. INTERPRETATION OF TECHNICAL INDICATORS : Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Fundamentals of Foreign Technical Picks Bloomberg Ticker ST DBS OCBC UOB JM WIL HKL CAPL GENS KEP SGX SIA FNN NOBL CIT JS SPH JCNC GGR STE OLAM CT SCI SMM CD STH SIE IFAR SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP EPS ($) PER(x) Div Yield(%) 52week Price % Chg Stock Name Close Target Price SINGTEL DBS OCBC UOB JARDINE M. WILMAR HK LAND CAPLAND GENSP KEPPEL SGX SIA FNN NOBLE CITY DEV JARDINE S. SG PRESS JARDINE C&C GOLDEN AGRI SG TECH OLAM INT CAP TRUST SEMBCORP SEMCORP M. CMFT DELGRO STARHUB SIA ENG IFOOD AGRI 3.89 4.25 18.65 9.50 21.61 21.18 -2% 1.9 2.1 11.2 10.4 3.4 3.4 22.04 17.41 5.93 66.32 63.99 -0.04 4.1 4.4 16.3 15.2 2.4 2.5 67.27 52.42 20.04 3.54 3.80 7% 0.2 0.2 12.7 11.8 2.0 2.2 4.00 2.96 -1.39 7.25 7.38 2% 0.4 0.4 18.4 17.9 2.7 2.7 7.35 5.77 14.53 3.65 4.01 9% 0.2 0.2 17.5 18.3 2.8 2.8 3.79 2.85 20.86 1.00 1.06 6% 0.0 0.0 28.4 25.5 2.9 3.0 1.04 0.69 9.94 6.76 6.89 2% 0.5 0.6 13.1 12.2 3.2 3.4 7.23 5.10 16.75 4.75 YZJSGD SP YZJ % upside 2017 2018 2017 2018 2017 2018 High Low YTD 8% 0.2 0.3 16.0 15.1 4.6 4.8 4.36 3.59 6.58 19.44 4% 1.789 1.963 10.4 9.5 3.3 3.4 19.37 14.63 7.55 9.56 1% 0.9 0.9 11.1 10.1 3.9 4.0 9.78 8.21 6.50 7.50 7.83 4% 0.3 0.4 22.5 20.7 3.9 4.2 8.05 6.96 10.04 9.71 -3% 0.4 0.4 22.5 23.1 3.5 2.7 11.67 9.60 3.83 2.22 2.03 -9% 0.1 0.1 30.0 29.6 1.9 2.0 2.23 1.92 6.22 0.19 0.22 0.15 0.0 0.0 8.9 6.1 0.0 0.0 0.37 0.11 10.00 10.22 10.73 5% 0.6 0.7 15.8 14.8 1.4 1.4 10.65 7.63 23.43 41.14 40.36 -2% 2.7 2.9 15.1 14.1 0.8 0.8 41.14 27.35 23.92 3.57 3.19 -12% 0.2 0.2 23.3 23.3 4.8 4.6 4.13 3.45 1.13 44.22 49.97 12% 2.1 2.3 14.8 13.5 1.8 2.0 46.23 31.60 7.25 0.39 0.39 0% 0.0 0.0 17.4 14.7 1.8 1.8 0.45 0.33 -9.30 3.64 3.62 -1% 0.2 0.2 21.0 20.1 4.2 4.4 3.77 3.01 12.69 1.87 1.99 7% 0.1 0.1 14.0 14.0 2.4 2.5 2.17 1.58 -5.33 1.95 2.13 9% 0.1 0.1 17.1 16.6 5.7 5.7 2.25 1.87 3.18 3.13 3.53 11% 0.2 0.3 13.0 10.9 2.9 3.3 3.38 2.44 9.82 1.85 1.65 -12% 0.1 0.1 34.3 26.1 1.4 1.7 2.09 1.22 34.06 2.50 2.94 15% 0.2 0.2 15.9 15.3 4.4 4.8 3.02 2.37 1.21 2.86 2.64 -8% 0.2 0.2 17.8 18.6 5.6 5.5 3.97 2.73 1.78 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 11.5 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 2 of 2