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FLOWS
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Friday, 17 October, 2014
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BUY
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CIMB, IOICORP, GENM
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SELL
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DIGI, MAYBANK,
YTLPWR
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MARKET OUTLOOK
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KLCI has reached a tradable
bottom with its head & shoulder pattern downside objective achieved, very
oversold sentiments – rsi @ 16 & sitting within strong support band
1760-1780 of Nov’13 – Feb’14 esp with a reversal in US bonds, & German
bunds & washed out in crude oil markets.
Bonds & Bunds capitulated
on 15/10
US 10-yr 2.08% rsi 20.3 – lowest rsi since Dec’2000 – when
US was trying to come out of the its credit crisis with GDP of 1.4% vs 2Q14
4.6% – hence US bonds v overbought –
safety trades carried too far. Flushed out when yield hit intraday low @
1.86%, closed at 22bps (12%) higher @ 2.08%
Bund 10-yr 0.755% rsi 21.2
- lowest rsi since June’12 – capitulation!
Major reversal last night with 10-yr bund dwn 9%
Crude oil also washed out on
16/10
WTI crude hit intraday low @
$79.78 b4 closed @ $82.70, Brent hit intraday $82.93 b4 closed $85.82 with
rsi bottoming @ 11
Reversal of safety trades
& relatively high fear gauge wld mean US equities may have also hit a
tradable bottom
15/10/14 US VIX 26.25 rsi 72.1 – VIX highest since June’12;
VIX rsi 1-yr high 74.4, 3-yr 75.7 . Intraday VIX went to a high of 31.1
before a sharp pull-back & followed thru last night confirmed another sign of potential reversal.
Stks to buy: Armada, Barakah,
CIMB, Dayang, Deleum, Faber, Gtronic, Inari, Matrix, MPHBCap, Perdana,
Penergy, Prestariang, SKPetro, THHeavy, Titijaya TuneIns, Uzma, UMWOG,
Vitrox, Yinson
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Calls for SEPT OCT WEEK 2 /
WEEK 3 2014
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STOCK
|
Initiation
Dates
|
Initiation
price
|
BUY/SELL
|
TARGET PRICE
|
LAST PRICE
|
% Change
since Initiated
|
||
|
MEDIAC(5090)
|
10/10/2014
|
RM0.885
|
ACCUMULATE
|
RM0.94
|
RM0.855
|
-3.4%
|
||
|
BJTOTO(1562)
|
10/10/2014
|
RM3.59
|
Defensive BUY
|
-
|
RM3.38
|
-5.9%
|
||
|
OLDTOWN(5201)
|
13/10/2014
|
RM1.76
|
SELL
Into Strength
|
BB - RM1.32
|
RM1.65
|
-6.3%
|
||
|
CBIP (7076)
|
13/10/2014
|
RM4.60
|
SELL
into Strength
|
BB - RM3.73
|
RM4.40
|
-4.4%
|
||
|
MSM (5202)
|
14/10/2014
|
RM4.92
|
TAKE PROFIT
|
-
|
RM4.90
|
-0.4%
|
||
|
UMWOG(5243)
|
14/10/2014
|
RM3.10
|
ACCUMULATE
|
RM3.60
|
RM3.24
|
+4.5%
|
||
|
UOADEV(5200)
|
15/10/2014
|
RM2.10
|
TRIM
|
-
|
RM2.10
|
0.0
|
||
|
PMETAL (8869)
|
15/10/2014
|
RM5.05
|
ACCUMULATE
|
RM5.90
|
RM4.90
|
-3.0%
|
||
|
PERDANA (7108)
|
16/10/2014
|
RM1.66
|
ACCUMULATE
|
-
|
RM1.53
|
-7.9%
|
||
|
BURSA (1818)
|
16/10/2014
|
RM7.95
|
TRIM
|
-
|
RM7.90
|
-0.7%
|
||
|
Performance
|
|
|
Positive
|
|
|
Negative
|
|
|
Neutral
|
|
