Bursa Malaysia Daily Market Report - 4 April

Transcription

1. Tuesday , 04 April, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED REPORTS’ News 1. Daily Market Commentary 2. Daily Brief Fundamental Reports 1. IHH Healthcare Berhad: Poised for Further Inroads in Hong Kong 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 Tuesday, 04 April 2017 TA Research e-mail : taresearch@ta.com.my For Internal Circulation Only KLSE Market Statistics (03.04.2017) (mil) Main Market 2,279.6 Warrants 155.7 ACE Market 786.3 Bond 15.0 ETF 0.0 Total 3,236.6 Off Market 39.5 Volume +/-chg (RMmn) 60.6 2,384.7 -68.5 22.0 113.0 138.9 6.2 2.0 0.02 0.0 2,547.7 -322.9 129.8 Value +/-chg -172.7 -4.2 37.8 0.6 0.03 -230.4 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP April Futures Other Markets DOW JONES NASDAQ (US) FTSE (UK) NIKKEI (JAPAN) KOSPI (KOREA) HANG SENG (HK) FSSTI (S'PORE) SET (BANGKOK) JCI (JAKARTA) SHANGHAI SHENZHEN AUSTRALIA (mn) 11.5 11.1 10.0 3.9 2.0 2.0 1.7 1.2 1.1 1.0 1.0 Up Down 375 296 60 82 55 49 7 3 2 0 499 430 % chg % YTD chg 1,745.49 12,405.82 17,151.98 1,751.50 5.40 44.13 71.40 5.00 0.31 0.36 0.42 0.29 6.32 8.19 16.56 7.09 20,650.21 5,894.68 7,282.69 18,983.23 2,167.51 24,261.48 3,187.51 1,580.86 5,606.79 3,222.51 1,986.47 5,872.68 -13.01 -17.06 -40.23 73.97 7.28 149.89 12.40 5.75 38.68 0.00 0.00 7.78 -0.06 -0.29 -0.55 0.39 0.34 0.62 0.39 0.37 0.69 0.00 0.00 0.13 4.49 9.50 1.96 -0.69 6.96 10.28 10.65 2.46 5.85 3.83 0.88 3.65 Top 08 KLCI Movers Based on Mkt Cap. Off Market APFT YTLPOWR MAYBANK DUTALND BIMB EKOVEST-WB OPCOM AZRB-WA MITRA EWINT MBSB Value/ Volume 1.05 0.14 0.18 0.13 1.11 0.79 3.28 @ @ @ @ @ @ @ @ @ @ @ (RM) 0.01 1.53 8.95 0.49 4.43 1.10 0.60 0.48 1.34 1.28 1.10 Exchange Rate USD/MYR 4.4278 0.0026 USD/JPY 111.44 -0.3700 EUR/USD 1.066 -0.0026 Counter Mkt Cap. (RM’mn) MAYBANK 91,746 TENAGA 77,776 PBBANK 77,075 SIME 63,180 CIMB 49,574 PETGAS 39,218 GENTING 35,785 MISC 32,809 GENM 31,517 KLK 26,305 Chg (RM) 0.08 0.04 0.06 0.01 0.02 0.06 0.02 0.03 0.11 0.02 Vol. (mn) 8.29 6.04 4.60 3.48 14.03 0.58 1.16 0.58 15.90 0.46 Commodities Futures Palm Oil (RM/mt) 2,597.00 -50.00 Crude Oil ($/Barrel) 50.25 -0.60 Gold ($/tr.oz.) 1,255.40 8.00 Important Dates JK GLAND - 2:1 Rights Issue - RI of up to 1,516.6m shares. JKGLAND 2 rights shares for every 1 existing share held, at an issue price of RM0.10 per rights share. Application Closed: 10/04/2017. LISTING ON: 21/04/2017. Review & Outlook Bursa Malaysia shares began trading for the second quarter on a cautious note Monday, with mild bargain hunting interest lifting banks from the previous week's selloff. The KLCI ended 5.4 points up at the day's high of 1,745.49, off an early low of 1,737.77, as gainers led losers 499 to 430 on total turnover of 3.23bn shares worth RM2.54bn. The local market should extend sideways trade in the absence of any local leads amidst external uncertainties underpinned by weaker US growth and tax policy. On the index, immediate uptrend supports are seen at 1,727 and 1,712, the respective 30 and 50-day moving averages, with 1,700 as stronger support. Immediate overhead resistances stays at 1,758, the 23.6%FR of the 1,310 to 1,896 upswing closely matching last week's high, with stronger hurdle from 1,782, the 76.4%FR of the 1,867 to 1,503 correction. Overbought technical momentum on AirAsia implies limited upside potential with any strength to re-visit the 19/8/16 peak (RM3.30) expected to attract strong profit-taking interest, while key retracement support is seen from the 76.4%FR (RM2.70). Weak technical momentum on AirAsia X point to further weakness towards the 50%FR (38sen) to rebuild support, with next stronger support from the 38.2%FR (36sen), while strong resistance is seen from the 76.4%FR (44sen). • • • • • • • • • • • • • • • • • • • News Bites Sime Darby Property Bhd, MMC Port Holdings Sdn Bhd and India's Adani Ports and Special Economic Zone Ltd today signed a MoU to study the feasibility of developing of an integrated maritime city on Carey Island, Selangor. MMC Corporation Bhd will acquire the remaining 51% stake in Penang Port Sdn Bhd for a cash consideration of RM220mn in order to gain full control of PPSB. Eco World International Bhd said it will be submitting a "compelling" proposal to its Singapore-listed strategic shareholder GuocoLand Ltd to seal a partnership between the 2 property developers. Chin Hin Group Bhd has acquired Mi Polymer Concrete Pipes Sdn Bhd for RM35mn. HSS Engineers Bhd's associate company, HSS Integrated Sdn Bhd, has received a RM17.9mn Reference Design Consultant 05 deal for the KL-Singapore High-Speed Rail. Axiata may increase its presence in the Indian market by picking up stakes in tower assets. GHL Systems Bhd has partnered AliPay to offer Malaysian in-store merchants and online merchants an alternative payment method. Yinson Holdings Bhd said that its 49% JV PTSC Asia Pacific Pte Ltd had received a notice of termination for convenience from PetroVietnam Technical Services Corp under a bareboat charter contract entered into in 2012. Alam Maritim Resources Bhd has bagged a RM26.1mn provision contract from Petronas Maritime Services Sdn Bhd. Tenaga Nasional Bhd's repair and maintenance arm TNB Repair and Maintenance Sdn Bhd will set up a refurbishment and maintenance facility in India. Felda Global Ventures Holdings Bhd has signed a MoU with Trimex Industries Private Limited, with the aim to explore the feasibility of supplying and distributing various palm oil products to penetrate India's midstream and downstream market. PT Indonesia AirAsia will provide ground-handling services for AirAsia X Bhd in Indonesia under an agreement signed on Monday. Mieco Chipboard Bhd proposed to split every 2 shares in the company into 5, to increase trading liquidity. Malaysian Resources Corporation Bhd signed a MoU with Adani Realty in New Delhi, India, with the intent of exploring opportunities to co-develop convention centres throughout India. Kelington Group Bhd has secured 2 new contracts in China from a global multinational corporation semiconductor manufacturer worth RM19.3mn. Tecnic Group Bhd and 3 of its directors have been publicly reprimanded by Bursa Malaysia for denying knowledge of the company's proposed reverse takeover by a third party 2 years ago. Trading in the shares of PN16 company Premier Nalfin Bhd will be suspended effective April 11 as it had failed to regularise its condition. The headline Nikkei Malaysia PMI - a composite single-figure indicator of manufacturing performance - posted 49.5 in March, which is little changed from Feb's 49.4. The Institute for Supply Management said its index of factory activity fell to 57.2 in March from 57.7 in February, which had been the strongest reading since August 2014. 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 Tuesday , April 04, 2017 FBMKLCI: 1,745.49 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 Cautious Amid US Growth & Tax Policy Concerns Bursa Malaysia shares began trading for the second quarter on a cautious note Monday, with mild bargain hunting interest lifting banks from the previous week’s selloff. The KLCI ended 5.4 points up at the day’s high of 1,745.49, off an early low of 1,737.77, as gainers led losers 499 to 430 on total turnover of 3.23bn shares worth RM2.54bn. Uptrend Supports at 1,727/1,712 The local market should extend sideways trade in the absence of any local leads amidst external uncertainties underpinned by weaker US growth and tax policy. On the index, immediate uptrend supports are seen at 1,727 and 1,712, the respective 30 and 50-day moving averages, with 1,700 as stronger support. Immediate overhead resistances stays at 1,758, the 23.6%FR of the 1,310 to 1,896 upswing closely matching last week’s high, with stronger hurdle from 1,782, the 76.4%FR of the 1,867 to 1,503 correction. SELL AirAsia & AirAsia X Overbought technical momentum on AirAsia implies limited upside potential with any strength to re-visit the 19/8/16 peak (RM3.30) expected to attract strong profit-taking interest, while key retracement support is seen from the 76.4%FR (RM2.70). Weak technical momentum on AirAsia X point to further weakness towards the 50%FR (38sen) to rebuild support, with next stronger support from the 38.2%FR (36sen), while strong resistance is seen from the 76.4%FR (44sen). Asian Markets Wobble Ahead of US-China Meeting Asian equities markets made a lukewarm start to the second quarter Monday, with indexes sticking to narrow ranges ahead of U.S. President Donald Trump’s summit with China’s president later this week. Markets are likely to take their cue from the two-day meeting between President Xi and President Trump starting on Thursday in Florida with the U.S.China trade deficit at the top of the agenda. In a tweet last week, Trump said he expected the meeting with Xi "will be a very difficult one." And on Sunday, U.S. President Donald Trump told the Financial Times that the U.S. will take unilateral action to eliminate nuclear threats from North Korea, unless China, one of the hermit state's closest ally, intensifies pressure on Pyongyang. Japanese stocks edged up on Monday though were some distance from recouping sharp losses suffered last week, with an upbeat Bank of Japan survey failing to overcome lingering worries about the outlook for exporters. The Nikkei gained 0.4 percent to 18,983.23, not so far from a seven-week closing low of 18,909.26 hit last Friday. In Australia, the benchmark ASX 200 struggled for most of the session but finished up 0.13 percent or 7.8 points at 5,872.7. Earlier, data showed that February retail sales fell 0.1 percent from January, while approvals to build new homes in February jumped 8.3 percent, beating expectations of a 1 percent drop. Markets in China and Taiwan are closed for holidays. Page 1 of 7
4. TA Securities 4-Apr-17 A Member of the TA Group Wall Street Down on Weak Auto Sales Data Wall Street closed slightly lower on Monday after auto manufacturers reported worse-thanexpected U .S. sales for March and investors questioned whether the Trump administration would deliver on its pro-business economic stimulus. Monthly auto sales numbers were released throughout the day, with Ford, General Motors and Fiat Chrysler all reported declining numbers. Sales totaled 16.62 million for March, according to Auto-data. Meanwhile, a gauge of U.S. factory-sector health moderated slightly in March, with the Institute for Supply Management saying its manufacturing PMI for last month was 57.2, down from 57.7 in February. Adding to nerves was news of an explosion in a St Petersburg train tunnel that killed ten people on Monday in what Russian authorities called a probable terrorist attack. Investors are also likely to continue focusing on the outlook for U.S. policy, including a potential tax overhaul and a summit later this week between U.S. President Donald Trump and his Chinese counterpart Xi Jinping that could shed light on prospects for trade. Auto retailers, auto manufacturers and auto parts and equipment makers were among the worst performing industry groups in the S&P 500. The Dow Jones Industrial Average fell 13.01 points, or 0.06 percent, to 20,650.21, the S&P 500 lost 3.88 points, or 0.29 percent, to 2,358.84 and the Nasdaq Composite dropped 17.05 points, or 0.29 percent, to 5,894.68. Page 2 of 7
5. TA Securities 4-Apr-17 A Member of the TA Group News In Brief Corporate Malaysian telecom firm Axiata may increase its presence in the Indian market by picking up stakes in tower assets . Several Indian telecom operators, including Idea Cellular and Vodafone are looking to divest their tower assets in a bid to focus on the core business. According to industry sources, Axiata may have initiated talks with Indian operators for a possible acquisition. (The Hindu Busines Line) Comments: The rumours are not entirely surprising, as edotco had previously made known the possibility of acquiring overseas tower companies. Currently positioned 11th, it will require an additional 15-20k towers to eventually achieve aspirations of being among the top 5 global towercos. While a deal in India fits its growth strategy of South-East Asia or South Asia, India is a mature market with 68% of its towers owned by towercos. There are approximately 400k telecom towers in India at present, which is expected to increase at a CAGR of 3% between 2015 and 2020. Industry growth is expected to be driven by rising data traffic, leading to in-building solutions and smaller cell sites. Indian tenancy ratios are currently around 2.0x and are forecasted to increase to 2.5x by 2020. This can potentially improve edotco’s existing tenancy ratio of 1.5x, as it prepares for a rumoured IPO. We believe a potential deal will ultimately be decided by pricing and its stake in the asset. With no official information and/or concrete details, we remain neutral at this juncture. Maintain BUY on Axiata with a TP of RM5.25/share. Sime Darby Property Bhd, MMC Port Holdings Sdn Bhd and India's Adani Ports and Special Economic Zone Ltd (APSEZ) today signed a MoU to study the feasibility of developing of an integrated maritime city on Carey Island, Selangor. MMC Ports and Adani Ports also inked a separate MoU to explore the feasibility of the Carey Island Port Project — a new port as an extension of Port Klang, currently the 11th busiest container port in the world. (The Edge) Comments: We are positive on this news and believe Sime Darby will benefit from this project as it is the largest land-owner in Carey Island. We understand that this 20 years project will involve investment of approximately RM200bn and covering an area of over 100sq km. Sime Darby may able to book in awesome gain from the development as the book value of the land is said to be low. Maintain Sell on Sime Darby with an unchanged TP of RM8.24. HSS Engineers Bhd's associate company, HSS Integrated Sdn Bhd, has received a RM17.9mn Reference Design Consultant 05 deal for the KL-Singapore High-Speed Rail (HSR). The scope comprises all of HSR infrastructure required from the state border between Melaka and Johor to the northern end of the Iskandar Puteri Station. The contract was for 12 months and would commence within 2Q17. (Bursa Malaysia/ Bernama) GHL Systems Bhd has partnered AliPay to offer Malaysian in-store merchants and online merchants an alternative payment method. Malaysia was the second ASEAN country where it has teamed up with AliPay, one of the largest global mobile and online payment platforms with over 400 million users. (Bursa Malaysia/ Bernama) Eco World International Bhd (EWI) said it will be submitting a "compelling" proposal to its Singapore-listed strategic shareholder GuocoLand Ltd to seal a partnership between the 2 property developers. EWI has identified certain assets owned by Guoco Group Ltd in London, and is in the midst of formulating redevelopment plans before proposing to the Hong Kong-listed company. (The Edge) Yinson Holdings Bhd said that its 49% JV PTSC Asia Pacific Pte Ltd had received a notice of termination for convenience from PetroVietnam Technical Services Corp (PTSC) under a bareboat charter contract entered into in 2012. The bareboat charter contract will terminate on June 30, 2017. PTSC Asia Pacific is entitled to an early termination payment from PTSC although the exact quantum will be ascertained in accordance with the terms of the Bareboat Charter. (Bursa Malaysia/ The Edge) Page 3 of 7
6. TA Securities 4-Apr-17 A Member of the TA Group Tenaga Nasional Bhd ’s (TNB) repair and maintenance arm TNB Repair and Maintenance Sdn Bhd (TNB Remaco) will set up a refurbishment and maintenance facility in India. Under a 3-year MoU inked with TNB’s 30%-owned GMR Energy Ltd (GEL) on Monday, TNB Remaco and GEL will provide power plant O&M, performance improvement, testing and diagnostic services. (Bursa Malaysia/ The Star) Felda Global Ventures Holdings Bhd has signed a MoU with Trimex Industries Private Limited, with the aim to explore the feasibility of supplying and distributing various palm oil products to penetrate India's midstream and downstream market. (Bursa Malaysia/ Bernama) PT Indonesia AirAsia (IAA) will provide ground-handling services for AirAsia X Bhd (AAX) in Indonesia under an agreement signed on Monday. The IATA standard ground handling agreement was valid for a 1-year period ending Feb 28, 2018. The contract price of RM780k was estimated based on the ground-handling costs per turnaround in the respective Indonesian stations operated by IAA in accordance with the arrangement. (Bursa Malaysia/ The Star) MMC Corporation Bhd will acquire the remaining 51% stake in Penang Port Sdn Bhd (PPSB) for a cash consideration of RM220mn in order to gain full control of PPSB. MMC has entered into a conditional share sale and purchase agreement with Seaport Terminal (Johore) Sdn Bhd to acquire the remaining 37.5mn shares representing about 51% ordinary equity interest in PPSB for a cash consideration of RM220mn. (Bursa Malaysia/ The Edge) Chin Hin Group Bhd has acquired Mi Polymer Concrete Pipes Sdn Bhd for RM35mn. The move effectively positions the group as the first integrated sewage specialist in South-East Asia, with the ability to provide a full range of solutions. (Bursa Malaysia/ The Star) Mieco Chipboard Bhd proposed to split every 2 shares in the company into 5, to increase trading liquidity. The exercise will see Mieco’s outstanding shares increase to 525mn shares from 210mn shares previously. (Bursa Malaysia/ The Edge) Malaysian Resources Corporation Bhd signed a MoU with Adani Realty in New Delhi, India, with the intent of exploring opportunities to co-develop convention centres throughout India. (Bernama) Kelington Group Bhd has secured 2 new contracts in China from a global multinational corporation (MNC) semiconductor manufacturer worth RM19.3mn. The contracts commence immediately, with targeted completion in December. (Bursa Malaysia/ The Edge) Tecnic Group Bhd and 3 of its directors have been publicly reprimanded by Bursa Malaysia for denying knowledge of the company's proposed reverse takeover by a third party 2 years ago. The 3 directors — executive chairman Datuk Gan Kim Huat, executive director Gan Poh San and independent non-executive director Teo Chee Kok — were also fined RM50k each. (Bursa Malaysia/ The Edge) Trading in the shares of PN16 company Premier Nalfin Bhd will be suspended effective April 11. Bursa Malaysia said it decided to suspend the stock as Premier Nalfin “had failed to regularise its condition”. (Bursa Malaysia/ The Edge) Alam Maritim Resources Bhd has bagged a RM26.1mn provision contract from Petronas Maritime Services Sdn Bhd. The contract was for the provision of one unit of 40 tonnes bollard pull utility boat for the Terengganu Crude Oil Terminal operation. The contract is for a primary period of 4 years and 211 days which is equivalent to 1,672 days with an extension for option of 1 year. (Bursa Malaysia/ Bernama) Page 4 of 7
7. TA Securities 4-Apr-17 A Member of the TA Group News In Brief Economy Asia Malaysia 's Manufacturing PMI Sees Marginal Improvement in March Malaysia's manufacturing Purchasing Managers' Index (PMI) saw a fractional improvement in March, and marked the best reading since May 2015. Although growth was modest, manufacturers were able to boost output at their plants last month. March was the second successive monthly rise in production – a significant development, as this is the first backto-back increase for two years. The headline Nikkei Malaysia PMI – a composite singlefigure indicator of manufacturing performance – posted 49.5 in March, which is little changed from Feb's 49.4. According to the report, new orders from abroad fell, albeit at a marginal pace. Output growth has led to a rise in warehouse inventories for a third straight month. Work backlog continues to rise, reflecting manpower shortages at plants. Although the PMI signals optimism for a fourth month in succession, overall confidence is undermined by worries about relatively underwhelming economic conditions, adding that where optimism was recorded, a number of companies have planned new plants and project launches. Price pressures remain strong heading into the second quarter of 2017, it added. Costs continue to increase markedly, which manufacturers blame on unfavorable exchange rates pushing up the price of imported goods. (New Straits Times) Japan Business Mood Brightens as Recovery Broadens: BOJ Tankan Japanese big manufacturers' business confidence improved for a second straight quarter to hit a one-and-a-half year high in March, a closely watched central bank survey showed, a sign the benefits of an export-driven economic recovery were broadening. Service-sector sentiment improved for the first time in six quarters and firms remained upbeat on their capital expenditure plans, the Bank of Japan's "tankan" survey showed, offering hope the economic recovery will gather momentum in coming months. While separate PMI data showed a slight slowdown in manufacturing activity in March, the upbeat tankan reinforces a dominant market view the central bank's next policy move would be to reduce rather than expand monetary stimulus. The headline index measuring big manufacturers' business sentiment rose to plus 12 in March from plus 10 three months ago, the tankan showed, falling short of market forecasts but marking the highest reading since December 2015. Service-sector sentiment also improved for the first time in six quarters to hit a oneyear high, on brightening business prospects among retailers, hotels and restaurants. Separately, the manufacturing sector in Japan continued to expand in March, although at a slower pace, the latest survey from Nikkei showed with a manufacturing PMI score of 52.4. That's down from 53.3 in February, although it remains above the boom-or-bust line of 50 that separates expansion from contraction. Among the individual components, capital goods producers indicated rises in output, new orders and exports. In addition, yen weakness continued to underpin cost inflation. (Reuters) Australia Retail Sales Slip 0.1% in February The total value of retail sales in Australia was down a seasonally adjusted 0.1% on month in February, the Australian Bureau of Statistics said - coming in at A$25.691 billion. That missed forecasts for an increase of 0.3% following the 0.4% gain in January. By category, food retailing was up 0.3%, followed by cafes, restaurants and takeaway food services (0.1%), and other retailing (0.1%). Clothing, footwear and personal accessory retailing was unchanged (0.0%). Household goods retailing (-0.1%), and Department Stores (-0.1%) were down. (RTT News) Indonesia's Annual Inflation Rate Cools in March Indonesia's annual inflation rate eased to 3.61% in March, the statistics bureau said, against expectations for it to stay steady near February's 3.83% pace. A Reuters poll had forecast an annual rate of 3.84% for March. Consumer prices fell 0.02% on a monthly basis in March, with those of rice, chili and eggs declining, as did transportation fares. Core inflation, which excludes administered and volatile food prices, decelerated to 3.30% in March. The poll had expected a rate of 3.51%. Indonesia's central bank, which cut its key rate six times in 2016, Page 5 of 7
8. TA Securities 4-Apr-17 A Member of the TA Group targets annual inflation to be between 3 % and 5% this year. Its next policy review is on April 19-20. (The Business Times) U.S. U.S. Factory Activity Continued to Expand in March Activity in the U.S. manufacturing sector expanded at a healthy pace in March, while factories are facing rising raw-material costs that could lift broader inflation. The Institute for Supply Management said its index of factory activity fell to 57.2 in March from 57.7 in February, which had been the strongest reading since August 2014. Despite the downshift, the gauge marked a seventh consecutive month of industrial expansion. “It’s often all about attitude rather than fundamentals,” said Bradley Holcomb, who oversees the ISM survey. “The prospects of lower tax rates and reduced encumbrances from regulation are helping to drive this system.” One highlight in the report: The index tracking prices paid by companies for their raw materials rose to its highest level since May 2011. Broad U.S. inflation gauges have firmed in recent months, and the Federal Reserve’s preferred price gauge in February exceeded the central bank’s 2% annual target for the first time in nearly five years. (The Wall Street Journal) U.K. U.K. Manufacturing Slows as Inflationary Pressures Continue U.K. manufacturing unexpectedly cooled for a third month in March and may weaken further which repeated its warning about inflationary pressures. Its factory Purchasing Managers Index declined to 54.2 from 54.5 in February, above the key 50 level that divides expansion from contraction, but below economists’ expectations for an uptick to 55. A measure of new orders also weakened. The factory survey compared “favorably” to its longrun trend with the slowdown centered on consumer-goods producers. While manufacturing probably made a “solid contribution” to first-quarter economic growth, there’s been a definite loss of momentum. That weaker trend is likely to continue into the second quarter. In March, the weaker pound helped export competitiveness and firms’ confidence remained high. Bank of England Deputy Governor Ben Broadbent said last month that exporters are enjoying a post-referendum, pre-Brexit “sweet spot” because while sterling has fallen, EU trading arrangements remain in place. That may slowly change after U.K. Prime Minister Theresa May kick started the formal process of withdrawing from the EU last week, nine months after the vote to leave. (Bloomberg) Europe Eurozone Factory Activity Growth Near 6-Year High Eurozone factory activity grew at the fastest pace in almost six years in March, as initially estimated, final data from IHS Markit showed. The factory Purchasing Managers' Index rose to a 71-month high of 56.2 in March, in line with flash estimate, from 55.4 in February. The average PMI reading over the first quarter as a whole was 55.6, the highest since the opening quarter of 2011. "Eurozone manufacturing is clearly enjoying a sweet spell as we move into spring, but it is also suffering growing pains in the form of supply delays and rising costs. National PMI data signaled that growth was centered on a solid core of Germany, the Netherlands and Austria. France also saw a sharper pace of improvement. Germany final Markit/BME manufacturing PMI grew, as initially estimated, to 58.3 from 56.8 in February. The indicator has climbed for the fourth straight month and signaled the strongest growth in business conditions since April 2011. The France's factory PMI rose to 53.3 in March from 52.2 in February. But the score was slightly below the flash estimate of 53.4. Separately, the Eurozone's unemployment rate has continued to fall, dropping to a near eight-year low in February. Figures from the Eurostat agency showed the jobless rate fell from 9.6% in January to 9.5% - the lowest since May 2009. The lowest unemployment rates were in the Czech Republic (3.4%) and Germany (3.9%), while the highest were in Greece (23.1%) and Spain (18%). France, the second-biggest economy in the Eurozone, was stuck at 10%. At the height of the financial crisis, unemployment in the Eurozone peaked at 12.1%. (BBC News, RTT News) Page 6 of 7
9. TA Securities 4-Apr-17 A Member of the TA Group Eurozone PPI Inflation Highest Since Nov 2011 Eurozone producer price inflation accelerated at a faster-than-expected pace in February to the highest level in more than five years , data from Eurostat showed. Industrial producer prices climbed 4.5% year-over-year in February, faster than the 3.9% rise in January, which was revised from a 3.5% increase reported earlier. Economists had expected a 4.4% price growth for the month. Moreover, the latest PPI inflation was the strongest since November 2016, when prices had grown 5.4%. Inflation was mainly driven by a 11.4% surge in energy prices. Excluding energy, producer prices went up 2.1%. On a monthly basis, producer prices remained flat in February, after a 1.1% gain in the prior month, revised up from 0.7%. Meanwhile, it was forecast to increase by 0.3%. (RTT News) Share Buy-Back: 03 April 2017 Company SNTORIA TEXCHEM Bought Back Price (RM) Hi/Lo (RM) 300,000 1,000 0.755/0.725 1.47 0.765/0.745 1.47/1.43 Total Treasury Shares 1,331,000 2,533,200 Source: Bursa Malaysia Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 7 of 7
10. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company AUTOMOBILE BAUTO MBMR UMW Share Price (RM) 03-Apr-17 2.01 2.52 6.04 Target Price BETA (RM) EPS (sen) PER (X) FY17 FY18 FY17 FY18 Div Yield (%) 52weeks 52weeks FY17 FY18 High Price % Chg Low Price % Chg % Chg YTD 2.36 2.04 5.12 0.98 0.55 1.21 10.8 22.7 17.7 15.8 23.8 27.6 18.7 11.1 34.2 12.8 10.6 21.9 5.9 3.6 1.8 7.8 3.6 3.0 2.44 2.70 7.01 -17.6 -6.7 -13.8 1.95 1.95 4.43 3.1 29.2 36.3 -5.6 17.8 32.2 4.10 3.40 5.40 6.10 15.80 9.20 22.10 4.70 8.50 1.26 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 11.5 9.7 10.4 11.1 13.6 12.2 14.6 10.6 26.3 10.9 8.6 9.6 10.0 12.5 10.9 14.2 10.1 25.0 3.6 2.8 3.3 3.6 3.0 5.6 2.8 2.3 3.6 3.6 2.8 3.7 4.0 3.0 5.6 2.9 2.3 3.6 4.37 2.92 5.03 5.83 13.90 9.20 20.28 5.39 10.00 -5.7 -2.1 -3.6 -4.1 -1.0 -2.2 -1.6 -3.3 -4.3 3.60 2.08 3.90 4.11 12.70 7.50 18.52 4.43 8.20 14.4 37.5 24.4 35.9 8.3 20.0 7.8 17.6 16.7 10.8 19.7 12.5 23.9 1.9 9.8 1.2 10.6 8.1 0.44 1.27 5.24 3.50 0.70 1.76 2.08 6.06 0.49 1.45 5.49 3.27 0.58 1.90 1.50 5.58 0.81 0.70 1.04 1.09 1.15 na 1.02 0.13 5.9 12.8 31.6 16.8 9.6 12.6 12.8 44.3 5.9 13.1 36.4 20.9 9.9 12.5 12.7 45.8 7.4 9.9 16.6 20.8 7.3 13.9 16.2 13.7 7.4 9.7 14.4 16.7 7.1 14.0 16.3 13.2 0.0 2.2 2.3 2.7 1.4 3.1 1.4 4.1 2.3 2.2 2.3 2.7 1.4 3.1 1.4 4.1 0.51 1.35 5.33 3.61 0.75 1.82 2.10 6.06 -14.7 -6.1 -1.7 -3.0 -6.7 -3.3 -1.0 0.0 0.36 0.78 4.59 3.07 0.41 1.42 1.41 5.02 20.8 62.8 14.2 14.0 72.8 23.9 47.5 20.7 0.0 21.0 9.6 9.4 21.7 3.5 20.2 3.1 1.99 2.00 0.47 15.4 15.6 12.9 12.8 5.0 5.0 2.40 -17.1 1.93 3.1 -1.0 15.08 18.00 15.41 21.08 0.57 0.58 69.6 93.1 77.5 21.7 101.9 19.3 19.5 17.7 4.6 4.7 5.1 5.1 15.20 18.74 -0.8 -3.9 12.38 13.60 21.8 32.4 8.3 9.9 2.40 7.41 24.64 79.40 3.02 1.86 4.56 0.98 2.23 9.59 26.14 83.60 4.00 2.74 4.17 1.10 0.46 0.33 0.34 0.38 0.47 0.69 0.46 0.56 6.5 35.9 102.6 288.8 23.5 25.1 12.7 9.3 7.5 40.5 124.5 313.3 26.5 25.3 15.8 12.8 36.9 20.6 24.0 27.5 12.8 7.4 35.9 10.5 31.8 18.3 19.8 25.3 11.4 7.3 28.9 7.6 0.8 4.0 2.6 3.6 5.0 4.3 1.0 5.1 0.9 5.1 3.0 3.9 6.0 4.3 1.1 5.1 3.00 9.58 27.00 81.80 3.08 2.04 4.70 1.07 -20.0 -22.7 -8.7 -2.9 -1.9 -8.8 -3.0 -8.7 2.11 7.30 20.10 74.12 1.92 1.42 4.14 0.78 13.7 1.5 22.6 7.1 57.5 31.0 10.1 25.0 -6.6 1.1 4.9 1.5 18.4 7.5 5.3 22.6 46.14 54.22 1.02 271.1 271.8 17.0 17.0 5.7 5.7 55.64 -17.1 40.31 14.5 4.5 9.61 5.56 10.34 6.10 1.34 1.26 45.0 25.7 50.9 27.9 21.4 21.6 18.9 19.9 0.5 1.4 0.6 1.6 9.90 5.81 -2.9 -4.3 7.50 4.17 28.2 33.2 21.0 23.0 2.90 0.12 3.81 0.10 0.72 1.26 22.1 0.2 24.6 0.3 13.1 58.3 11.8 38.1 5.5 0.0 6.6 0.0 3.42 0.13 -15.2 -11.5 2.86 0.05 1.4 130.0 -2.0 130.0 6.00 4.05 6.40 4.61 0.78 0.50 13.9 13.3 17.9 16.5 43.2 30.4 33.4 24.6 0.7 1.5 0.7 1.9 6.79 4.37 -11.6 -7.3 5.78 3.85 3.8 5.2 -5.5 -3.1 4.90 6.26 1.97 4.98 2.12 4.50 6.80 1.90 5.05 2.55 0.55 0.11 0.36 -0.21 0.29 18.2 35.8 16.2 26.6 4.3 21.2 40.5 18.2 30.2 7.1 27.0 17.5 12.2 18.7 49.4 23.1 15.5 10.8 16.5 30.0 1.7 2.9 2.5 2.7 0.5 2.0 3.2 2.8 3.0 0.8 5.03 7.07 2.88 5.45 2.74 -2.6 -11.5 -31.6 -8.6 -22.6 3.81 5.90 1.95 4.20 1.96 28.6 6.1 1.0 18.6 8.2 1.4 -5.0 -6.6 -6.9 -10.2 INDUSTRIAL SCIENTX SKPRES 7.38 1.34 8.50 1.75 0.54 0.50 75.3 8.8 83.0 13.7 9.8 15.2 8.9 9.8 2.8 3.3 3.3 5.1 7.61 1.44 -3.0 -6.9 5.75 1.12 28.3 19.6 10.1 3.9 MEDIA ASTRO MEDIA PRIMA STAR 2.76 1.17 2.40 3.20 0.85 1.95 1.03 0.68 0.59 13.3 7.7 15.0 14.5 8.0 15.8 20.8 15.1 16.1 19.1 14.7 15.2 4.5 5.3 7.5 4.7 5.4 7.5 3.01 1.52 2.70 -8.3 -23.0 -11.1 2.56 1.00 2.20 7.8 17.0 9.1 6.2 1.7 7.1 OIL & GAS EATECH MHB MISC PANTECH PCHEM SENERGY UMWOG UZMA 0.66 0.97 7.35 0.56 7.64 1.88 0.64 1.80 0.45 0.96 8.16 0.52 7.91 2.02 0.54 1.40 0.91 1.78 0.85 1.25 1.13 2.43 1.94 1.38 11.5 -0.4 50.6 3.7 34.7 5.2 -14.7 11.3 11.9 1.1 57.1 4.3 39.3 7.8 -12.4 12.2 5.7 na 14.5 15.0 22.0 35.9 na 16.0 5.5 86.9 12.9 13.0 19.4 24.1 na 14.7 0.0 0.0 4.1 2.7 2.5 0.5 0.0 0.0 0.0 0.0 4.1 3.1 2.5 0.5 0.0 0.0 1.23 1.34 9.00 0.58 7.75 2.09 1.04 2.04 -46.3 -27.6 -18.3 -2.6 -1.4 -10.0 -38.9 -11.8 0.45 0.84 6.88 0.44 5.95 1.29 0.61 1.30 48.3 15.5 6.8 28.7 28.4 45.7 5.0 38.5 6.5 6.0 0.0 25.8 9.5 16.0 -27.4 5.9 BANKS & FINANCIAL SERVICES AFG 4.12 AFFIN 2.86 AMBANK 4.85 CIMB 5.59 HLBANK 13.76 MAYBANK 9.00 PBBANK 19.96 5.21 RHBBANK BURSA 9.57 CONSTRUCTION BPURI GADANG GAMUDA IJM SENDAI SUNCON WCT LITRAK Building Materials WTHORSE CONSUMER Brewery CARLSBG HEIM Retail AEON AMWAY F&N NESTLE PADINI POHUAT QL SIGN Tobacco BAT GAMING Casino GENTING GENM NFO BJTOTO LUSTER HEALTHCARE Hospitals IHH KPJ Rubber Gloves HARTA KOSSAN SUPERMX TOPGLOV KAREX
11. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price (RM) PLANTATIONS FGV IJMPLNT IOICORP KLK SIME UMCCA Target Price BETA (RM) EPS (sen) PER (X) FY17 FY18 FY17 FY18 Div Yield (%) 52weeks 52weeks FY17 FY18 High Price % Chg Low Price % Chg % Chg YTD 2.08 3.22 4.62 24.70 9.29 6.45 1.53 3.88 3.93 22.75 8.24 7.52 1.75 0.44 1.06 0.94 1.26 0.50 6.3 13.7 18.7 111.8 30.8 32.7 11.1 15.7 21.1 119.1 35.3 34.5 32.8 23.5 24.6 22.1 30.2 19.7 18.7 20.5 21.9 20.7 26.3 18.7 2.4 2.2 2.2 2.2 2.4 2.5 2.4 2.5 2.6 2.4 3.0 2.6 2.52 3.70 4.81 25.50 9.55 6.51 -17.5 -13.0 -4.0 -3.1 -2.7 -0.9 1.31 3.14 4.07 22.62 7.10 5.53 58.8 2.5 13.5 9.2 30.8 16.6 34.2 -5.3 5.0 2.9 14.7 7.5 0.72 1.10 0.95 2.06 1.47 0.75 3.52 3.27 0.69 1.09 1.00 2.10 1.60 0.80 3.82 3.40 0.65 0.63 0.34 0.91 0.68 0.30 0.67 0.49 3.4 20.0 7.3 14.7 14.5 6.4 27.7 31.2 7.0 17.4 11.2 15.3 12.5 9.7 24.5 33.3 20.9 5.5 13.1 14.0 10.1 11.8 12.7 10.5 10.3 6.3 8.5 13.4 11.8 7.8 14.4 9.8 5.6 3.6 3.7 3.4 4.1 1.3 4.0 3.7 5.6 3.2 4.2 3.6 3.7 1.3 4.0 3.7 0.84 1.43 1.09 2.46 1.70 0.86 3.61 3.29 -13.8 -23.2 -12.8 -16.3 -13.5 -12.8 -2.5 -0.6 0.68 1.05 0.91 1.85 1.34 0.69 2.80 2.87 5.9 4.8 4.4 11.5 9.7 8.7 25.7 13.9 3.6 -2.7 -5.0 5.7 2.8 -6.3 12.5 7.9 1.71 1.62 1.79 1.78 0.53 0.61 8.9 8.1 10.1 8.5 19.3 20.0 16.9 19.0 5.2 5.6 5.9 5.8 1.84 1.72 -7.1 -5.8 1.57 1.43 8.9 13.3 -0.6 5.9 POWER & UTILITIES MALAKOF PETDAG PETGAS TENAGA YTLPOWR 1.24 23.90 19.82 13.76 1.52 1.45 20.19 19.64 17.19 1.81 0.71 0.77 0.78 1.02 0.59 6.9 98.4 89.4 133.8 8.8 8.3 102.3 91.6 132.7 10.6 17.9 24.3 22.2 10.3 17.4 15.0 23.4 21.6 10.4 14.4 5.6 3.1 3.2 4.2 6.6 4.7 3.2 3.2 2.9 6.6 1.80 25.70 22.66 14.90 1.64 -31.1 -7.0 -12.5 -7.7 -7.3 1.14 22.16 19.56 13.00 1.38 8.8 7.9 1.3 5.8 10.1 -9.5 0.4 -6.9 -1.0 2.0 TELECOMMUNICATIONS AXIATA DIGI MAXIS TM 4.97 5.12 6.44 6.42 5.25 4.90 5.95 6.95 1.27 0.97 0.72 0.68 17.0 20.8 25.1 21.4 17.9 21.1 25.4 22.3 29.2 24.6 25.7 29.9 27.7 24.3 25.3 28.8 1.7 4.1 3.1 3.0 1.8 4.1 3.1 3.1 5.99 5.19 6.49 6.90 -17.0 -1.3 -0.8 -7.0 4.11 4.31 5.36 5.81 20.9 18.8 20.1 10.5 5.3 6.0 7.7 7.9 TECHNOLOGY Semiconductor & Electronics IRIS 0.16 INARI 2.06 MPI 11.38 UNISEM 3.18 0.14 2.05 10.55 3.15 1.30 0.75 0.46 0.78 -1.1 10.4 84.3 26.9 0.8 12.4 96.6 29.1 na 19.9 13.5 11.8 18.7 16.6 11.8 10.9 0.0 2.0 2.0 3.8 0.0 2.4 2.0 3.8 0.24 2.10 12.22 3.30 -35.4 -1.9 -6.9 -3.6 0.10 1.28 6.86 2.12 55.0 60.7 65.9 50.0 40.9 24.1 53.6 34.7 3.11 7.01 3.02 7.68 1.18 1.45 40.3 9.8 41.9 10.2 7.7 71.2 7.4 68.9 1.3 1.4 1.6 1.4 3.30 7.30 -5.8 -4.0 1.84 5.76 69.0 21.7 35.8 15.7 1.70 4.05 1.88 4.51 0.83 0.68 15.4 19.3 21.5 17.4 11.0 21.0 7.9 23.3 3.2 3.6 4.1 3.2 1.76 4.59 -3.4 -11.8 1.22 3.74 39.3 8.3 6.9 -5.8 PROPERTY GLOMAC HUAYANG IBRACO IOIPG MAHSING SNTORIA SPSETIA SUNWAY REIT SUNREIT CMMT TRANSPORTATION Airlines AIRASIA AIRPORT Freight & Tankers TNLOGIS WPRTS SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price (S$) BANKS & FINANCIAL SERVICES DBS 19.40 OCBC 9.78 UOB 22.12 PLANTATIONS WILMAR IFAR 3.55 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 1.22 1.12 1.08 173.8 87.8 195.7 190.2 11.2 92.5 11.1 209.4 11.3 10.2 10.6 10.6 3.1 5.7 3.2 3.1 6.7 3.2 19.4 9.8 22.1 -0.1 0.0 0.0 14.63 8.84 17.41 32.6 19.1 27.1 11.9 9.6 8.4 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 -11.3 -11.8 2.96 0.44 19.9 19.3 -1.1 0.0 12.3 13.4 BUY : Total return within the next 12 months exceeds required rate of return by 5%-point. HOLD : Total return within the next 12 months exceeds required rate of return by between 0-5%-point. SELL : Total return is lower than the required rate of return. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.
12. COMPANY UPDATE TA Securities Tuesday , April 04, 2017 FBM KLCI: 1,745.49 Sector: Healthcare A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 TP: RM6.40 (+6.7%) IHH Healthcare Berhad Last Traded: RM6.00 Poised for Further Inroads in Hong Kong Hold THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Wilson Loo Tel: +603-2167 9606 wilsonloo@ta.com.my IHH is poised for further inroads in Hong Kong with its 500-bed multispecialty tertiary Gleneagles Hong Kong Hospital (GHK) having recently commenced operations on 21 March 2017. Revisiting Hong Kong’s dualtrack healthcare system, we find that there remains an imbalance between the public and private sector with the onus on the former due to the government’s heavy subsidization and uncompromising quality of healthcare services offered vis-à-vis the latter. Notwithstanding this, we are hopeful on GHK’s debut in Hong Kong’s private sector with: 1) demand for healthcare services expected to be driven by Hong Kong’s ageing population, 2) the government taking strides to achieve a balanced and sustainable dual-track healthcare system, and 3) its distinctive qualities. Our TP for IHH is maintained at RM6.40 per share. Maintain Hold. Hong Kong’s Imbalanced Dual-track Healthcare System For the uninitiated, Hong Kong operates a dual-track healthcare system. This means that like most other countries, healthcare services are provided by both the public and private sector. In Hong Kong, the onus on delivering healthcare services has conventionally been on the public sector due to its affordability and uncompromised quality of healthcare services offered vis-à-vis the private sector. We note that the Hong Kong government subsidizes over 95% of the actual cost of healthcare services at public hospitals regardless of each patient’s financial capacity. Whereas, at private hospitals, while offering the luxury of personalised choices, expediency, and better facilities, charges are costlier and often purported to lack comprehensive price transparency, leaving patients at risk of shocking bills. That said, high patronage to and occupancy rates at public hospitals are not unusual. As at 2015, Hong Kong’s public hospitals provided 81% of inpatient healthcare services and commanded 90% of hospital infrastructure (beds). Table 1: Hong Kong’s Inpatient and Bed Breakdown by Hospital Type 2005 2010 2015 Inpatients at: No. (mn') % No. (mn') % No. (mn') % Public Hospitals 1.1 83% 1.4 79% 1.7 81% Private Hospitals 0.2 17% 0.4 21% 0.4 19% Total 1.4 100% 1.8 100% 2.0 100% 2005 2010 www.taonline.com.my Share Information Bloomberg Code IHH MK Bursa Name IHH Stock Code 5225 Listing Main Market Share Cap (mn) 8,231.7 Market Cap (RM'mn) 49,390.4 Par Value (RM) 1.00 52-wk Hi/Lo (RM) 6.79/5.78 12-mth Avg Daily Vol (000' shrs) 5,950.3 Estimated Free Float (%) 20.7 Beta 0.8 Major Shareholders (%) Khazanah Nasional Bhd - 41.1 Mitsui & Co Ltd - 18.0 EPF - 10.1 Central Depository Pte Ltd - 5.3 Forecast Revision Forecast Revision (%) Net profit (RM'mn) Consensus TA/Consensus (%) Previous Rating FY17 FY18 1,144.0 1,476.7 1,115.0 1,350.0 102.6 109.4 Hold (Maintained) Financial Indicators Net gearing (x) CFPS (RM) Price/CFPS (x) ROA (%) ROE (%) NTA/Share (RM) Price/NTA (x) FY17 0.1 0.4 16.9 3.1 5.1 1.4 4.3 FY18 0.1 0.4 16.4 3.8 6.3 1.6 3.8 Share Performance Price chg (%) 1 mth 3 mth 6 mth 12 mth IHH 1.9 (6.1) (7.0) (9.4) FBMKLCI 2.2 5.9 5.1 1.2 (12-Mth) Share Price relative to the FBM KLCI 2015 Beds at: Public Hospitals No. % No. % No. % 27,765 90% 26,981 87% 27,895 88% Private Hospitals 3,038 10% 3,946 13% 4,014 12% Total 30,803 100% 30,927 100% 31,909 100% Source: Hong Kong Annual Digest of Statistics, TA Securities S ource: Bloomberg Page 1 of 5
13. TA Securities 4-Apr-17 A Member of the TA Group Hong Kong ’s Ageing Population to Drive Demand for Healthcare Services Our findings reveal that Hong Kong’s population is progressively ageing with its demographics characterized by declining birth rates and increasing life expectancy. As a matter of fact, Hong Kong is amongst the countries in the world with the longest life expectancy at 84 years versus the world average of 71 years in 2014. According to Hong Kong’s Census and Statistics Department, it projects the proportion of Hong Kong’s population aged 65 and above to increase rapidly in the coming years, doubling from 15% in 2014 to 30% in 2034 as baby boomers, who are those born in the late 1950s and early 1960s, enter old age. In view of this demographic trend, we opine that it is plausible to expect stronger growth in demand for healthcare services, especially for more specialised healthcare services (i.e. at the tertiary and quaternary level) as with ageing there are increased risks of developing chronic diseases. Supporting our view, as we reflect on the breakdown of inpatients at Hong Kong’s public hospitals by age group (see Figure 3), there appears to be a gradual shift in composition from the younger (<45 years) towards the older age group (>64 years). Figure 1: Births per Woman 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Hong Kong Figure 2: Life Expectancy 90 World Hong Kong World 80 70 60 50 1960 1970 1980 1990 2000 2010 2014 Source: The World Bank, TA Securities 1960 1970 1980 1990 2000 2010 2014 Source: The World Bank, TA Securities Figure 3: Hong Kong’s Public Hospital Inpatient Breakdown by Age Group <45 years 45-64 years >64 years 34% 35% 35% 35% 35% 35% 35% 60% 21% 21% 22% 23% 23% 24% 25% 25% 25% 45% 45% 44% 42% 42% 41% 40% 40% 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 46% 46% 22% 22% 40% 32% 32% 2014/2015 34% 2013/2014 34% 2012/2013 80% 2004/2005 100% 40% 20% 0% Source: Hospital Authority Statistical Report, TA Securities Government Taking Strides to Facilitate Flow to the Private Sector While noting that the public sector represents the core delivery channel for healthcare services, we also note that the Hong Kong government has been taking strides to facilitate flow to the private sector to relieve its growing financial burden. The most prominent of late was its request in September 2016 for private hospitals to provide patients budget estimates for 24 types of nonemergency operations on a voluntary basis in efforts to enhance price transparency which, for long had been a key deterrent for visits to private hospitals. Positively, we find that all 12 of Hong Kong’s private hospitals have been accommodative to the government’s request and are now voluntarily publicising budget estimates for major chargeable items on their websites. Above all, while it is premature to quantify the impact of the positive measure recently undertaken by the private sector, we believe that the increased pricing transparency would be supportive in drawing patients from public sector. Page 2 of 5
14. TA Securities 4-Apr-17 A Member of the TA Group GHK : A Private Hospital with Distinctive Qualities Delving in on the 500-bed GHK, we expect its operations to weigh on near term earnings as it undergoes a gestation phase but do not discount the prospect for a quicker turnaround towards the shorter end of the average of 1 to 2 years at the EBITDA level. Our view is premised on several distinctive qualities. Firstly, with GHK being the latest entrant into the private sector, it is well-equipped with new, modern and state-of-the-art medical equipment and facilities. We believe this would give it an upper hand against its private sector peers and appeal to the segment of the population that are accustomed to private hospitals. Note that prior to GHK, Hong Kong’s latest private hospital, Union Hospital, was established more than two decades ago in 1994. Meanwhile, the upcoming hospital in the private sector, The Chinese University of Hong Kong Medical Centre, is only expected to be commissioned in 2020. Secondly, in the interest of helping patients make financially informed decisions prior to admission, GHK will be offering fee advisory services and at least 51% of its inpatient bed days will be provided at packaged rates which are fixedprice and all-inclusive in nature. By all-inclusive, it implies that complications like re-operation and ICU care within the prescribed length of stay are covered. For a start, GHK will first be offering 54 medical packages on common clinical conditions with long waiting times but management alluded that it intends to progressively triple it to 150 medical packages to cater to more critical cases like cancer and cardiovascular diseases. In terms of financials, while guidance on profitability is scarce, our ballpark estimates suggests that GHK could potentially contribute revenue in range of RM410-480mn per annum to or 6-7% of IHH’s overall revenue. Our estimates are deduced on the assumption of occupancy rates at 60-70%, an average length of stay at 2 nights, and conservatively, the cheapest of the group’s medical packages, at HK$13,180 (RM7,513), which is for an endoscopic procedure. Currently, the priciest medical package, at HK$186,846 (RM106,502), is for an orthopaedic procedure. Table 2: Hong Kong’s Private Hospitals No 1 2 3 4 5 6 7 8 9 10 11 12 Private Hospital Hong Kong Adventist Hospital - Stubbs Road Hong Kong Sanatorium & Hospital St. Paul's Hospital Canossa Hospital Matilda International Hospital Hong Kong Baptist Hospital Precious Blood Hospital Evangel Hospital St. Teresa's Hospital Hong Kong Adventist Hospital - Tsuen Wan Union Hospital Gleneagles Hong Kong Total No. of Beds 135 539 352 176 99 754 158 67 1,068 153 405 500 4,406 Market Share 3% 12% 8% 4% 2% 17% 4% 2% 24% 3% 9% 11% 100% Source: Hospital Authority Statistical Report, TA Securities Impact We make no changes to our forecasts. Valuation & Recommendation Our SOTP derived TP for IHH is maintained at RM6.40 per share. Akin to our hopeful sentiment on GHK, we continue to expect similar prospects from the underlying business of the group’s home markets. However, in the near term, we continue to be wary of downside risk from the persisting weakness of emerging market currencies against the USD which could potentially weigh on margins. Maintain Hold. Page 3 of 5
15. TA Securities 4-Apr-17 A Member of the TA Group Figure 4 : Forward PER Figure 5: Forward EV/EBITDA x 65 x 29 60 27 +1SD: 55.4x 55 25 50 23 Average: 49.0x Average: 21.7x 21 45 19 +1SD: 42.5x -1SD: 18.8x 17 Source: Bloomberg, TA Securities Jan-17 Apr-17 Oct-16 Jul-16 Jan-16 Apr-16 Jul-15 Oct-15 Jan-15 Apr-15 Jul-14 Oct-14 Apr-14 Jan-14 Jul-13 Oct-13 Jan-13 Jan-17 15 Apr-17 Jul-16 Oct-16 Apr-16 Jan-16 Jul-15 Oct-15 Jan-15 Apr-15 Jul-14 Oct-14 Jan-14 Apr-14 Oct-13 Jul-13 Jan-13 Apr-13 35 Apr-13 40 +1SD: 24.6x Source: Bloomberg, TA Securities Table 3: SOTP Valuation Method EV/EBITDA EV/EBITDA EV/EBITDA EV/EBITDA Singapore Malaysia Turkey International Multiple 25 20 22 30 Value 26,737 9,010 16,653 4,275 56,676 2,214 6,661 1,367 49,168 1,795 670 872 52,506 Less: Net debt/(cash) Less: MI Add: MI Net debt PLife REIT Apollo IMU Health Total equity value Consensus Consensus P/E 15 Shares outstanding (mn') TP Stake 100% 100% 60% na 36% 5% 100% 8,232 RM6.40 Table 4: Peer Comparison Company IHH Healthcare Bhd Price TP Recomm. Country Mkt Cap EPS Growth (%) PER (x) (MYR mn) CY17 CY18 CY17 CY18 EV/EBITDA (x) CY17 CY18 ROE (%) Dividend Yield CY17 CY18 CY17 CY18 RM6.00 RM6.40 Hold Global 49,390 32.1 29.1 35.6 33.4 20.0 17.3 5.1 6.3 0.7 0.7 AUD 69.43 AUD 3.53 N.R. N.R. N.R. N.R. Australia Australia 47,209 6,193 12.9 0.0 11.1 11.9 24.9 18.6 22.4 16.7 12.2 8.1 11.2 7.6 24.5 3.8 24.1 4.5 2.1 3.4 2.3 3.8 Phoenix Healthcare Group Co Ltd Harmonicare Medical Holdings Ltd HKD 9.36 HKD 3.98 N.R. N.R. N.R. N.R. Hong Kong Hong Kong 6,911 1,719 6.9 40.5 28.3 11.9 27.9 20.0 21.8 17.9 17.2 8.5 12.9 7.4 10.6 8.8 10.5 9.4 0.7 1.4 0.9 1.4 Apollo Hospitals Enterprise Ltd Fortis Healthcare Ltd INR 1,173 INR 189 N.R. N.R. N.R. N.R. India India 11,100 6,668 30.7 -34.7 41.3 41.7 43.4 51.4 30.7 36.3 19.9 23.7 16.0 17.1 9.8 4.0 12.7 5.2 0.6 0.1 0.8 0.2 Mitra Keluarga Karyasehat Tbk PT IDR 2,580 Siloam International Hospitals Tbk PT IDR 13,875 N.R. N.R. N.R. N.R. Indonesia Indonesia 12,468 5,993 12.7 60.6 14.6 54.9 47.7 119.2 41.6 76.9 35.4 23.1 30.3 19.3 20.9 4.7 22.4 5.5 1.2 0.1 1.4 0.1 Ramsay Healthcare Ltd Primary Healthcare Ltd KPJ Healthcare Bhd RM4.05 RM4.60 Buy Malaysia 4,248 -6.3 23.5 36.2 29.3 14.9 13.1 8.1 9.5 1.5 1.9 Ryman Healthcare Ltd NZD 8.51 N.R. N.R. New Zld. 13,178 -8.1 13.8 23.3 20.5 19.8 18.6 11.6 11.7 2.3 2.6 N.R. N.R. N.R. N.R. N.R. N.R. N.R. N.R. N.R. N.R. Thailand Thailand Thailand Thailand Thailand 41,468 16,880 5,048 4,204 3,567 31,189 5,463 37,168 7.9 2.3 22.0 23.0 28.7 14.8 11.9 15.4 12.7 8.6 23.1 16.3 12.1 19.8 27.5 18.0 35.6 35.3 45.8 35.5 38.2 35.8 46.5 33.3 31.6 32.5 37.3 30.5 34.1 30.7 34.8 29.7 22.5 21.6 25.5 17.6 26.2 19.6 18.8 19.8 20.1 19.3 21.7 15.5 22.4 17.1 15.5 17.5 15.6 25.1 12.2 17.5 20.2 14.4 9.2 15.7 16.2 24.2 14.0 18.4 21.6 15.0 10.1 16.2 1.4 1.5 1.3 1.5 1.5 1.4 1.2 1.4 1.5 1.6 1.7 1.7 1.8 1.5 1.4 1.6 Bangkok Dusit Med Service THB 20.80 Bumrungrad Hospital Rub Co THB 180.00 Vibhavadi Medical Centre PCL THB 2.98 Bangkok Chain Hospital PCL THB 13.10 Chularat Hospital PCL THB 2.52 Weighted Average Weighted Average Small Mkt Cap (<RM10bn) Weighted Average Large Mkt Cap (>RM10bn) Page 4 of 5
16. TA Securities 4-Apr-17 A Member of the TA Group P &L FYE Dec 31 (RMmn) Revenue EBITDA Dep. and amor. EBIT Net finance cost Associates & JV PBT Income tax expense MI Net profit (-MI) Core net profit (-MI) FY15 8,455 2,142 689 1,529 -326 14 1,218 -165 -118 934 899 FY16 10,022 2,283 800 1,389 -528 17 878 -270 4 612 866 FY17F 12,198 2,812 920 1,891 -202 20 2,021 -445 -189 1,387 1,144 FY18F 14,064 3,248 949 2,299 -148 22 2,173 -478 -218 1,477 1,477 FY19F 16,326 3,750 984 2,766 -92 24 2,697 -593 -367 1,737 1,737 EPS (sen) DPS (sen) 11.3 3.0 7.4 3.0 16.9 4.2 17.9 4.5 21.1 5.3 Ratios P&L Valuations PER (x) PBV (x) EV/EBITDA (x) Dividend yield (%) Profitability ratios ROAE (%) ROAA (%) EBITDA margin (%) PBT margin (%) PAT margin (%) Core PAT margin (%) Liquidity ratios Current ratio (x) Quick ratio (x) FY15 FY16 FY17F FY18F FY19F 52.9 2.2 25.4 0.5 80.7 2.2 25.7 0.5 35.6 2.1 20.0 0.7 33.4 2.0 17.3 0.7 28.4 1.9 15.0 0.9 4.3 2.8 25.3 14.4 11.0 10.6 3.9 2.4 22.8 8.8 6.1 8.6 5.1 3.1 23.0 16.6 11.4 9.4 6.3 3.8 23.1 15.5 10.5 10.5 7.0 4.3 23.0 16.5 10.6 10.6 1.4 1.4 1.3 1.2 1.1 1.1 1.3 1.2 1.4 1.4 Leverage ratios Total liabilities/equity (x)0.5 Net debt/equity (x) 0.2 Int. coverage ratio (x) 3.7 0.6 0.2 2.1 0.5 0.1 6.0 0.5 0.1 7.7 0.5 0.0 9.6 18.5 6.6 -27.9 -3.7 4.8 21.7 23.1 130.3 32.1 1.4 15.3 15.5 7.5 29.1 4.2 16.1 15.5 24.1 17.6 5.5 Growth ratios Sales (%) EBITDA (%) Pretax (%) Core net profit (%) Total assets (%) 15.1 10.6 -0.3 15.0 23.9 Balance Sheet FYE Dec 31 (RMmn) Fixed assets Associates + Subs. + JVs Goodwill Others LT assets FY15 14,305 227 11,009 5,306 30,847 FY16 16,174 161 11,076 5,179 32,589 FY17F 16,664 181 11,076 4,811 32,732 FY18F 17,125 202 11,076 4,801 33,204 FY19F 17,695 226 11,076 4,797 33,793 Inventories Trade receivables Cash Others Current assets 219 1,234 1,978 1,220 4,651 253 1,442 2,443 461 4,599 277 697 3,541 461 4,976 320 804 4,521 461 6,105 371 933 5,931 461 7,696 Total assets 35,498 37,188 37,708 39,309 41,489 LT borrowings Trade payables Others LT liabilities 6,323 556 1,702 8,025 6,853 1,667 2,800 9,653 6,292 813 1,947 8,239 5,979 938 2,071 8,050 5,761 1,088 2,222 7,982 ST borrowings Trade payables Others Current liabilities 374 2,555 307 3,236 634 2,612 395 3,642 699 3,253 395 4,347 664 3,750 395 4,810 640 4,354 395 5,389 Share capital Reserves MI 8,223 13,932 2,081 8,232 13,754 1,907 8,232 14,795 2,096 8,232 15,902 2,315 8,232 17,205 2,681 Total liabilities and equity 35,498 37,188 37,708 39,309 41,489 Cash Flow YE Dec 31 (RMmn) FY15 PBT 1,218 Depreciation and amortisation689 Net interest 326 Other non-cash -924 Changes in WC 992 Tax paid -315 Operational cash flow 1,986 FY16 878 800 528 -986 918 -204 1,934 FY17F 2,021 920 202 -20 437 -445 3,116 FY18F 2,173 949 148 -22 446 -478 3,216 FY19F 2,697 984 92 -24 541 -593 3,698 Capex Interest received Others Investing cash flow -1,361 62 -2,079 -3,378 -2,084 70 342 -1,671 -1,360 112 387 -861 -1,360 151 -12 -1,221 -1,506 196 -12 -1,322 Net share issue Dividend paid Net change in debts Interest paid Others Financial cash flow 88 -420 1,193 -194 140 806 2 -420 421 -284 443 162 0 -347 -496 -315 0 -1,158 0 -369 -347 -299 0 -1,015 0 -434 -243 -288 0 -965 Net cash flow Opening cash flow Forex Closing cash flow -586 2,468 96 1,978 424 1,978 41 2,443 1,097 2,443 0 3,541 980 3,541 0 4,521 1,410 4,521 0 5,931 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 5 of 5
17. Tuesday , 04 April, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED LOCAL TECHNICAL REPORTS’ Local Technical Reports 1. Daily Technical Stock Picks 2. Daily Stock Screen Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research
18. T e c h n i c a l TA Securities V i e w Tuesday , April 04, 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: 1,745.49 (+5.40, +0.31%) THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Name FBMKLCI AFFIN AFG AMBANK AXIATA CIMB DIGI GAMUDA GENTING GENM IHH IOICORP MALAKOFF MAXIS MAYBANK MBSB RHBBANK SIME TENAGA TM WPRTS AIRASIA AIRASIA X ARMADA BINAPURI CMSB DIALOG ECO WORLD GADANG HSL ISKANDAR KIMLUN KKBE MUDAJAYA MRCB NAIM SAPURA ENERGY SUNCON UEMS WASEONG WCT Close 3-Apr 1745.49 2.86 4.12 4.85 4.97 5.59 5.12 5.24 9.61 5.56 6.00 4.62 1.24 6.44 9.00 1.27 5.21 9.29 13.76 6.42 4.05 3.11 0.40 0.75 0.44 4.30 1.77 1.56 1.27 1.68 3.01 2.22 1.25 1.03 1.74 1.51 1.88 1.76 1.27 0.89 2.08 Change 5.40 -0.02 0.04 0.20 -0.09 0.02 -0.01 0.06 0.02 0.11 0.00 -0.03 0.03 0.00 0.08 -0.03 0.04 0.01 0.04 0.00 0.00 -0.03 -0.01 -0.01 -0.01 0.09 0.00 -0.01 0.02 -0.01 0.08 -0.02 0.00 0.05 0.04 -0.01 0.06 0.00 0.00 0.01 0.15 Tel: +603-2167-9607 High Low 1,745.49 1,737.77 2.89 4.13 4.86 5.08 5.63 5.13 5.31 9.63 5.59 6.02 4.66 1.24 6.44 9.00 1.30 5.24 9.30 13.78 6.44 4.05 3.16 0.41 0.76 0.45 4.30 1.78 1.60 1.28 1.69 3.29 2.26 1.25 1.06 1.77 1.52 1.88 1.79 1.29 0.89 2.10 2.86 4.07 4.65 4.97 5.52 5.07 5.10 9.50 5.39 5.95 4.62 1.21 6.36 8.90 1.26 5.16 9.26 13.72 6.36 4.00 3.08 0.40 0.75 0.44 4.21 1.75 1.51 1.25 1.67 2.99 2.21 1.25 0.99 1.70 1.51 1.83 1.75 1.27 0.88 1.91 Bollinger Bands Lower Mid Upper 1,712.17 1,738.15 1,764.13 2.82 3.97 4.71 4.57 5.32 5.07 4.91 9.27 5.20 5.87 4.61 1.15 6.34 8.72 1.12 5.11 9.02 13.68 6.25 3.82 2.69 0.39 0.70 0.43 4.12 1.62 1.47 1.20 1.67 1.67 2.12 1.22 0.86 1.44 1.50 1.76 1.69 1.19 0.85 1.77 2.87 4.07 4.86 4.91 5.53 5.13 5.14 9.61 5.48 5.98 4.69 1.19 6.41 8.89 1.22 5.23 9.27 13.73 6.36 3.97 2.92 0.40 0.73 0.45 4.24 1.69 1.52 1.26 1.70 2.50 2.21 1.26 0.95 1.59 1.53 1.88 1.75 1.25 0.88 1.88 2.91 4.17 5.02 5.25 5.74 5.18 5.37 9.95 5.76 6.08 4.77 1.23 6.48 9.07 1.31 5.36 9.51 13.78 6.46 4.12 3.14 0.41 0.77 0.46 4.35 1.77 1.57 1.32 1.72 3.33 2.30 1.29 1.04 1.74 1.55 2.01 1.81 1.32 0.90 1.99 stsoo@ta.com.my RSI Moving Averages 14d 10d 30d 50d 59.92 1,748.03 1,727.24 1,712.35 DMI DI + DI - ADX 33.28 19.31 39.58 Diff 13.97 62.58 58.05 53.45 53.71 63.97 52.15 59.49 57.41 55.90 47.98 44.91 63.64 57.52 64.93 66.19 51.74 54.14 57.77 64.49 53.82 68.79 44.03 55.50 43.62 56.60 70.60 59.96 60.13 47.21 82.47 53.73 45.33 68.44 73.19 40.77 51.59 51.68 59.08 52.54 74.07 22.81 20.31 19.12 30.43 31.65 16.33 20.01 21.96 24.94 17.86 19.22 24.68 17.77 21.77 26.43 15.75 22.65 14.60 20.72 13.84 33.24 18.09 25.85 21.77 18.00 32.17 26.96 27.03 18.52 54.37 23.75 19.94 45.90 36.03 20.08 15.69 15.11 23.47 24.67 34.47 10.76 2.96 (6.23) 6.33 16.03 (9.19) (0.85) 8.22 4.52 (4.23) 0.05 12.41 (3.86) 4.48 15.42 (3.55) (0.47) (4.40) 9.45 (8.78) 23.55 4.44 3.44 5.15 26.11 26.11 16.11 15.50 (4.69) 42.49 8.48 (11.69) 32.83 31.90 (0.18) (5.27) 3.17 13.77 6.59 19.84 2.87 4.10 4.83 5.04 5.60 5.14 5.23 9.67 5.59 6.00 4.68 1.19 6.42 8.97 1.26 5.26 9.36 13.73 6.39 4.03 2.98 0.40 0.75 0.44 4.28 1.72 1.53 1.26 1.69 2.66 2.21 1.25 0.99 1.66 1.52 1.87 1.77 1.28 0.89 1.89 2.77 4.02 4.82 4.80 5.40 5.10 5.07 9.43 5.41 5.98 4.68 1.19 6.39 8.80 1.19 5.15 9.21 13.67 6.30 3.98 2.85 0.40 0.74 0.45 4.22 1.68 1.52 1.21 1.69 2.08 2.21 1.26 0.92 1.54 1.55 1.89 1.75 1.22 0.88 1.88 2.65 3.95 4.71 4.84 5.24 5.06 5.01 9.04 5.23 6.10 4.64 1.23 6.32 8.59 1.16 5.10 9.11 13.64 6.22 4.06 2.74 0.40 0.70 0.45 4.21 1.63 1.49 1.16 1.68 1.63 2.18 1.30 0.90 1.51 1.58 1.85 1.74 1.18 0.87 1.87 12.05 17.35 25.36 24.10 15.62 25.53 20.86 13.74 20.42 22.09 19.17 12.27 21.64 17.29 11.02 19.30 23.13 19.00 11.27 22.63 9.69 13.65 15.26 18.33 12.85 6.06 10.85 11.52 23.22 11.87 15.27 31.64 13.07 4.13 20.26 20.97 11.94 9.70 18.08 14.63 43.07 27.02 26.77 21.67 42.32 12.65 24.44 53.40 40.34 12.50 17.13 23.19 12.58 28.40 42.54 18.55 16.05 20.03 31.76 37.68 32.28 23.99 19.09 19.04 18.44 49.60 36.32 43.28 10.91 54.01 16.88 18.57 34.52 57.21 16.76 21.91 26.52 42.52 19.67 21.16 www.taonline.com.my Line 10.99 0.06 0.05 0.02 0.09 0.11 0.02 0.08 0.17 0.11 -0.02 0.00 0.02 0.03 0.11 0.04 0.04 0.08 0.03 0.06 0.00 0.11 0.00 0.01 0.00 0.03 0.03 0.02 0.03 0.00 0.35 0.01 -0.01 0.03 0.06 -0.02 0.00 0.01 0.03 0.00 0.02 MACD Signal Diff 12.38 (1.390) 0.08 0.05 0.05 0.08 0.13 0.03 0.07 0.22 0.12 -0.03 0.01 0.01 0.03 0.13 0.03 0.06 0.09 0.03 0.06 -0.02 0.09 0.00 0.01 0.00 0.03 0.03 0.01 0.04 0.00 0.36 0.01 -0.01 0.02 0.05 -0.02 0.00 0.01 0.03 0.00 0.01 (0.016) (0.003) (0.025) 0.011 (0.018) (0.004) 0.006 (0.049) (0.014) 0.014 (0.012) 0.003 (0.000) (0.016) 0.005 (0.016) (0.016) (0.000) (0.001) 0.021 0.020 (0.001) (0.001) (0.002) (0.000) 0.005 0.003 (0.007) (0.003) (0.008) 0.000 0.003 0.005 0.012 0.002 (0.006) (0.000) (0.003) (0.000) 0.018 DMI MACD Recent Signal BUY SELL DMI MACD Signal Change - BUY BUY SELL BUY BUY SELL SELL BUY BUY SELL BUY BUY SELL BUY BUY SELL SELL SELL BUY SELL BUY BUY BUY BUY BUY BUY BUY BUY SELL BUY BUY SELL BUY BUY SELL SELL BUY BUY BUY BUY SELL - SELL SELL SELL BUY SELL SELL BUY SELL SELL BUY SELL BUY SELL SELL BUY SELL SELL SELL SELL BUY BUY SELL SELL SELL SELL BUY BUY SELL SELL SELL BUY BUY BUY BUY BUY SELL SELL SELL SELL BUY SELL SELL SELL - The table above is a compilation of actively traded stocks with some popular technical indicators. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. 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
19. Technical Comments : Overbought technical momentum on AirAsia implies limited upside potential with any strength to re-visit the 19/8/16 peak (RM3.30) expected to attract strong profit-taking interest, while key retracement support is seen from the 76.4%FR (RM2.70). Weak technical momentum on AirAsia X point to further weakness towards the 50%FR (38sen) to rebuild support, with next stronger support from the 38.2%FR (36sen), while strong resistance is seen from the 76.4%FR (44sen). AIRASIA RM3.11 (-0.03) Upper Middle BOLLINGER BANDS RM RM 3.14 2.92 10-day 30-day Lower RM 2.69 50-day BUY Recent Signal DMI Recent Signal 2.74 BUY Signal Change AIRASIA X Recent Signal Signal Change RM DAILY MACD Signal Change Upper Middle Lower SIMPLE MOVING AVERAGES RM 2.98 RM 2.85 BOLLINGER BANDS RM RM RM DMI RM0.395 (-0.005) 0.41 0.40 0.39 BUY SIMPLE MOVING AVERAGES RM 0.40 RM 0.40 RM 0.40 DAILY MACD Recent Signal SELL Signal Change 10-day 30-day 50-day Page 2 of 4
20. T e c h n i c a l TA Securities V i e w Tuesday , April 04, 2017 FBMKLCI: 1,745.49 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 03.04.2017 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my www.taonline.com.my Report Description: The Daily Stock Screen is a retail product which can be a very useful guide for momentum trading and trading ideas .The following list is derived from the screening of more than 1000 stocks currently listed on Bursa Malaysia to identify: the top 20 breakout, 20 breakdown, and 30 ‘potential’ breakout stocks which just climbed above the middle Bollinger band, with potential to appreciate toward the upper Bollinger band. [MIDDLE BOLLINGER RANGEBOUND] List of 30 Potential Breakout Stocks (Short-term BUY for upside toward Upper Bollinger Band or higher to TAKE PROFIT/SELL) No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Stock Name Price NETX HOLDINGS BH IFCA MSC BHD XOX BHD PWORTH SANICHI TECHNOLO OLYMPIA INDS BHD LUSTER INDUSTRIE MPAY SCOMI GROUP BHD GHL SYSTEMS BHD NEXGRAM HOLDINGS TALAM TRANSFORM DAGANG NEXCHANGE NAIM INDAH CORP MALAYSIA AIRPORT MINETECH RESOURC XINGHE HOLDINGS DRB-HICOM BHD KNM GROUP BHD KRONOLOGI ASIA B BIO OSMO BHD RAYA INTERNATION EA HOLDINGS YTL CORP BHD ADV SYNERGY BHD PRIVASIA TECHNOL HO WAH GENTING EWEIN BHD TIGER SYNERGY BH SOLUTION ENGINEE 0.03 0.44 0.11 0.19 0.08 0.15 0.12 0.25 0.19 1.14 0.05 0.05 0.40 0.11 7.01 0.14 0.05 1.39 0.30 0.37 0.09 0.23 0.08 1.49 0.16 0.18 0.07 0.80 0.05 0.33 RSI Bollinger Band Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 0.02 0.40 0.09 0.14 0.06 0.09 0.09 0.21 0.17 1.06 0.04 0.04 0.38 0.08 6.71 0.10 0.03 1.34 0.29 0.35 0.06 0.20 0.05 1.46 0.13 0.15 0.05 0.74 0.04 0.31 0.02 0.44 0.10 0.18 0.08 0.14 0.11 0.24 0.18 1.13 0.05 0.04 0.40 0.10 7.00 0.13 0.04 1.38 0.30 0.36 0.08 0.22 0.07 1.49 0.15 0.17 0.06 0.79 0.05 0.32 0.03 0.48 0.11 0.22 0.09 0.19 0.13 0.27 0.20 1.21 0.06 0.05 0.41 0.12 7.29 0.16 0.05 1.42 0.31 0.37 0.10 0.25 0.09 1.52 0.18 0.19 0.07 0.85 0.05 0.33 58.74 50.32 53.50 62.77 53.13 55.61 59.75 53.68 52.32 54.82 54.92 53.57 56.14 54.99 55.13 60.06 58.60 53.91 43.44 56.94 56.85 56.41 60.00 45.54 57.78 55.09 56.12 55.53 55.88 52.93 0.03 0.43 0.10 0.19 0.08 0.15 0.12 0.25 0.19 1.16 0.05 0.04 0.40 0.11 7.10 0.14 0.04 1.38 0.30 0.36 0.09 0.23 0.07 1.49 0.16 0.18 0.06 0.78 0.05 0.32 0.02 0.45 0.10 0.16 0.08 0.13 0.10 0.23 0.18 1.10 0.04 0.04 0.40 0.10 6.86 0.12 0.04 1.39 0.31 0.36 0.07 0.22 0.06 1.51 0.14 0.17 0.06 0.77 0.05 0.32 0.02 0.45 0.10 0.14 0.07 0.12 0.10 0.23 0.17 1.03 0.04 0.04 0.36 0.09 6.69 0.11 0.04 1.33 0.33 0.35 0.07 0.20 0.06 1.52 0.13 0.17 0.06 0.77 0.05 0.32 Vol 53,628,000 28,521,400 21,662,800 21,013,400 19,575,000 13,565,000 13,391,100 12,968,900 10,967,400 10,934,400 10,268,600 9,567,000 8,304,300 7,582,400 5,861,500 5,808,700 4,385,500 3,663,100 3,576,200 3,538,700 3,350,600 3,226,400 3,171,700 2,870,300 2,644,300 2,549,500 2,417,400 2,387,700 2,356,000 2,138,300 20-day avg vol 6,999,120 21,138,400 16,439,620 72,888,020 14,451,710 41,627,300 32,924,410 18,501,800 8,760,745 3,240,130 12,750,430 10,065,930 35,989,550 27,333,240 4,666,250 11,011,260 7,735,175 5,730,170 18,055,890 6,366,965 14,278,100 1,225,925 22,573,160 9,829,115 5,600,680 3,480,655 20,506,050 649,425 11,100,280 2,886,355 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
21. 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 AMTEK HLDGS MEGA SUN CITY HO TOYO INK GRP BHD BSL CORP BHD KAMDAR GROUP M B HARRISONS HLDGS CCK CONSOLIDATED OVERSEA ENTERPRI JF TECHNOLOGY YINSON HLDGS BHD PLB ENGINEER BERJAYA ASSETS B ZECON BHD TONG HERR RESOUR MIECO CHIPBOARD ELSOFT RESEARCH PLENITUDE BHD SKH CONSORTIUM B WCT HOLDINGS BHD 0.28 0.40 0.78 0.40 0.39 3.50 0.68 0.27 0.87 3.32 1.52 0.93 0.61 3.32 2.30 2.05 1.74 0.11 2.08 1.56 THREE-A RESOURCE Raw data sourced from Bloomberg 20 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 0.21 0.32 0.52 0.33 0.31 3.26 0.62 0.19 0.40 3.08 1.31 0.83 0.56 2.17 1.82 1.59 1.51 0.05 1.77 1.24 0.25 0.36 0.64 0.35 0.34 3.37 0.64 0.23 0.61 3.19 1.41 0.88 0.58 2.64 2.02 1.78 1.59 0.07 1.88 1.37 0.28 0.39 0.76 0.38 0.38 3.48 0.66 0.27 0.81 3.30 1.52 0.92 0.59 3.10 2.22 1.97 1.67 0.10 1.99 1.51 60.09 62.27 68.27 68.32 67.19 62.77 67.76 75.22 82.57 64.74 61.17 68.83 69.67 91.39 72.31 85.74 75.59 74.85 74.07 78.50 0.25 0.37 0.67 0.36 0.36 3.39 0.64 0.23 0.68 3.21 1.44 0.89 0.58 2.78 2.06 1.83 1.61 0.08 1.89 1.43 0.24 0.35 0.61 0.36 0.33 3.36 0.64 0.21 0.57 3.17 1.44 0.87 0.58 2.50 2.02 1.72 1.59 0.07 1.88 1.36 0.25 0.35 0.58 0.34 0.33 3.36 0.65 0.20 0.55 3.14 1.40 0.88 0.58 2.32 1.94 1.66 1.58 0.07 1.87 1.34 Vol 41,000 2,854,300 430,300 1,649,000 45,000 74,100 2,078,500 7,665,600 2,885,400 5,833,000 20,400 1,573,700 328,300 469,900 4,089,300 1,102,600 646,200 42,536,300 10,626,100 5,182,300 20-day avg vol 2,985 217,510 48,965 194,365 6,030 11,190 384,055 1,439,460 583,505 1,290,665 4,565 362,840 78,495 116,010 1,111,915 303,800 179,990 11,859,510 2,983,600 1,540,175 *Note: As for the top 20 breakdown list below, the sole sorting criteria is stock price must close significantly BELOW the lower Bollinger Band, with the largest distance from the lower band at the top of the table, signaling a severe sell-off which is bearish. Caveat: A stock should bottom out if share price moves ABOVE the falling lower Bollinger Band, which can be a good buy signal for technical rebound upside after the sharp sell-off. p [LOWER BOLLINGER BREAKDOWN] Top 20 Breakdown Stocks (Generally BEARISH, but can be short-term BUY guide) No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Stock Name Price HONG LEONG INDS PESTECH INTL BHD UMS HLDGS BHD A-RANK BHD JAVA BHD SUBUR TIASA FORMOSA PROSONIC COMINTEL CORP BH SIG GASES BHD ASTRO MALAYSIA BERJAYA CORP BHD ONLY WORLD GROUP CAPITALAND MALAY CI HOLDINGS BHD AL-SALAM REAL ES BINA DARULAMAN SYF RESOURCES BH LAND & GENERAL MALAYAN UTD INDS MEDA INC BHD 9.30 1.62 2.62 1.05 0.04 1.36 0.85 0.86 0.59 2.76 0.37 1.94 1.62 2.35 1.01 0.76 0.56 0.31 0.16 0.46 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 9.35 1.65 2.65 1.08 0.06 1.37 0.86 0.86 0.59 2.77 0.38 1.94 1.62 2.35 1.01 0.76 0.56 0.31 0.16 0.46 9.48 1.70 2.74 1.15 0.08 1.43 0.93 0.91 0.61 2.84 0.39 1.99 1.66 2.43 1.03 0.80 0.59 0.33 0.17 0.48 9.60 1.76 2.84 1.22 0.11 1.48 1.00 0.96 0.64 2.92 0.40 2.03 1.70 2.51 1.04 0.84 0.62 0.35 0.18 0.50 37.50 33.37 40.70 34.71 34.46 38.87 19.46 40.09 46.81 40.68 40.17 39.20 43.47 26.18 38.52 37.17 30.29 38.58 40.30 27.78 9.44 1.69 2.71 1.15 0.08 1.42 0.91 0.90 0.61 2.82 0.38 1.98 1.65 2.41 1.02 0.78 0.58 0.33 0.17 0.47 9.50 1.71 2.73 1.14 0.08 1.43 0.94 0.90 0.61 2.85 0.39 1.98 1.63 2.47 1.03 0.80 0.59 0.33 0.17 0.48 9.54 1.68 2.71 1.14 0.07 1.42 0.94 0.88 0.54 2.83 0.38 2.02 1.63 2.50 1.04 0.77 0.61 0.33 0.16 0.49 Vol 273,500 1,031,300 27,000 1,592,400 1,473,100 9,000 77,600 1,526,900 93,700 1,324,300 14,465,100 329,800 3,167,300 6,000 14,000 381,500 5,110,000 10,737,600 190,600 246,000 20-day avg vol 44,685 716,480 4,450 1,152,875 118,080 14,405 171,115 2,116,355 229,335 1,474,930 16,579,390 168,890 3,570,935 31,875 95,730 1,024,830 1,728,180 5,967,155 3,659,630 135,150 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
22. Tuesday , 04 April, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED FOREIGN TECHNICAL REPORTS’ Asian Technical Reports 1. Foreign Technical Stock Watch (AUS) 2. Foreign Technical Stock Watch (HK) 3. Foreign Technical Stock Watch (FSSTI) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research
23. T e c h n i c a l TA Securities V i e w Tuesday , April 04, 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: 5,872.68 (+7.78, +0.13%) THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Name ASX 200 BHP BILLITON RIO TINTO COMMONW BK AUSTR WESTPAC BANKING AUST AND NZ BANK NATL AUST BANK WESFARMERS WOODSIDE PETRO NEWCREST MINING WESTFIELD GROUP FORTESCUE METALS QBE INSURANCE ORIGIN ENERGY AMP SANTOS MACQUARIE GROUP SUNCORP GROUP ORICA OIL SEARCH COCA-COLA AMATIL AMCOR STOCKLAND ALUMINA COMPUTERSHARE QANTAS AIRWAYS SIMS METAL MGMT Tel: +603-2167 9607 stsoo@ta.com.my Close Bollinger Bands RSI Moving Averages DMI Change High Low 3-Apr Lower Mid Upper 14d 10d 30d 50d DI + DI - ADX Diff 5872.68 7.78 5873.40 5840.90 5675.62 5784.43 5893.24 62.35 5799.59 5773.41 5741.36 36.60 20.99 22.38 15.61 24.00 60.01 86.39 35.21 31.97 33.45 45.10 32.13 22.66 8.96 6.20 12.91 7.04 5.16 3.74 89.60 12.98 17.65 7.29 10.63 15.08 4.68 1.80 14.04 3.90 12.19 -0.04 -0.45 0.48 0.15 0.15 0.11 0.03 0.05 0.39 0.08 -0.03 0.02 -0.01 -0.02 -0.06 -0.60 -0.23 0.05 0.07 -0.19 0.02 0.04 0.01 -0.02 0.01 -0.17 24.03 60.44 86.44 35.28 32.02 33.50 45.24 32.18 22.69 8.96 6.34 13.04 7.05 5.21 3.81 90.60 13.18 17.69 7.29 10.81 15.19 4.68 1.82 14.13 3.93 12.35 23.65 59.69 85.26 34.85 31.51 33.08 44.79 31.85 22.45 8.87 6.11 12.84 6.93 5.12 3.73 89.44 12.88 17.50 7.21 10.56 14.92 4.62 1.78 13.94 3.86 12.03 23.18 58.34 82.24 33.52 30.85 31.52 42.94 30.36 20.90 8.35 5.90 12.54 6.18 4.89 3.50 86.33 12.90 17.12 6.69 10.19 13.94 4.41 1.72 13.58 3.68 12.11 24.27 60.56 84.46 34.60 31.66 32.63 44.14 31.31 22.06 8.66 6.35 12.82 6.69 5.03 3.69 88.43 13.22 17.87 7.00 10.48 14.65 4.59 1.82 13.91 3.85 12.53 25.37 62.77 86.68 35.68 32.46 33.74 45.34 32.26 23.23 8.96 6.80 13.10 7.19 5.18 3.88 90.53 13.54 18.63 7.30 10.78 15.37 4.76 1.91 14.25 4.01 12.95 42.50 42.84 63.68 62.22 58.54 66.51 65.01 60.75 57.36 62.98 43.39 54.95 61.25 60.63 48.72 58.86 40.90 44.02 63.36 57.61 62.98 58.86 45.57 59.45 60.01 43.09 24.05 60.20 84.71 34.45 31.62 32.64 44.34 31.51 22.52 8.74 6.24 12.80 6.87 5.06 3.75 88.45 13.10 17.67 7.09 10.57 14.95 4.61 1.78 13.87 3.91 12.48 24.71 61.68 84.11 34.42 31.44 32.45 43.72 31.30 22.18 8.72 6.46 12.71 6.66 5.00 3.73 87.96 13.25 18.17 7.02 10.43 14.52 4.62 1.85 13.83 3.80 12.62 25.45 63.66 83.57 33.63 30.69 31.77 42.78 31.51 22.28 8.82 6.54 12.61 6.85 5.04 3.82 86.76 13.24 18.38 7.01 10.22 14.53 4.54 1.88 13.49 3.64 12.28 25.38 25.59 31.12 33.15 27.96 33.16 30.21 29.14 31.30 27.70 16.34 30.66 36.81 26.79 23.64 29.03 20.74 20.18 25.57 30.76 31.36 24.50 24.45 25.76 26.84 20.95 36.43 35.20 19.82 23.51 22.33 19.14 15.72 21.22 21.78 16.28 34.74 20.64 22.69 16.37 24.67 19.04 31.76 28.05 16.93 18.53 19.80 16.51 28.67 18.12 18.43 26.84 15.90 19.89 17.17 20.46 24.18 24.76 25.49 20.04 13.93 24.84 22.52 16.72 22.10 15.35 18.10 15.17 12.68 20.45 17.69 23.45 20.30 20.00 13.64 22.35 30.29 15.49 (11.05) (9.61) 11.30 9.63 5.63 14.03 14.49 7.92 9.52 11.43 (18.40) 10.02 14.12 10.42 (1.03) 9.99 (11.02) (7.87) 8.64 12.23 11.57 7.99 (4.21) 7.64 8.41 (5.89) www.taonline.com.my MACD DMI MACD DMI MACD Line Signal Diff Recent Signal Signal Change 32.04 19.80 12.236 BUY BUY -0.39 -0.42 0.027 SELL BUY -0.86 -0.96 0.097 SELL BUY 0.64 0.39 0.243 BUY BUY 0.32 0.27 0.049 BUY BUY 0.30 0.29 0.009 BUY BUY 0.36 0.28 0.088 BUY BUY 0.57 0.49 0.083 BUY BUY 0.17 0.03 0.149 BUY BUY 0.15 0.11 0.045 BUY BUY 0.02 -0.04 0.056 BUY BUY -0.10 -0.08 (0.019) SELL SELL 0.07 0.07 (0.000) BUY SELL 0.09 0.02 0.067 BUY BUY 0.03 0.01 0.024 BUY BUY 0.00 -0.03 0.025 SELL BUY SELL 0.66 0.53 0.125 BUY BUY -0.06 -0.05 (0.007) SELL SELL SELL SELL -0.20 -0.21 0.004 SELL BUY 0.06 0.01 0.046 BUY BUY 0.12 0.10 0.020 BUY BUY 0.19 0.12 0.069 BUY BUY 0.03 0.01 0.013 BUY BUY -0.03 -0.03 0.002 SELL BUY 0.14 0.14 (0.004) BUY SELL 0.08 0.09 (0.005) BUY SELL - SELL -0.02 0.03 (0.043) SELL SELL SELL - The table below consists of the top 30 ASX 200 Index component stocks, weighted by market capitalization in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. Stock names and technical statistics in bold highlight stocks that have changes in BUY/SELL signals on the DMI and MACD on the given date. Page 1 of 3
24. TA Securities A Member of the TA Group Corporate News : Rio Tinto Group’s aluminum boss sees prices for lightweight metal heading for an “extremely” volatile period, with uncertainty over when China will curb production helping to keep investor’s on edge. – Bloomberg. Technical Comments: Any further weakness on Rio Tinto shares towards the lower Bollinger band (AUD58.34) should attract buyers looking for technical rebound towards the 30-day ma (AUD61.67), while the upper Bollinger band (AUD62.76) and the 50-day ma (AUD63.65) acting as the stronger resistance, going forward. Immediate support cushioning downside is capped 61.8%FR (AUD57.09). RIO TINTO Upper Middle Lower Recent Signal Signal Change BOLLINGER BANDS AUD AUD AUD DMI AUD60.01 (-0.45) 62.76 60.55 58.34 SELL SIMPLE MOVING AVERAGES AUD 60.19 AUD 61.67 AUD 63.65 DAILY MACD Recent Signal BUY Signal Change 10-day 30-day 50-day Page 2 of 3
25. TA Securities A Member of the TA Group INTERPRETATION OF TECHNICAL INDICATORS : Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Fundamentals of Foreign Technical Picks Bloomberg Ticker Stock Name BHP AU BHP BILLITON LTD RIO AU RIO TINTO LTD CBA AU COMMONW BK AUSTR WBC AU WESTPAC BANKING ANZ AU AUST AND NZ BANK NAB AU NATL AUST BANK WES AU WESFARMERS LTD WPL AU WOODSIDE PETRO NCM AU NEWCREST MINING WFD AU WESTFIELD GROUP FMG AU FORTESCUE METALS QBE AU QBE INSURANCE ORG AU ORIGIN ENERGY AMP AU AMP LTD STO AU SANTOS LTD MQG AU MACQUARIE GROUP SUN AU SUNCORP GROUP LT ORI AU ORICA LTD OSH AU OIL SEARCH LTD CCL AU COCA-COLA AMATIL AMC AU AMCOR LTD SGP AU STOCKLAND AWC AU ALUMINA LTD CPU AU COMPUTERSHARE LT QAN AU QANTAS AIRWAYS SGM AU SIMS METAL MGMT EPS ($) PER(x) Div Yield(%) 52week Price % Chg Close Target Price % upside 24.00 27.75 14% 60.01 70.63 15% 4.45 3.30 10.3 13.9 4.463 3.358 69.80 41.51 0.18 86.39 83.99 -3% 5.64 5.84 15.3 14.8 4.906 5.036 86.65 69.22 4.83 35.21 34.03 -3% 2.41 2.51 14.6 14.1 5.294 5.285 35.39 27.57 8.01 31.97 31.14 -3% 2.40 2.44 13.3 13.1 5.052 5.117 32.44 22.06 5.10 33.45 32.26 -4% 2.41 2.46 13.9 13.6 5.842 5.722 33.63 23.90 9.06 45.10 43.35 -4% 2.61 2.64 17.3 17.1 4.896 4.967 46.06 38.62 7.02 32.13 33.23 3% 1.31 1.49 18.7 16.4 3.140 3.579 32.59 23.82 3.11 22.66 22.94 1% 0.74 0.93 23.2 18.5 0.759 1.103 27.20 16.35 11.90 8.96 9.48 6% 0.33 0.36 20.6 19.0 2.868 2.913 11.14 8.21 -4.48 6.20 6.57 6% 0.85 0.50 5.6 9.5 5.306 3.258 7.27 2.50 5.26 12.91 13.66 5% 0.64 0.80 15.3 12.2 3.292 3.881 13.28 9.22 3.95 7.04 7.30 4% 0.32 0.55 21.9 12.8 0.000 1.250 7.47 4.42 6.83 5.16 5.30 3% 0.36 0.37 14.5 13.9 5.620 5.872 5.96 4.39 2.38 3.74 4.42 15% 0.14 0.20 19.9 14.6 0.963 2.059 5.07 3.30 -6.97 89.60 88.37 -1% 6.16 6.36 14.6 14.1 4.742 4.950 90.93 61.05 2.85 12.98 13.84 6% 0.91 0.98 14.3 13.3 5.624 6.048 13.95 11.27 -3.99 17.65 16.66 -6% 1.05 1.13 16.9 15.6 3.014 3.275 19.49 12.04 -0.17 7.29 7.98 9% 0.21 0.26 25.9 21.5 1.207 1.468 7.75 5.98 1.67 10.63 9.92 -7% 0.57 0.60 18.6 17.9 4.506 4.638 10.87 7.94 5.04 15.08 15.97 6% 0.61 0.65 18.9 17.7 2.832 3.170 16.66 13.62 0.87 4.68 4.82 3% 0.31 0.33 14.9 14.2 5.491 5.705 5.11 4.03 2.18 2017 2018 2017 2018 2017 2018 High Low YTD 1.48 1.27 12.3 14.4 3.525 3.075 27.96 15.85 -4.23 1.80 1.89 5% 0.11 0.10 12.8 14.2 5.850 5.794 2.04 1.19 -1.91 14.04 13.19 -6% 0.55 0.60 19.6 17.7 1.895 2.001 14.33 8.63 12.68 3.90 4.39 11% 0.53 0.53 7.39 7.36 3.769 4.615 4.22 2.58 17.12 12.19 12.42 2% 0.64 0.73 19.2 16.8 3.142 3.232 13.62 7.40 -4.99 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 3 of 3
26. T e c h n i c a l TA Securities V i e w Tuesday , April 04, 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: 24,261.48 (+149.89, +0.62%) THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Stock Close Name 3-Apr HANG SENG 24,261.48 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 63.45 85.95 6.32 5.11 9.30 23.95 3.80 115.30 5.68 225.20 196.10 95.45 43.30 6.32 18.28 82.00 3.40 32.40 158.80 15.72 78.75 19.84 66.80 22.35 66.75 5.08 48.65 6.07 4.00 10.86 32.50 6.54 43.85 13.68 17.96 9.67 21.35 22.60 14.12 3.92 11.36 11.16 8.70 3.13 2.35 49.40 36.00 43.00 Change High Tel: +603-2167 9607 Lower 149.89 0.15 0.90 0.07 0.03 0.02 0.10 (0.06) 1.10 (0.01) 2.40 0.50 (0.15) (0.20) 0.02 0.24 0.75 0.03 0.65 1.20 0.18 1.15 (0.36) 0.10 0.15 (0.25) 0.03 0.50 0.03 0.08 0.46 0.35 0.03 0.20 0.06 0.28 0.11 0.35 (0.15) 0.10 0.12 0.08 0.08 0.12 0.10 (0.01) 0.40 0.00 0.45 24,261.48 24,162.55 63.55 86.05 6.33 5.13 9.35 24.00 3.83 115.70 5.72 226.00 197.50 96.00 43.90 6.38 18.36 82.00 3.43 32.40 159.40 15.74 78.80 20.00 67.60 22.65 67.35 5.10 48.80 6.14 4.06 10.96 32.50 6.56 43.85 13.82 17.96 9.68 21.75 22.90 14.20 3.94 11.38 11.16 8.71 3.16 2.35 49.80 36.80 43.65 63.15 85.50 6.27 5.08 9.24 23.60 3.76 114.40 5.63 222.40 195.60 94.70 43.00 6.29 18.00 81.25 3.38 31.80 158.00 15.64 77.90 19.70 66.80 22.20 66.70 5.02 48.15 6.05 3.96 10.40 32.10 6.40 43.05 13.64 17.58 9.56 21.20 22.30 13.98 3.79 11.28 11.04 8.45 2.99 2.33 49.25 35.85 42.50 RSI Bollinger Bands Low 23,477.81 62.52 82.30 6.08 4.93 8.74 23.12 3.77 112.01 5.62 208.52 189.40 95.16 41.06 5.72 14.81 76.88 3.39 30.88 156.37 14.72 76.74 19.60 62.90 21.84 66.44 4.97 44.21 5.96 3.83 9.21 31.50 6.43 41.12 12.96 17.28 9.53 20.50 20.95 13.79 3.66 10.89 10.84 8.31 2.99 2.31 48.47 33.13 37.14 Mid stsoo@ta.com.my Upper 14d 24,114.48 24,751.14 55.96 63.42 86.26 6.32 5.10 9.09 24.14 3.90 114.01 5.78 220.80 194.87 96.52 42.92 6.08 17.40 79.85 3.66 31.79 158.44 15.23 78.44 20.31 67.14 23.84 67.53 5.20 46.97 6.09 4.00 10.07 32.07 6.78 42.67 13.56 17.85 9.81 21.71 21.89 14.33 3.91 11.36 11.14 8.54 3.14 2.40 49.54 34.96 40.57 64.32 90.21 6.56 5.27 9.44 25.17 4.03 116.00 5.93 233.08 200.34 97.88 44.78 6.45 19.98 82.81 3.92 32.70 160.50 15.74 80.14 21.01 71.38 25.84 68.61 5.43 49.73 6.22 4.18 10.94 32.64 7.13 44.22 14.15 18.42 10.10 22.92 22.83 14.87 4.17 11.83 11.44 8.77 3.29 2.49 50.60 36.79 44.00 47.17 47.74 51.61 52.47 54.50 49.71 42.48 61.43 36.81 61.10 53.59 46.66 56.05 64.66 61.52 68.47 36.36 61.33 50.69 76.09 51.40 43.76 57.10 34.43 35.49 44.64 73.53 49.30 48.57 77.44 53.67 44.34 70.14 55.79 54.56 47.60 48.73 64.22 47.46 50.45 53.14 48.57 57.79 55.81 45.34 51.40 64.35 74.06 Moving Averages 10d 24,320.53 63.27 87.05 6.37 5.14 9.20 24.15 3.91 114.66 5.77 225.42 196.00 96.69 43.69 6.24 18.47 81.07 3.63 32.08 158.29 15.45 77.85 20.53 67.85 23.15 67.13 5.12 48.26 6.09 4.03 10.41 32.22 6.64 43.32 13.82 18.02 9.73 21.81 22.25 14.30 3.82 11.22 11.16 8.59 3.08 2.36 49.68 35.63 42.03 30d www.taonline.com.my DMI 50d DI + DMI MACD DI - ADX Diff Line Signal Diff MACD Recent Signal DMI MACD Signal Change 24,028.50 23,799.34 27.57 22.63 26.39 4.94 158.02 183.01 (24.998) BUY SELL - - 63.51 86.18 6.32 5.09 9.15 24.08 3.90 113.88 5.85 217.16 195.05 95.98 42.54 6.08 17.02 79.47 3.61 31.58 159.22 15.15 79.13 20.10 65.42 23.84 68.18 5.26 46.37 6.12 4.05 9.85 32.24 6.85 42.23 13.50 17.84 9.88 21.52 21.79 14.31 3.98 11.38 11.18 8.53 3.11 2.38 49.41 34.17 39.49 64.72 86.77 6.17 4.99 9.35 23.58 3.81 111.37 5.95 212.20 193.89 94.44 41.91 6.10 16.72 78.38 3.52 31.35 159.42 14.99 79.09 19.78 62.57 23.66 68.78 5.15 45.13 6.02 4.06 9.61 32.57 6.52 41.27 13.21 17.25 9.58 20.97 21.57 14.04 4.01 11.13 11.32 8.36 2.94 2.36 48.73 33.82 38.02 24.22 23.08 19.58 21.76 20.40 23.46 30.21 15.72 24.94 19.12 17.38 22.31 13.02 13.56 20.48 8.92 28.26 17.05 18.27 6.56 13.02 30.91 16.21 31.96 19.92 26.10 12.06 22.33 25.46 9.12 16.18 23.81 12.50 14.20 15.58 23.69 23.95 10.95 19.15 20.68 19.10 22.51 16.59 16.39 24.36 21.62 12.95 5.05 9.43 20.45 19.33 22.19 21.98 20.14 22.04 28.90 17.73 26.37 15.52 23.18 38.99 24.24 31.02 41.75 22.75 18.35 13.30 37.91 11.39 27.96 39.71 28.63 20.13 22.70 39.97 10.82 10.41 45.05 12.64 23.70 55.91 33.15 19.94 23.48 20.61 18.11 19.93 14.26 17.03 18.78 19.88 30.77 30.11 23.44 32.48 49.65 0.90 (3.25) 1.90 4.26 5.91 (2.17) (6.38) 8.16 (9.19) 11.04 5.66 (6.34) 12.31 16.17 14.06 20.88 (9.96) 5.35 (3.48) 26.11 4.64 (13.55) 10.81 (14.58) (7.98) (8.85) 16.64 1.73 0.28 30.29 1.41 (4.57) 18.43 10.12 6.14 (7.07) 1.23 9.98 (0.51) 3.99 (0.10) (5.35) 6.95 6.52 2.74 5.22 16.79 27.81 -0.30 -0.03 0.04 0.04 0.00 0.10 0.01 0.95 -0.06 4.28 0.47 0.47 0.55 0.08 0.57 1.00 -0.01 0.29 -0.20 0.19 -0.36 0.21 1.43 -0.39 -0.51 -0.03 1.02 0.00 -0.02 0.31 -0.02 -0.02 0.73 0.17 0.16 -0.01 0.14 0.32 0.01 -0.05 0.01 -0.05 0.06 0.02 0.00 0.22 0.72 1.46 0.074 (0.174) (0.020) (0.012) 0.055 (0.110) (0.019) (0.153) (0.002) (0.278) (0.131) (0.306) (0.012) 0.035 0.031 0.142 (0.049) (0.009) (0.077) 0.035 0.010 (0.087) (0.457) (0.283) (0.047) (0.029) 0.048 (0.013) (0.007) 0.048 0.066 (0.054) 0.051 (0.022) (0.064) (0.055) (0.166) 0.082 (0.080) (0.009) (0.015) 0.002 (0.007) (0.024) (0.008) (0.123) 0.094 0.134 BUY SELL BUY BUY BUY SELL SELL BUY SELL BUY BUY SELL BUY BUY BUY BUY SELL BUY SELL BUY BUY SELL BUY SELL SELL SELL BUY BUY BUY BUY BUY SELL BUY BUY BUY SELL BUY BUY SELL BUY SELL SELL BUY BUY BUY BUY BUY BUY BUY SELL SELL SELL BUY SELL SELL SELL SELL SELL SELL SELL SELL BUY BUY BUY SELL SELL SELL BUY BUY SELL SELL SELL SELL SELL BUY SELL SELL BUY BUY SELL BUY SELL SELL SELL SELL BUY SELL SELL SELL BUY SELL SELL SELL SELL BUY BUY SELL BUY BUY BUY BUY BUY - SELL SELL BUY BUY - 25.13 19.83 21.47 26.01 26.31 21.29 23.83 23.88 15.75 30.16 23.04 15.97 25.33 29.72 34.55 29.80 18.29 22.40 14.79 32.66 17.66 17.36 27.03 17.37 11.93 17.25 28.70 24.07 25.74 39.40 17.60 19.24 30.93 24.32 21.72 16.62 25.18 20.94 18.63 24.67 19.00 17.16 23.54 22.91 27.10 26.84 29.74 32.86 -0.37 0.14 0.06 0.05 -0.05 0.21 0.03 1.10 -0.06 4.56 0.61 0.77 0.56 0.05 0.54 0.86 0.04 0.30 -0.12 0.15 -0.37 0.30 1.89 -0.11 -0.47 0.00 0.97 0.02 -0.01 0.26 -0.09 0.03 0.68 0.20 0.22 0.05 0.31 0.24 0.09 -0.04 0.02 -0.05 0.06 0.05 0.01 0.34 0.62 1.33 The table above consists of the 45 HKSE Hang Seng Index component stocks, sorted by market capitalization in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. Stock names and technical statistics in bold highlight stocks that have changes in BUY/SELL signals on the DMI and MACD on the given date. Page 1 of 2
27. TA Securities A Member of the TA Group INTERPRETATION OF TECHNICAL INDICATORS : Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Fundamentals of Foreign Technical Picks Bloomberg Ticker 5 941 939 1398 883 2628 3988 16 857 700 388 1 2318 386 1088 2 494 2388 11 3 19 101 4 688 6 1880 12 3328 1898 762 23 330 66 83 291 17 1109 144 836 2600 293 267 1199 2038 678 1299 1928 27 HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK EPS ($) PER(x) Div Yield(%) 52week Price % Chg Stock Name Close Target Price % upside 2017 2018 2017 2018 2017 2018 High Low YTD HSBC CH MOBILE CCONB ICBC CNOOC CH LIFE BOC SHK PROP PETRO CH TENCENT HKSE CK HUTCHISON PING AN SINOPEC CORP CH SHENHUA CLP LI & FUNG BOC HK HS BANK HK&CH GAS SWIRE HL PROP WHARF CH OV LAND POWER ASSETS BELLE HENDERSON BOCOMM CH COAL CH UNICOM BK EASIA ESPRIT MTR SINO LAND CH RES NEW WORLD CH RES LAND CH MERCHANT CH RES POWER ALCORP CATHAY CITIC COSCO FIH MOBILE LTD GENHK AIA SANDS CHINA LTD GALAXY 63.45 63.24 0% 0.6 0.7 13.7 12.4 0.8 0.8 69.10 44.50 1.93 85.95 106.47 19% 5.6 6.1 13.5 12.5 3.1 3.3 99.30 80.30 4.56 6.32 7.50 16% 0.9 1.0 5.9 5.6 4.5 4.7 6.55 4.50 5.86 5.11 6.09 16% 0.8 0.8 5.7 5.5 4.6 4.8 5.27 3.82 9.30 11.07 16% 0.6 0.8 N/A 10.6 3.5 3.6 10.88 8.46 -4.12 23.95 28.09 15% 0.9 1.1 22.8 18.8 1.3 1.5 25.50 16.00 18.56 9.89 3.80 4.45 15% 0.6 0.6 5.8 5.5 4.7 4.9 4.08 2.90 10.47 115.30 129.67 11% 8.8 9.5 13.1 12.2 3.5 3.6 123.30 85.40 17.65 5.68 7.14 20% 0.3 0.4 19.3 12.7 2.0 3.0 6.38 4.76 -1.73 225.20 256.94 12% 6.1 7.8 32.5 25.7 0.3 0.4 230.20 152.20 18.71 196.10 197.21 1% 5.7 6.3 34.6 31.1 2.6 2.9 213.20 175.00 7.04 95.45 113.73 16% 9.2 10.1 10.4 9.5 3.0 3.3 103.90 80.60 8.59 43.30 44.95 56.15 23% 3.6 4.0 10.5 9.5 1.6 1.7 32.50 11.60 6.32 7.36 14% 0.4 0.5 12.6 11.0 4.0 4.5 6.39 4.86 14.91 18.28 19.00 4% 1.5 1.5 10.6 10.9 3.1 3.1 19.78 11.40 25.21 82.00 79.08 -4% 5.0 5.2 16.3 15.8 3.5 3.6 84.35 68.75 15.09 3.40 3.17 -7% 0.0 0.0 13.7 12.9 0.8 0.8 5.15 3.24 -0.29 32.40 35.55 9% 2.6 2.8 12.4 11.4 4.1 4.3 32.55 21.01 16.76 158.80 154.98 -2% 9.3 10.2 4.2 164.40 127.60 10.05 15.72 12.85 -22% 0.6 0.6 26.3 25.2 2.4 2.5 15.74 12.75 14.41 78.75 78.15 -1% 4.8 5.1 16.3 15.4 3.4 3.6 94.40 72.20 6.35 19.84 19.66 -1% 1.2 1.1 16.5 18.3 3.8 3.8 20.95 13.64 20.68 66.80 65.70 -2% 4.7 4.8 14.3 13.8 3.3 3.4 69.95 39.00 29.58 22.35 28.85 23% 3.2 3.7 6.9 6.1 3.8 4.3 27.85 20.15 8.76 66.75 74.22 10% 3.4 3.5 19.5 18.9 4.1 4.2 75.73 62.78 4.46 5.08 4.93 -3% 0.4 0.4 11.3 11.2 4.8 4.8 5.79 4.07 16.51 48.65 48.82 0% 3.3 3.2 15.1 3.2 3.2 49.30 39.64 17.94 6.07 5.99 -1% 0.9 0.9 6.0 5.7 4.5 4.7 6.44 4.46 4.00 4.52 12% 0.3 0.3 13.0 13.6 1.9 1.7 4.88 2.92 8.70 10.86 11.94 9% 0.2 0.4 41.8 23.4 0.7 1.4 10.96 7.70 20.27 32.50 14.9 18.4 3.0 2.5 34.75 26.35 17.1 14.8 15.6 4.0 8.20 25.72 -26% 2.2 1.8 6.54 5.89 -11% 0.0 0.2 N/A 40.6 0.0 1.1 7.62 5.34 7.39 43.85 39.12 -12% 1.6 1.6 27.8 27.0 7.5 2.6 44.50 35.35 16.31 13.68 13.64 0% 0.8 0.8 16.3 16.5 3.7 3.8 14.48 10.96 17.73 17.96 18.95 5% 0.6 0.7 28.4 24.5 1.0 1.2 18.90 13.11 16.62 9.67 11.22 14% 0.8 0.8 12.5 11.8 4.5 4.6 10.46 6.91 17.93 21.35 28.19 24% 2.8 3.2 7.7 6.7 22.60 24.32 7% 1.6 1.7 14.1 13.2 3.3 3.5 24.95 18.80 17.46 14.12 14.78 4% 1.4 1.5 10.1 9.4 5.9 6.1 15.50 10.70 14.61 22.50 3.7 4.3 23.85 16.50 9.43 22.42 3.92 4.43 11% 0.2 0.2 17.5 16.2 0.2 0.4 4.45 2.25 11.36 9.97 -14% -0.1 0.2 N/A 45.6 0.5 0.7 13.50 10.00 11.16 12.35 10% 1.6 1.7 7.2 6.6 3.0 3.9 12.78 10.54 0.54 8.70 9.10 4% 0.1 0.1 14.2 13.0 0.6 0.7 9.48 7.28 11.68 3.13 3.13 0% 0.0 0.0 20.1 16.8 0.4 0.4 3.35 2.31 27.76 0.0 0.0 N/A N/A 0.0 0.0 3.00 11.37 2.35 2.45 4% 2.00 3.98 49.40 56.69 13% 0.4 0.4 17.2 15.6 0.3 0.3 54.15 42.30 12.91 36.00 38.09 5% 0.2 0.2 23.3 21.2 0.7 0.7 39.30 24.60 6.82 43.00 42.96 0% 1.6 1.8 26.4 24.5 1.1 1.3 43.65 21.73 28.02 Note : The above data based on Bloomberg consensus. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 2 of 2
28. T e c h n i c a l TA Securities V i e w Tuesday , April 04, 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: 3,187.51 (+12.40, +0.39%) 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 3-Apr Lower Mid Upper 14d 3,187.51 12.40 3,188.17 3,179.62 3,108.59 3,150.31 3,192.03 62.44 3.93 19.40 9.78 22.12 65.14 3.55 7.72 3.67 1.03 6.90 7.77 10.30 2.32 0.19 10.25 41.87 3.59 44.55 0.39 3.65 1.91 1.97 3.20 1.89 2.58 2.89 3.69 0.53 1.17 0.01 0.00 0.06 0.01 0.89 0.02 0.03 0.04 0.01 (0.04) 0.07 0.23 0.01 0.00 0.05 (0.13) 0.04 0.69 0.01 (0.08) (0.01) 0.00 0.02 (0.03) 0.02 0.01 0.00 0.01 0.04 3.95 19.42 9.78 22.13 65.15 3.56 7.79 3.67 1.04 6.94 7.80 10.30 2.32 0.20 10.25 42.40 3.59 44.63 0.40 3.71 1.94 1.98 3.20 1.93 2.59 2.90 3.72 0.54 1.18 3.90 19.28 9.73 22.07 64.72 3.51 7.66 3.64 1.02 6.86 7.67 10.13 2.31 0.19 10.17 41.68 3.55 44.04 0.39 3.65 1.91 1.97 3.17 1.88 2.55 2.85 3.69 0.52 1.14 3.87 18.61 9.44 21.29 64.18 3.49 6.76 3.58 0.98 6.62 7.39 9.84 1.97 0.18 9.70 37.90 3.45 43.19 0.37 3.60 1.84 1.92 3.09 1.80 2.46 2.82 3.65 0.51 1.08 3.93 19.06 9.61 21.74 65.66 3.57 7.24 3.67 1.00 6.84 7.60 10.03 2.19 0.20 10.24 40.46 3.54 44.43 0.38 3.68 1.92 1.94 3.19 1.89 2.53 2.87 3.68 0.52 1.13 3.99 19.50 9.78 22.18 67.14 3.65 7.72 3.75 1.03 7.06 7.80 10.22 2.41 0.22 10.78 43.02 3.62 45.66 0.39 3.76 1.99 1.97 3.29 1.98 2.59 2.92 3.72 0.54 1.17 50.68 63.46 64.64 66.49 50.76 43.43 78.13 55.23 64.16 55.14 62.84 66.05 68.70 44.68 56.22 60.28 59.42 54.09 51.95 49.55 43.07 59.01 52.61 58.21 60.43 52.89 55.35 48.97 67.22 stsoo@ta.com.my Moving Averages 10d 30d 50d DI + 3,155.17 3,139.52 3,111.18 34.35 DI 20.12 ADX 22.56 Diff 14.23 MACD Line Signal Diff 19.02 17.85 1.176 3.92 19.02 9.63 21.86 65.65 3.54 7.42 3.66 1.01 6.85 7.64 10.10 2.28 0.19 10.30 41.39 3.57 44.49 0.38 3.69 1.89 1.96 3.16 1.87 2.54 2.88 3.68 0.52 1.13 17.03 22.98 17.79 13.27 24.85 25.14 7.51 19.56 10.82 23.61 14.34 14.05 12.15 23.97 18.98 13.41 14.04 21.32 14.92 22.52 20.30 9.43 19.09 20.22 16.82 18.65 9.40 18.49 11.25 12.86 15.57 13.21 28.16 21.79 24.85 41.37 24.93 21.71 23.30 18.46 14.37 34.71 21.61 37.74 35.03 31.30 9.87 22.31 24.00 30.89 15.75 17.14 34.70 14.14 9.32 25.14 10.64 42.96 3.53 9.39 9.26 16.42 (5.93) (8.02) 30.43 0.93 12.59 8.58 15.52 11.14 29.38 (6.38) 10.72 19.38 8.34 1.63 6.58 4.66 (2.75) 7.76 5.33 14.44 5.87 (1.92) 6.27 3.01 22.39 0.00 0.12 0.05 0.19 0.34 -0.05 0.19 0.03 0.01 0.06 0.06 0.07 0.06 -0.01 0.18 0.98 0.02 0.40 0.00 0.04 -0.03 0.00 -0.01 0.04 0.02 0.01 0.01 0.00 0.04 3.94 18.99 9.58 21.69 65.05 3.60 7.11 3.65 1.00 6.88 7.57 9.99 2.16 0.21 10.00 39.83 3.52 43.78 0.38 3.68 1.96 1.95 3.21 1.86 2.51 2.87 3.69 0.52 1.08 3.92 18.89 9.55 21.36 64.09 3.73 6.99 3.54 0.99 6.67 7.56 9.96 2.14 0.20 9.72 39.12 3.50 43.05 0.40 3.56 1.99 1.95 3.19 1.72 2.48 2.88 3.64 0.53 0.99 20.57 32.37 27.04 29.68 18.92 17.12 37.95 20.49 23.41 32.19 29.86 25.19 41.53 17.59 29.70 32.79 22.38 22.95 21.50 27.18 17.55 17.18 24.42 34.66 22.70 16.74 15.66 21.50 33.64 DMI www.taonline.com.my 0.00 0.09 0.04 0.17 0.63 -0.05 0.14 0.05 0.01 0.06 0.03 0.05 0.04 0.00 0.23 0.82 0.02 0.54 -0.01 0.04 -0.03 0.00 -0.01 0.05 0.02 0.00 0.01 0.00 0.05 (0.003) 0.037 0.016 0.022 (0.285) 0.007 0.049 (0.015) 0.003 (0.004) 0.021 0.021 0.017 (0.001) (0.051) 0.158 0.004 (0.141) 0.002 (0.007) 0.005 0.004 0.000 (0.011) 0.005 0.003 (0.004) 0.000 (0.006) DMI MACD DMI MACD Recent Signal Signal Change BUY BUY BUY BUY BUY BUY SELL SELL BUY BUY BUY BUY BUY BUY BUY SELL BUY BUY BUY BUY BUY BUY SELL BUY BUY BUY BUY SELL BUY BUY BUY SELL BUY BUY BUY SELL BUY BUY SELL BUY SELL BUY BUY BUY SELL SELL BUY BUY SELL BUY SELL BUY BUY BUY SELL BUY BUY SELL BUY SELL BUY BUY BUY - BUY BUY - The table above consists of the revamped 30 SGX FTSE Straits Times Index component stocks, sorted by market capitalization in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. Stock names and technical statistics in bold highlight stocks that have changes in BUY/SELL signals on the DMI and MACD on the given date. Page 1 of 2
29. INTERPRETATION OF TECHNICAL INDICATORS : Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Fundamentals of Foreign Technical Picks Bloomberg Ticker ST DBS OCBC UOB JM WIL HKL CAPL GENS KEP SGX SIA FNN NOBL CIT JS SPH JCNC GGR STE OLAM CT SCI SMM CD STH SIE IFAR SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP Stock Name Close Target Price SINGTEL DBS OCBC UOB JARDINE M. WILMAR HK LAND CAPLAND GENSP KEPPEL SGX SIA FNN NOBLE CITY DEV JARDINE S. SG PRESS JARDINE C&C GOLDEN AGRI SG TECH OLAM INT CAP TRUST SEMBCORP SEMCORP M. CMFT DELGRO STARHUB SIA ENG IFOOD AGRI 3.93 4.25 19.40 9.78 YZJSGD SP YZJ % upside EPS ($) PER(x) Div Yield(%) 52week Price % Chg 2017 2018 2017 2018 2017 2018 High Low YTD 8% 0.2 0.3 16.2 15.2 4.5 4.7 4.36 3.59 7.67 19.44 0% 1.789 1.963 10.8 9.9 3.2 3.3 19.42 14.63 11.88 9.57 -2% 0.9 0.9 11.4 10.4 3.7 3.9 9.78 8.21 9.64 22.12 21.18 -4% 1.9 2.1 11.4 10.7 3.3 3.4 22.13 17.41 8.43 65.14 63.99 -0.02 4.1 4.4 15.9 14.8 2.4 2.5 67.27 52.42 17.90 3.55 3.80 7% 0.2 0.2 12.9 12.0 2.0 2.2 4.00 2.96 -1.11 7.72 7.43 -4% 0.4 0.4 19.6 19.0 2.5 2.6 7.79 5.79 21.96 3.67 4.06 10% 0.2 0.2 17.4 18.0 2.8 2.8 3.79 2.85 21.52 1.03 1.06 3% 0.0 0.0 29.4 26.4 2.8 2.9 1.04 0.69 13.81 6.90 6.94 1% 0.5 0.6 13.6 12.5 3.1 3.4 7.23 5.10 19.17 7.77 7.90 2% 0.3 0.4 23.3 21.5 3.8 4.1 8.05 6.96 8.52 10.30 9.71 -6% 0.4 0.4 23.1 23.7 3.4 2.6 11.67 9.60 6.51 2.32 2.19 -6% 0.1 0.1 30.1 30.5 1.9 1.9 2.41 1.92 11.00 0.19 0.22 0.12 0.0 0.0 9.3 6.3 0.0 0.0 0.36 0.11 14.12 10.25 10.78 5% 0.6 0.7 16.0 14.9 1.5 1.5 10.65 7.86 23.79 41.87 41.25 -2% 2.8 3.0 15.2 14.1 0.8 0.8 43.78 27.35 26.11 3.59 3.19 -13% 0.2 0.2 23.5 23.5 4.7 4.6 4.13 3.45 1.70 44.55 49.97 11% 2.2 2.5 14.2 12.9 1.9 2.1 46.23 31.60 8.05 0.39 0.38 -1% 0.0 0.0 17.4 14.7 1.8 1.8 0.45 0.33 -9.30 3.65 3.62 -1% 0.2 0.2 21.1 20.2 4.2 4.4 3.78 3.01 13.00 1.91 1.99 4% 0.1 0.1 14.1 13.6 2.5 2.6 2.17 1.58 -3.05 1.97 2.13 7% 0.1 0.1 17.3 16.8 5.6 5.6 2.25 1.87 4.51 3.20 3.52 9% 0.2 0.3 13.4 11.1 2.9 3.3 3.38 2.44 12.28 1.89 1.65 -15% 0.1 0.1 36.3 27.0 1.4 1.7 2.09 1.22 36.96 2.58 2.94 12% 0.2 0.2 16.4 15.8 4.3 4.7 3.02 2.37 4.45 2.89 2.64 -10% 0.2 0.2 18.0 18.8 5.5 5.5 3.97 2.73 2.85 3.69 3.55 -4% 0.2 0.2 24.0 23.8 4.1 4.0 3.91 3.35 9.50 0.53 0.58 9% 430 535 11.6 9.4 12886 14894 0.60 0.44 0.00 1.17 1.07 -8% 0.5 0.5 11.8 12.4 16.7 16.7 1.19 0.71 42.94 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