FBM KLCI closes higher on late buying, Genting Bhd, IOI Corp

Late buying of index-linked stocks enabled the FBM KLCI to close today in positive territory, underpinned by fund buying of Genting Bhd and IOI Corp.

At the close, the FBM KLCI was up 2.44 points or 0.14% to 1,769.16. Turnover was 2.11 billion shares valued at RM2.07bil. There were 588 gainers, 271 losers and 263 counters unchanged.

The KLCI fell into the red in the later part of the afternoon in the absence of strong corporate newsflow and leads from regional markets. However, the broader market was firmer, with buying of smaller capitalised and lower liners.

Genting Bhd rose 18 sen to RM10.76, pushing up the KLCI by 1.43 points. Petronas Dagangan rose 32 sen to RM25.12, Petronas Gas 14 sen to RM22.04 and UEM Land four sen to RM3.17.

Among the banks, Hong Leong Bank rose 26 sen to RM14.30, HLFG 16 sen to RM15.56, AMMB nine sen to RM7.24 and RHB Cap two sen to RM8.81. Public Bank fell 10 sen to RM16.60 and CIMB shed one sen to RM8.33.

The ringgit continued to lose ground against the US dollar, slipping to 3.0220 from the previous close of 3.0139.

Top 20 Overbought / Oversold Stocks 4ur Perusal

*Note: The list below is the 20 most overbought of the 1000 over Bursa Malaysia listed stocks with 14day RSI above 80. It is generally a bearish or SELL list, especially if the readings approach 90.

Caveat: The list consists of fundamentally sound stocks, and hence are longterm BUY or HOLD stocks.

*Note: The list above is the 20 of the most oversold of the 1000 over Bursa Malaysia listed stocks with 14day RSI close to and below 30, the level below which is considered oversold. It is generally a shortterm bullish or BUY list for technical rebound gains, especially if the readings are below 20.

Caveat: The list consists of fundamentally weak stocks, and hence could be an AVOID list.

GOODLUCK & HAPPY TRADING 

BURSA KLSE >>> Are there any bulls left?

Are There Any Bulls Left?

Its seems pretty much all of the bulls have thrown in the towel. It is pretty hard not to. Negative news has been cascading into the market, and the market has been reacting accordingly. Some things to consider though before we give up on stocks:


>>> The economic outlook is pretty weak, and possibly still weakening, but a lot of it is priced into stocks. The DOW is on the verge of breaking through 7,000, and could go lower. The KLCI is floundering on the presumptions Malaysia is doing better than her neighbours, but what positive scenario have traders priced into stocks? That is something to think about moving forward.



>>> The stock market tends to rebound before the economy does. This is mostly due to the market anticipating future events. Who doesn't know your granny have falsies?



>>> Bear market rallies are common, even if stocks aren't ready to make a significant move higher. There are opportunities to make money during these periods. Show me a winners and I will show you two losers.



>>> Although there is virtually no limit how much further stocks can fall, the downside momentum will eventually subside, even though it feels like it may never happen. Try to see both sides of the argument.



Some things to think about as we try to navigate this market.

FRASER AND NEAVE CONFIDENT OF THE FUTURE (after losing Coca Cola Franchise Agreements)

F&N CONFIDENT OF THE FUTURE

Kuala Lumpur, 19 February 2009 - F&N Holdings Berhad (F&NHB) announced to Bursa Malaysia that the Coca-Cola Franchise Agreements, which are due to expire in January 2010 will not be renewed.
The announcement to Bursa Malaysia was in line with relevant listing requirements and good corporate governance and transparency, to ensure that all the key stakeholders are kept updated on material information pertaining to F&NHB.

Mr Tan Ang Meng, F&N Group CEO said “The non-renewal of the Coca-Cola Franchise Agreements announced yesterday, though unavoidable, gives us the opportunity to further build on F&N brand equity, unparalleled market presence and expertise, manufacturing capabilities and outstanding distribution network to realize a potential which was unavailable in the past. As a result of our new status, we are now able to launch new products and venture into new territories and export markets from which we were restricted in the past by the agreements.”

F&N is ready to adapt and chart a new course to realize its vision as a Malaysian-owned world class F&B company.

According to Mr Tan the relationship between The Coca-Cola Company (TCCC) and F&N was a dynamic one and in the course of the collaboration there had been differing perspectives, viewpoints and expectations.

“The Group’s financial position is sound, our business sustainable and diversified and coupled with our resolve and determination, we will overcome and withstand any eventualities. While challenging, our future is indeed bright and we are confident,” Mr Tan added.

The non-renewal of the agreements is not expected to have any material effect on the operating performance of F&NHB Group for the financial year ending 30 September 2009.
A BRIEF OVERVIEW OF F&N COCA-COLA (M) SDN BHD

F&N Coca-Cola is a division of Fraser and Neave Holdings Berhad that supplies and distributes Coca-Cola, F&N Fun Flavours, 100 PLUS isotonic drink, Seasons Asian inspired drinks and Fruit Tree drinks. The company commenced operations in 1936 when F&N Ltd secured the franchise of Coca-Cola in Singapore and Malaysia. F&N Coca-Cola (M) Sdn Bhd (F&NCC) was born as a result of this and today is Malaysia’s largest soft drinks manufacturer and distributor.
In Malaysia, F&NCC’s soft drinks portfolio is dominated by Coca-Cola products and the F&N brands such as F&N Fun Flavours which is the leading player in the fruit flavoured carbonated soft drinks segment in Malaysia. Meanwhile, 100PLUS is a notable local success story, commanding over 90 percent share of the isotonic drinks market. Under the division’s non-carbonated portfolio, SEASONS is currently the number two player in the Asian drinks category while the Fruit Tree and Aquarius brands continue to experience double-digit growth within the juice and water category.

The division registered a 12 per cent increase in revenue to RM1.19 billion for the financial year ending September 2008 from RM1.06 billion last year notwithstanding rising fuel prices and lower consumer sentiment. Overall volume grew by nine per cent, ahead of the nation's GDP growth. Operating profits climbed 13 per cent to RM123 million from RM109 million last year, driven by higher product consumption.

The division's strong showing in the first half of the year was on the back of stronger uptake during the two major festive celebrations, while an active mitigation plan in the second half helped it achieve these results and strengthen its position as the number one soft drinks manufacturer in Malaysia.
In the coming months, the division will continue to strengthem internal capacity and be more focused in the marketplace. It will continue to pursue world-class excellence in distribution to make the brand more readily available, with greater emphasis on market execution and increased efforts in training, including in expanding, empowering and building capability of the sales force across the board.

Over the years, F&NCC has implemented several strategic measures that emphasizes its strong brand presence as well as invest heavily in advertising and promotions, product availability and operational efficiency. We also understand that consumers are always on the lookout for high quality products and excellent services. In line F&N’s food and beverage corporate identity, F&NCC promises to offer healthy enjoyment in exciting ways. As such, the company is well poised to surge ahead in its drive to respond to market trends, meet changing consumer needs and exceed consumer expectations by providing quality products based on the best manufacturing practices to repay its consumers’ support and confidence in the brand throughout the years.

With dedication, commitment and good teamwork, the company is confident that it will continue to grow and its brands will continue to prosper. F&NCC invites its consumers to join them for the ride.

Over the years, the brands in F&N’s stable have continued to grow from strength to strength. Our divisions have worked aggressively to deliver on the respective brand promises through bringing our customers consistent and memorable brand experiences. F&N’s underlying commitment to innovation, quality and excellence undoubtedly enabled the brands in our stable to weather the challenges of the marketplace as well as forge ahead in their respective market segments.

SOME F&N BRANDS

综合指数 2009年 02月 16日 / Composite Index 16/02/2009

综合指数 2009年 02月 16日

综合指数在上扬后再度调整，所幸的是综指精确的在905点的胜图自动费氏线获得扶持（参考图中箭头A），这是综指当前的技术支持水平，综指再下一道的支持水平则落在885-887点这两道胜图自动费氏线，综指目前的阻力水平则是处于937点的胜图自动费氏线。。

如图所示，布林频带（Bollinger）打开幅度出现了再度减低的格局，这显示综指目前还是有调整巩固的趋势。无论如何，只要综指继续的处于布林中频带（Bollinger Middle Band）这道动态支持水平以上的话，那综指还是有望继续的转强。

如图中箭头B所示，马股总成交量在综指回软时减少了25.4%，这显示投资者再度的受到外围因素影响而却步，无论如何，成交量还是成功的达到40天成交量移动平均线（VMA）的水平，这表示整体市场还是处于一个活跃的水平里。

如图中C圈所示，随机指标（Stochastic）再度在达到100%后回软，这显示综指的短期走势在出现过热（随机指标达100%）后再度在短期超卖下走低。无论如何，只要随机指标继续的维持在70%以上的话，那综指的短期走势还是未算是确定出现一个下跌的趋势。

总的来说综指目前在短期涨势中出现了技术调整，综指还是呈转强状态，不过接下来成交量若跌破40天平均值的话，这就意味着投资者开始回避股市，这是投资者对综指后市悲观或不明确的反应，届时综指的后市将会看低一线。

Composite Index Daily Technical Analysis 16/02/2009
As indicated by A, the KLCI remains supported by the 905 WinChart Automatic Fibonacci Retracement despite a slight pullback on Monday. Therefore, the immediate support for the KLCI is still at 905 while the next support is at 885-887 Fibonacci Retracement. Resistance for the KLCI is at 937 Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands Width is expanding at a slower rate, implying that the KLCI might be consolidating soon. Nevertheless, with the KLCI above the Bollinger Middle Band, the immediate outlook for the KLCI is still on the positive side.

As indicated by B, total market volume declined 25.4%, as investors are still being cautious. Nevertheless, volume on Monday is still above the 40-day VMA level, suggesting that the overall market is still relatively actively participated.

As circled at C, the Stochastic retreated after hitting 100%, suggested that the KLCI is having a healthy pull back as the KLCI was over-heated. Nevertheless, with the Stochastic still above the 70% level, the market movement for the short term is still bullish biased.

The slight pull back on Monday is considered normal. As long as the volume should remain above 40-day VMA level, the rally of the KLCI is likely to continue. However, if volume should failed to sustain at above the 40-day VMA level, it would be a sign of lack of confident in the market and the KLCI would have difficulties in sustaining its current movement.

HAPPY INVESTING & GOODLUCK2ALL

Random Stocks / Charts Dow ECrudeOil FCPO PuncakNiaga Astro Muhibbah MAHB

HAPPY INVESTING & GOODLUCK2ALL

Stocks Compilation Table

The table below is a compilation of actively traded stocks with their stop-loss, support and upside targets together with some popular technical indicators. Stock name in bold represents stocks that are expected to attract momentum trading plays and hence encourage retail or short-term trading participation. Share price in bold reflects revised stop-loss, support and upside targets.

Recommendation (REC) in bold indicates changes to recent technical calls.

Comments: We have included Jaks, KHSB, KPS and Puncak in our daily stocks watch list with Sell on Rally call following yesterday’s strong surge, since we do not expect gains to hold for long with profit-taking correction imminent due to the sharp rally. Switch to Sell on Rally WCT towards RM1.20 resistance, while maintain SELL call on BCHB, IOI Corp, Maybank and Sime Darby which are likely to consolidate further with a downside bias.