SGX's STI & KLSE's KLCI Technical Analysis 9-March

Market Review for STI: Singapore shares opened lower on Monday, with the benchmark Straits Times Index at 3,389.6 in early trade, down 0.82 per cent, or 27.91 points.

Risk appetite remained low as investors reacted to a better-than-expected US jobs report by selling stocks, mindful that the data could prompt the Federal Reserve to raise interest rates sooner rather than later.   
Market forecast for STI: If STI is follow technical then we may expect bearish rally in next trading session. 
Technical Indicators: RSI is at 49 and CCI is at -170.  
Important Factor for today:-

• SINGAPORE'S labour market will tighten further and the local workforce growth will slow significantly in the second half of this decade.
• Singapore Post has formed a joint venture with PT Trikomsel Oke Tbk, which sells mobile phones in Indonesia, to tap the e-commerce market in Southeast Asia's biggest economy.
• Jurong Aromatics Corporation (JAC) has completed maintenance at its petrochemical complex in Singapore that had started around the middle of December.
• SMRT Corp's growth drivers are still intact despite a series of rail service disruptions in the last two weeks that the public transport regulator deemed unacceptable,
• Asian stocks buckled while the US dollar held firm in early Monday trade after strong US jobs data fanned expectations that the US Federal Reserve may raise interest rates sooner than previously thought.
• Huang Yupeng, chairman and CEO of Sino Grandness Food Industry Group, has raised his stake to 35.34% from 35.26% in Shenhen headquartered company.

Market Review for KLCI: The FBM KLCI index lost 15.22 points or 0.84% on Monday. Finance Index fell 0.54% to 15903.41 points, Properties Index dropped 0.85% to 1306.45 points and Plantation Index down 0.50% to 7884.27 points. Market traded within a range of 19.00 points between an intra-day high of 1797.99 and a low of 1778.99 during the session.The KLCI dropped 15.22 points to 1791.74, amid losses at Wall Street last Friday as better-than-forecast jobs data fueled speculation that the US Federal Reserve is moving closer to raising interest rates. The performance of our benchmark index was bogged down by selling pressure in heavyweight counters such as Sapurakencana and Genting.
Market forecast for KLCI: Market was bearish due to US data, formed a falling window which is showing further bearish signal.
Technical indicators: RSI stood below the center line at 44.711 with its CCI at -187.959. Difference line of MACD performed at 6.999 below its signal line which performed at 10.636.
ECONOMIC FACTORS:

• Malaysia's ringgit slid to a six-year low versus the dollar after US jobs data hardened speculation the Federal Reserve will increase interest rates by the end of June.
• IOI Properties Group Bhd has aborted its NT$25.14 billion (RM2.74 billion) proposed acquisition of a stake in the iconic skyscraper, Taipei 101.
• The international reserves of Bank Negara Malaysia amounted to RM386 billion. The reserves position is sufficient to finance 7.9 months of retained imports and is 1.1 times the short-term external debt.
• Short-term interbank rates are expected to remain stable today on Bank Negara Malaysia (BNM)’s intervention to absorb excess liquidity from the financial system.
• There are positive outlook on the construction sector due to better earnings outlook, robust contracts award and limited valuation downside on construction stocks. The robustness of the sector may propel construction companies' earnings growth prospect further and which in turn shall translate into higher market valuation.
• Tenaga Nasional Bhd (TNB) is optimistic that its revised offer for a controlling stake in Integrax Bhd will be well-received by the port operators shareholders.
• Boustead Holdings Bhd is buying a 50% stake in Irat Properties Sdn Bhd, which recently signed a deal to buy the entire stakes in ATES Sdn Bhd and Beta Tegap Sdn Bhd, the joint operators of the automated traffic enforcement system (AES) in the country.
• Mulpha Land Bhd has received a mandatory takeover offer from entrepreneur Datuk Fakhri Yassin Mahiaddin, via his private investment vehicle Teladan Kuasa Sdn Bhd, to acquire the rest of Mulpha Land for 49.7 sen a share.
• EITA Resources Bhd’s unit, EITA-Schneider (Mfg) Sdn Bhd, has formed a JV with Shanghai STEP Electric Corp to provide elevator control systems for the Association and South-East Asian Nations and Middle East markets.
• Investment holding company, LPI Capital Bhd, is confident of sailing through the challenging FY15 and post another satisfactory performance.
• WCT Holdings Bhd has been awarded a RM1.2 billion contract in Doha, Qatar, through its wholly-owned subsidiary WCT Berhad’s joint venture with Al-Ali Projects Co. there.

STI & KLCI Technical Analysis Outlook 5-March

Market Review for STI: Singapore share prices opened lower with the Straits Times Index (STI) down 0.03 points to 3,415.50. Singapore shares remained mostly lower as risk appetite was subdued ahead of the European Central Bank's policy meeting later today and as investors mulled over China's reduced GDP growth target announced at the annual meeting of the National People's Congress.
Market forecast for STI: We may expect it will move in the range of 3388 to 3456
Technical Indicators: RSI is at 47 and CCI is at -147.
Important Factor for today:-

• China is facing risks of deflation and may suffer a prolonged period of economic stagnation given structural woes such as excess capacity and slumping property prices.
• Singapore is set to have the world's fastest growth in the number of super rich individuals within the next 10 years,
• Hong Kong and Shanghai markets led a broad Asian sell-off after China set tepid 2015 economic and trade growth targets, while the euro struggled to recover from 11-year lows ahead of a key European Central Bank meeting.
• Singapore-listed trusts and companies with sizable revenue from India have averaged a price gain of 6.2 per cent and divided yield of 3.7 per cent to date this year .
• Commodity trading house Noble Group said it only decided to take a US$200 million impairment charge relating to an Australian coal investment on the day of its earnings release, responding to a local newspaper report questioning the lack of a profit warning.
• Sino Construction, which lost 77% of its market value earlier this week, will return to its core construction trade even as it expands into power production.

Market Review for KLCI: Malaysia share prices opened lower on Thursday with the FTSE Bursa Malaysia Kuala Lumpur Composite Index down 5.88 points to 1819.66.
Market forecast for KLCI: Due to poor Crude data and china’s data market was bearish today, maintaining R1 at 1812 R2 at 1825 and S1 at 1805 and S2 at 1780-1790.
Technical indicators: RSI stood below the center line at 52.055 with its CCI at 0.349. Difference line of MACD performed at 10.682 above its signal line which performed at 12.092.
ECONOMIC FACTORS:

• Daya Materials Bhd has accepted Perfect Propel Sdn Bhd's request to forego the put option and reduce the price for call option shares of RM8.80 regarding the sale of its 30% stake in Daya CMT Sdn Bhd.
• The Malaysian Investment Development Authority (Mida) which will be organising a series of global supply chain conferences throughout the year, hosted an aerospace and commercial supplier conference to spur further investments in the aerospace industry.
• Integrax Bhd's board of directors have advised its minority shareholders to reject the revised take-over offer of RM3.25 a share by Tenaga Nasional Bhd (TNB).
• The Centre for Public Policy Studies (CPPS) Malaysia has recommended a Single Pricing Policy in order to establish a fair playing field for all businesses and eliminate hidden costs.
• Kwasa Land Sdn Bhd, a fully owned subsidiary of Employees Provident Fund, will make RM65 million, inclusive of its revenue guarantee, from its first bumiputra residential development, Project R3-2, in Kwasa Damansara.
• Bursa Malaysia Derivatives Bhd (Bursa Derivatives) expects the trading of crude palm oil futures to hit a new high of 325 million tonnes in 2015, a 29% jump from the record 252 million tonnes in 2014.
• Moody's Investors Service has assigned a provisional (P)A1 rating to the US$15 billion medium-term note (MTN) programme to be issued by PETRONAS Capital Ltd and guaranteed by Petroliam Nasional Bhd.
• Maybank is committed to see further growth in retail small and medium enterprise financing in 2015 after recording a strong 43 per cent rise to RM7.5 billion in 2014.
• Bina Puri Holdings Bhd, the country’s integrated civil and building construction services provider, has secured a RM128.5 million contract to construct a spa resort complex in Chendering Beach, Kuala Terengganu.
• Property developer, MK Land Holdings Bhd, will launch two projects this year with a combined Gross Development Value of RM600 million, says Group Chief Executive Officer Lau Shu Chuan.
• The Malaysian capital market grew to RM2.76 trillion and remains resilient amid global uncertainties, revealed the Securities Commission in its annual report.
• Many central banks in the region have cut policy rates, Bank Negara Malaysia is not likely to be one of them at this juncture. CIMB Investment Bank said the central bank will continue to adopt a wait-and-see stance.
• Tenaga Nasional Bhd’s (TNB) shares on Bursa Malaysia declined in early trade today after the Integrax board recommended shareholders reject a revised offer of RM3.25 by the national utility company.

SGX & KLSE Stock Market Review 4-March

Market Review for STI: Singapore share prices opened lower with the STI down 1.44 points to 3,420.67.Singapore shares rose after new data showed China's services sector grew modestly in February as new orders rose at their quickest pace in three months.
 Market forecast for STI: Still STI is not in one trend we may expect it will move in the range of 3388 to 3456
Technical Indicators: RSI is at 51 and CCI is at 24.
Important Factor for today:-

• It may be the most expensive city in the world for expatriates but Singapore is also once again the top city in Asia for this group when it comes to quality of life.
• China Oilfield Technology Services Group will be delisted after the loss-making company failed to meet regulatory requirements for removal from the SGX watch-list.
• Private equity funds worldwide sold a record US$456 billion ($621 billion) worth of investments last year, 67% more than in 2013, driven by a handful of mega deals and buoyant IPO markets in 1H2014
•  CIMB Research believes listed property developers' stock prices should sustain its growth going forward, if asset recycling activities start to occur via a trade sale, divestment to private funds, or to Singapore REITS.
• Sete Brasil is looking for a solution with its lenders and shareholders with options ranging from restructuring debt to a full write-off, according to Upstream, the global Oil & Gas news source.
• CNA Group announced a proposed placement of some 119 million new shares priced at S$0.0335 each that could rise up to S$3.79 million in net proceeds.
• Blumont Group on Tuesday said that it has obtained in-principle approval from the Singapore Exchange for the proposed placement of 100 million new shares priced at S$0.01705 each that could rise up to S$1.67 million in net proceeds.

Market Review for KLCI:
The FBM KLCI index gained 4.29 points or 0.24% on Wednesday. Finance Index increased 0.01% to 16103.45 points, Properties Index up 0.01% to 1326.84 points and Plantation Index rose 0.19% to 7988.44 points. Market traded within a range of 6.87 points between an intra-day high of 1826.05 and a low of 1819.18 during the session.
Market Review for KLCI: The FBM KLCI index gained 4.29 points or 0.24% on Wednesday. Finance Index increased 0.01% to 16103.45 points, Properties Index up 0.01% to 1326.84 points and Plantation Index rose 0.19% to 7988.44 points. Market traded within a range of 6.87 points between an intra-day high of 1826.05 and a low of 1819.18 during the session.
The KLCI extended yesterday’s gains by ending 4.29 points higher at 1825.54, despite the lower overnight close on Wall Street due to slight decline in February's auto sales. The gain in our benchmark index was underpinned by buying in heavyweight counters, led by YTL Corp.
Market forecast for KLCI: Higher closing of today’s trading session indicating market could be bullish by maintaining volume. Still there is a resistance to break 1830.
Technical indicators: RSI stood below the center line at 64.559 with its CCI at 121.129 Difference line of MACD performed at 12.305 above its signal line which performed at 12.444.
ECONOMIC FACTORS:

• Malaysia is on track to reach high income status in five years due to skillful economic management amidst an uneven global recovery, says the International Monetary Fund. Robust domestic demand supported by sound macro-financial policies is driving strong, non-inflationary growth in the face of uncertain external conditions and declining commodity prices.
• Shares of Mega First Corporation Bhd (MFCB) is bound to reach its highest since 1995 after it signed a shareholders agreement with Laos' Electricite du Laos (EDL) and two other parties to develop Don Sahong hydropower project.
• Foreign funds took profit on Malaysian equities on Tuesday with net selling at RM162.30mil after two days of net buying. foreign funds bought RM545.8mil of Malaysian equities but sold RM708.1mil.
• 4Q earnings for 2014 were uninspiring despite more corporates meeting its earnings expectations.
• Malaysia's sovereign rating is unlikely to see a downgrade, despite a possible widening in the deficit due to lower oil revenues and high household debt because of its strong fundamentals.
• The Malaysia Competition Commission (MyCC) has imposed a total financial penalty of RM247,730 on 15 infringing enterprises in relation to a price fixing agreement between 24 enterprises who are members of the Sibu Confectionery and Bakery Association (SCBA).
• The Securities Commission Malaysia (SC), the Monetary Authority of Singapore (MAS), the Securities and Exchange Commission (SEC), Thailand and the Singapore Exchange (SGX) have signed a memorandum of understanding (MoU) to establish a Streamlined Review Framework for the Asean Common Prospectus.
• Ni Hsin Resources Bhd will proceed with its investment in loss making Helios Photovoltaic Sdn Bhd, confident that it will become a major revenue and profit contributor to the group in the future.
• CIMB Group Holdings Bhd and Mitsubishi Corp yesterday launched the Asean Industrial Growth Fund (AIGF LP) to channel Japanese corporates looking to invest in mid-tier Asean companies.
• Malaysia's exports likely increased 3.0 per cent in January from a year earlier while the pace of import growth probably slowed to 2.0 per cent.

Hanuman plays an important role in the Ramayan, yet in the epic itself, he does not hold any great position. He is just one of the many monkeys Ram encounters in the forest. He is not Sugriva, leader of the monkey troop. He is not Angad, who is told to lead the band of monkeys searching for Sita. He is not Jambavan, the bear or Nila, the monkey, who are given the responsibility of building the bridge. He is projected as an obedient follower who, through his intelligence, strength and courage, wins the admiration of Ram and emerges as one of the most revered characters of the tale and a god in his own right. But at no point does Hanuman make any attempt to steal anyone’s glory; while in his own temple he stands powerful with mountain in hand and feet on a demon, in Ram’s temple he is most content sitting at the feet of his master, hands in supplication.

Who would not want a Hanuman in his team? One who is very good at his work, one who will do whatever he is told to do, one who will never seek either reward or recognition and one who finds validation in obeying his master.

If we go to Raju’s auto repair shop, we will find that all the work is done by his Hanuman: Amol, a young boy, who has been working with Raju for three years. Amol is a natural, able to fix the most complex of problems. Raju knows he can totally rely on Amol. No job is too big or too small for Amol. He is as happy changing a tyre, as he is fixing the brakes. He does not boss over the juniors and does not feel slighted if the seniors ask him to fetch tea. If there is a problem that eludes a standard solution, everyone knows that leave it to Amol – he will, like Hanuman crossing the sea, find a way.

Yes, it matters greatly to have a Hanuman in our team. One who will not question you. One who will do exactly what you tell him to do. One who delivers no matter what the odds. One who is loyal and devoted. But is that really good?

The following is a folk story of Hanuman: Hanuman once narrated the entire Ramayan to his mother, Anjani. After the narration, an impressed Anjani sought a clarification. “You are so strong that with a flick of a tail you could have destroyed the whole of Lanka, killed Ravan and rescued Sita. Why did you not do so? So much effort and time would have been saved – you would not have had to build a bridge to Lanka, you could have avoided the war. Why did you not do that?”

Hanuman replied, “Because Ram never asked me to.”

And suddenly we wonder if this was opportunity lost. Hanuman was asked to discover Sita’s location; he did that. Hanuman was asked to fetch the mountain of herbs that would save Lakshmana’s life; he did that. No one asked him to destroy the Rakshasas and rescue Sita. So he did not do that. One common explanation given for why Ram never asked Hanuman to kill Ravan and rescue Sita is that it was Ram’s duty to rescue Sita, not Hanuman’s. Ramayan is about Ram, not Hanuman. But it is not so in the corporate world; the story is about the entire organization, not just about the leaders.

In the entire epic, Hanuman proves his capability time and time again. On his way to find Sita, he displays his extraordinary power (crosses the ocean), brain (outwits the snake-demon Surasa), brawn (kills Simhika) and integrity (not resting on Mandara mountain). And yet, while everyone admires this, no one seems eager to take full advantage of it. Was this refusal to take advantage of Hanuman’s abilities a divine decision or merely a oversight? Is the same being done in the corporate world?

Yes, Raju loves Amol’s work. Yes, Raju admires Amol’s work. But is Raju harnessing the full potential of Amol? Is his contentment with Amol’s obedience preventing him from seeing all that Amol can do, proactively, creatively, independently, if he is given the freedom to do so? Ask Raju and he will say, “But I don’t stop Amol from doing anything.” He does not stop Amol from doing anything, but he does not encourage Amol to do something else either.

The greatest danger of having Hanumans in our team is that his actions are limited by our directions. Maybe we fear that if Hanuman thinks for himself, there will be chaos – he is a monkey after all. Maybe we fear that he will overshadow us. Hence, ultimately, only we decide the goals, we define the vision, we declare the mission and state the objective. Our Hanuman will help you realize all this. But, maybe, the goals could have been greater and grander, if we had let Hanuman do more than merely obey.

Amol once had given Raju a suggestion. “Sir, if we park our cars perpendicular to the wall rather than parallel we can keep more cars in the garage?” Raju ignored this suggestion. “Do you work,” he snapped at Amol without giving his words much thought. But the message he implicitly gave Amol was that – ‘I only want your obedience, not your intelligence.’ Amol immediately complied. And that marked the end of Amol’s creativity that would have perhaps made Raju’s auto repair shop a much greater success.

This is the danger of over compliance and extreme obedience. We prevent followers from thinking and contributing. It makes business sense therefore to take a closer look at the Hanumans in our team; we just might find in their hearts a Ram waiting to be coaxed out.