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.