Weekly Commodity Forecast-21 Jan 2019 To 25 Jan 2019

Gold (Close price: $1282.60)

News: Last week the major focus was on Brexit deal and its outcome. U.K Prime Minister Theresa May survived a no-confidence vote but Theresa May’s Brexit deal has been rejected by the house of common. This was the largest defeat for a sitting government in history. Now conflict between Theresa May and the opposition party continue to grow. This uncertainty has been supportive of the dollar. While policymaker in Europe remains monetary easing stance active in future.

US Government partial shutdown continues on its 27th day, the longest shutdown of the government in the history. If politicians not able to resolve issues, it could have a negative impact on US GDP numbers.

Recent Fed dovish stance on future rate hike solely depends on market condition also weighs on dollar index and put upside limited.US and China trade war positive talk and its positive outcome put pressure on Dollar index and act as a catalyst for Gold price rise above $1300.

Dollar index almost falls more than 1% after hitting 97.50 during the first week of December, now trading at 96.

Analysis: Gold almost raised $100 in the last 3 months from NOV 18 to Jan 19. This price really starts from a level of $1200 to $1300.40. Now next leg of price move expected only above $1300 to take away this price level require strong momentum which is lacking this time.

Price struggle to hold the above level of $1297 and easily pulled down to test $1287 level. Last Friday price gives up the support of $1287 and falls below to test strong support of $1280. As per Fibonacci percentage levels 0.236% support came at $1276.77 and 0.382% level come at $1262.17. Time wise and price wise correction in Gold price expected and in meantime momentum indicator like RSI cool off from overbought level to neutral level.

Gold Technical Forecast

Technical Outlook:

Technically price still in uptrend and retracement is buying opportunity near $1262 level with a price target above $1300 with strong support came at $1250. In short term and for an active trader who trades with active stops can sell Gold near $1285-$1288 with price target below $1270 with strict cut loss level of $1297.

Name S3 S2 S1 Pivot Points R1 R2 R3
Gold 1271.43 1278.23 1282.43 1289.23 1296.03 1300.23 1307.03
 
WTI Crude Oil (Close price: $53.73)

News: WTI Oil prices climbed to a level of $53.73 as China and US trade tension eases and demand from both countries increased. West Texas Intermediate crude oil delivery for February delivery raised $1.73 to settle at $53.80 a barrel on the Nymex.

Production from OPEC’s countries also looking to decrease its production and these 14 members sank by 751,000 barrels a day last month, which results visible in prices in the early week of Jan 19.

Crude Oil Forecast

Technical Analysis:

If crude oil breaks above the $53 level, the market could go to higher levels, as high as $55 where we would see even more resistance. Now price band for crude oil remains between $50.50-$55.

Name S3 S2 S1 Pivot Points R1 R2 R3
WTI Crude oil 45.8 47.79 49.01 51 52.99 54.21 56.2

 

Weekly Forex Pair Forecast- 21 Jan 2019 To 25 Jan 2019

 
EURUSD Pair Analysis: (Close Price: 1.1371)

News: UK parliament rejected or voted down Theresa May’s Brexit deal on which future of UK to stay in EU or leave depends. After this EUR came under pressure lost gains against USD.

Pair Analysis: Pair not able to hold the above level of 1.1470 and reverse southwards with a break of major support 1.1400.

EURUSD Forecast

Technical Outlook: On the technical front, the pair looks to test an upward sloping trend line and can take support at 1.1340. If this support breaks then pair can test major support 1.1310-1.1270. Momentum indicator RSI now breaks from series higher low suggests price can slide and trade with a negative bias.

Name S3 S2 S1 Pivot Points R1 R2 R3
EURUSD 1.1298 1.1367 1.1409 1.1478 1.1547 1.1589 1.1658
 
 
USDCAD Pair Analysis: (Close Price: 1.3254)

News: Crude oil recent rise and Canada central bank on its track of monetary tightening. These factors were supporting CAD currency and its rise against the dollar. It is expected that monetary tightening phase will be in 2019, although the market is only pricing in around 11bps of rate hikes against US 25bps rate hike.

Pair Analysis: price slide with steep fall and made low near 1.3180 and show some stability near this level. As earlier price also took support near this level in the month of Dec 18 and raised almost 400 pips.

USDCAD Forecast

Technical Outlook: On the daily chart, the pair broke long term trend line support of 1.3360 which is a negative sign. Momentum indicator like RSI now turns oversold so some pullback possible or time wise pair can spend time here in a range of 1.3180-1.3350. If pair able to close above 1.3300 then we can think price took to support and go higher. Else price can retest level of 1.3180.

Name S3 S2 S1 Pivot Points R1 R2 R3
USDCAD 1.3065 1.3146 1.3197 1.3278 1.3359 1.341 1.3491
 
 
AUDJPY Pair Analysis: (Close Price: 78.69)

News: Australian economy highly leveraged to Chinese and any adverse effect or negative news from China also impact Australian dollar.

Recent positive developments between the US and China over trade war have to decrease dollar strength, as a result, other par show some pull back against safe-haven currencies like CHF, JPY.

Pair Analysis: AUDJPY pair now came at resistance zone above the level of 79 it faces lots of selling pressure. If price not able to hold a level of 78.5 can side further.

AUDJPY  Analysis

Technical Outlook: On a technical chart, price rising after flash crash and trading near the level of 79 which acts as a strong barrier, if price able to close above 79 and trade for few session can rise to 79.5-79.7. Else below level of 78.5 prices can test 78-77.70.

Name S3 S2 S1 Pivot Points R1 R2 R3
AUDJPY 76.53 77.05 77.37 77.89 78.41 78.73 79.25
 
 
USDCHF Pair Analysis: (Close Price: 0.9951)

News: US-China trade optimism and again appetite to risky assets dampens CHF’s safe-haven appeal.USD which earlier fall against major peers now gaining strength which negative for CHF. Price wise pair looking test price action fails to provide any additional boost to the major. The pair remains on track to post strong weekly gains of over 1.0%.

Pair Analysis: Pair now rising with strong volume addition and now came to the level of 0.9960-0.9965 strong supply zone. This time momentum is picking up with price rise suggest pair can rise further if able to hold a level of 0.9900.

USDCHF Analysis

Technical Outlook: On a technical front, pair breaks descending channel near the level of 0.9871 and now approaching 0.9960-0.9970 level. This level act as a major resistance zone price needs to spend some time here and need to maintain a level of 0.9900. Any pullback to a level of 0.9900 with the support of 0.9870 can be a buying opportunity.

Name S3 S2 S1 Pivot Points R1 R2 R3
USDCHF 0.9654 0.9713 0.975 0.9809 0.9868 0.9905 0.9964

 

Klse Malaysia Stocks To Watch Next Week- 21 Jan to 27 Jan

Market Wrap Up: Last week Bursa Malaysia index traded with lack of volume but trade higher to end the week on positive notes. Last week was mainly active for stocks which were in news. The share of MYEG raised earlier start of the week after news that it gets a renewal of courier service license; other actives included BUMI ARMADA BHD which raised on news that debt refinancing talks can result in a positive outcome and it not default on the loan.

FBM KLCI index closed 1692.22 up +9.17 (+0.54%) higher vs. previous weekly close of 1683.22. Market sentiments were positive tracking global markets and rise in Crude oil prices, China’s extra stimulus news.

Week’s top performing stocks were HEIM, CARLSBG, UTDPLT, and HTPADU while top losers were CHINTEK, LYSAGHT, MUHIBAH, and ATURMJU.

Sector-wise, the Finance Index up points to 17,528.25, the Plantation Index rose 83.40 points to 7,201.04, but the Industrial Products and Services Index each erased 1.21 points. In coming week index can trade higher to test 1700 and even above this to 1715.

SCOMI GROUP BHD (Code: 7158)

Company Overview:

Scomi Group Bhd, a global service provider mainly in the oil and gas industry, is a company listed on the Main Market of Bursa Malaysia. Other public listed companies within Scomi Group are Scomi Engineering Bhd and Scomi Marine Bhd which are listed on Bursa Malaysia, and PT Rig Tenders which is listed on Jakarta Stock Exchange. Scomi Group has been spearheading expansion in the emerging markets of Brazil, India, Gulf States, and China.

Latest News:

Scomi Group Bhd’s sub-subsidiary Urban Transit Private Limited (UTPL) have each received demand notice from India’s Axis Bank Limited for 624.63 million rupee (RM36.15 million) due to failure by UTPL (as borrower) and SEB (as guarantor) to pay under the bank facilities granted to UTPL. The company said it will not have any business, financial and operational impact of the default.

Outlook:

Stock can witness selling pressure from upside due to this negative news but the company has to give a clarification that it does not have any financial impact which is positive for the stock price. Stock can trade in a range of 0.045 to 0.080.

BERJAYA CORPORATION BHD (Code: 3395)

Company Overview:

Berjaya Corporation Berhad, an investment holding company, engages in the provision of financial services; investment, development, rental, and management of properties; and marketing of consumer products and services in Malaysia and internationally. The company also designs, constructs, and operates sanitary landfill; operates hotels, casinos, resorts, restaurants, golf and recreation clubs, bookstores, and private university and international schools; manufactures and sells garments and knitted fabrics; owns and operates Car lovers Carwash, Roadhouse Grill Restaurant, and Kenny Rogers Roasters Restaurant chains.

 Latest News:

Berjaya Corp Bhd (BCorp) has proposed collaboration with SAIC Motor Corp Ltd’s unit to manufacture, assemble and sell British car marque, Morris Garages (MG) in Malaysia. The company signed MOU with SAIC Shanghai-listed arm SAIC Motor Corp Ltd.

Outlook:

Price can trade in the range of 0.275-0.300 more upside only above if trades above 0.300.

MESINIAGA BHD (Code: 5011)

Company Overview:

Mesiniaga Berhad, together with its subsidiaries, provides information technology products and related services in Malaysia. The company offers cloud computing solutions, including infrastructure-as-a-service, platform-as-a-service, software-as-a-service, backup-as-a-service, and disaster recovery-as-a-service; maintenance services; managed services comprising server infrastructure, cloud and application, end-user computing, and network management services; network services; and cybersecurity solutions.

 Latest News:

Mesiniaga Bhd has received accepted an RM1.9 billion contract from Xiddig Cellular Communications Sdn Bhd for the commissioning of distribution and access network with related support systems for the EM-IIG project. This contract has a positive impact on financial results and EPS.

Outlook:

The stock is not liquid as other but can rise with this news to the level of 1.240- 1.250.

Benefits of Investing In Dividend-Paying Blue Chip Stocks In Malaysia

Are you serious to make a high grossing investment portfolio? Read further to know how dividend-paying blue-chip stocks in Malaysia can grow your portfolio.

Dividend-paying blue-chip stocks have a good reputation among Bursa Malaysia investors or in any other stock market. If you are a dedicated investor and you are a devoted follower of money; you can not turn your eyes from blue-chip stocks which are especially famous for the high return and high dividend.

Investing in blue-chip stocks might seem old fashioned but it will never go out of fashion. These are the company which provides their investors support even when the time is tough for the market. Many Wealthy investors prefer to dedicate a big percentage of their investment portfolio to dividend-paying blue-chip stocks.

Blue chips stocks are available in many sectors. According to information of listed company in Bursa Malaysia, blue-chip stocks are available in energy (oil and gas) sector (e.g. Petronas Gas), Banking (e.g. AMMB Holdings, Public Bank), Telecommunication (e.g. Telekom), etc.

You might get the idea what are blue-chip stocks.

But, There is more to know.

 

What Are Dividend-Paying Blue Chip Stocks?


“Blue Chip” word came from a poker game, these are the chips with high value. Blue chips stocks are the companies which qualify with qualitative and quantitative.

Blue chip stocks are the companies which make a high-quality product and provide quality service and are recognized in national and international level. These are the companies have the tag of too-good-to-fail.

Below are the few characteristics of dividend-paying blue chip stocks of Bursa Malaysia Investment.

1. They have the regular solid balance sheet and financial statement. The product/service diversification offered by them is known globally.

2. They provide a high return on capital, also known as return of equity to their common shareholder. This is the one factor to trust blue chip stocks

3. They are considerably larger than other companies listed in Bursa Malaysia. Their reachability in domestic as well global market makes them the largest enterprise.

4. Over the decades they have established the record of stable income.

5. They frequently repurchase the stocks whenever the stock price is becoming and profitable to make earning.

6. They are famous for uninterrupted dividend payment delivery to their investors. That’s what makes investors hold on to share of blue-chip stocks.

7. The share prices of blue-chip stocks are expensive than other regular stocks due to their reputation and stability.

But, What are the benefits of investing in dividend paying blue chip stocks in Malaysia Stock Exchange?

By now you I know you might be almost convinced why you should invest in Blue Chip Stocks.

But you should always do absolute research and gain a thorough knowledge before investing in any types of stocks.

 

Benefits Of Investing In Dividend-Paying Blue-Chip Stocks.


Assured Dividend Payment

Why do we invest in stocks?

To make some money. Don’t we?

The dividend is what helps us to make most of the money while in investing in Bursa Malaysia stocks.

If you are investing in Blue chip stock, one thing you can make sure that you will always be paid by the high dividend on regular basis. As blue-chip stocks have crossed the growth state, they remain in stable financial condition, therefore they are able to pay a regular dividend. Assurity of the dividend is the utmost importance when you invest in stocks. While investing in High Dividend Blue-Chip stock, dividend gives you moral support and motivation for future investment.

Steady Earning

As we have discussed earlier blue-chip stocks have a stable income. Therefore, major investors also have stable earning too, who have invested in blue-chip stocks. As these companies are too good to fail, they provide a safe place especially during the time of financial crisis. When the market goes bearish, you don’t have to worry about the losses or return on your investment. You will get your dividend payment no matter what.

Diversification

Every potential investor emphasize on diversification.

Diversification in investment is, investing more than one type of investments. Even in stock investment, you should invest in various types of stocks. There are small, mid and large caps stocks. And, of course, blue chip stocks.

Blue-chip stocks are always considered as good for diversification of investment portfolio. As they don’t get much affected by a weak market condition, hence if you lose some money in some stocks, you will always have an income generating portfolio while investing dividend-paying blue-chip stock of KLSE Investment.

Advantage Of Competition

Blue chip stocks get competitive advantages because of their goodwill, cost efficiency and their reputation in the market. Investors of the blue-chip also get the advantage of this.

If a company has to attract consumer and maintain stable consumption of its product/service it will perform better on daily basis. More consumption means more consumers mean more revenue generation. And more revenue means a high return to the investors/stockholders.

You might be wondering, you will need a large amount of ringgit to invest in blue chip stock in Bursa Malaysia.

Not exactly!

If you don’t have much capital to invest in so many dividend-paying blue chip stocks, do not worry. You can invest in the basket of blue-chip stocks. You can invest via ETFs or unit trust fund. ETFs are exchange-traded funds, that trade index, commodity, a basket of stocks and other assets.

 

Conclusion


All wealthy investors choose to diversify their investment portfolio with blue-chip stocks. They are a stable and steady source of income. There are many high dividends paying blue chip stocks available in Bursa Malaysia which you can choose to invest in. During the time of financial crisis, blue-chip stocks pay their role as a safe haven.
                            

Are you interested in investing dividend-paying blue-chip stocks of Bursa Malaysia? MMF Solution offers stock signals and latest KLSE stock news on daily basis. Subscribe to our 3-days free trial for the latest blue-chip stock signal in KLSE, contact us now!

 

Nymex Crude Oil Trading In range Bound $50-$53 With Positive Bias.

Fundamental News And Impact

Crude oil trading higher with slight range-bound price action. Every price slide used to buy by the trader. Earlier as expected production cuts from the OPEC and Russia which began this month provide additional price cushion.

Major support came from the news that the U.S. and China will reach a trade agreement and hope that China will provide more stimuli after its weak economic data

US crude oil production has offset the impact on rising crude oil prices lead by OPEC-led production cuts. Major details will be seen from crude oil inventory reports. U.S. Energy Information Administration (EIA) data, production is expected to rise to 12.0 million barrels per day this year and to nearly 13.0 million barrels per day in 2020.

Technical Outlook and Analysis

On weekly charts, crude oil bounced back from $42 to currently trading near $52.Earlier crude oil saw massive selling when it broke the level of $49. Now momentum indicator like RSI turning up from the oversold region which gives support to price rise.

Crude Oil Analysis

On shorter time frame like on hourly price facing resistance near $53.2 and some price retracement from this level can bring crude oil to the price range of $51-$50.50.

If price not able to hold strong support of $50 then level of $48 again expected but this is the second case still price oversold on weekly charts.

Major Weekly Support Resistance As Below:

Name S3 S2 S1 Pivot Points R1 R2 R3
WTI Crude Oil 45.8 47.79 49.01 51 52.99 54.21 56.2

 

Why This Bursa Malaysia Blue Chips Stock Investor Should Buy : PETRONAS Gas Bhd

Petronas Gas Bhd can get back on strong sales volume from utilities segment and rise in crude oil prices.

Petronas Gas Bhd is the 12th most profitable company and the most profitable company in Asia and one of the top performing company in Bursa Malaysia.

Mid 2018 was tough for oil and gas company due to fluctuation and high volatility of crude oil price. But due to the recent rise in crude oil price, there seems a good future for oil and gas company in the coming future.

The Multi Management future solutions have chosen Petronas Gas Bhd for investment in Bursa Malaysia for the Malaysian investors who are interested in the energy sector.

Before investing in Petronas you need to know its fundamental and technical review.

About PETRONAS GAS BHD (KLSE: PETGAS 6033)

PETRONAS Gas Bhd is a Malaysian oil and gas company. Petronas is standing for Petroliam Nasional Berhad, it is a national petroleum company. It is wholly owned by the government of Malaysia. PETRONAS Gas Berhad was incorporated as a private limited company on 23 May 1983, under the Companies Act, 1965 of Malaysia, and was converted to a public limited liability company on 28 March 1995 listed in Bursa Malaysia on 4 September 1995.

At present, it has grip in 35 countries. It works in upstream exploration and production of oil and gas, downstream oil and gas refining, marketing and distribution of petroleum product, shipping and automotive engineering. It is also involved in property investment.

It has ranked in Fortune Global 500 among largest corporation. In 2013 it has come in 75th rank.

Latest News:

The Company has entered into the second term of the Gas Processing Agreement (GPA) with PETRONAS, which will continue till Dec 31, 2023.

The 8% increase in fixed reservation charge and better terms in performance-based structure (PBS) could raise the gas processing division’s revenue. 

For 2019, the tariff for the GPU is RM1.072 per gigajoule, down from RM1.248 per gigajoule this year, while the tariff for RGTSU is RM3.518 per mln British thermal unit (mmBtu) and RGTP is US$0.637 per mm BTU. (Source Edge Daily).

Fundamental Overview Of PETRONAS GAS BHD
 

1.  Revenue for the nine months period ended 30 September 2018 stood at RM4, 110.9 million, an increase of 3% compared to the corresponding period mainly contributed by the Group’s new LNG regasification terminal in Pengerang.

2. Profit for the period was RM1, 565.8 million, rose by 19.8% or 3 million in tandem with higher PBT and lower effective tax rate due to tax incentives granted to the Group.

3. The Board of Directors has approved a third interim dividend of 18 sen per ordinary share amounting to 2 million in respect of the financial year ending 31 December 2018.

Fundamental Data PETRONAS GAS BHD:

Market Capitalization (RM)(M) 35260
No. of Shares(M) 1979
Earning Per Share (MYR) 0.96
Dividend(cent) 0.18
Dividend Yield(%) 3.56
Trailing PE 19.61
52 Week price Range(RM) 16.56-20

Key Highlights:

1.  The company reported interim DPS of 18sen was declared, bringing total DPS for 9M18 declared to 50sen – a 66% payout.

2. 3Q18 core earnings eased 2% QoQ but surged 22% YoY while 9M18 rose 16% to come in ahead of ours and consensus’ estimates at 78%.

Technical Overview Of PETRONAS GAS BHD
 

PETRONAS Gas Bhd

On weekly charts stock trending in the rising channel with a slope of the channel not as steep, Upper end of channel forms by joining swing highs of price action recent resistance comes at 20 and lower support comes at the level of 17.

In recent week price breaks below the lower support line and closing basis, it confirms the break of this major support line. This can lead price to test support of 17 but momentum need to pick up to confirm this and continuous trade below 17.50. Price bounce back from this support earlier two times rose to 19.20.

65-week simple moving average offers support for multiple times as price took to support and move higher visible on the chart.

If price manages to hold above 18 can lead price higher. 

Stocks major support and resistance level were as below:

Symbol S3 S2 S1 Pivot R1 R2 R3
PETGAS BHD 17.59 17.99 18.23 18.63 19.03 19.27 19.67

The MMF Takeaways:

Currently trading at MYR 18.760 which is 2.74% increase in the price as in 10th January. Petronas is a highly reputed company in Bursa Malaysia. After doing its technical analysis and considering news related to the energy sector we recommend you to invest in Petronas Gas Bhd. But we also recommend you to use your research and analysis before taking a step.

We provide updated market news and Malaysian positional stock picks on a daily basis. Subscribe to our 3-days free trial for expert advises on KLSE investment. Contact us now- MMF Solutions

Bursa Malaysia- Checklist For KLSE Investment 2019

Starting your investment journey can be exciting as well as scary. This checklist will help you to start investing in Bursa Malaysia without any mistake.

“You only have to do a very few things right in your life so long as you don’t do too many things wrong.”- Warren Buffett

 

 

That is unquestionably correct. Isn’t it?

If you start with the right approach in the right direction you can reach the finish line with rewards.

Investment is a skill that everyone is considering now and if you are a beginner you will need proper guidance to start.

Everyone in the modern days wants to increase his earning. Considering inflation, the need for a better lifestyle and retirement plan, child education loan etc, it is a requirement of the time.

When you are a beginner in investing it is a bit difficult to select the best stocks available in the stock market and how to take the first step. There will be many questions that you might be asking yourself or on the internet.

For example,

1. Which sector should I choose to invest in?

2. Which investment path should I go?

3. What are the criteria to select the best company to chose from Bursa Malaysia?

4. How to chose a broker or investment advisory services?

But you don’t have to answer all the question together. Multi Management Future Solutions is here for you! Below is the checklist-

KLSE Investment Tips 2019 For Beginners.

1. Start With Financial Plan

Financial planning is to make a strategic blueprint for all your moves in future for your investing journey. To start investing, you have to make a plan so that you don’t drown when things go south in the market. It will work as your backbone.

There are a few things that you have to consider to make a financial plan before investing.

Examine Your Budget:

To examine your budget whether you are doing accurate or not, you can try the 50-30-20 rule. You have to make sure that 50 percent of your budget should go in household expenses including groceries, 30 percent for food, outing, and travel and 20 percent in savings.

If you are managing this efficiently you can plan further to invest your money in the stock market or other investment instruments.

Always Separate Emergency Fund:

An emergency can come without any notice and if you are jumping to investment without any emergency fund you are making fool out of yourself.

But you are not a fool. Are you?

So always keep some amount of money aside for emergency fund before investing.

Make Yourself Debt Free:

Can you swim better with tonnes of the load in your back?

NO.

Similarly, you can not become a potential investor of Bursa Malaysia or any other stock market with debt in your head.

Therefore clear all your debt before starting investing.

To make your financial plan check if you are insured, be clear of your investment objectives. Decide whether you are comfortable with monthly investing or lump sum investing.

A financial plan helps you to reach your financial goal, about which I am going to talk in the next section.

 

2. Make A Financial Goal To Stay Focused

There is a lot of difference in investing thinking and investing methods when you invest in college age and when you are a working adult. Your perception towards investment changes with time and experience.

When you are a working adult you think about all kind of risk factors, your loss, and profit plan. For an economical beginning, you must decide what are your personal financial goal. These question will help you decide your financial goal.

1. How much money do you want to invest?

2. How much is your risk tolerance capability?

3. Why are you investing now?

4. Are you here for a long term or short term?

Do not just jump in investing without any planning. Without a proper goal or plan, you might fail miserably in investment journey.

But,

slow and steady wins the race

So take your time to figure out your decent financial goal before investing in Bursa Malaysia.

 

3. Open A Stock Brokerage Account

When you will begin investing in the KLSE stock market you will need a stock brokerage account and CDS (Central Depository System) account for trading. CDS is an account that keeps your Malaysian stocks which you have already bought. It is controlled and maintained by Bursa Malaysia directly, with no link to the brokerage house.

Many brokerage firms also help in opening a CDS account. But choosing a reliable stock brokerage firm can be drudgery. To make your investment journey smooth and productive you should find an authentic brokerage firm or an investment advisory service.

Brokerage firms and investment advisory services mainly differ in the varieties of service they provide and the brokerage fee. Some of the brokerage firms also provide overseas market coverage, analysis reports, and customer service.

You can check the service list on their website or you can also try the free trials they provide for 3-4 days.

You can trade via brokerage firms or the trading account.

 Moving ahead,

 There is more than one type of account in the stock market.

Cash Accounts– Cash account is the account in which client pay for all his securities in cash and there is no credit available on his account. In a cash account, you can only buy a long position.

Margin Account– In this, an investor pays for a percentage of securities he purchased by using credit. The brokerage stretches the credit and uses the securities as collateral. In this account, you can buy both a short and long position.

Option Account– In option account client need to share his financial situation, investment objectives, past experience in investment. Option account is not for everyone. Only puts and call is traded-in in this.

 

4. Strong Portfolio Building

You might have heard about the phrase “Don’t put all your eggs in one basket”.

In the stock market, your money is your egg and stock is the basket. When you invest in only one stock or only one variety of stocks you are increasing your risk factors.

There are more than 800 companies listed in Bursa Malaysia in various sectors. You can do research on which sectors are flourishing in the Malaysian economy and invest in them accordingly.

Always choose diversified and strong portfolio to make your investment more profitable. You can also choose to invest in different assets like bonds, gold, and more.

 

5. Individual Stocks vs ETFs, Know Better Before Choosing

ETFs or Exchange Traded Funds are the listed fund mainly consists of blue-chip stocks, that tracks an index. You can say it is a pool of fund investors for the benefits of all investors.

You can invest in the best companies in Bursa Malaysia by investing in ETFs.

While investing in individual stocks or company you have to understand the company and you have to be aware of the company announcement.

Its totally depend upon the knowledge and interest of you if you want to interest in ETFs or individual stocks.

 

6. Evaluate The Stock With Caution

While investing in Bursa Malaysia as a beginner you have to learn how to evaluate stocks. Even experts sometimes fail to evaluate in a proper way and fails to get good returns.

The stock market is more like an auction where many people participate. Anyone who thinks that this stock worth more than its current price, he can bid a higher price. The stock price is the higher price the buyer is willing to pay and the lowest amount is the seller is willing to pay.

While evaluating stock always check its balance sheet, dividend history, its domestic and global recognition, the rate of return, dividend yield, etc.

 

7. Be In It For Long Term

“If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” – Warren Buffett

Isn’t it practical?

Investment is not short-term gratification. You should be patient with stock investing. It’s a skill which takes time to give you a high return.

When you are entering in stock market investing, you should always go for long-term. The stock is the asset with short-term volatility risk which gives a high return on long-term.

This is the checklist for a beginner to start investing in Bursa Malaysia.

But,

We do not recommend you to follow this blindly. Always use your knowledge, your research, and judgment to select any stocks or any investment strategy.

Bottom Line

Selecting your first stock can be very intriguing. Your first move usually makes your opinion about the journey. And, your investing path will be profiting and rewarding if you measure your goals and take calculated risks.

There are hundreds of choices for the stocks listed in Malaysia Stock Market, use above checklist before investing in Bursa Malaysia.

Don’t stay behind! Subscribe to our 3 days free trial now for expert investing advice for KLSE market with updates stock signals. Contact us now- MMF Solutions

Weekly Commodity Forecast (05 Jan-12 Jan 2019)

Gold (Close price: $1285.145)

News: US Dollar Index improved after the U.S. Bureau of Labour Statistics reported a better growth in December nonfarm payrolls and a higher-than-expected rise in the annual wage inflation, the US Dollar Index rose but settle at 96. While positive developments between the U.S. – China trade fuelled positive strength to stock markets indexes in the U.S also major reason to profit booking on a safe-haven asset like Gold.

Analysis: Gold face resistance near the psychological $1300 mark in the last trading day of the week. Precious metal erases early gains ahead of major US economic data like NFP (Non-Farm Payroll), Unemployment rate, when data released Gold prices saw a sharp drop to $1276, later it recovered and the Gold had witnessed price consolidation settle at 1285, where it was up +3.78 on weekly closing.

Commodity Forecast

Technical Outlook:

Gold prices rose to $1,298. Support on the yellow metal is seen near the 13-day moving average at 1,270.50. Major support comes at $1250. While recent price rise brings all momentum indicator to overbought zone. Reading above just 80, decrease in momentum expected with time wise and price wise correction.

Name S3 S2 S1 Pivot Points R1 R2 R3
Gold 1249.18 1258.5 1264.25 1273.57 1282.89 1288.64 1297.96
 
 
WTI Crude Oil (Close price: $48.24)

News: WTI prices were up following despite inventory data showed substantial inventory builds up. The upward price movement for both benchmarks comes after the United States and China trade war will simmer down after China said it would hold trade talks with the US.

Analysis: If crude oil breaks above the $50 level, the market could go to higher levels, as high as $55 where we would see even more resistance. The little bit of a pullback in prices expected depends on stock market behavior.

Commodity Forecast

Technical Outlook:

WTI benchmark was trading up at $48.24.Price can find resistance around $50.Bullish divergence on momentum indicator also visible on daily charts with price making lower lows.

Name S3 S2 S1 Pivot Points R1 R2 R3
Gold 40.26 42.03 43.13 44.9 46.67 47.77 49.54

 

Bursa Malaysia Stock Analysis: Is It The Right Time To Buy Astro Malaysia In Downtrend

Amidst the downtrend of Bursa Malaysia, Astro Malaysia Holdings Berhad is performing in a growing direction. Its current share price on 2nd January was at 1.330 share price with an increment of 0.030 (2.31%). Whereas Bursa Malaysia market is running down by 21.50 (-1.27%) at 1669.08.

This makes it very important to think about investing in Astro Malaysia in 2019 if an investor in Malaysia is thinking about investing in Bursa Malaysia.

ASTRO MALAYSIA (KLSE: ASTRO)

About The Company: 

Astro Malaysia Holdings Berhad is a Malaysian media and entertainment holding company that began as a paid digital satellite radio and television service, Astro. The company is owned by Astro Holdings Sendirian Berhad which also owns Astro Overseas Limited.

Its 11 radio brands include the highest rated stations across Malaysia’s four key languages, engaging with 16.5 million weekly audiences on-air and online.

Latest News: 

Its unit, MEASAT Broadcast Network Systems Sdn Bhd (MBSN), has secured RM 300.0 million loans from AmBank (M) Bhd. The loan will be used to finance MBSN’s production, purchase and licensing of content/programmes/channels, to purchase set-top boxes (including the settlement of vendor financing), for capital expenditure  including asset acquisition for broadcast and transmission and acquisition of software and platforms, and/or for lending to any member of the Astro Group (news source Edge market).

Performance In 2018:

Let’s consider the Fundamental and Technical overview of Astro Malaysia Holdings Bhd to better understand its performance in 2018.

Fundamental Overview
 

1. In FY-18 company reported sales of  MYR 5531 (million) with the profit of MYR 1140 (million).

2. Net income for FY-18 stood at MYR 771 (million).

3. Its net margin and operating margin comes at 13.93% and 20.61%

4. Book value per share comes at MYR 12.60.

5. The company has a good dividend payout percentage ratio above 80% and dividend at 0.10 MYR.

Below is the dividend history of Astro Malaysia in between FY13-FY19. As you can see that dividend continues to increase for the last six years. FY19 is yet to reach a new height. Considering the positive sentiments of the market regarding Astro Malaysia.

Astro Malaysia

5 Years Revenue & Profit Trend:

Astro Malaysia

Fundamental Data:

Market Capitalization (M) 6779
No. of Shares(M) 5214
Earning Per Share (MYR) 0.14779
Dividend(cent) 12.5
Dividend Yield(%) 9.614
Trailing PE 14.76
1 Year price Range 1.050 – 2.790

Key Highlight:

1.  New Initiative Company’s focus shifting to digital marketing

2. Sharing of printing facilities will reduce operating margin

3. Possibility merger & acquisition opportunities

4. Consumer sentiments and consumer spending will increase as per forecast by (Malaysian Institute of Economic Research) help to gain advertisement and subscription.

Technical Overview
 

Astro Malaysia

On daily charts, stocks bottom out around 1.10 after trading in a range from 1.10 to 1.25. Exponential moving averages like 20 days and 50 days now shift higher and trading sideways.

Price trading above moving averages pins out prices now moves higher. Momentum indicator like MACD also developed positive or bullish divergence and pointing upwards.

Positive histogram and the signal line above zero will signal entry opportunity on dips.

Price wise and time wise consolidation is good for the stock as it is the sign of major upcoming breakout in stock.

Price action wise each day price trading in sideways after giving breakout from 1.25 levels to reach at 1.41 levels and looks stock in retracement.

This retracement in price near 1.28-1.30 gives buying opportunity with strict support comes at 1.22 with price rise target up to 1.40 and 1.50.

Stocks major support and resistance level were as below:

Symbol S3 S2 S1 Pivot R1 R2 R3
Astro Malaysia
(6399)
1.214 1.247 1.284 1.317 1.354 1.387 1.424

 

Multi Management Future Solutions Key Takeaways   

It will be prudent to say that if you are a potential investor in Malaysia you must think about investing in Astro Malaysia. Media and Entertainment industry is very competitive and growing at an unprecedented rate. In this market, Astro Malaysia is making its footprint with exceptional growth. With all the date provided above, you can use your judgment to whether you should invest in it or not.

For latest stock picks and expert reports on KLSE stocks, subscribe to our 3 days free trial now-contact MMF Solutions.

Small Cap Stocks To Buy In 2019 For Bursa Malaysia

The Malaysian Stock market is softening right now. With Multi Management Future Solutions expert find out which Small Cap Stock of Bursa Malaysia knocking on your door with a good return.

“Risk and Reward come in many essences, all you need tactics to look at the right direction”

 

 
People usually think why should they invest in small caps stocks, they are riskier and they are not well established as large caps stocks.

But they forget,

“There is no finish line. There are only mile makers.”

 

And few small caps stocks in Bursa Malaysia are the mile markers if you buy them now, because the market is softening due to various reasons and there are shares if you invest in them now they will benefit you in long-term.

But investors should make a very selective and strategic decision.

First of all, let’s aware you with FBM Small Cap Index.

What Are Small Caps Stocks?

Small Caps Companies are the companies which have small capitalization in the market.

They come under FTSE Bursa Malaysia Small Cap Index. There are 169 constituents in the index as in the latest report of  FTSE monthly report.

It comprises the companies within the top 98% of Bursa Malaysia.

Major Sector Division Of Small Cap Stocks

According to the report of FBM SMALL CAP INDEX, there are majorly 10 sectors in small-cap stocks.

Small Cap Stocks

Source FTSE monthly report

And below is the list of top 5  and bottom 5 small caps stocks.FTSE Small Cap Index

Source FTSE monthly report

YTD (Year to date), FBM Small Caps Index has fallen down by 32.48% and closed at 11683.89 on last Thursday. Whereas FBM KLCI has fallen down only by 6.72%.

We can understand by analyzing the above data that the market is softening, therefore, the best time to buy small caps stocks in Bursa Malaysia is now.

Let’s see what investors in Malaysia are saying.

Danny Wong CEO of Areca Capital said, investors should start watching at small-cap stocks but he appended later that investors should be cautious about the market and prefer selective procedure. He gave a little bit of idea where he is focusing. He said he is focusing on semiconductors and glove company which are basically export-oriented sectors.

Here we are presenting the list of top 5 small caps stocks in Bursa Malaysia which you should buy in 2019-

1. Comfort Gloves Bhd

Small Cap Stock

In the rubber glove sector, Comfort Gloves Bhd will be suitable as its YTD price has fallen down by 20.59% though it has been increased by in this month by 4.42%. Current P/E Ratio of Comfort Glove is at 18.66 and its current price is MYR 0.945.

The reduction is might be due to falling in net profit by 54%. Current m-cap of Comfort Glove BHD is MYR 525 million.

2. Globetronics Technology BHD
Small Cap Stock
 

In the semiconductors sector one of the stocks you can focus is Globetronics Technology BHD, with market capital of RM 1.18B, its YTD price fell down by 36.01% and the current price is at RM 1.76. Globetroics is trading at a price-to-earn ratio (P/E Ratio) 16.53 times relatively lower than other semiconductors companies.

Research head of MIDF, Mohd Redza Abdul Rahman stated few sectors in small caps stocks including construction, consumer, property, education, and renewable energy sectors can give potentially yield greater returns.

3. Spritzer Bhd    
 

Small Cap Stock                 

 

Spritzer Bhd produces and sells bottled water in Malaysia. The company provides carbonated flavored water, natural mineral water, non-carbonated flavored water, distilled water, and drinking water.

Mohd Redza suggested that there are smaller players that might offer some upside as Spritzer Bhd. It is falling 8.51% YTD with a PER of 16.04 times. The last price of Spritzer Bhd was at RM 2.150 providing the dividend of 5.5 sents.

4. Gabungan AQRS Bhd
 
Small Cap Stock

For construction sector Mohd Redza preferring Gabungan AQRS Bhd, which engages in the construction and property development activities, With a market capitalization of RM 398.15 million, falling 48.19% YTD and PER of 5.87 times.

He also added few other stocks, for example, Sarawak players such as KKB Engineering Bhd and Hock Seng Lee Bhd can be worth to look. KKB Engineering (KLSE: KKB) with the market capitalization of RM 217.83, fell to 12.63%  YTD. It is trading at the current price of RM 0.88. Whereas Hock Seng Lee Bhd (KLSE: HSL) fell down to 6.29% YTD, and price as on Thursday was RM 1.34.

5. Dayang Enterprise Holdings Bhd.
Small Cap Stock

Analysts and investor also preferring Dayang Enterprise Holdings Bhd in spite of ongoing geopolitical effect on oil prices.

Dayang Enterprise Holdings Bhd. is an investment company, which engages in the procurement of integrated support and services to the oil and gas industry. Its current trading price is at o.565 and PER is 45.20 times. It fell down 16.91% YTD. But in the last five days, it has been increased by o.89%.

The Bottom Line

The investors should also consider the domestic factor as development plan announced in 11th Malaysian five-year plan and budget 2019. And it will be smart to focus on international issues of Brexit and US-China trade war.

Small caps stocks are worth to buy for long-term investors. They have more risk as compared to mid and large-cap stock but it is always smart to diversify your portfolio with small caps stocks. They are down now so it is best to time to act and buy them.

Every active investor who is considering to invest in small caps stock of Bursa Malaysia should remember this line,

If you are being warned about worst of times it is only reasonable to ponder the best of times too.

And, Opportunities can be seen by the people who have an eye for it.

Multi Management Future Solutions has helped you with the research and data of this month and year to date condition of small caps stocks.

Use strategic planning, think about your goals and invest in Bursa Malaysia Small Caps stocks. Remember investing in small caps stock is a very cautious and selective method.

SO, Are you going to be smart and specific to take a small step towards FBM small caps stocks?

You can also subscribe to our service for daily stock signals with the target and stop loss, daily news, and updates on Malaysia Stocks. We are here If you want some investing advice for your future. Contact us now.