FBM KLCI - likely to stay range-bound

Stocks on Bursa Malaysia closed firmer last Friday, with gains mostly seen in banking and oil and gas counters. The local market was traded in a "relief rally" as sentiment was up on positive reaction to signs that the US lawmakers were moving toward an agreement to increase the debt ceiling and avoid a default. The FBM KLCI rose 9.83 points or 0.55% to 1,785.75, after fluctuating between 1,788.99 and 1,783.53 throughout the day. On a weekly basis, the FBM KLCI rose 9.19 points from previous Friday's 1,776.56. Market breadth was positive with gainers trouncing losers by 480 to 282, and 319 counters were unchanged. Turnover slipped to 1.825 billion shares worth RM1.608 billion from 1.86 billion shares worth RM1.566 billion on Thursday. Weekly volume slipped to 8.34 billion shares valued at RM7.25 billion from previous week's 8.94 billion shares valued at RM8.33 billion. ...Read more>>

FBM KLCI - likely to stay range-bound

Stocks on Bursa Malaysia closed higher last Friday, bolstered by gains in heavyweight blue-chips and improved sentiments amid positive local corporate news. The FBM KLCI gained 5.19 points or 0.29% to 1,776.56 after hovering between 1,769.77 and 1,779.02 throughout the day. On a weekly basis, the benchmark index gained 0.4 of a point from previous Friday's 1,776.16. Advancers led decliners by 345 to 344, with 352 counters unchanged. Turnover fell to 1.58 billion shares worth RM1.44 billion from 1.84 billion shares worth RM1.29 billion recorded on Thursday. Weekly turnover stood at 8.944 billion shares valued at RM8.325 billion, against previous week's 10.636 billion units worth RM9.179 billion. ...Read more>>

FBM KLCI - lower in line with regional

Stocks on Bursa Malaysia closed slightly lower on Tuesday, weighed down by losses in selected heavyweight counters in line with weak performance of most regional markets with Japan's Nikkei 225 inched down 0.07% to 14,732.61 and Hong Kong's Hang Seng Index was 0.82% lower at 23,179.04. The benchmark FBM KLCI shed 3.88 points or 0.22% to 1,792.48 after hovering between 1,785.41 and 1,792.48 throughout the day. Losers led gainers by 388 to 372, with 287 counters unchanged. Turnover rose to 1.92 billion shares worth RM1.85 billion from 2.13 billion shares worth RM1.78 billion on Monday. ...Read more>>

FBM KLCI - in bullish mode

Stocks on Bursa Malaysia closed higher last Friday amid positive global sentiment following the US Federal Reserve's decision to leave the stimulus program intact. The FBM KLCI rose 8.92 points or 0.50% to 1,801.83 after hovering between 1,794.81 and 1,805.15 throughout the day. Week-on-week, the key index gained 31.03 points or 1.73% from previous Friday's 1,770.80. Gainers led losers by 445 to 350, with 284 counters unchanged. Turnover rose to 2.39 billion shares worth RM2.44 billion against Thursday's 1.94 billion shares, worth RM2.73 billion. ...Read more>>

About Hibiscus Petroleum, HIBISCS (5199)

Share prices of Hibiscus Petroleum and its warrant rose on Friday on talk of oil find by a company it has stake in. Hibiscus's share rose RM0.39 to RM2.02, while its warrant, Hibiscs-wa, rose RM0.33 to a limit up level of RM1.39. ...Read more>>

FBM KLCI - higher after Fed keeps stimulus

Stocks on Bursa Malaysia closed higher yesterday after the US Federal Reserve unexpectedly announced its decision not to scale back its stimulus program until the economy improves further. The market tracked regional sentiment as investors cheered the news which assured that fund flows into the emerging markets would continue in the short-term. The FBM KLCI jumped 21.51 points or 1.21% to 1,792.91 after hovering between 1,787.38 and 1793.94 throughout the day. Gainers thrashed losers by 701 to 162, with 247 counters unchanged. Turnover rose to 1.94 billion shares, worth RM2.73 billion, from Wednesday's 1.43 billion shares worth RM1.48 billion. ...Read more>>

FBM KLCI - in consolidation mode

Stocks on Bursa Malaysia ended on a positive note yesterday on consistent buying support. On the regional market, the sentiments were mixed with Hong Kong's Hang Seng added 161.52 points to 22,597.97, Japan's Nikkei rose 75.43 points to 14,064.82 and Singapore's Straits Times Index increased 33.32 points to 3,039.94. The FBM KLCI gained 4.21 points or 0.25% to close at 1,720.97 after moving between 1,718.56 and 1,723.69 throughout the day. Gainers trounced losers by 462 to 212, with 330 counters unchanged. Turnover stood at 1.59 billion shares worth RM1.66 billion against Wednesday's 1.47 billion shares worth RM1.81 billion. ...Read more>>

FBM KLCI - the bulls were in control

Stocks on Bursa Malaysia closed higher yesterday as the market moved into positive territory in the late afternoon session in tandem with advances in regional markets. Market sentiment was boosted by expectations of stimulus measures by central banks globally to boost economic growth. The benchmark FBM KLCI advanced 6.58 points or 0.40% to a new-all-time-high of 1,652.90. Advancers outnumbered decliners by 362 to 349 while 325 counters were unchanged. Turnover increased to 1.015 billion shares worth RM1.255 billion from 982.567 million shares worth RM1.226 billion on Monday. Read more...

FBM KLCI - Higher for the sixth consecutive sessions

Stocks on Bursa Malaysia ended mixed yesterday despite the weaker regional markets on mounting fears that Europe’s debt crisis may affect bigger economies such as Spain and Italy. Gains in plantations and banking stocks helped the FBM KLCI to close 5.5 points, or 0.35% higher at 1,580.67 after opening 3.39 points lower at 1,571.78. Losers led gainers by 375 to 343 while 310 counters were unchanged. Turnover rose to 1.24 billion shares worth RM2.9 billion from 920.86 million shares worth RM920.86 million on Wednesday.

Taking cue from the weak performance of Wall Street overnight, the FBM KLCI opened 3.39 points lower at 1,571.18 and slipped to the intra-day low of 1,569.99, losing 5.18 points at its worst. The key index then rebounded to gradually moves higher to hit the intra-day high of 1,582.03 before closing off high. Chart-wise, the FBM KLCI formed a bullish white candlestick which continues its current uptrend and closed right above the 50 and 60-day SMA resistance at 1,579. With this bullish up move, the FBM KLCI is likely to climb higher to challenge the next target of 1,591, and if the key index is able to close above the 1,591-point level, the current short term downtrend is considered reversed.

MACD continued to climb higher and so is the histogram, indicating continued gain in the upward momentum. RSI (14) was higher at 57.5, indicating a continued improvement in the short term relative strength to a mildly bullish state. Stochastic was also higher at 76.6, indicating a continuation of the up cycle and improvement of the market strength. Readings from the indicators showed that the FBM KLCI is gradually turning bullish, and hence might move higher.

The trend of the FBM KLCI has turned up as the key index is now closing above all the short, medium and long term moving averages, and it has also broke above the upper resistance trend line of the downtrend channel. The next higher target of the FBM KLCI is the 1,591 resistance level which is an important level to watch.

Overnight, the Dow fell -26.41 points or -0.21% to close at 12,393.45. Today, the FBM KLCI is likely to trade within a range of 1,561 to 1,594.

This week's expected range: 1517 – 1573
Today’s expected range: 1561 – 1594

Resistance: 1586, 1590, 1594
Support: 1561, 1565, 1573

Stocks to watch: HIBISCS, HIBISCS-WA, MUDAJYA, YINSON

FBM KLCI - marginally lower on mild selling pressure

Stocks on Bursa Malaysia ended in red yesterday, weighed down by the Eurozone debt crisis that has struck global risk appetite, sending most equity markets weaker. The FBM KLCI ended the day 1.32 points or 0.08% lower at 1,596.19 after hitting an intra-day low of 1,593.92. Despite cautious trading, gainers outnumbered losers by 355 to 341 while 351 counters closed unchanged. Turnover rose to 2.079 billion shares worth RM1.625 billion from 1.049 billion shares worth RM1.263 billion on Monday.

The FBM KLCI opened 0.24 point higher at 1,597.75 and climbed to the intra-day high of 1,600.67 at mid-morning. However, selling pressure which emerged pressed the key index lower for the rest of the day to hit the intra-day low of 1,593.92 before rebounding slightly to close off low. Chart-wise, the FBM KLCI formed a black spinning-top candlestick which indicates indecision of market direction and sellers were still slightly dominant. The presence of a spinning-top candlestick after a prior downtrend indicated that the market was reluctant to move lower and may stage a rebound.

MACD and its histogram continued to slide lower, indicating a continued loss in the index’s momentum. Nevertheless, as the MACD is still above the zero-line, current weakness is being viewed as just a correction in a bull market. RSI (14) was lower at 56.3, indicating a continued loss in the short term relative strength, and is now moving lower into the mildly bullish zone. Stochastic was lower at 62.3 and has crossed below the slow stochastic line, indicating a loss in the market strength and possibly a continuation of the down cycle. Readings from the indicators showed that the FBM KLCI is losing its momentum and is likely to continue to consolidate.

The immediate short term trend of the FBM KLCI is down as the key index has closed below the 5 and 10-day SMA for the last two days. However, its medium to long term trend still remained up. With the momentum indicators showing a continued loss in the index’s momentum, the FBM KLCI is likely to stay sideways range-bound for the short term. Immediate downside support zone is at 1,593 to 1,586 while the overhead resistance zone is at 1,600 to 1,605. The sudden surged in the total volume yesterday was due to active trading in the ACE market stocks, while the main board was in consolidation mode.

Overnight, the Dow rose +194.13 points or +1.50% to close at 13,115.54. Today, the FBM KLCI is likely to trade within a range of 1,586 to 1,608.

This week's expected range: 1574 – 1623
Today’s expected range: 1586 – 1608

Resistance: 1600, 1604, 1608
Support: 1586, 1590, 1593

Stocks to watch: WTK, HIBISCS, HIBISCS-WA, DOMINAN

FBM KLCI - short term bearish

Stocks on Bursa Malaysia ended broadly lower yesterday as investors reduced their holdings on worries about the Euro-zone debt crisis. The Greek second bailout fund delay, Moody's warning to slash ratings of 17 global and 114 European financial institutions as well as weak leads from New York market rattled dealer confidence. The FBM KLCI fell 10.81 points or 0.69% to close at 1,550.49 after opening 3.03 points lower at 1,558.27. Market breadth was negative with losers overwhelmed gainers by 668 to 239 while 272 counters were unchanged. Turnover slipped lower to 2.185 billion shares worth RM1.972 billion from 2.309 billion shares valued at RM2.145 registered on Wednesday.

Taking cue from the weak performance of Wall Street overnight, the FBM KLCI opened with a downside breakaway gap of 3.03 points at 1,558.27 and slipped lower to the intra-day low of 1,549.34 before rebounding slightly to close off low. Chart-wise, the FBM KLCI formed a bearish black candlestick which indicates sellers were in full control for the day, and the downside breakaway gap also indicated the market was selling out on fear. The key index is now sitting right on the psychological support of 1,550-point. This level also happened to be the uptrend channel’s middle support line, and is a critical level to determine whether the uptrend is still intact. If the FBM KLCI continues to close below the 1,550-point level, then there is a strong likelihood that it may slip lower to test the support level at 1,540.

MACD has turned downward and the histogram was also shorter, indicating a loss in the upward momentum. Nevertheless, as the MACD is still above the signal-line, the current weakness may well be just a pullback correction in an uptrend. RSI (14) has slipped lower to 60.4 from 68.3 previously, indicating a big loss in the short term relative strength, and is moving to the lower borderline of the bullish zone. Stochastic slipped lower to 87.4 and has crossed below the slow stochastic line, giving out a short term sell signal. Readings from the indicators showed that the FBM KLCI is undergoing a short term correction and is likely to further consolidate itself before the next strong up move.

The immediate short term trend of the FBM KLCI has turned down as the key index is now closing below the 5 and 10-day SMA, while the short term trend represented by the 20 and 30-day SMA is still up. Nonetheless, the medium and long term uptrend is still intact. Immediate downside support zone is at 1,549 to 1,540 while the overhead resistance zone is at 1,559 to 1,567. With the overall volume continued to shrink, the market is likely to go into a consolidation mode. However, the penny stocks may still continue to remain active.

Overnight, the Dow rebounded +123.13 points or +0.96% to close at 12,904.08. Today, the FBM KLCI is likely to trade within a range of 1,537 to 1,569

This week's expected range: 1524 – 1589
Today’s expected range: 1537 – 1569

Resistance: 1557, 1563, 1569
Support: 1537, 1543, 1546

Stocks to watch: HIBISCS, HIBISCS-WA, CYPARK, MUDAJYA

HIBISCUS PETROLEUM BERHAD - PRESS RELEASE

Hibiscus Petroleum’s Qualifying Acquisition Receives SC Approval

Kuala Lumpur, 16 February 2012: Hibiscus Petroleum Bhd (“Hibiscus Petroleum”), Malaysia’s first Special Purpose Acquisition Company (“SPAC”) today received the Securities Commission's approval for its qualifying acquisition.

In October last year, Hibiscus Petroleum announced that as its qualifying acquisition, the Company would be acquiring a 35% equity interest in Lime Petroleum Plc (“Lime”) for a total purchase consideration of USD55 million. Lime has majority interests in companies with concession rights in three offshore oil and gas exploration assets located in the United Arab Emirates and Oman.

Out of the total consideration, USD50 million will be injected into Lime to primarily fund Lime’s activities whilst the balance of USD5 million is for the purchase of existing shares in Lime.

Hibiscus Petroleum’s Managing Director, Dr Kenneth Pereira, said, "to complete the qualifying acquisition, we require specific approvals from the Securities Commission and our shareholders. Today, we are very pleased to announce that Hibiscus Petroleum has received the approval of the Securities Commission for the qualifying acquisition. In accordance with the SPAC guidelines, Hibiscus Petroleum will convene an Extraordinary General Meeting (“EGM”) to seek shareholders’ approval for the qualifying acquisition as soon as we receive clearance from the Securities Commission to issue the finalized version of the EGM circular.”

Dr Kenneth Pereira added, “This is a major milestone for the Company. We hope that the shareholders will also approve the Lime transaction so that the Company can look towards the future with more certainty.”

Since the announcement of the Lime transaction, Hibiscus Petroleum's shares and warrants prices have increased by 173% and 255%, respectively. The shares closed at RM 1.84 while the Company's warrants closed at RM 1.03 today.

FBM KLCI - pullback correction on profit-taking

Bursa Malaysia started the New Year on a weak note yesterday, bucking the regional trend, as investors locked in profits from a rally on the last trading day of 2011. It was the only market in the Asia Pacific that slumped yesterday, with profit-taking in banking stocks steering the key FBM KLCI index 17.19 points, or 1.12%, lower to 1,513.14. The overall market was mixed, with many second and third liners making gains. Gainers led losers by 446 to 325 while 278 counters were flat. Turnover surged to 1.604 billion shares worth RM1.406 billion compared with last Friday’s 1.329 billion shares worth RM1.527 billion.

The FBM KLCI opened 7.13 points lower at 1,523.60 and slid lower for the rest of the day with intermittent weak rebounds. It touched the intra-day low of 1,512.08 before rebounding slightly to end the day at 1,513.14. Chart wise, the FBM KLCI formed a bearish black candlestick in Harami position which indicates heavy profit-taking activity throughout the day, and the bearish Harami pattern is also a top reversal candle pattern when it occurs after an up move. The key index may continue to consolidate today but with an upward bias as the underlying trend is still up. Immediate support zone is at 1,511 to 1,500.

MACD continued to move higher but at a slower pace, as shown by the shorter histogram, indicating a reduction in the upward momentum. RSI (14) fell to 62.3 from 71.7 on last Friday, reflecting the correction, and nonetheless, the short term relative strength is still in the bullish zone. Stochastic fell lower to 90.4 and has crossed below the slow stochastic line, indicating a pullback correction in the key index and the possible beginning of a short term down cycle which needs more data to confirm. Readings from the indicators showed that the FBM KLCI is undergoing a pullback correction after the strong up move on last Friday, which is in line with yesterday’s forecast.

The trend of the FBM KLCI is up. While the correction may continue to push the key index lower, strong support is expected at the 1,506 to 1,500 zone provided by the cluster of the long term moving averages which now turn support, and immediate support is at 1,511 provided by the 5-day SMA. The overall market is expected to be still dominated by active trading in second and third liners while the index-link counters may continue to consolidate.

Overnight, the Dow rose +179.82 points or +1.47% to close at 12,397.38. Today, the FBM KLCI is likely to trade within a range of 1,497 to 1,536.

This week's expected range: 1463 – 1571
Today’s expected range: 1497 – 1536

Resistance: 1521, 1528, 1536
Support: 1497, 1504, 1509

Stocks to watch: HIBISCS, HIBISCS-WA, MAS, PERISAI, BHIC, IGB, MBSB,SUPERMX, TOPGLOV

FBM KLCI - rebounded to close marginally higher

Stocks on Bursa Malaysia closed mostly lower yesterday as sentiment remained cautious on renewed fears of a global recession. The concern follows the delay in resolving the Euro-zone debt crisis and a heavy US budget deficit. However, bargain-hunting in selected heavyweights helped push the FBM KLCI into positive territory, closing 3.91 points or higher at 1,437.99. Decliners led advancers 398 to 327, while 298 counters were unchanged. Volume was lower at 1.27 billion shares worth RM1.04 billion from 1.42 billion shares worth RM1.16 billion on Monday.

Taking cue from the almost 250 points dropped of the Dow, the FBM KLCI opened with a down gap of 3.28 points at 1,430.80 and plunged to the intra-day low of 1,425.47 in the first hour of trade. However, bargain-hunting on selected blue-chips lifted the key index off low to close near the intra-day high level. Chart-wise, the FBM KLCI formed a white piercing-line candlestick, which is a bottom reversal candle pattern. However, as the candlestick could not pierce above the mid-point of the previous day’s candlestick at 1,443.03, the rebound yesterday was considered a weak one. Nonetheless, the FBM KLCI might continue moving higher today with a follow through rebound, and the immediate overhead resistance is at 1,443-point level, follow by the psychological resistance level at 1,450.

MACD continued to slide lower, indicating an increased in the downward momentum. Nevertheless, it is still above the zero-line, and the current weakness is just part of a short term correction. RSI (14) has hooked up slightly to 42.8, reflecting the weak rebound, and indicated that the relative strength of the key index is still mildly bearish. Stochastic was at 8.8, has fell deeper into the short term oversold zone, indicating a possible rebound might be expected ahead. Readings from the indicators showed that the FBM KLCI is currently undergoing a correction or consolidation process, and this is likely to continue until there is confluence of reversal signals from the indicators.

The trend of the FBM KLCI remained down and bearish as the key index continue to stay below the short, medium and long term moving averages. Immediate downside support zone is envisaged at 1,425 to 1,400, while the immediate upside resistance zone is at 1,443 to 1,452. With the gross volume continued to shrink, the current consolidation process is likely to extend.

Overnight, the Dow fell -53.59 points or -0.46% to close at 11,493.72. Today, the FBM KLCI is likely to trade within a range of 1,416 to 1,452.

This week's expected range: 1410 – 1520
Today’s expected range: 1416 – 1452

Resistance: 1443, 1447, 1452
Support: 1416, 1420, 1429

Stocks to watch: HIBISCS, HIBISCS-WA, JCY

FBM KLCI - breaking out of its consolidation

Stocks on Bursa Malaysia closed mixed on Tuesday with the benchmark index recouping its earlier losses as key index link counters staged a late rebound in line with the mixed trading on regional bourses. However, players are cautious ahead of Wednesday’s meeting by European policymakers to resolve the Euro-zone debt crisis. The FBM KLCI rose 7.78 points, or 0.54%, to close at 1,457.80, after opening 3.44 points better at 1,453.46. Decliners led gainers by 373 to 299 while 289 counters were unchanged. Turnover declined to 950.64 million worth RM1.075 billion from Monday’s 1.238 billion shares worth RM1.3 billion. Bursa Malaysia was closed yesterday for Deepavali celebration.

The FBM KLCI opened with an up gap of 3.44 points at 1,453.46 and surged to the morning session high of 1,455.65 within the first fifteen minutes. Profit-taking activities then pushed it to the intra-day low of 1,448.12 before late hour bargain hunting activity on selected blue-chips which pushed the key index to close at the highest point of the day. Chart-wise the FBM KLCI formed a hammer candlestick which indicates sellers were initially strong in pressing down the key index but later buyers surfaced to push it up. The FBM KLCI is likely to continue to climb higher today with immediate overhead resistance zone at 1,462 to 1,470. The resistance at 1,469 posted by the 360-day moving average (MA) is particularly important, as a close above this level would indicate the return of the long term bulls.

MACD continued to climb higher, but its histogram was slightly shorter, indicating a slow down in the upward momentum. RSI (14) was higher at 58.8, indicating the key index is gradually turning more bullish even though it is still in the mildly bullish zone. Stochastic has made a hooked up and crossed above its slow stochastic line, indicating a resumption in the up cycle after a brief consolidation. Readings from the indicators showed that the FBM KLCI is breaking out of it short term consolidation, and may continue to move higher.

With the up move on Tuesday, the FBM KLCI has resumed its short term uptrend as it is now above all the short term moving averages, and is likely to continue to move higher. The medium term trend has also turned up as the key index has closed above the 50 and 60-day MAs decisively. The long term trend remained down at the moment, however, the FBM KLCI is likely to challenge the 360-day MA soon, and if it is able to break above the resistance post by the 360-day MA at 1,469, the move may trigger a rally towards the 1,500-point level.

Overnight, the Dow rose +162.42 points or +1.39% to close at 11,869.04 after reports that China will buy European bonds. Today, the FBM KLCI is likely to trade within a range of 1,441 to 1,468.

This week's expected range: 1389 – 1503
Today’s expected range: 1441 – 1468

Resistance: 1461, 1465, 1468
Support: 1441, 1444, 1451

Stocks to watch: HIBISCS, HIBISCS-WA