KLSE COMPOSITE INDEX

03-05-2007: Kenanga Research maintains strong buy on AsiaEP

2007-05-03T03:49:00.000-07:00

Kenaga Research has maintained a "strong buy" on AsiaEP Bhd at RM1.09, with a revised 12-month target price of RM2.25 on the back of earnings upgrade for FY08 and FY09.

“We are raising our FY08 and FY09 net profit forecast by 11% and 12.4% to RM11.2 million and RM24.5 million, respectively,” it said in a report on April 30.

Kenanga Research said the upgraded target price was based on the basic FY09 price earnings ratio of 20 times. It said AsiaEP’s B2B Itah Search Engine (ItahSe) would drive earnings momentum further.

Kenanga Research said there had been an encouraging jump in the number of sponsored advertisements on b2b.itah.com over the past one month, which will translate into solid earnings numbers.

It said AsiaEP's FY07 revenue, pre-tax profit and net profit exceeded its earlier estimates by 14.4%, 42.8% and 43.5%, respectively due to the stronger-than-expected 4Q results.

The strong results were due to the adoption of the pay per click or PPC revenue model for the existing e-marketplace customers, which boosted revenue in an otherwise seasonally slow period.

AsiaEP also saw lower operating costs and, therefore, higher operating profit margins under the new PPC-revenue model. It also benefited from the write-back of depreciation and amortisation amounting to RM300,000 due to earlier over-provisions.

13-04-2007: Property stocks up, Dijaya surge 13.5%

2007-04-12T21:38:00.000-07:00

Property stocks, including Dijaya Corp were traded higher in the early session on April 13 on expectations of a government announcement to boost the sector.

At 9.30am, the KLCI had risen 6.62 points to 1,313.81. Turnover was 220.7 million shares. There were 413 gainers and 101 losers.

Dijaya rose as much as 18 sen or 13.5% to RM1.51 as analysts described the company as undervalued and a laggard which was an undiscovered property gem. Within the first half-hour, there were 1.89 million shares done at prices ranging from RM1.40 to RM1.51. At 9.30am, it was trading at RM1.49, up 16 sen.

Sunrise rose 18 sen to RM3.30, WCT Land and Mah Sing 10 sen higher to RM1.42 and RM5.25, Glomac, Worldwide and YNH six sen higher to RM1.77, RM3.22 and RM3.14 respectively.

11-04-2007: KFC out to regain investor confidence

2007-04-11T02:29:00.000-07:00

KFC Holdings (RM5.75) is staying on track to regaining investor confidence in the company. The stock was shunned following negative publicity surrounding its sometimes rancorous boardroom and shareholder tussles over the past few years.

The company certainly appears to have improved its operations and balance sheet while earnings have recovered pretty well in 2005-2006. Under prevailing operating conditions, we estimate earnings should grow by about 12% or so this year – to roughly 56.1 sen per share. That implies the stock is trading at fairly decent price earnings ratio (P/E) of roughly 10.2 times.

End of shareholder uncertainty
After a series of very public tussles for control, Kulim is now firmly ensconced in the driving seat. The company holds a 57.4% interest in QSR Brands, which in turn owns 42.9% of KFC.

QSR has made a general offer for all remaining shares in KFC that it doesn't already own at RM4.94 per share. The offer closes on April 23. But the stock has been trading well above this offer price suggesting that the market is betting on better returns from the fast-food operator. KFC's share price rose as high as RM6.40 earlier this year before giving back some gains following the global sell-off in late February.

New look, new products
KFC recently launched a new brand logo, which features bolder colours and a more well-defined Colonel Sanders in a red cook's apron, in line with the worldwide redesign of KFC restaurants. The company expects to remodel all its outlets over a two-year period.

Restaurant turnover was up by some 8.4% in 2006, and should continue to grow at a similar pace this year. KFC has added five new outlets for the year-to-date and intends to open another 11 by year-end. At the last count, the company operates 449 restaurants in Malaysia, Brunei and Singapore.

In addition to offering customers a fresh dine-in ambience, KFC has also added rice to its menu. The staple food is now offered as the "Colonel Rice Combo" along with two pieces of chicken, coleslaw and a regular carbonated drink.

Improved cash flow and balance sheet
Its various measures to rationalise operations appeared successful. KFC's balance sheet strengthened over the past two years with better cash flow. Net debt was reduced from RM332 million at end-2004 to RM35 million last year. We expect this trend to continue even after taking into account the higher capital expenditure to remodel its restaurants.

Cash returns to shareholders have also risen gradually with the improved balance sheet. Dividends totaled 18 sen per share in 2006. (The entitlement date for the 14 sen final dividend has yet to be announced.) Based on the company's minimum 25% payout policy and our earnings forecast, dividends could grow to 20 sen per share this year. This translates into a yield of roughly 3.5% at the current share price. - InsiderAsia

Note: This report is brought to you by Asia Analytica Sdn Bhd, a licensed investment adviser. Please exercise your own judgment or seek professional advice for your specific investment needs. We are not responsible for your investment decisions. Our shareholders, directors and employees may have positions in any of the stocks mentioned.

Tips From TheEdge (19 Mac 07)

2007-03-17T11:34:00.000-07:00

1. Mah Sing Group - BUY
2. Rexit Bhd - BUY
3. KNM Group - BUY
4. Prinsiptek Corp - BUY
5. United Malayan - BUY
6. UMW holdings BHD - BUY
7. SHELL - BUY
8. GAMUDA - BUY

Bursa M'sia says market fundamentals intact

2007-02-28T01:25:00.001-08:00

Bursa Malaysia Bhd said Malaysia's market fundamentals remain strong and it is maintaining its optimistic outlook on the local market's performance over the medium term.

23-02-2007: Mixed trading, but KLCI at new 14-year high

2007-02-26T01:43:00.000-08:00

Mild profit-taking activities continued on Feb 23, as the market digested its recent strong gains and surge in trading volume. However, a late minute spurt of buying pushed the KLCI to a new near 14-year high of 1,283.5.

Stock market the 8th wonder by Teo Yin Zhi

2007-02-25T22:16:00.000-08:00

MYSTIFYING indeed is the power of the stock market. In the 1993 Bull Run, our very own Bursa Malaysia (or Kuala Lumpur Stock Exchange, as it was then known) demonstrated perplexing supremacy in propelling ordinary Joneses into instant millionaires.

On the contrary, it also turned imprudent billionaires to paupers during the Asian financial crisis. The crucial question is: How could we triumph in this precarious yet potentially rewarding stock market?

The power of knowledge

My stock portfolio value has increased at a compounded annual growth rate (CAGR) of 22.7% for the past five years by investing in Bursa Malaysia. The experience has taught me that investment knowledge is the focal factor in determining one’s ultimate triumph or downfall in stock investing.

The market is now dominated by institutional play. Hence, only prices of fundamentally sound companies with bright prospects would be northward-bound. – APpic
This is followed by adequate capital and patience, as time is needed for the market to ratchet up undervalued stocks’ prices. Relative to knowledge, capital and patience, luck plays a minimal role in long-term investing success.

In this complicated contemporary investment climate intertwined with issues such as high crude oil price and terrorism, selection of stocks is of paramount importance.

The heyday of across-the-board stock prices increase in 1993 is over. The market is currently dominated by institutional play. Hence, only prices of fundamentally-sound companies with bright prospects would be northward-bound.

Speculative interests may send prices of stocks rocketing but irrational exuberance is short-lived. If investors fail to disengage themselves from the whirlwind of rumours, they will end up being victims of the inherently deceptive market by buying high and selling low.

Insatiable appetite for investment knowledge is essential as it helps in unearthing undervalued gems in Bursa Malaysia i.e. stocks trading at low price-earnings ratio (PER), high dividend yield and significant discount to net tangible assets (NTA).

This is where investment knowledge comes in handy in warding off unnecessary alarm caused by intermittent stock prices fluctuations.

Opportunities are everywhere

Crises offer excellent bargain-hunting opportunities for intelligent and courageous investors who adopt logical contrarian approach.

Such opportunities arose during the Iraq war, followed by the severe acute respiratory syndrome (SARS) outbreak where panic selling caused the Kuala Lumpur Composite Index to drop to 619.22 points on March 11, 2003.

During those periods, I scanned vigorously for companies trading at undervalued prices with perpetual business demand, insulated by geopolitical and pandemic catastrophes.

I found a few companies that fitted the criteria perfectly and bought their shares. My patience paid off when institutional players started supporting theses hidden gems, steering their prices to a new high.

Do some homework

In assessing a company’s intrinsic value, investors must read thoroughly its financial statements. Due to supply and demand mechanism, market prices will at times fail to reflect the stocks’ exact worthiness.

Some investors select companies for their low PERs, attractive dividend yields or growth prospects. Buying a stock simply because it is an investment fad may be an investor's lethal blow. It is very important not to overlook the quality of the management team.

In addition, investors have to respond quickly to adverse fundamental changes in companies and sell the stocks albeit at a loss. Or else, the losses could be heftier as time passes.

Borrow to invest?

Ever thought of borrowing to invest in the stock market? Many would shudder in fear. We borrow to purchase properties and cars. Why not borrow for stock investments?

Borrowing to invest is viable for stocks with consistently high dividend yields exceeding interest rate for margin account. However, these stocks should only be bought during the ebb of market sentiment and only if they are truly undervalued.

It is paramount for such companies to have commendable forward earnings to support dividend-paying capability. If prices reach unwarranted lofty levels or a global recession is imminent, it would be wise to cash out to settle your debts.

In conclusion, Bursa Malaysia is likened to a gold mine for intelligent investors. I urge the investing public to be disciplined and avoid speculating on news in the grapevine, otherwise Bursa could be a financial graveyard for them.

There is no easy money. With sufficient investment knowledge, adequate capital and a sprinkle of luck, you are en route to reaping bountiful harvest from the eighth wonder of the world.

Before I end, here are some words of wisdom from me on investing in the stock market:

Bursa Malaysia an investment haven,

Unknown territory for those who haven’t,

Rays of wealth for value investors,

Spectre of loss for speculators,

Aren’t stock markets the eighth wonder?

Many references for you to read,

Arm yourself with knowledge, it’s a need.

Learning through mistakes, it’s not a shame,

Above average profits, that’s what we aim.

Your investment effort will soon bear fruits,

So would those with value investing roots.

Isn’t everyone seeking for a wealth outlet?

Ample opportunities in Malaysia’s stock market!

·Disclaimer: The views and opinions expressed in this article are strictly those of the author.

23-02-2007: Mixed trading, but KLCI at new 14-year high

2007-02-23T19:55:00.001-08:00

22-02-2007: Mild profit taking, but volume hits new high

2007-02-22T18:02:00.000-08:00

Mild profit-taking activities set in on Feb 22, a day after the KLCI rose to a near 14-year high and trading volume hit a new record. Given the momentum of the rally and extent of gains so far, some intermittent profit-taking activities are only to be expected – and is healthy for the market.

21-02-2007: Post-holiday rally

2007-02-22T18:01:00.000-08:00

Investors returned from the long Chinese New Year holidays in full force. The lack of adverse external developments during the holidays and pent-up buying demand lifted the KLCI to a near 14-year high, while trading volume hit a new record high with a hefty 4.7 billion shares changing hands.

19-02-2007 : The Edge

2007-02-18T18:14:00.000-08:00

Grand-Flo Solution(Feb 13, 54.5 sen) - BUY
Mudajaya Group Bhd (Feb 13, RM3.06) - BUY
Southern Steel Bhd (Feb 13, RM1.75) _ BUY
Titan Chemical Corp Bhd (Feb, RM1.55) - BUY
Muhibbah Engineering (M) Bhd (Feb, RM3.52) - BUY

Visit our biz partner website for more detail

16-02-2007: OSK Research: KFCH a buy at RM7.50

2007-02-18T18:00:00.000-08:00

OSK Research is maintaining its buy recommendation on KFC Holdings (M) Bhd (KFCH) with a revised target price of RM7.50, after the company achieved a 4.6% improvement on its full year turnover with net earnings rising by 15.6% y-o-y and nearly broke the RM100 million mark.

Have intelligent investment strategy

2007-02-12T05:15:00.000-08:00

Last year the Securities Industry Development Centre (SIDC) organised an essay competition titled My Investment Experience with the objective of getting investors to share their investment experience, good or bad. This week, we feature a winning essay by GAN HONG LEONG from Bentong.

"INVESTMENT is most intelligent when it is most businesslike.” Benjamin Graham, widely known as the father of value investing, taught Warren Buffet this philosophy.

Based on this wisdom, Warren Buffet invested in the stock market. Today, he is the second richest man in the world. Learn from him, learn from his success, and you too can become rich.

The stock market was virtually a virgin jungle to me when I bought my first share. That was in 1960, and I was 21. At that time, I was as naive and ignorant as a schoolboy regarding stocks and shares.

So long as the price was low I would call it cheap. Undervalued stocks, fairly priced stocks, or overvalued stocks are all the same to me. The chaff and the grains have no difference.

However, I was lucky to insist that the stocks which I bought must give good dividend yield. Buying shares on a cum-dividend basis was my preference.

I would sell whenever I had a good capital gain of more than 50%. I continued to invest in that manner which turned out to be profitable. Little did I realise I was actually buying fundamentally sound stocks at fairly low prices. My investment strategy was businesslike.

In April 1993, the Malaysian stock market had a super bull run. From a low of 645 points, the KLSE Composite Index hit its all-time high of 1,332.

Speculation was rampant. Price rise was spectacular. The market was a hive of activities. To get a seat to watch the market in the broker firm, you need to queue up as early as 7:30am!

Warren Buffet invested in the stock market based on the philosophy ‘investment is most intelligent when it is most businesslike’
In every corner of the town, people were talking about the market. There were no losers. Everyone was a winner. I sold at the later stage of the bull market and made a windfall.

By February 1997, the value of my portfolio appreciated to RM300,000 from RM48,000 about 20 years ago. However, I was still none the wiser about the stock market.

The years 1997 and 1998 were traumatic. The KLSE Composite Index was at 1,279 in February 1997. I bought the shares of an investment holding company listed on the main board and the share price was around RM15 per share in early 1997. By August 1997, it had declined to RM7.70 per share.

After I bought some at that price, the price kept on declining. Against the principle of wise investing, I started averaging down whenever there was a small decline.

By November 1997, it had declined to RM1.83. I thought it would stop there. Alas! It was not to be. The price continued to decline. By August 1998, it reached a low of 40.5 sen per share.

Meanwhile, my portfolio depreciated from RM300,000 to a mere RM50,000. Suddenly I realised that buying in a downtrend and holding on to a falling stock was extreme stupidity. “Never catch a falling dagger!” became my favourite phrase.

After the introduction of exchange controls in Malaysia in September 1998, the country slowly nursed itself back to health.

By then, I had become smarter, having learned fundamental and technical analysis. My investment was starting to become intelligent and more businesslike.

In April 2001, I started to accumulate some stocks based on fundamentals. I chose companies that had excellent management and great potential for growth. If it pays good dividends and the company was undervalued, I held on to the shares.

By September 2003, the stocks that I had bought had appreciated and together with the dividends received, I got another windfall.

Success in any field requires your labour. The stock market is no exception. To be successful, ensure that you have the knowledge and wisdom to plan your strategies, the discipline to carry out your plans, the patience to wait, the perseverance and temperament to endure, the capital to implement, and above all, the will to win.

Incidentally, these are traits of a successful businessman; hence, the usefulness of Graham's advice.

Investment in knowledge pays the best dividends. I share this philosophy.

10 STOCKS FOR 2007

2007-01-23T20:25:00.000-08:00

FROM PERSONAL MONEY - THE EDGE MAGAZINE (JANUARY 2007)

1. AMMB HOLDING(RM3.30)
2. APB RESOURCES(RM1.38)
3. HIAP TECK VENTURE(RM1.26)
4. INDUSTRIAL CONCREATE PRODUCTS(RM1.81)
5. KANNALTEC(RM0.50)
6. MMC CORP(RM3.92)
7. PETRA PERDANA(RM2.71)
8. TA ANN HOLDINGS(RM9.00)
9. TENAGA NASIONAL(RM10.90)
10.YTL CEMENT(RM3.36)

Emerging markets remain ‘hot’

2007-01-04T06:56:00.000-08:00

Emerging markets, especially those in Asia, will continue to be “hot” among global investors in 2007 but they should also consider the risks involved, say equity researchers.

A Bloomberg report said on Tuesday that emerging market stocks may lead global equity returns for a sixth successive year as consumers from China to Brazil were becoming sufficiently rich to support economic growth even as exports slowed.

Markus Rosgen: Global economic slowdown and commodity prices increases are risks facing Asia
Research analysts, while also optimistic on emerging markets, are advocating prudence and are selective with their picks. Emerging markets are economies with huge growth potential.

Citigroup Investment Research head of regional strategy Markus Rosgen told StarBiz from Hong Kong that prospects for Asia continued to be good as fund flows were strong.

“That said, global strategists are more bullish on Latin America's emerging markets compared with Asia, because they have stronger earnings growth and are main exporters of commodities, which recorded strong prices in 2006. Their return on equity is higher too,” Rosgen said.

He said global economic slowdown and commodity price increases were risks that Asia faced because it was a net importer of raw materials.

“We are overweight on Hong Kong, Malaysia and Singapore but underweight on Taiwan, Thailand and India. For Taiwan, we think IT (information technology) demand would improve, but only in the second half of 2007,” Rosgen said.

JP Morgan Securities head of broking Clement Chew said the brokerage was positive on Asia. Among emerging economies his picks were Taiwan, Malaysia, China and the Philippines.

“We also like Singapore, but we think Malaysia could offer the second best overall returns in terms of equities and currency trading for 2007 of 10%, behind Taiwan,” he told StarBiz.

Chew said it was difficult to predict external risks that could shake market confidence, adding that the Federal Reserve rates could “spring a surprise” following better-than-expected US economic numbers.

“The US is still a big part of Asian exports, but Asian countries have recently started to diversify and there is more trade between countries in the region now,” he said.

Credit Suisse analysts Stewart Paterson, Daryl Goh and Peggy Chan, in a joint report last month, also had Taiwan as the top pick, citing improving IT demand and efforts to improve economic ties with China.

Mergers and acquisitions as well as an accommodative monetary stance would be positive for Malaysia, while Thailand's status as a food exporter amid rising global food prices also put them in good stead, Credit Suisse said.

However, the analysts believed that fundamental values had disappeared from China's markets and said investors there might worry about losing more on underlying equity than what they could gain from potential yuan appreciation.

With India having the highest price/earnings ratio, Credit Suisse is underweight on India as well, forecasting mediocre medium-term returns from equities.

“Likely higher interest rates would result in widening current account deficit, and consequently a weakening in India's currency. Foreign capital could leave,” the analysts said.

TWSPLNT [6327] > Current price RM2.10

2007-01-02T22:41:00.000-08:00

TWSPLNT [6327] > Current price RM2.10

Tradewinds Plantation has formed a bullish ascending triangle. Both its MACD and DMI are positive. All it currently lacks is volume to push it decisively above its overhead resistance. Seeing a buoyant overall market, i Capital rates Tradewinds Plantation a trading Buy with a target of RM2.60. Place relevant stop loss.

UEM World to complete Rawang-Ipoh project for RM766.97m

2006-12-13T17:25:00.000-08:00

The Rawang-Ipoh electrified double track rail project is back on track after UEM World Bhd received government approval to undertake the project for a contract sum of RM766.97 million.

UEM World said on Dec 13 the government had accepted its offer to complete the project and a formal contract would be executed soon.

The contract would involve the construction, completion, testing, commissioning and maintenance of the railway track.

“The period of the contract is for 22 months, commencing from June 1, 2005 to March 31, 2007,” it said, adding more details of the contract would be made available upon announcement of the execution of the contract.

UEM World added it intended to novate the contract to its 57.1% subsidiary UEM Builders Bhd upon the execution of the contract.

UEM Builders’ unit, UEM Construction Sdn Bhd, had been undertaking the works for the double track rail project on an interim basis since its appointment by the government on June 1, 2005.

UEM Construction took over the multi-billion ringgit project, which was 88% completed by former main contractor DRB-Hicom Bhd.

DRB-Hicom had pulled out of the contract after being owed by the government for dues on work already done as well as RM700 million in variation orders.

UEM World and UEM Builders share prices closed two sen higher to RM1.71 and RM1.39, respectively. DRB-Hicom was unchanged at RM1.58.

Tanjung Offshore 3Q net profit up 86%

2006-11-18T17:11:00.000-08:00

Tanjung Offshore Bhd’s net profit jumped 85.24% to RM5.71 million for the third quarter ended Sept 30, 2006, from RM3.08 million a year earlier boosted by completion of various engineering equipment contracts and ongoing vessel charters.

Revenue rose 65.7% to RM78.64 million from RM47.46 million.

For the first nine months, its net profit rose 37.92% to RM12 million from RM8.8 million a year earlier, while revenue rose 35.21% to RM185.93 million from RM140.32 million.

In a statement on Nov 17, chairman Datuk Wira Syed Ali Alhabshee attributed the higher revenue and profitability mainly to contracts like the supply of gas turbine spares, compressors and various process systems.

He said Tanjung Offshore’s on-going vessel charters like MV Tanjung Jara, MV Tanjung Huma, MV Tanjung Manis and the recently launched Tanjung Pinang1 also contributed to the bottom line.

Syed Ali said the company’s mobile offshore production unit, which began operations at the Cendor field offshore Terengganu, is also expected to contribute to its future earnings.

Another record high for the year

2006-11-16T02:56:00.000-08:00

The KL Composite Index surged to another record high for the year on Nov 16. Trading gained momentum as the day progressed underpinned by active interest in lower-liner stocks.

Market breadth was positive for much of the day despite some ongoing profit-taking activities. At the close, gaining stocks outnumbered losing ones by nearly two to one.

The prevailing sentiment remains bullish even though the market has seen significant gains in recent weeks. Profit-taking activities have been very well absorbed on the back of healthy market volume. Over 1.2 billion shares were traded, the highest daily volume in nearly six months.

Lower-liner stocks with the likes of Amsteel Corp, Scomi Group and Ekran dominated the most actives list. Warrants also appears back in favour in view of the current expectations for more upside. These derivatives offer investors greater leverage (and gains) in a bullish market.

Gains chalked up by key index-linked stocks like BAT, Telekom Malaysia and Maxis Communications led the benchmark index nine points higher to 1,037.6. Other big gainers were DiGi.Com, KL Kepong, KNM Group, EON Capital and Ta Ann. Retailer AEON Co has also done very well over the past two weeks. The stock added another 30 sen to close at RM7.15.

KLCI hit another new multi-year high.

2006-11-14T03:15:00.000-08:00

After a mild bout of profit-taking activities on Nov 13, the bulls returned with a vengeance on Nov 14. Trading volume expanded above the one billion shares mark and the KLCI hit another new multi-year high.

The positive sentiment was also partly helped by strong performances from most regional markets, plus a sharp overnight drop in crude oil prices and the strengthening ringgit.

The KLCI's ability to hold well above the 1,000-point level and fully absorb profit-taking activities has drawn fresh investor interest. While intermittent profit-taking activities may be expected, the market's underlying sentiment appears to remain fairly positive in the near term.

Investor interest appears to be broadening out, which is a positive development. Earlier gains were mostly concentrated within a small number of key blue chips and plantation stocks.

Investors are now also re-rating stocks in the construction and infrastructure sectors, particularly those seen as beneficiaries of increased infrastructure spending under the Ninth Malaysia Plan, or associated with the Second Penang Bridge and the Iskandar Development Region in South Johor.

The KLCI was in positive territory throughout the day, with the index adding on more gains as the day progressed. The benchmark index ended right at its intra-day high, up 10.3 points to 1,030.1. Advancing stocks beat declining ones by a 2.5-to-1 ratio on high volume of 1.12 billion shares.

Trading was dominated mostly by penny or construction and infrastructure-related stocks, including UEM Builders, PMI, Gamuda warrants, MRCB and Tebrau. The day's top gainers were mostly blue chips, led by BAT, Tanjong plc, Guinness, Batu Kawan and Tenaga. Losers include Negara Properties, Resorts World and DiGi.

Counter to monitor

2006-11-13T20:09:00.000-08:00

Latest i buy sugarbun, keuro n apli...

APLI to invest RM33m in Vietnam plant expansion

2006-11-07T04:17:00.000-08:00

Latex glove manufacturer APL Industries Bhd (APLI) is investing RM33 million to increase the output of its Vietnam plant next year, as it is making losses because it is running below capacity.

Group managing director Datuk Seri Stanley Thai said on Nov 7 that it made sense to expand in Vietnam because of its cheaper labour costs and abundant natural resources, including latex.

Under the first phase of the expansion, APLI would invest RM8 million in two boilers – biomass thermal-oil heat energy generators -- and upgrade six dipping process machines, which would increase the Vietnam plant's output and achieve economies of scale.

Speaking to reporters in Subang Jaya after signing an agreement with Ecotherm Sdn Bhd for the installation of the boilers, he said the company had obtained “sufficient borrowings” to fund the expansion.

Thai said its Vietnam plant's average monthly production would increase by 92% to about 86 million pieces of gloves when the expansion is completed by June 2007. The average monthly production was 45 million pieces in 2005.

“I believe by the third quarter of 2007, the total annual production capacity of APL group will be increased to 5.3 billion pieces of gloves,” said Thai, who is also Supermax Corporation Bhd managing director. Supermax has a 12.9% stake in APLI.

The company would invest another RM25 million in December next year to install 12 new production lines for its Vietnam plant to increase APLI’s annual production capacity to 7.1 billion pieces of gloves, Thai said.

He added that APLI was confident its Vietnam plant would become profitable by raising its output and manufacturing higher-end and value-added products.

“With the completion and commissioning of the new biomass boilers and the completion of machinery upgrade, APLI group would return to profitability and be part of the prominent supplier in the glove industry,” Thai said.

Meanwhile, stock market data showed there were 20.05 million APLI shares transacted off-market on Nov 7 at RM4.31 million.

The 5.75% stake was transacted at an average price of 21.5 sen.

Tanjung Offshore in RM41m shipbuilding contract with Boustead Naval Shipyard

2006-11-06T08:12:00.000-08:00

Tanjung Offshore Bhd's unit Tanjung Kapal Services Sdn Bhd has awarded a RM41 million-shipbuilding contract to Boustead Naval Shipyard Sdn Bhd for an anchor-handling tug and supply vessel.

It said on Nov 6 that the construction of the vessel would be financed by internal funds and borrowings. Completion of the vessel is expected to be the third quarter of 2008.

The company said the 60-metre vessel would be able to perform as a safety vessel for offshore drilling and workover rigs on 24 hours a day basis.

Tanjung said the vessel could also be used for fire fighting, provision of supply and transportation of equipment and cargo between offshore facilities and platforms.

K-ONE Technology Bhd expects organic growth

2006-11-05T22:36:00.000-08:00

K-ONE Technology Bhd expects organic growth to spur its top and bottom lines substantially next year.

Founder and chairman Edwin Lim Beng Fook said by then, the company would be better equipped to take on design tasks worth over RM1mil compared with the present RM100,000- to RM200,000-sized projects. This is in addition to manufacturing contracts worth over RM10mil from the present RM1mil.

The company exports almost 100% of its design services and manufactured electronic products in the mobile phone accessories, computer peripherals and consumer electronic industries.

It is currently investing RM1.5mil to set up a new design and development centre in Damansara Jaya and another RM1.5mil to expand its manufacturing facilities from its listing proceeds of RM8.4mil.

“We are also buying additional design and development equipment such as wireless testing equipment and CAD (computer-aided design) stations for the new centre,” Lim said, adding that the company would move in by January.

Some RM4.4mil will be for working capital and to defer the listing expenses while the balance of about RM900,000 will be used to set up a new sales office each in Europe and the US.

Currently, it has only one sales office in Oslo, Norway, and a sales representative office each in Sweden, the Netherlands and Britain.

“With the presence of these sales offices, we will be closer to our customers and be able to work together with our major clients’ design and development team to scout for new projects,” Lim said.

He added that K-One would also seek opportunities to buy suitable design companies overseas or local technology firms that complemented its business model.

Being a global player, he said K-One was “just scratching the surface and has plenty of room to grow in design and development as well as contract manufacturing operations.”

According to statistics by investment group Bears Stearns Inc, the market value of design services this year is estimated at some US$18bil while the contract manufacturing market is worth almost US$360bil.

Blue chips firmer, led by Pos Malaysia

2006-11-01T17:19:00.000-08:00

Blue chips started the new month on Nov 1 on a firmer footing led by Pos Malaysia, though penny stocks were lower after the sharp fall on Sugar Bun and Sanbumi on Oct 31.

At midday, the KLCI had risen 1.6 points to 989.9 and the FBM Emas gained 6.79 points to 6,446.04 but the Second Board Index fell 0.02 point to 87.72. The KLCI futures for November rose 2.5 points to 988.

Trading volume was 344.56 million shares valued at RM362 million. Losers beat gainers 380 to 255 while 299 counters were traded unchanged.

Major Asian markets were higher at midday. Singapore's Straits Times Index added 24.22 points or 0.9% to 2,725.97, South Korea's KOSPI 0.9% to 1,376.79 and Japan's Nikkei 225 0.2% to 16,432.5.

Light crude oil for December delivery was traded at US$58.56.

Analysts said the market undertone was healthy among blue chips, with rotational interest seen in counters with fresh corporate news including Pos Malaysia and Bursa Malaysia Bhd.

They said investors were awaiting more leads on contracts to be awarded in the Ninth Malaysia Plan in coming weeks.

Among the heavyweights, Telekom rose 10 sen to RM8.85, Maybank was flat at RM11.20 while Tenaga fell five sen to RM9.95.

Pos Malaysia rose 29 sen to RM5.25 after announcing its RM1.50 per share payment. Ta Ann extended its gains on stronger earnings, up 30 sen to RM10.70.

Bursa rose 15 sen to RM6.10 after its third quarter net profit rose 28.14% to RM25.1 million for the third quarter ended Sept 30, 2006. It also declared a special dividend of 28 sen per share less tax.

BAT and Hume Industries added 25 sen each to RM42.50 and RM3.24 while Kulim gained 22 sen to RM4.88 and Transmile 20 sen to RM12.90.

PLUS, which won a toll-concession contract in Indonesia, rose two sen to RM2.90.

GHL Systems was the most active with 17.74 million shares. It rose 0.5 sen to 21 sen.

The cautious sentiment towards penny stocks saw AT Systemisation falling four sen to 29.5 sen with 13.28 million shares traded. Talam extended its decline, down another two sen to 16.5 sen, after IJM denied buying a stake in the property developer.

Sugar Bun fell four sen to RM2.98 and the warrants lost 14 sen to RM2.49, as investors were cautious following Bursa Securities' recent query.

Selling pressure eased on Sanbumi, down one sen to 63.5 sen. On Oct 31, Sanbumi fell 29 sen to 64.5 sen.

Genting was the top loser, falling 25 sen to RM26.50 in thin trade, Shell lost 20 sen to RM10.40, IOI Corp and IOI Properties 10 sen each to RM17.10 and RM8.50.

06-10-2006: Muhibbah's stream of good news

2006-10-05T16:49:00.000-07:00

Muhibbah Engineering (RM2.16) has benefited from a stream of good news over the past few months, including the successful listing of its crane manufacturing unit Favelle Favco, a major LNG construction contract in Yemen, the opening of a new airport terminal in Siem Reap, Cambodia and the securing of a third Cambodian airport concession in Sihanoukville.

As a result, Muhibbah's share price has rallied sharply, particularly with increasing interest from institutional investors. Over the past few months, several prominent foreign research houses have initiated coverage and the company was one of eight selected to participate in a recent Bursa Malaysia-SIAS investor roadshow in Singapore.

Year-to-date, Muhibbah's share price has tripled from 70 sen to RM2.16, vindicating our bullish view on the company since we first recommended the stock a year ago.

02-10-2006: Lukewarm interest

2006-10-02T15:44:00.000-07:00

Trading on Bursa got off to a slow start for the last quarter of 2006. Market volume contracted further on the back of lacklustre investor interest. And there’s little indication that such trading condition is about to improve, at least not in the near term.

The number of shares traded fell to just 365 million on Oct 2, down from the daily average of 430 million in the last week. Investors are evidently not budging from the sidelines, despite the benchmark KL Composite Index reaching multi-year high level.

Indeed, aside from some interest in a handful of blue chip stocks, investors, by and large, appear unconvinced of the market’s prospects in the coming days or perhaps even weeks. Positively, prevailing firmer sentiment in the US and regional markets should limit our market’s downside. But it’s difficult to say when interest will return to the local bourse.

The KLCI closed two points higher on Oct 2 on a spurt of last-minute buying but market breadth was in the red for much of the day. Losers outnumbered gainers by about four to three at the close. DiGi was the biggest gainer, adding 50 sen to RM13 ahead of its second capital repayment of 60 sen per share.

Note: This report is brought to you by Asia Analytica Sdn Bhd, a licensed investment adviser. Please exercise your own judgment or seek professional advice for your specific investment needs. We are not responsible for your investment decisions. Our shareholders, directors and employees may have positions in any of the stocks mentioned.

19-09-2006: Lower as retail stocks plunge

2006-09-19T16:22:00.000-07:00

The KLCI was mostly flat throughout the morning session, but losses accelerated after the lunch break. The benchmark index ended the day down 2.7 points at 962.8, after trading within a 6.4-point range throughout the day. At the close, declining stocks outweighed advancing ones by a 2-to-1 margin on volume of 519 million shares.

LKT, Lion Forest, QSR, Tenaga and UMW were the day’s top gainers. Apart from the retail stocks previous mentioned, other major losers include Genting and BAT.

Budget 2007: Response from Malaysian Investment Banking Association chairman Tan Sri Azman Hashim

2006-09-01T21:53:00.000-07:00

The association notes that the Budget is one that is multidimensional and balanced, placing the country on track to becoming a fully developed nation as envisaged under Vision 2020.

We are confident that all sectors of the economy will benefit from the expansionary budgetary policy outlined for 2007.

The higher Government expenditure of 31% amounting to RM465 billion will help spearhead activities in the construction and services sectors and consequently contribute to greater job opportunities and expansion in our GDP.

The KLCI inched up 4.10points

2006-08-20T17:13:00.000-07:00

The KLCI inched up 4.10points, to 942.08 at the market close with buying interest on selected blue chips. The strong support was due to institutional buying ahead of the upcoming Budget 2007 which will be unveiled on September 1.

14-08-2006: InsiderAsia's Model Portfolio

2006-08-14T09:36:00.000-07:00

The KLCI rose slightly last week, although the broader market was more mixed and trading volume continued to decline. The market’s resilience was quite impressive given the backdrop of increased external uncertainties last week — ranging from rising crude oil prices, continuing violence in the Middle East to terrorism threats in the UK

Smaller plantation stocks in focus

2006-08-13T22:59:00.000-07:00

Smaller plantation stocks were among the major gainers in the morning session on Aug 14 as they played catch-up to the bigger capitalised stocks.

Plantation stocks extended

2006-08-13T20:13:00.000-07:00

Plantation stocks extended their rally last Friday on continuous positive news flow on biodiesel projects, higher exports, lower inventory and the persistently high CPO prices. There was some nibbling of blue chip issues by institutional investors

Stocks Mixed As Oil Prices Climb

2006-08-09T10:55:00.000-07:00

AP -

Wall Street turned mixed Wednesday as strong earnings from Cisco Systems Inc. and the Walt Disney Co. lifted many stocks but a jump in oil prices, which raised the specter of accelerating inflation, eroded gains in large-cap issues.

Stocks Lower As Rates Remain at 5.25 Pct

2006-08-08T12:56:00.000-07:00

Fed Takes Pause, Leaves Rate Unchanged

2006-08-08T12:50:00.000-07:00

AP -

The Federal Reserve on Tuesday left a key interest rate unchanged, marking at least a temporary pause in what had been the longest unbroken stretch of Fed rate increases in recent history.

08-08-2006: Cautious ahead of Fed meeting

2006-08-08T06:27:00.000-07:00

Share prices on Bursa closed mixed to slightly lower on Aug 8 with most investors staying sidelined and cautious ahead of the all-important US Federal Open Market Committee meeting on Aug 8 night.

The Federal Reserve will give its pronouncement on US interest rates and the scope for future rate hikes. Unlike previous meeting, most analysts are more divided this time around as to whether the interest rates will be raised.

Recent economic data have shown a deceleration in US economic growth – particularly in consumer spending, and the housing and labour markets, although some inflationary elements remain. Some fear the US economy is also slowing on its own, and further rate hikes will sharpen any slowdown, which will have repercussions for the rest of the world.

The KLCI alternated between marginal positive and negative territory throughout the day, ending just 0.6 of a point higher at 939.1. The index traded within a narrow 3-point range throughout the day. Declining stocks edged out advancing ones by a 7-to-6 ratio at the close. A total of 426 million shares changed hands.

Retail and penny stocks continued to dominate trading, but almost all of them were in the red. The top actives include Iris, MP Tech, UEM World and Tebrau. PLUS was the only noticeable blue chip in the top 10 actives list – it closed unchanged. Major losers include BAT, Maybank, IJM and Hong Leong Bank.

08.08.06 : Lower liners, penny stocks down at midday

2006-08-07T22:35:00.000-07:00

Lower liners and penny stocks, which hogged trading activity in recent weeks, fell on Aug 8 as investors turned cautious ahead of the US Federal Reserve meeting, despite Malaysia's June industrial production index having beaten economists' expectations.

At 12.30pm, the Kuala Lumpur Composite Index was down 0.72 point to 937.76, the FBM Emas fell 5.09 points to 6,090.69 and the Second Board Index lost 0.41 point to 89.19.

Turnover was 205.54 million shares valued at RM231.42 million. Losers beat gainers 318 to 165 while 333 counters were unchanged.

Among the Asian markets, Japan's Nikkei 225 rose 0.97% or 146.82 points to 15,300.88, Hong Kong's Hang Seng Index added 0.36% to 17,015.21 and South Korea's KOSPI rose 0.82% 1,300.09 but Singapore's Straits Times Index fell 0.2% to 2,455.29.

Light crude oil for September delivery was at US$76.80 per barrel while oil for January 2007 delivery soared to US$80.08.

Analysts said investors were cautious ahead of the US Federal Reserve meeting to decide on the interest rate policy. They added the KLCI extended its consolidation after failing to stay above the 940-resistance level on Aug 8.

The June IPI rose rose 7% to 135.3 from 126.5 a year ago, which was above economists' expectations of 5.3%, driven by the manufacturing sector.

Among the heavyweights, Maybank fell 10 sen to RM10.70, Tenaga was unchanged at RM9.15 but Telekom rose five sen to RM9.10.

Iris was the most active with 36.54 million shares done. It fell two sen to 52.5 sen. MP Tech lost three sen to nine sen and Poly Tower two sen to 64 sen.

UEM World fell six sen to RM1.50 in active trade while UEM Builders and Time Engineering two sen each to RM1.22 and 60 sen.

BAT was the top loser, down 25 sen to RM42.25 with only 200 shares done. Nestle, Transmile and IJM gave up 10 sen each to RM23.60, RM12.20 and RM5.75.

DeGem rose 13.5 sen to RM1.08 after the board of directors declared a special interim dividend of 33% per share for the financial year ending Dec 31, 2006.

Resorts and KL Kepong rose 40 sen each to RM12.20 amd RM11.40 while Genting added 20 sen to RM24.80.

MayBulk added 11 sen to RM2.29, Sime Darby and DiGi 10 sen each to RM5.65 and RM11.70, RHB Capital six sen to to RM2.78.

Landmarks recovered some of its losses from yesterday, rising seven sen to RM1.69.

07.08.06 :Blue chips extend gains, Kulim at fresh highs

2006-08-07T03:28:00.000-07:00

Blue chips extended their gains on continued buying of index-linked stocks including construction and plantation counters on Aug 7, despite the overall cautious market where losers beat gainers three to two.

Kulim was at a nine-year high of RM4.40, up 20 sen and the warrants rose 17 sen to RM2.07 as it played catch-up with other plantation stocks which had rallied in recent weeks. Kulim's net tangible asset per share is RM10.66.

At 12.30pm, the Kuala Lumpur Composite Index added 1.46 points to 939.45, off its early high of 942. The FBM Emas rose 1.01 points to 6,099.19 but the Second Board Index fell 0.14 point to 89.96. The KLCI futures for August rose six points to 936.5.

Turnover was 201.61 million shares valued at RM232.37. Losers beat gainers 338 to 235 while 252 counters were unchanged.

Other major markets in Asia were mostly lower except for Singapore. Japan's Nikkei 225 slid 1.47% or 227.47 points to 15,271.71, South Korea's KOSPI fell 0.77% to 1,294.51 and Hong Kong's Hang Seng Index lost 0.12% to 16,867.15. However, Singapore's Straits Times Index rose 0.12% to 2,465.79.

Light crude oil for September delivery remained at high levels, trading at US$75.80.

Analysts said the recent corporate earnings had been quite satisfactory and there were continued buying of plantation and construction stocks.

TA Securities Research said there was still medium-term upside for the market with bargain hunting despite the shallow profit-taking dip last Friday.

It said for this week, a further bullish catalyst would be needed to extend the current up-trend, otherwise another week of range bound trading was anticipated," it said. The immediate resistance is 940 while the support level is 931.

Among the heavyweights, Maybank and Telekom were unchanged at RM10.70 and RM9.05 while Tenaga lost five sen to RM9.15.

DiGi rose 30 sen to RM12.30, BAT 25 sen to RM42.25, Transmile and KL Kepong 20 sen each to RM12.40 and RM11.20. MISC-F added 15 sen to RM8.30 and the local shares 10 sen to RM8.40.

Gamuda warrants rose 11.5 sen to 81 sen and the shares eight sen to RM3.84. Ranhill added seven sen to RM1.22.

AirAsia rose four sen to RM1.38 in active trade. Iris was the most active with 32.71 million shares. It fell one sen to 60.5 sen.

Pantai, which saw the Government of Singapore Investment Corporation emerging as a substantial shareholder with a 5.01% stake, was untraded at RM2.29.

Landmarks was among the major losers, down 12 sen to RM1.67 on profit taking. It plans to place out 29.53 million new shares at RM1.54.

Tanjong fell 20 sen to RM13.60, Magnum 4D 18 sen to RM2.50 and Resorts 10 sen to RM11.80.

04-08-2006: Cautious trading ahead of US data

2006-08-06T03:44:00.000-07:00

Share prices on Bursa Malaysia closed mixed to marginally higher on Friday. Overnight gains on Wall Street helped nudge the market higher, but gains were small as investors adopted some caution ahead of Friday night’s all-important July US non-farm payrolls report. Indeed, the cautious tone was not limited to Malaysia, but prevalent elsewhere in the region as well.

The payrolls report is the last piece of economic data before the Federal Reserve meets next Tuesday to discuss on interest rates. As such, much of what it contains later tonight is likely to determine the direction of US and global equity markets, and US interest rates.

The KLCI was in minor positive territory for most of the day, trading within a narrow four-point range. The index closed 2.7 points higher at 938. Market breadth was mixed for much of the day, but turned in favour of advancers by a 7-to-6 ratio at the close. A total of 437 million shares changed hands.

Retail and penny stocks like Iris and Leader continued to dominate trading. A few institutional stocks like Gamuda and AirAsia also made it to the top actives list – with decent gains too. The day’s top gainers include Resorts, Gamuda, Ta Ann, KFC and IOI Corp. Losers include BAT, Transmile, MPI and EON Capital. -- InsiderAsia

03-08-2006: Unclear outlook

2006-08-03T11:48:00.000-07:00

Stocks on Bursa continued to tread water on Aug 3. The benchmark KL Composite Index traded within a narrow band while mild selling pressure was observed on lower-liner stocks.

Investor ambivalence will likely prevail in the near term. High crude oil prices, in particular, are expected to keep markets on edge. Crude futures on the NY Mercantile Exchange are now trading above US$75 (RM276.13) per barrel.

The KLCI closed just over a point higher at 935.3 points. But market breadth was slightly negative with losing counters outnumbering gaining ones by a ratio of 1.3 to one. Market volume was relatively steady at 550 million shares.

UEM Builders and UEM World were among the most actively traded stocks on Aug 3 after the UEM Group secured the contract to build and manage the proposed second Penang bridge. The concession is one of the major projects to be rolled out under the 9th Malaysia Plan.

Telekom Malaysia closed marginally higher at RM9 after releasing a pretty solid set of 2Q06 earnings results. Although its local fixed line and mobile businesses remain under pressure, investments overseas are beginning to bear returns. The company proposed an interim dividend of 16 sen per share.

UEM Group gets 2nd Penang bridge project

2006-08-02T14:41:00.000-07:00

UEM Group has been appointed the concessionaire to build, manage, operate and maintain the second Penang bridge, the Prime Minister said.

Datuk Seri Abdullah Ahmad Badawi said in a statement on Aug 2 the Cabinet had approved the second bridge for Penang and construction of the monorail as private finance initiatives (PFIs) under the Ninth Malaysia Plan.

He said UEM Group was appointed the concessionaire for the second bridge project because it is a concession holder of the Penang Bridge. The company had extensive expertise and experience in the matter, he said.

As for the monorail project, he said qualified companies will be invited to present their proposal papers for implementation.

Abdullah said the government will carry out research on a Kuala Lumpur-Singapore Bullet Train, another PFI project proposed by a private company.

The government, he said, views positively the proposal for the construction of the Bullet Train but will direct a socio-economic study to be carried out to assess the impact on national interests before the project proceeds.

"Through the PFI, financial risks will be shouldered by the private sector while the government utilises the expertise and efficiency of the sector to carry out complex infrastructure projects such as these.

"The government will provide support and make it easy for parties involved in these projects.

"This also proves the government's commitment to fine-tune privatisation programmes through PFI while encouraging more involvement from the private sector in generating economic growth," he said.

02-08-2006: Listless market

2006-08-02T08:27:00.000-07:00

The KL Composite Index opened in positive territory on Aug 2, but gradually succumbed to some mild profit taking. The closely monitored benchmark index ended the day marginally lower at 934.1 points.

Trading was fairly quiet, even listless, in the absence of market-moving developments. About 565 million shares changed hands. Second and lower-liner stocks accounted for the bulk of market volume. Iris Corp was, by far, the most actively traded counter. The stock closed marginally higher at 69.5 sen.

New Mesdaq-listing, ISS Consulting Solutions was the second most actively traded for the day. The stock never really took off, opening in the red. Losses widened as the day progressed. The shares eventually ended its first day of trading nine sen below its IPO price of 41 sen.

Market breadth leaned towards the negative. At the close, losing counters outnumbered gaining ones by 1.2 to one. On the positive note, selling pressure appears relatively mild. The market is likely to continue treading water as investors wait for fresh leads.

Tanjong was the topped the gainers list on Aug 2, recouping losses from the previous trading day. On the whole, interest in most blue-chip stocks remained lacklustre. IOI Corp, DiGi and KL Kepong succumbed to some profit taking on the back of recent gains. -- InsiderAsia

31 July 06 :Technical readings mesdaq board index

2006-07-30T17:54:00.000-07:00

Elliott Wave
Daily chart: The MMI's recent impulsive wave was terminated in tandem with that of the KLCI. It closed at 116.83 points last Friday.
Weekly chart: The MMI has yet to complete the retracement of its corrective A-B-C waves of its major corrective wave (B).
Monthly chart: Its wave retracement had completed the first leg of its intermediate-term correction. It is currently unfolding the second leg of its wave correction.

Elliott Oscillator
The Elliott Trigger stayed below its zero region while its Elliott Oscillator continued to stay above its zero region.

Other Indicators
The daily, weekly and monthly stochastics stayed in their respective neutral levels.

MACD
The monthly fast MACD continued to stay above its monthly slow MACD while its daily and weekly fast MACDs stayed below their respective slow MACDs.

ETI
"Bullish" readings continued to register for the medium and long terms. Its short-term reading is "bullish" for now.

PTI
Using the original Elliott wave count, PTI had rebounded to 73 on its daily chart while it dropped to 19 on its weekly chart.

DMA
The MMI stayed above its weekly and monthly DMA levels of 111 and 103 respectively. Its daily DMA stayed at 119.

Divergence
There were significant negative divergences on its daily MACD and Relative Strength Index to the MMI on its daily chart.

MOB
The MOB support is now at 105-115.
Resistance
The next resistance is raised to 125.

Support
Its immediate downside support is at 100-100.

Resistance
A breach above 125 will further boost the Mesdaq undertone.

Market review
Share prices on Bursa Malaysia consolidated early last week before staging strong technical rebounds on the last two trading days.
Second and third liners succumbed to persistent selling pressure. Heavyweight index-linked counters provided the impetus for the KLCI to stay above its support of 920.
The KLCI posted a week-on week gain of 11.09 points to 924.72, the MMI lost 2.5 points to 116.83 while the SBI eased 0.63 point to 90.29.

Market outlook
The KLCI continued to slip on geopolitical tensions in the Middle East, reaching its intra-week low of 902.7 last Monday.
Heavyweight index-linked counters provided the impetus for the KLCI to climb back above its support of 920 on the last four trading days.
The MMI, SBI and KLCI's daily fast MACDs continued to stay below their respective daily slow MACDs last week.
This week, the KLCI is likely to remain unchanged while the lower liners will continue to trend in their respective consolidations. The overhead resistance hovers at 925-935 while its downside support is at 910-920.

31 July 06 :Technical readings Second Board Index

2006-07-30T17:52:00.000-07:00

Elliott Wave
Daily chart: The unfolding of its impulsive wave was terminated at 313.89. The SBI closed at 90.29 points last Friday.
Weekly chart: The market is seen to undergo a technical rebound WAVE 4 in the medium term. No significant sign of a REVERSAL from the downside yet as long as the resistance level of 300 remains intact.
Monthly chart: Likewise, it has not completed the downside cycle in the long term yet. It is unfolding a technical corrective WAVE 4.

Elliott Oscillator
The Elliott Trigger and Elliott Oscillator stayed below their respective zero regions.

Other Indicators
Its daily, weekly and monthly stochastics stayed in their respective neutral levels.

MACD
The daily, weekly and monthly fast MACDs continued to stay below their respective slow MACDs.

ETI
The readings are "neutral" for the short term and "bullish" for the medium and long terms.

PTI
Moderate readings are seen on the daily, weekly and monthly charts, suggesting that the market is unlikely to re-test the low of 78 for the long-term support.

DMA
The SBI stayed below its daily, weekly and DMA levels of 93, 93 and 94 respectively.

Divergence
There were no negative divergence on its daily stochastics and Relative Strength Index to the SBI on its daily chart.

MOB
The MOB support is now at 105-110.

KLCI likely to move in wide sideways band

2006-07-30T17:48:00.000-07:00

LAST CLOSE (July 28): 934.72 points, up 13.55 points (1.47%) from a week ago. Week’s high: 938.85 points; Week’s low: 921.17 points.

The Kuala Lumpur Composite Index (KLCI) continued its recovery rally last week and closed at its highest levels in 10 weeks.

Minor advances in a few of the main index-linked stocks lifted the index to its highest point in its six-week technical rebound.

MISC, Public Bank, IOI Corp, Bumiputra-Commerce, Petronas Gas, Sime Darby, Genting, Plus Expressways, British American Tobacco and Astro ended the week higher and contributed a combined 10.22 points to the index.

Tenaga Nasional and Telekom ended the week unchanged. Maxis Communication settled the week with small losses.

Volume of the KLCI for the week fell to 397.30 million from 402.55 million shares a week earlier. The average daily volume for the week declined to 79.46 million from 80.51 million shares.

The candlestick chart closed the week positive. Two big white candles occurred in the past two weeks.

This positive development suggests the immediate-term momentum of the index is still constructive.

The KLCI successfully penetrated its important chart resistance at the 928–933 levels last week and painted a positive chart picture for the immediate term.

This six-week recovery rally has helped the index recover more than 50% of its 1½-month losses incurred during the bearish trend in the May–June period.

A continuation of this upward momentum and a successful upward break from its next chart ceiling at the 940–950 levels would clear the course for the index to embark on a bullish rally.

However, failure to generate fresh follow-through buying interest as the index tests this chart resistance would likely be followed by a strong downward correction and force the index to give back some of its recent excessive gains.

An immediate chart support stands around the 930–920 levels. Breaking of this support would indicate the bullish momentum has fizzled.

The weekly indicators remained mixed at Friday’s close and called for choppy sideways actions in the coming sessions.

Stochastic: The weekly stochastic ended in the bullish extended-move zone and gave a strong negative convergence signal, indicating things were a little overdone during last week’s rally. The oscillators per cent K and D closed the week higher at 81.63% and 77.16% respectively.

The weekly Money Flow Index (MFI) ended higher at 39.41 points and showed positive money flow occurred last week. The weekly MFI signalled the index was out of its oversold state.

The 3- and 7-week exponentially smoothed moving-average price lines (ESA-lines) expanded on their buy signal last week and ended Friday positive.

The 3- and 7-week ESA-lines settled higher at 927 and 923 points respectively.

The daily ESA-lines remained in positive divergence and indicated the immediate-term cycle of the index was bullish. The 3-day ESA-line finished above the 7-day ESA-line at 923 and 929 points respectively.

Relative Strength Index (RSI): The 9-week RSI (not shown in the chart) closed higher in the positive territory 55.6 points. Analysis of the weekly RSI shows the immediate underlying strength of the index is positive.

Weekly moving-average convergence/divergence (MACD): The weekly MACD (not shown in the chart) gave the buy signal last week and settled Friday on a positive note.

The weekly MACD ended above the trigger-line and settled higher at 0.20 and minus 0.14 point respectively.

Analysis of the weekly MACD shows the near-term trend would remain bullish.

31 July 06 : Technical readings

2006-07-30T17:44:00.000-07:00

Technical readings
Elliott Wave
Daily chart: By using a short-term Elliott Wave count, the KLCI continues to unfold the various degrees of the impulsive A-B-C waves of its major corrective wave (B). The KLCI closed at 924.72 points last Friday.
Weekly chart: The KLCI's weekly wave counts were in line with those of its daily wave counts.
Monthly chart: A breach above 1,018 will change the bearish scenario. The KLCI momentarily breached this resistance level when it hit its intra-day high of 1,021.2 on Feb 18, but has since failed to close above 1,018.

Elliott Oscillator
The Elliott Trigger stayed below its zero region while its Elliott Oscillator stayed above its zero region.

Other Indicators
The monthly, weekly and daily stochastics stayed in their respective neutral levels.

Moving Average Convergence/Divergence (MACD)
The weekly and monthly fast MACDs continued to stay below their respective slow MACDs. Its daily fast MACD stayed above its daily slow MACD.

Expert Trend Index (ETI)
The readings are "neutral" for the short and long terms, and "bullish" for the medium term.

Profit Taking Index (PTI)
Using the original Elliott wave count, PTI displays high readings of 79 and 64 on its daily and weekly charts respectively. PTI of 7 on the monthly chart indicates that a re-test of its previous high of 1,021 is more remote than before.

Displaced Moving Averages (DMA)
The KLCI stayed above its monthly and daily DMA levels of 903 and 914 respectively. It stayed below its weekly DMA level of 930.

Divergence
There were positive divergences on its daily MACD, Stochastics and Relative Strength Index to the KLCI's daily chart.

Make Or Break (MOB)
The revised weekly MOB resistance is higher at 965-975.

Support
The immediate downside support is now 890-900.

Resistance
Its immediate overhead resistance is now 965-975.

Info from : Theedgedaily