- Due to the latest technical break down below the important psychological threshold of 1,300 last Friday, theFBM KLCI has confirmed a bearish medium-term outlook on the technical chart.- Not only that, the weak closing with another bearish candle suggests that it is well underway to revisit thelower immediate support level of 1,250 soon.- Should 1,250 give way to sellers, meaningful support is only near the next psychological level at 1,200.- Having said that, with a triple-digit bounce on the US DJIA on last Friday, a mild rebound may appear onbargain-hunting activities today.- Still, we remain bearish on the overall market direction, as we believe the rebound, if any will unlikely to besustainable, and that it should meet a strong support-turn-resistance level at 1,300.- On hind side, as we continue to expect investors to trim their positions in view of further correction ahead,we foresee investors to “sell into strength” as the market has moved into a retracement phase.
Daily Technical Watch: Hai-O Enterprise
– Selling momentum to persist in the coming week …- 10-day SMA: RM4.015- 40-day SMA: RM4.278- Support: IS = RM3.67 S1 = RM3.20 S2 = RM2.59- Resistance: IR = RM4.12 R1 = RM4.40 R2 = RM4.93
Weekly Trading Idea : CIMB
– The 10-day SMA will cut below the 40-day SMA soon…
- Strategy: Take Profit ahead of an imminent correction ahead.- Resistance: IR = RM7.03 R1 = RM7.41- Support: IS = RM6.70 S1 = RM6.00 S2 = RM5.43- Exit: It will return to bulishness if it removes the high at RM7.41.
Commodities & Currencies
– Weakness likely on the US Dollar …- Light Sweet Crude Oil futures (Crude): Potentially indicates a technical rebound underway.- Crude Palm Oil futures (CPO): Sentiment should remain negative bias.- Ringgit (RM)/US$: The ringgit will head towards the 35-week SMA near 3.35 soon.- Japanese Yen (JPY)/US$: A likelihood of selling resumption in US$ against the Japanese yen.- Euro Dollar (EUR)/US$: A possible halt in the previous rally on the US$ against the EUR.- US Dollar Index (DXY): A critical support level at 85.
Co/Sector News Impact Recom
IJMLandIJM Land has acquired a 70% stake in SovaHoldings for RM18m cash that is currentlydeveloping high-rise residential apartments andretail and commercial properties on a 2.85 ha sitein Dong Nai Province, Vietnam. The project,which is located in close proximity to six industrialparks four international standard golf clubs, isestimated to generate a total GDV of US$150m.It is expected to be launched by 3Q10. (Bursa)Assuming a 51% stake in the JV, 15% pretaxmargin and development period of 3 years, theproject is expected to boost IJM Land’s FY12earnings forecast by about 3%.OP, FV =RM3.19
Company Entitlement details Ex-date Payment date
Leader Universal First interim dividend of 1.5 sen less 25% tax 4-Jun-10 30-Jun-10Jobstreet Corp First tax exempt interim dividend of 1.25 sen 17-Jun-10 28-Jun-10Padiberas Nasional Final dividend of 12 sen less 25% tax 28-Jun-10 14-Jul-10PBA Holdings Final tax exempt dividend of 2 sen 28-Jun-10 16-Jul-10Kinsteel Final dividend of 1 sen tax exempt 21-Jul-10 20-Aug-10