Market forecast for KLCI 25 May

The FBM KLCI closed in the red at the level of 1625, leaving the entire body within the limits of the previous days candle. In-spite of the bearish performance of the index, select counters did perform today giving the traders a chance to go bargain hunting. Upper ceiling for tomorrow would be around1634 and a lower level would be at 1621. We do expect counters that gave breakouts today supported by volume to sustain their up-trend and go higher. Stocks to sell tomorrow

KLCI COUNTER SPECIFIC NEWS :

• Felda Global Ventures Holdings Bhd slipped into the red in its first quarter ended March 31, 2016 (1QFY16) with a net loss of RM65.54 million, compared with a net profit of RM3.58 million a year ago, primarily on lower crude palm oil (CPO) production in its palm upstream segment.
• Hong Leong Financial Group Bhd reported a 13% drop in its third quarter net profit from a year earlier as net interest and non-interest income declined.
• Affin Holdings Bhd net profit in its first quarter of the fiscal year ending Dec 31, 2016 (1QFY16) surged by 284.13% to RM115.57 million, from the previous corresponding quarter’s RM30.09 million, owing mainly to lower allowance from loan impairment and higher loan recoveries.
• Hong Leong Financial's 3Q net profit down 13% on year at RM315m.
• Felda Global's 1Q net loss at RM66m vs RM4m net profit a year earlier.
• Dayang Enterprise Holdings Bhd, which is keen to maintain the listing status of its subsidiary, Perdana Petroleum Bhd, will divest at least 25% of the group's total stake.
• KUB Malaysia Bhd business realignment strategy to further enhance its operations has already yielded positive results over its past full financial year.

GLOBAL FACTORS AND WORLD INDICES:

• Asian stock markets fell in thin trading today, as oil prices deflated energy shares, while Singapore said it was kicking out a Swiss bank linked to Malaysia's 1MDB.
• Hong Kong shares finished up today despite a fall in mainland indexes.The Hang Seng index rose 0.1 per cent, to 19,830.43, while the China Enterprises Index was flat at 8,306.56 points.
• China stocks closed lower today as resources firms were hit by slumping commodity prices amid worries over China's economic health.
• European shares slipped lower today, as the prospect of a possible US interest rate increase in coming weeks knocked back global stock markets.The pan-European FTSEurofirst 300 and STOXX 600 indexes both fell 0.5 per cent in early session trading.
• Tokyo shares slipped for a second straight session today as lower oil prices hurt sentiment, with investors now eyeing a G7 leaders' summit in Japan this week.
• Australian shares were down for a second day in subdued trade today, as falling oil prices pressured energy firms although miners proved resilient to more weakness in iron ore.
• Gold held a four-day decline as more Federal Reserve officials weighed in with comments that supported the case for higher borrowing costs, strengthening the outlook for the dollar and denting the metal's allure.
• Oil prices fell in thin trade today as the US dollar strengthened, but losses were curbed by a likely draw down in U.S. crude and gasoline stockpiles.

KLCI Will Rose on Tuesday- Malaysia Stock Market Forecast

 The FBMKLCI closed in the positive at a level of 1634 with a low of 1621 during the day. if the traders take a cue from the bullish closing we saw today; a move above the level of 1637 should see a closing around the level of 1645. A bearish move is expected to fall till 1611. Tomorrow Stocks

   Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew told theedgemarkets.com over telephone that the KLCI's gain "was supported by bargain hunting by some investors".

   According to him, the KLCI's recent fall had spurred bargain-hunting activity among investors on selected blue chips. "Investors are buying into technology-related stocks (due to weakening ringgit) and construction-related stocks," Pong said.

KLCI COUNTER SPECIFIC NEWS :

• Malaysia Airlines Bherad is adding two new Airbus A350-900s with Air Lease Corporation (ALC) which will be delivered in 2018.
• EG Industries Bherad has secured a US$36mil (RM146mil) contract to be the sole manufacturer for Flic, the world’s first wireless smart button that creates a short-cut to favourite actions on mobile devices.
• CIMB Bank Bherad and Credit Guarantee Corporation Malaysia Bherad (CGC) have signed a memorandum of understanding (MoU) to add another RM750mil to the existing RM250 million.
• Enterprise Clean Loan (ECL), as part of a joint initiative to nurture and develop Malaysian Small and Medium Enterprises (SMEs).

GLOBAL FACTORS AND WORLD INDICES:

• Asia's benchmark stock index rebounded from four weeks of losses as Chinese and Taiwanese shares gained while Japanese equities pared a steep loss.
• China stocks edged higher,Blue-chip CSI300 index rose 0.3 per cent, to 3,087.22, while the Shanghai Composite Index gained 0.6 per cent, to 2,843.65 points.
• Hong Kong shares gave up initial gains and ended Monday flat, reflecting continued investor caution amid worries about China's economy and a possible US interest rate hike next month.
• Malaysian shares ended higher on Monday with the Kuala Lumpur Composite Index up 6.1 points to close at 1,634.89.
• Oil prices dipped in Asia Monday after Iran said it has no plans to join any output freeze by other major crude producers.
• Gold rebounded from the longest run of weekly losses this year after a rally in the dollar paused and investors expanded bullion holdings while debating the possible timing of a US interest rate increase.
  

Malaysia's KLSE Stock Market Forecast for Friday, 20 May 2016

The FBM KLCI failed to continue with past two days bullish streak on Thursday and closed in red.The KLCI Closed at the level of 1633, almost in the same zone as on Tuesday. The bearish closing just before the last trading day of the week sends in negative signals with even less volume expected on Friday. Any move above the 1637 level is expected to touch the 1643 level whereas a bearish swipe below the 1621 level is expected to fall till 1611.

Stocks for Tomorrow

Today's Market Review for KLCI:

The FBM KLCI index lost 1.96 points or 0.12% on Thursday. The Finance Index fell 0.58% to 14267.19 points, the Properties Index up 0.16% to 1154.09 points and the Plantation Index rose 0.45% to 7516.1 points. The market fluctuated between a high of 1635 and low of 1621 throughout the trading session on Thursday. The KLCI continued with its losses inspite of overnight mixed performance in Wall Street after Federal Reserve meeting minutes boosted speculation that the central bank will raise interest rates as soon as June.

COMMODITY

CRUDE OIL: $47.23

GOLD: $1255.35

SILVER: $16.670 

MAJOR CURRENCY PAIRS

 SGD/USD: 0.7248

EUR/USD: 1.1220

GBP/USD: 1.4642

KLCI COUNTER SPECIFIC NEWS 

• Theta Edge Behrad recorded a net profit of RM1.04 million or 0.97 sen per share for the first quarter ended March 31, 2016 (1QFY16), compared with a net loss of RM2.18 million or 2.03 sen per share a year ago, mainly due to higher revenue contribution from value-added services and operations and maintenance works.
• Hup Seng Industries Bherad saw its net profit for the first quarter ended March 31, 2016 (1QFY16) nudge up by 2.77% to RM13.6 million from the RM13.23 million recorded in 1QFY15, mainly driven by higher sales.
• Aeon Co. (M) Behrad is allocating RM650mil of capital expenditures for its financial year 2016. It will go towards the opening of new stores and refurbishments of present ones such as those in Mid Valley.
• Volkswagen Group Malaysia Sdn Behrad aims to beat last year's record sales of 7,000 units, boosted by three new sedan models, despite expectations of softer total industry volume (TIV) this year.
• UMW Holdings Behrad, through its unit UMW Aerospace Sdn Behrad, has allocated RM750 million for capital expenditure over the next two-and-a-half years.
• IOI Corporation Behrad unit Loders Croklaan Group B.V. and Ireland's LCK Nutrition Ltd have called off their joint venture which would have involved the development of the nutrition lipid Betapol.
• Construction company Hock Seng Lee Behrad’s (HSL) net profit fell 17.17% to RM16.25mil in the first quarter ended March 31 from RM19.62mil previously.
• Petroleum National Behrad's group pre-tax profit fell 60% in the first quarter ended March 31, 2016 to RM6.8bil as it was impacted by lower revenue and prolonged weak prices and it expects the challenging times to continue.

GLOBAL FACTORS AND WORLD INDICES:

• Asia stocks were mostly down today, with energy and commodity firms taking a beating as investors digested news that an imminent Federal Reserve interest rate hike could be on the cards.
• Hong Kong stocks closed at the lowest level in 2-1/2 months today, joining most Asian markets in sliding on the growing possibility of another US rate hike soon.The Hang Seng index fell 0.7 per cent, to 19,694.33, the lowest close since March 1.
• China stocks were little changed today, and trading volume shrank to near 3-1/2-month lows as many investors sat on their hands amid economic worries and revived concerns US interest rates will go up soon.
• European stock markets slid at the start of trading today following losses across Asia and on Wall Street after the Federal Reserve hinted at a June interest rate hike.
• Tokyo shares closed flat today as investors weighed news that a US interest rate hike was increasingly likely, while energy stocks tanked after oil prices tumbled from six-month highs.
• US dollar jumped yesterday after the minutes to the Federal Reserves end-April meeting showed the central bank far more bullish about a possible June rate hike than markets had understood.
• Gold traded near a three-week low on concern that the Federal Reserve may raise interest rates as soon as June after the possibility was flagged in the minutes from policy makers' meeting last month.

Market Forecast for KLCI Malaysia: Thursday, 19 May 2016

The FBMKLCi closed in Green for the second consecutive day on Wednesday closing at the level of 1635. The traders should by now have gained some confidence and are expected to reenter the market tomorrow. A bullish move above the 1638 level accompanied by boost in volume should help to close around the 1644 level. On the other hand, a bearish swipe till the 1624 level is expected.  Top Stocks for Tomorrow

 KLCI COUNTER SPECIFIC NEWS:

• AYS Ventures Bhd has slipped into the red for the fourth financial quarter ended March 31 (4QFY16), with a net loss of RM477,000 or 0.13 sen per share.The steel products trader had recorded a net profit of RM5.68 million or 1.49 sen a share for 4QFY15.
• Standard Chartered Bank expects Bank Negara Malaysia (BNM) to cut the overnight policy rate (OPR) by 25 basis points (bps) to 3% tomorrow.
• One of the world's major mobile operators, Norway-based Telenor Group, announced today that it has acquired a Malaysian-based licensed money services business to reinforce its financial services footprint in Asia.
• Digi Telecommunications Sdn Bhd (Digi) will launch its 4G LTE Carnival tomorrow at all its 150 Digi Stores & Digi Stores Express nationwide.
• SP Setia Bhd is confident of achieving its sales target of RM4 billion this year, says president and CEO Datuk Khor Chap Jen.He said the sales would derive from new property launches and existing developments.
• Malaysia Packing Industry Bhd (Maypak) said a piece of land owned by the company in the city will be compulsorily acquired by the government for the Mass Rapid Transit (MRT) 2 project.
• EA Technique (M) Bhd foresees no challenges in its floating, storage and offloading (FSO) segment, as most of its contracts serve the downstream segment and are on long-term charters, as opposed spot charters.

GLOBAL FACTORS AND WORLD INDICES:

• Asian stock markets mostly fell today after a two-day rally and strong US data that fueled talk of an interest rate rise, while Tokyo swung back and forth following a better-than-forecast economic growth reading.
• Hong Kong stocks tumbled today, with sentiment hurt by weakness on Wall Street, following comments from Federal Reserve officials that rekindled prospects of a US interest rate rise as soon as June.
• China's benchmark stock index closed at the lowest level in 2-1/2 months today, after comments from Federal Reserve officials rekindled prospects of a US interest rate rise as early as June.
• European shares fell today, tracking losses on Asian and US stock markets that were caused by renewed expectations that the US Federal Reserve could raise rates later this year.
• Japanese stocks ended the day flat today after the yen see-sawed against the US dollar, rising and falling in strength as investors digested Japan's stronger-than-expected GDP data and US inflation.
• The US dollar rallied broadly in Asia today as a string of US economic data and bullish commentary from two Federal Reserve policymakers spurred talk of a US interest rate hike.
• Gold fell, snapping three days of gains, as bets on the Federal Reserve lifting interest rates this year ticked higher after stronger-than-expected economic data.
• Crude hit fresh 2016 highs in its march toward US$50 in Asia today, fanned by escalating wildfires in Canada's oil sands region and hopes of an easing in the oversupply.

STATISTICS:

• Consumer price inflation in South Africa rose less-than-expected in the last quarter, to a seasonally adjusted annual rate of 0.8%, from 0.8% in the preceding quarter and has expected South African CPI to rise 0.9% in the last quarter.
• Australia’s wage price index fell unexpectedly in the last quarter, to a seasonally adjusted 0.4%, from 0.5% in the preceding quarter and has expected Australian wage price index to remain unchanged at 0.5% in the last quarter.
• Japanese gross domestic product rose more-than-expected in the last quarter, to a seasonally adjusted 0.4%, from -0.4% in the preceding quarter whose figure was revised down from -0.3% and has expected Japan’s GDP to rise 0.1% in the last quarter.
• Produce price inflation output in New Zealand fell unexpectedly last month, to a seasonally adjusted annual rate of -0.2%, from -0.8% in the preceding month and has expected New Zealand PPI Output to rise 0.4% last month.

It Was A Relief for Investors After IPIC Paid the Interest for 1MDB

The FBM KLCI rose 4.4 points or 0.3% after International Petroleum Investment Co (IPIC) paid the interest on 1Malaysia Development Bhd's (1MDB) bonds.

Free Trading Signals 

At 5pm, the KLCI closed at 1,648.98 points. Yesterday, IPIC said it paid interest amounting to US$52.41 million (about RM211 million) on the US$1.75 billion 5.99% notes issued by 1MDB Energy Ltd.

Today, Etiqa research head Chris Eng told theedgemarkets.com "it was a relief for investors after IPIC paid the interest for 1MDB."

He said since late April, the market had been selling too fast and there was room for stabilisation for another week.

"There is more room for market stabilisation, the downside in the short term is limited, barring the sell down in the US," Eng said.

Across Bursa Malaysia, 449 gainers outpaced 395 decliners. The bourse saw 2.05 billion shares valued at RM1.81 billion traded.

Top gainer was Genting Bhd while top decliner was Nestle (M) Bhd. Meanwhile, the most-active counter was mTouche Technology Bhd.

Across Asian share markets, Japan's Nikkei 225 rose 0.41% while Hong Kong's Hang Seng dipped 0.7%.

Reuters reported that Asian shares fell on Thursday following a dismal session on Wall Street, while the dollar firmed but remained shy of this week's highs and crude oil gave back some of its recent gains.

Source: http://www.theedgemarkets.com/my/article/klci-rises-after-ipic-pays-1mdb-bond-interest?type=Latest%20News