Friday, 25 August 2017

Palette Multimedia Bhd (KLSE : 0005) - Resistance Zone Breakout !

Yesterday price action broke out the resistance zone with relatively very high volume, which now turned the zone to immediate support zone.

More upside ahead ?

Weekly chart.

Past post :
1) Palette Multimedia Bhd (KLSE : 0005)

Note : S-Trader indicators/tools are not part of Metastock software package. It is our proprietary system/tools. If you have any further inquiries, please feel free to Contact Us. 

Source:
1) Metastock

Thursday, 24 August 2017

Olympia Industries Bhd (KLSE : 3018)

Daily chart.

Note : S-Trader indicators/tools are not part of Metastock software package. It is our proprietary system/tools. If you have any further inquiries, please feel free to Contact Us. 

Source : 
1) Metastock

Thursday, 17 August 2017

Grand-Flo Berhad (KLSE : 0056) - Breakout ?

Weekly chart.

Note : S-Trader indicators/tools are not part of Metastock software package. It is our proprietary system/tools. If you have any further inquiries, please feel free to Contact Us. 

Source : 
1) Metastock

Wednesday, 16 August 2017

Industronics Bhd (KLSE : 9393) - Circus Back in Town ?

Daily chart.

Note : S-Trader indicators/tools are not part of Metastock software package. It is our proprietary system/tools. If you have any further inquiries, please feel free to Contact Us. 

Source : 
1) Metastock

MLabs Systems Bhd (KLSE : 0085) - Too Hot to Handle ?

Daily chart.

Note : S-Trader indicators/tools are not part of Metastock software package. It is our proprietary system/tools. If you have any further inquiries, please feel free to Contact Us. 

Source : 
1) Metastock

Hong Kong’s Cathay Pacific could face more belt-tightening as HK$1.2 billion interim loss looms


Cathay Pacific Airways could face further pressure for another round of cost cutting in the face of an estimated HK$1.2 billion in losses for the first six months of this year – one of the “worst results in its operating history”, according to analysts. 

The latest financial results for Hong Kong's flagship carrier are due to be released on Wednesday. The expected loss contrasts sharply with the HK$353 million profit made in the same six months last year, and also comes on the back of a HK575 million full-year loss for 2016.

The company earlier trimmed 600 jobs as part of a three-year business restructuring plan aimed at saving HK$4 billion over the period.

More news, Hong Kong’s Cathay Pacific could face more belt-tightening as HK$1.2 billion interim loss looms

Daily chart.

"Actions Speak Louder than Words"

Note : S-Trader indicators/tools are not part of Metastock software package. It is our proprietary system/tools. If you have any further inquiries, please feel free to Contact Us. 

Source :
1) Metastock
2) www.scmp.com

Tuesday, 15 August 2017

Wynn Macau Ltd (HKSE : 1128) / MGM China Holdings Ltd (HKSE : 2282)

Despite the recent positive news on a rebound in Macau's casino revenue, it failed to uplift Wynn Macau Ltd and MGM China Holdings Ltd stock price.

In fact, the stock price for both counters pullback and broke all the S-Trader Trend Tracker support levels before the news was published by Bloomberg.


Daily chart of Wynn Macau.

Daily chart of MGM China. 

Related post, Macau casinos’ revenue up

Note : S-Trader indicators/tools are not part of Metastock software package. It is our proprietary system/tools. If you have any further inquiries, please feel free to Contact Us. 

 Source : 
1) Metastock
2) Bloomberg

Monday, 14 August 2017

Macau casinos’ revenue up

A rebound in Macau’s casino revenue accelerated in July as spending by high-rollers continued to add momentum to the year-long recovery despite China’s efforts to curb capital outflows.

Gross gaming receipts in the world’s largest gaming hub rose for a 12th straight month, increasing 29% to 23 billion patacas (US$2.9bil), according to data released by Macau’s Gaming Inspection and Coordination Bureau yesterday. That topped the median estimate for a 26% increase in a Bloomberg survey of nine analysts, and is the biggest gain since February 2014.

Macau’s gaming revenue has been steadily recovering after China’s corruption crackdown and slowing economy hit the market for more than two years. While an improving economy and the opening of new facilities have helped bring players back to Macau, the outlook still bodes uncertainties as Chinese authorities introduce efforts to halt hundreds of billions of dollars worth of outflows, some of which exit the mainland via gambling operations.

“Risk of heightening enforcement and potential policy pressures we had flagged have certainly not gone away,” said Daiwa Capital Markets Hong Kong Ltd analyst Jamie Soo in a note yesterday. “Some of the pressure on the gaming revenue does take time to manifest itself, and the seasonal impact of stronger mass numbers for summer months may very well smooth out the potential negative impact of this in the near term.”

Still, the third quarter looks to be off to a strong start, and the market will likely react favourably to the numbers, Soo added.

Wynn Macau Ltd shares rose as much as 1.2% before paring its advance after the data’s release yesterday. MGM China Holdings Ltd, which was raised to a buy at Morningstar, trimmed gains after climbing 2.3%.

Bloomberg Intelligence’s index of Macau gaming stocks has rallied 20% this year through Monday. Wynn Macau surged 37% in the period, while Galaxy Entertainment Group Ltd jumped 43%.

The recovery is still susceptible to any renewed anti-corruption crackdowns from the mainland, especially as China gears up for the 2017 party congress this fall. Investor concerns remain amid reports of mainland police investigating questionable money transfers and freezing accounts of junket operators who ferry in wealthy players to gamble large sums on credit. 

Macau regulators are also requiring facial recognition and identification card checks at ATMs to curtail the overseas shifting of currency.

Revenue from high rollers, which was hurt the most amid the downturn, has shown a faster pace of recovery this year. It grew 35% in the second quarter, better than the 8.1% in the market for recreational gamblers, according to the city’s gaming regulator.

“VIP segment, for now, continues to see broad recovery across big and smaller junkets, a trend admittedly well above what we had envisioned,” JPMorgan Chase & Co analyst D.S. Kim said in a note before the revenue data release.

Source :
1) www.thestar.com.my
2) Bloomberg

Short seller threat has HK rally skipping small caps

Hong Kong stocks may be Asia’s star performers this year, but it hasn’t done much to revive the fortunes of the market’s perennial underdogs: small-cap shares.

A peek under the hood of the Hang Seng Index’s 25% surge shows it’s being dominated by larger equities, with smaller companies trading at their biggest price discount to the big caps since 2009. That’s despite expectations a trading link between Hong Kong and Shenzhen set up in December would lure mainland money into the former British colony’s smaller shares.

For Hao Hong, the Bocom International Holdings Co strategist who called China’s boom-and-bust equity cycle in 2015, the lack of appetite for small caps comes down to two things: the economy and short sellers.

There are signs China’s economic momentum is waning, read more here.

“In a slowing environment, big caps tend to outperform,” he said, adding that they’re more liquid, often have higher dividend yields and can be more transparent. “Investors are avoiding small caps due to concerns about short selling - it seems that short sellers are increasingly interested in small caps in Hong Kong.”

Short sellers have taken on at least four Hong Kong-listed companies this year, among them snack maker Dali Foods Group Co and furniture company Man Wah Holdings Ltd, a target of well-known short-seller Carson Block. According to Hong, there were only about two short targets a year in Hong Kong before 2014, when the numbers started to pick up.

Small-cap shares also bore the brunt of a selloff in June, when concern over cross-shareholdings inflating their valuations spurred a cascade of losses in a group of stocks.

“Fears about increased short-selling activities around small caps in Hong Kong are definitely part of the reason for investors avoiding small caps this year,” said Francis Cheung, head of China-Hong Kong strategy at CLSA Ltd.

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Conversely, money coming in to the market via exchange-traded funds and support from China’s government-backed funds, known as the ‘national team,’ have fuelled big-cap gains, Cheung said.

But it’s been mainland investors which have propelled the wider Hang Seng’s outperformance this year, as stricter capital controls make the stock connects between Shanghai, Shenzhen and Hong Kong one of the only ways those onshore can get their money into foreign currency.

Net flows in to Hong Kong via the links have come in at more than 240 billion yuan (US$36bil) this year, versus 131 billion yuan for the same period of 2016, when the Shenzhen connect didn’t exist.

While onshore cash is still flocking to Hong Kong, small caps aren’t the attraction. Of the top 10 stocks in which mainland investors hold the highest stakes via the Shanghai and Shenzhen trading links, only two - Guangzhou Baiyunshan Pharmaceutical Holdings Co and China Molybdenum Co Ltd - are members of the Hang Seng small cap gauge.

Source :
1) www.thestar.com.my
2) Bloomberg

Sunday, 13 August 2017

KLSE Stock Market Chronology - Week Ending 11 August 2017

This week we had an interesting market situation with the latest round of fury between the US and North Korea.

The following chronology of news published on TheStar website together with some interesting points extracted from the articles.

1) Tuesday, 8 August - Asian stock markets up on positive outlook

Asian stock markets were mostly higher, despite slower-than-expected growth in Indonesia, as investors stayed positive about the region’s economic outlook.

Sentiment in the market was also bolstered by Wall Street’s record-breaking performance. 

Foreign investors continued to buy Malaysian stocks last week despite the selloff in regional peers, including Thailand and Indonesia, according to MIDF Research in a report.

Templeton Emerging Markets Group chairman Mark Mobius tweeted last week that “valuations in emerging markets remain attractive relative to developed markets.”

More news, Asian stock markets up on positive outlook 


2) Wednesday, 9 August - Market selldown short-lived

The sudden drop in these stocks, for no apparent reason, had caught traders unaware and market chatter was that some traders had to fill in their margin calls from stocks which were initially heavily sold down on late Monday, thus the cascading effect on the broader stock market that was carried on to Tuesday.

Analysts still viewed the KLCI levels as being undervalued as compared with the regional performance, and that the local market had further room to catch up with its global and Asian peers.

The present view among analysts is generally mixed on whether small-cap stocks are truly fully valued on a historical and forward perspective.

In a similar vein, Areca Capital’s chief executive officer Danny Wong said it was difficult to say if small-cap counters had overstretched their valuations as of now, and that the earnings report for the second quarter would be key.

More news, Market selldown short-lived 


3) Thursday, 10 August - Now investors have plenty of reason to sell Asia stocks

Japanese equities hadn’t been rising much despite positive earnings results, so investors had started jumping at shadows, doubting whether they should really be holding onto Japanese stocks.

North Korea is being used as a reason to sell Japanese stocks, just as it was used yesterday in the US.

More news, Now investors have plenty of reason to sell Asia stocks


4) Saturday, 12 August - Threat of war weighs market

The local bourse is due for a pullback anyway, as the recent rally had pushed the market into overbought condition and the war of words between the United States and the North Korea came at the right time, thus providing a perfect trigger.

More news, Threat of war weighs market 

Here are some KLSE Indices daily charts.

Daily chart of FBM KLCI.

Daily chart of FBM Emas Shariah.

Daily chart of FBM 70.

Daily chart of FBM ACE.

Source :
1) www.thestar.com.my
2) Bloomberg
3) Metastock

Saturday, 12 August 2017

Vivocom Intl Holdings Bhd (KLSE : 0069)

Weekly chart.

Note : S-Trader indicators/tools are not part of Metastock software package. It is our proprietary system/tools. If you have any further inquiries, please feel free to Contact Us. 

Source : 
1) Metastock

Tambun Indah Land Berhad (KLSE : 5191)

Weekly chart.

Related news, Eye on stock; Tambun Indah

Note : S-Trader indicators/tools are not part of Metastock software package. It is our proprietary system/tools. If you have any further inquiries, please feel free to Contact Us. 

Source : 
1) Metastock

Friday, 11 August 2017

FBM Bursa Malaysia Indices - Bear Power !

On 8 July post, we highlighted that FBM Hijrah Shariah Index had broken all the S-Trader Trend Tracker support levels except for FBM Small Cap and Emas Shariah Indices which were close to break the final S-Trader Trend Tracker support level. Also, we noted a potential sign of bear taking over the bull.

Below are the latest daily charts as of 11 Aug 2017 lunch break.

After all indices stated above broke all the S-Trader Trend Tracker support levels last month, there were no sign bull reversal since then.

Daily chart of FBM BM Small Cap. 

Daily chart of FBM Emas Shariah.

Daily chart of FBM Hijrah Shariah.

Related posts :
1) FTSE Bursa Malaysia Small Cap Index (FBMSCAP - 8641) - Sign of Weakness ?
2) Asia Investors get picky as earnings estimates weaken
 
Note : S-Trader indicators/tools are not part of Metastock software package. It is our proprietary system/tools. If you have any further inquiries, please feel free to Contact Us. 

Source : 
1) Metastock