singapore stock picks

Monday, July 28, 2014

Technical Outlook of Malaysia’s Consumer Industry


Scan of Malaysia’s Consumer Industry:
Consumer sector is in boom this year due to higher operating costs for consumer companies this year on an account of forthcoming Government policies.
Coming in with 0.93% year-on-year gain for the year ended December 2013, the consumer services industry under the FTSE EMAS Index is one of the handful of industries that ended in the positive territory last year. This covers broad view of businesses which is most affected by the Budget 2014’s policies viz. fiscal debt, shrinking current account surplus and growing debt pile.
With policies such as the implementation of goods and services tax come April 2015 as well as reduced subsidies, the consumer services industry is expected to mellow from the rising cost of living this year. 
Consumer spending is likely to experience slower growth from lower purchasing power and disposable income although selective bright spots exist. Higher tourist flows into the country in conjunction with Visit Malaysia Year 2014 is expected to mitigate the slowdown in domestic consumer spending.
While the outlook for the industry appears to have dimmed, not negative for the consumer industry in Malaysia. Looking into the Visit Malaysia Year 2014 initiative, Malaysia is targeting to attract 28 million in foreign tourist arrivals with up to 13.2 million tourist arrivals from Singapore to the country this year. This is certainly good news for the travel and leisure sector of the consumer industry. Noticing, the gaming sector pops to mind when it comes to tourism in Malaysia.
Current Volume: 659,818
Current Change: 4.650
Current Change %: 0.78
Sector Allocation Chart by Turnover
  • Consumer Industry lifted the FBMKLCI Market by 30.81% followed by Trade/Service (24.83%), Finance (11.50%), Properties (10.30%), Technology (9.11%) and Industry-Production (7.83%).
ANALYSIS:
This sector has been “underweight” since long time and it moved within the range of 590.782-582.432, but now it is in good pace to boom the Malaysian Economy maintaining a sharp uptrend. 
Trading Facts for Top Gainers Comprising Consumer Industry:

TOP GAINERS CHANGE CHANGE% LAST RATE HIGH LOW VOLUME
MSPORTS 0.03 16.67 0.21 0.215 0.185 48,81,900
SINOTOP 0.005 9.09 0.06 0.065 0.055 24,51,100
CAB 0.07 7.91 0.955 0.975 0.88 1,11,58,600
TPC 0.03 7.79 0.415 0.43 0.38 11,06,800
MFLOUR 0.11 5.76 2.02 2.03 1.88 31,42,400
HOVID 0.02 4.49 0.465 0.465 0.44 76,01,800
BIOOSMO 0.005 3.33 0.155 0.155 0.15 20,92,100
GPHAROS 0.025 2.69 0.955 0.96 0.92 11,80,500
PELIKAN 0.03 2.52 1.22 1.23 1.17 16,26,600
EURO 0.01 1.57 0.645 0.67 0.64 41,29,900
UMW 0.18 1.54 11.88 11.9 11.7 31,12,800
TEOSENG 0.02 1.42 1.43 1.44 1.35 20,69,500
LIONFIB 0.01 0.86 1.17 1.18 1.14 9,48,000
Highlighting HOVID BHD addressing Consumer Industry
Hovid Berhad is engaged in the manufacture and sell of pharmaceutical and herbal products. The company operates through two segments, Pharmaceutical and Phytonutrient. It is involved in extracting and processing nutrients from palm oil for manufacturing and producing pharmaceutical, phytonutrient, and oleochemicals/biodiesel products. The company offers special drug delivery systems, including modified release formulations and bio-availability enhanced formulations; ethical products, such as anti-biotics, anti-diabetics, anti-hypertensives, and anti-malarial and anti-inflammatory analgesics; dietary supplements; and consumer products, as well as extracts palm tocotrienol complex, mixed carotenoid complex, and phytosterols from palm fruits. It also owns and manages a chain of concept stores selling over-the-counter health food products, consumer products, supplements, and herbal products. In addition, the company is engaged in establishing, maintaining, and operating laboratories and shops for carrying on chemical, physical, and other research and development activities in medicine, chemistry, industry, and other fields. Further, it is involved in trading and marketing pharmaceutical products, medical supplies, and health and wellness products. Hovid Berhad operates in Asia, Africa, North and South America, and the Pacific Island. The company is based in Ipoh, Malaysia.
  P { margin-bottom: 0.21cm; }
FUNDAMENTALS:
Comparison of Income, Balance Sheet and Key ratios on Previous Year over Year basis showing Growth of the Company.
  • Company is having strong fundamentals which are constantly increasing on Y-o-Y basis.
  • Operating margin increased over three fiscal years 30/06/2011 to 30/06/2013, it evaluate what proportion of a company's revenue is left over after paying for variable costs of production such as wages, raw materials, etc. A healthy operating margin is required for a company to be able to pay for its fixed costs, such as interest on debt. More is the operating margin, more is the dollar per sales.
  • Return on Equity Capital is important to equity shareholders who are interested to know profits earned by the company and those profits which can be made available to pay dividends to them. Interpretation of the ratio is similar to the interpretation of return on shareholder’s investments and higher the ratio better is.
  • Current Ratio is ability to pay short-term obligations. The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
  • The debt-to-capital ratio addresses the company's financial structure, or how it is financing its operations, along with some insight into its financial strength. The lesser the debt-to-capital ratio, the lower debt that company has compared to its equity.

RECENT ANNUONCEMENTS:
As per the recent announcement, Directors of the Company of their intention to deal in the securities of Hovid during the closed period pending the announcement by Hovid of its results for the financial quarter ended 30 June 2014.
  • 286,776,400 no. shares are directly held by the Chairman and Managing Director.
  • 331,555 no. shares are directly held by the Executive Director.
  • 1,765,830 no. shares are directly held by the Executive Director.
Interim Dividend of 0.5 cents per share under the single tier system for the financial year ending 30 June 2014.
OUTLOOK:
Hovid is looking to export to emerging markets and the Middle East, which it has yet to tap. Its export contributions may increase to 56% in the financial year (FY) 2016, should this expansion prove successful. Hovid is set for a good FY2015 ahead, given abundant opportunities in both domestic and global pharmaceutical markets. We anticipate that its net profit may grow at a CAGR of 18.5% in FY2014-2016 or RM20.7 million to RM32.7 million, on the back of growing affluence, health awareness and healthcare expenditure in the markets that it operates in.
Hovid is good for its robust revenue pipeline, strong and wide exposure to the export market, and decent return on equity of 12-13% in FY2014-2015.
OUR VIEW:
As per the Fundamentals, HOVID is good for generating profit. Technical also support the Stock as EMA 20 DAY is above its EMA 50 DAY and share prices lied above the major support 0.415.

Friday, July 25, 2014

Singapore Stock Review 21-25 July

Weekly wrap of STI:
Straits Times Index up 2.40 points to 3,357.11 today .Asian markets rose as an index of Chinese manufacturing activity hit an 18-month high in July, boosting hopes for the world’s number two economy, as concerns over the Ukraine crisis eased. This week started with the breakout seen from the strong resistance level of 3308.72 and the market was up through the week. Open of the week was observed at 3313.83, close was at 3340.42.
STI
STI Day Performance
OPEN 3313.83
HIGH 3357.35
LOW 3309.17
CLOSE 3350.17
CHANGE (In Points) 29.89
% CHANGE 0.894
Market Forecast for week ahead:
With the ease over Ukraine crises the market took a good move this week. We may expect that the market will take correction the coming week and can be bearish for some days in a week but may end bullish breaking this week’s high.
Technical Indicators:
Relative Strength Index (RSI) is above the centre line showing bullishness in the market and is at 61.89.CCI is at 67.93. The prices are above 20 & 50 days EMA.
STI LEVELS
Support 1 Support 2 Support 3 Resistance 1 Resistance 2 Resistance 3
3250 3200 3150 3380 3450 3480
Macroeconomic factors:
  • Singapore home prices will probably declines as the government sticks with curbs, according to Keppel Land, signalling further losses for Asia’s second-most expensive housing market.
  • RESALE prices of public housing in Singapore fell 1.4 per cent in the second quarter compared to the preceding quarter.
  • Consumer Confidence in Singapore remained stable at 98 index points in the Q2 of 2014, falling by just one point from the previous quarter.
  • OFFICE rents and RETAIL rents in Singapore continued to rise, climbing 2.8 per cent in the second quarter following the 2.4 per cent increase in the first quarter of this year. Retail increased by 0.6% in Q2.
  • Singapore Exchange strengthens ties in India, opens liaison office in Mumbai on approval from the Reserve Bank of India.
  • Singapore Exchange (SGX) is pleased to welcome First Sponsor Group Limited to its Main board under the stock code of “ADN”.

Wednesday, July 23, 2014

Daily KLCI Technical analysis Report 23 July


Market Review for KLCI:
Malaysian stocks opened on a mixed note or can say slightly higher on getting a buying momentum with KLCI at 1870.41and closed higher today helped by the continued buying support in selected heavyweights. Most Asian stock markets were higher today as anxiety over the downing of Malaysia Airlines MH17 flight eased and investors shifted their focus to the US corporate earnings.
KLCI Day Performance
Open
1870.41
High
1873.70
Low
1869.39
Close
1871.83
Change(Points)
0.470
% Change
0.02%
Volume
2329.1M
Rise
468
Fall
393
Unch
794
Market forecast for KLCI:
Market may begin from 1870-1873 level anticipated to move up on eased tensions over the downing of Malaysia Airlines MH17 flight.

KLCI LEVELS
Support 1 Support 2 Support 3 Resistance 1 Resistance 2 Resistance 3
1860 1850 1835 1879 1896 1911
Technical indicators:
RSI stood below the centre line at 41.472 with its CCI at -146.35. Difference line of MACD performed at -1.463 below its signal line which performed at 1.147.

Top Gainers
Top Losers
Scrip Name CMP %change Scrip Name CMP %change
FGV 4.11 2.49 ASTRO 3.29 -2.66
MISC 6.63 1.69 PPB 14.18 -1.53
HLFG 17.5 1.51 PETDAG 19.34 -1.33
YTL 1.57 1.29 RHBCAP 9 -1.1
UMW 11.62 0.87 KLCC 6.36 -1.09
ECONOMIC FACTORS:
  • The Malaysian Automotive Association (MAA) revised upwards its total industry volume (TIV) forecast for this year to 680,000 units from the earlier target of 670,000 units.
  • The ringgit opened marginally higher against the US dollar quoting at 3.1735/1755 on renewed commercial demand for the domestic currency.
  • The Malaysian rubber market closed marginally lowers yesterday on stronger ringgit despite the rise on the benchmark Tokyo Commodity Exchange.
  • Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives closed lower yesterday on weak demand amid bearish external sentiment.
  • The Malaysian Institute of Economic Research (MIER) does not expect Bank Negara Malaysia to step up borrowing costs in the immediate term.

Singapore SGX : STI Technical Review 23 July

Market Review for STI:
Share prices opened higher at 3327.54 with STI up 10.63 points. Consumer Confidence in Singapore remained stable at 98 index points in the Q2 of 2014, falling by just one point from the previous quarter. STI movement is seen exactly as per our predictions. Closing was observed at 3340.70.


STI Day Performance
Open
3327.54
High
3341.49
Low
3325.57
Close
3340.70
Change(Points)
+23.79
% Change
+0.72%
Volume
1656.4M
Rise
227
Fall
185
Unch
373
Market forecast for STI:
Property and service sector helped the index to move and the data came out to be positive which may result in further growth and the index may break the higher levels.
STI LEVELS
Support 1
Support 2
Support 3
Resistance 1
Resistance 2
Resistance 3
3320
3300
3280
3350
3365
3380
Technical indicators:RSI is at 71.47 .CCI is at 192.77. Index is above the 20&50 days EMA.
Top Gainers
Top Losers
Scrip Name CMP %change Scrip Name CMP %change
Olam Intl 2.53 2.85 Golden Agri-Res 0.55 -0.9
Global Logistic 2.78 2.21 CapitaMall Trust 2 -0.5
Jardine C&C 46.9 1.98 CityDev 10.42 -0.48
DBS 17.91 1.7 Sembcorp Marine 4.1 -0.24
ST Engineering 3.79 1.34 SPH 4.16 -0.24
Important Factor for today:-
  • Singapore Exchange strengthens ties in India, opens liaison office in Mumbai on approval from the Reserve Bank of India.
  • CONSUMER price inflation in Singapore eased more than expected to 1.8 per cent in June from 2.7 per cent in May, mainly on account of a more moderate increase in car prices.
  • Capitamall Trust recorded a 6.3% rise in Q2 distribution per unit to 2.69 Singapore cents, up from 2.53 cents a year ago on higher rental and high occupancy rates.
  • Frasers Centrepoint Trust reported a 6% rise in distribution per unit to 3.022 Singapore cents in the Q3 ended June 30.
  • Suntec Reit announced a distribution per unit of 2.266 Singapore cents for its Q2 ended June 30, 2014, a slight increase from 2.249 Singapore cents a year ago, to be paid on Aug 22, 2014.

Tuesday, July 22, 2014

SGX Singapore : STI Technical Outlook 22 July

Market Review for STI:
SINGAPORE share prices opened lower today with the Straits Times Index down 1.79 points to 3,311.68. Hong Kong stocks rose 0.34 per cent in the first few minutes of trade as tensions over the crisis in Ukraine eased after pro-Russian rebels handed over two black boxes from a downed Malaysia Airlines jet.STI opened at 3311.68 and the close was observed at 3316.91.
STI Day Performance
Open
3311.68
High
3321.62
Low
3309.27
Close
3316.91
Change(Points)
+2.64
% Change
+0.08
Volume
2086.6M
Rise
210
Fall
166
Unch
408
Market forecast for STI:
STI opened lower but closed higher following its uptrend. Though the day range is small but the trend is up which is expected to continue. We may expect that it will move in a range of 3310-3325.
STI LEVELS
Support 1
Support 2
Support 3
Resistance 1
Resistance 2
Resistance 3
3310
3300
3290
3325
3340
3350
Technical indicators:
RSI is above the centre line at 64.80 and CCI is at 143.68. Indicators are supportive to the bullish trend with index trading up of 20 & 50 days EMA.
Top Gainers
Top Losers
Scrip Name
CMP
%change
Scrip Name
CMP
%change
CapitaMall Trust
2.01
1.26
JSH 500 USD
35.8
-1.11
CityDev
10.47
1.16
Global Logistic
2.72
-1.09
StarHub
4.17
0.97
Olam Intl
2.46
-0.81
DBS
17.61
0.74
Ascendas Reit
2.32
-0.43
Sembcorp Marine
4.11
0.49
SGX
6.94
-0.43
Important Factor for today:-
  • SINGAPORE Exchange announced that its liaison office in Mumbai, India, has started operations following approval from the Reserve Bank of India.
  • Vard Holdings, the designer and shipbuilder of offshore and specialised vessels, today announced earnings for 2Q ended June (2Q2014) stood at NOK 105 million ($21 million).
  • First Sponsor Group is a developer and owner of residential and commercial properties in Chengdu and Dongguan, China, and also provides property financing services. The group is supported by prominent shareholders, Hong Leong Group Singapore and Tai Tak Estates Sendirian Berhad.
  • SUNTEC Reit announced a distribution per unit of 2.266 Singapore cents for its second quarter ended June 30, 2014, a slight increase from 2.249 Singapore cents a year ago.

 
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