KUALA LUMPUR, March 30 (Bernama) -- Bursa Malaysia’s benchmark index closed lower today, in line with most regional markets, as investors adjusted their risk exposure amid spiralling oil prices driven by the ongoing West Asia conflict, now in its second month. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) retreated by 24.75 points or 1.44 per cent to 1,687.90 from Friday’s close of 1,712.65. The market bellwether opened 10.57 points weaker at 1,702.08 and fluctuated between 1,682.79 and 1,702.38. The broader market was bearish, with decliners thumping advancers 956 to 371. A total of 373 counters were unchanged, 1,042 untraded and 134 suspended. Turnover expanded to 3.98 billion units worth RM4.85 billion from last Friday’s 2.97 billion units worth RM3.25 billion.
LCTH Corporation Berhad (LCTH) Close Position
Recall that we previously issued a buy call on LCTH (3-March 2016), after observing the share price staging a technical breakout to confirm a bullish ‘inverted head and shoulder’ chart pattern. However, the share price has failed to rally further but instead underwent a profit-taking phase. Both RSI and Stochastic have also rolled over, with the latter reversing strongly from its overbought zone to imply the heavy selling pressure. With the unappealing technical picture, we decided to close position on the stock for now but will re-look into it once its technical outlook turns compelling again.
MMC Corporation Berhad (MMCCORP) Not Rated
Yesterday, MMCCORP rose 6.0 sen (3.5%) to RM1.76 on trading volume, which hit a six-month high. Previously in Nov-2015, MMCCORP commenced a downtrend which saw its share price retreating by as much as 30% from a high of RM2.31 to last week’s low of RM1.61. Nevertheless, the MACD has ceased to make new lows over the past few months, and this reflects that selling pressure has depleted over this period. Furthermore, yesterday’s bullish move has caused the share price to break above its downwardsloping trend line to paint a more positive technical outlook. Should MMCCORP break above the RM1.78 (R1) (23.6% Fibonacci Resistance/ 50-day SMA) resistance, the next resistance level to look forward to is RM1.89 (R2). Immediate supports are located at RM1.69 (S1) and RM1.61 (S2).
Recall that we previously issued a buy call on LCTH (3-March 2016), after observing the share price staging a technical breakout to confirm a bullish ‘inverted head and shoulder’ chart pattern. However, the share price has failed to rally further but instead underwent a profit-taking phase. Both RSI and Stochastic have also rolled over, with the latter reversing strongly from its overbought zone to imply the heavy selling pressure. With the unappealing technical picture, we decided to close position on the stock for now but will re-look into it once its technical outlook turns compelling again.
MMC Corporation Berhad (MMCCORP) Not Rated
Yesterday, MMCCORP rose 6.0 sen (3.5%) to RM1.76 on trading volume, which hit a six-month high. Previously in Nov-2015, MMCCORP commenced a downtrend which saw its share price retreating by as much as 30% from a high of RM2.31 to last week’s low of RM1.61. Nevertheless, the MACD has ceased to make new lows over the past few months, and this reflects that selling pressure has depleted over this period. Furthermore, yesterday’s bullish move has caused the share price to break above its downwardsloping trend line to paint a more positive technical outlook. Should MMCCORP break above the RM1.78 (R1) (23.6% Fibonacci Resistance/ 50-day SMA) resistance, the next resistance level to look forward to is RM1.89 (R2). Immediate supports are located at RM1.69 (S1) and RM1.61 (S2).
Source: Kenanga Research, 08 March 2016
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