Bursa Malaysia : KLCI Outlook 05 Aug

Market Review for KLCI:
Share prices opened lower today with KLCI down 2.61 to 1872.55. The situation in the US is not really confirmed. The IMF lowering its growth forecast as well as indication that interest rate hikes will be deferred to 2015 is not positive news. The close was observed at 1876.69 .The prices are below 20 days EMA and little above the 50 days EMA.

KLCI Day Performance
Open	1872.55
High	1876.69
Low	1872.14
Close	1876.69
Change(Points)	+0.89
% Change	+0.05
Volume	1625.8M
Rise	238
Fall	178
Unch	693

Market forecast for KLCI:
KLCI took a good pace at the start of the week and still moving at highs, seems it rose from the support of 1862 and also expected to move at the same pace.

KLCI LEVELS
Support 1	Support 2	Support 3	Resistance 1	Resistance 2	Resistance 3
1870	1865	1860	1880	1885	1890

Technical indicators:RSI is below the centre line at 49.17 and CCI is at -40.73.MACD indicating the level of -0.850.

Top Gainers			Top Losers
Scrip Name	CMP	%change	Scrip Name	CMP	%change
PETDAG	19.84	4.64	PETGAS	22.4	-3.03
AMBANK	7.17	3.02	ASTRO	3.31	-1.19
MISC	6.62	2.96	SIME	9.56	0.11
DIGI	5.85	2.45	RHBCAP	9.06	0.22
GENM	4.36	2.11	PBBANK	19.82	0.41

Economic Factors:

• The Malaysian equities market recorded a whopping RM13bil in net outflows of foreign portfolio funds over a 15-month period, and industry experts remain divided as to whether this negative trend will continue.
• Malaysian banks with Indonesian subsidiaries could face more hurdles in expanding their businesses when a law to cap foreign ownership to 40% likely comes on stream between now and October.
• United Plantations fell 28 sen to RM28.30 and PPB Group fell 26 sen to RM14.74 while KKL Kepong was down 20 sen to RM23.52.
• Gamuda has proposed to acquire the entire equity interest in Salak Land Sdn Bhd, which is owned by the Tan family of Mahajaya Bhd fame.

SGX Singapore : STI Technical Outlook 05 Aug

Market Review for STI:
Share prices opened higher today with the STI up 9.16 points to 3,326.91. Hong Kong stocks rose 0.32 per cent today morning, after a positive lead from Wall Street and in anticipation of the release of HSBC's July index of manufacturing activity in China. Close of the day was marked at 3327.05 .The high was marked at 3332.68, seems that the market tried to recover the last two days downfall.

STI Day Performance
Open	3326.91
High	3332.68
Low	3319.83
Close	3327.05
Change(Points)	+8.65
% Change	+0.26
Volume	1472.0M
Rise	240
Fall	182
Unch	687

Market forecast for STI:
As the market took a bearish start this week and today found out to be little bullish, we may consider it as the change in trend .STI formed a green doji for the day which indicates indecision. In such case, the next day candle will give the conformation.

STI LEVELS
Support 1	Support 2	Support 3	Resistance 1	Resistance 2	Resistance 3
3300	3280	3260	3340	3350	3360

Technical indicators:RSI is at 53.99 and CCI is at 22.40.

Top Gainers			Top Losers
Scrip Name	CMP	%change	Scrip Name	CMP	%change
ComfortDelGro	2.65	2.71	Sembcorp Marine	4.03	-1.71
ThaiBev	0.63	1.61	SIA Engineering	4.55	-1.3
StarHub	4.23	1.44	Olam Intl	2.4	-1.24
SingTel	3.92	1.29	CityDev	10.15	-1.17
CapitaLand	3.44	1.18	HongkongLand USD	6.87	-0.87

Important Factor for today:-

• CapitaLand, second-quarter profit rose 14% on higher gains from investment properties.Net income increased to $438.7 million in the three months ended June 30 from $383.3 million a year earlier.
• Ezra Holdings, the contractor and provider of integrated offshore solutions to the oil and gas industry, today announced that its Subsea Services division, EMAS AMC, has been awarded several projects around the world worth close to US$110 million, including options.
• Oversea-Chinese Banking Corp, Southeast Asia’s second-largest lender, posted a larger-than-estimated 54% increase in second-quarter profit on loan growth and higher income from fee-generating businesses.

SGX Outlook: STI Technical Review 04 Aug

Market Review for STI:
SINGAPORE share prices opened lower with the STI down 5.17 points to 3,339.85. The impact of US data which came negative still continues over the prices of STI .Close of the day was observed at 3314.63 and the high for the day was observed at 3341.12.The prices are above the 50 days EMA and below the 20 days EMA.

STI Day Performance
Open	3339.85
High	3341.12
Low	3313.91
Close	3314.63
Change(Points)	-29.79
% Change	-0.89%
Volume	1790.6M
Rise	90
Fall	381
Unch	636

Market forecast for STI:
Technically, the prices are in downtrend and may take the support on 3306 and can move up .We may expect the uptrend only after the level of 3320 .Indicators are also showing a bearish trend.

STI LEVELS
Support 1	Support 2	Support 3	Resistance 1	Resistance 2	Resistance 3
3306	3280	3260	3330	3350	3380

Technical indicators:
RSI is at 50.211 and CCI is at 18.86 .MACD indicating the level of 17.54.

Top Gainers			Top Losers
Scrip Name	CMP	%change	Scrip Name	CMP	%change
JSH 500 USD	35.94	1.1	SingTel	3.86	-3.74
ThaiBev	0.62	0.81	HPH Trust USD	0.695	-2.8
ComfortDelGro	2.58	0.78	StarHub	4.16	-1.42
JMH 400 USD	59.46	0.71	SIA Engineering	4.61	-1.28
ST Engineering	3.8	0.26	UOB	22.9	-1.21

Important Factor for today:-

• Asian shares, as concerns over geopolitical tensions and Argentina's debt default eclipsed US economic data that argued against an earlier start to the Federal Reserve's rate-tightening cycle.
• Fitch’s Rating says, the decision by the Monetary Authority of Singapore (MAS) to launch a commission-free life insurance sales programme is credit positive for the Singapore life insurance sector.
• GIC believes emerging markets now offer better value than developed ones and is particularly interested in exploring increasing investments in their technology sectors.
• Singapore will introduce a minimum price for main board shares and reduce the lot size for transactions after a slump in the stocks of three commodity companies erased US$6.9 billion ($8.6 billion) in market value over three days in October.
• Singapore will implement wide-scale reforms to its equity market rules following a penny-stock scandal last year, its central bank and stock exchange announced on Friday.

Malalysia Stock Weekly Updates for 28 july- 01 Aug

Weekly wrap of KLCI:

Malaysian stocks opened lower today, share prices remain under selling pressure this whole week. Market weighed down by selected blue chips and heavyweight. Stock market is also waiting for the outcome of the United States Federal Reserve (Fed) policy meeting last night. 

FBMKLCI WEEK’s Performance
Open	1874.34
High	1879.59
Low	1867.34
Close	1877.34
Change(Points)	-14
% Change	-0.74%

Market Forecast for week ahead:

Market has taken up the support at 1863, if prices rebound from this level then take a positive change otherwise KLCI fall down to the level of 1851.

Technical indicators:

RSI for this week is 52.790 with CCI at 20.693. Besides, difference line of MACD (14.101) stood above its signal line (16.909).

STI LEVELS
Support 1	Support 2	Support 3	Resistance 1	Resistance 2	Resistance 3
1851	1824	1792	1916	1945	1970

 ECONOMIC FACTORS:

• Local companies, in becoming more productive, can outsource their non-core business activities to experts at competitive pricing.
• REAL Estate and Housing Developers Association (Rehda) president Datuk Seri FD Iskandar Mansor says property prices will continue to rise because of the supply and demand factor and high land cost.
• Engineering firm George Kent (Malaysia) Bhd recorded a 41.7 per cent jump in net profit to RM36.2 million and a 82.9 per cent year-on-year rise in revenue to RM506.3 million for its financial year ended January 31 2014.
• Malaysian banks underweight given the new threats to earnings growth despite the recent interest rates hike due to intensified competition for deposits, lethargic business loan growth, rising capital requirements, a new ruling on Islamic deposits and unattractive valuations.
• The Malaysian Automotive Association had on July 23 revised upwards its total industry volume (TIV) forecast for this year to 680,000 units from the earlier target of 670,000 units.

Singapore SGX : Weekly Technical View on STI July 28-Aug 01

Weekly wrap of STI:

The week started off bullish with STI at 3280.66 and ended bearish at 3344.42.Overall performance was bullish which raised index. At the last trading day Hong Kong stocks fell 0.66 per cent in the first few minutes of trade, after news of Argentina's debt default and a rise in US jobless claims caused a slump on Wall Street. Singapore share prices opened lower with STI down 28.83 points to 3,346.41.Remarkable growth is being observed in property sector stocks which took the STI up.

STRAIT TIMES WEEKLY WRAP
Open	3351.22
High	3387.84
Low	3339.78
Close	3344.42
Change(Points)	-5.75
% Change	-0.17%

 Market Forecast for week ahead:

STI formed a hammer pattern for the week which indicates a trend reversal .We may expect that the next week may be bearish as technical’s are also indicating the bear signal. The market sentiments are also negative due to the US data.

Technical Indicators:

RSI is at 66.93 and CCI is at 156.36 .Both the indicators are supportive for the bullish trend .MACD is at 4.045.

STI LEVELS
Support 1	Support 2	Support 3	Resistance 1	Resistance 2	Resistance 3
3300	3270	3250	3350	3365	3375

 Macroeconomic factors:

• Singapore’s bank lending registered flat growth in June compared to the previous month, dragged by a slip in business loans.
• Total employment growth in Singapore fell to 22,000 in the second quarter of 2014, down from 28,300 in the previous three months and 33,700 a year ago.
• Singapore's central bank announced new proposals to regulate financial benchmarks, in the wake of a series of scandals around the world involving traders manipulating Libor and other key rates.
• Singapore’s third-largest bank reported a 3.2 per cent rise in quarterly profit, beating market estimates. But the bank said a group of investors was struggling to service high-end property loans.
• Osim international, the massage chair maker, said it posted a 13.1% rise in 2qfy2014 ended June of $29.36 million from $26.1 million a year ago. Revenue rose 10.4% to $182.7 million.