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Showing posts with label Stock. Show all posts
Showing posts with label Stock. Show all posts

September 23, 2021

After Continued Dipping, Bursa Malaysia Trading Returned Positive

Heading into the end of the trading week, Bursa Malaysia appears to have seen a surge with a higher opening in today’s trading session deck due to Wall Street’s better overnight performance.

At 9.59am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) index climbed 6.55 points to 1,535.57 after trading 3.31 points higher at 1,532.33 this morning.

On the broader market, gainers outnumbered losers by 334 out of 159, while 310 counters were unchanged, 1,499 untraded and five others suspended.

Malacca Securities said that the current sentiment of the FBM KLCI was seen to be slightly uplifting following the positive impact by Wall Street yesterday and the proposed opening of three more holiday destinations.

In addition, it is also influenced by the latest news from the government stating that the reopening of the border between the states is expected to be implemented if the adult vaccination rate has reached 90%.

Gradually the economic sector reopened giving a brighter reaction to the economic recovery and as a result, investors are likely to focus more on aviation, tourism and consumer stocks.

Not to be outdone, telco -related stocks are likely to continue to rise today in line with plans on the National Digital Network (JENDELA).

For heavyweights, Maybank rose one sen to RM8.11, Public Bank and IHH Healthcare gained two sen each to RM4.06 and RM6.65.

Meanwhile, Petronas Chemicals jumped three sen to RM8.08 and Petronas Gas declined eight sen to RM16.82.

For active stocks, Bintai Kinden rose three sen to 68 sen, Opcom 'rocketed' five sen to RM1.16, KNM rose half -a -sen to 23.5 sen and TFP Solutions fell 1.5 sen to 14.5 sen.

On the index board, FBMT 100 climbed 30.06 points to 10,967.52, FBM 70 jumped 43.06 points to 14,949.99 and FBM ACE climbed 61.43 points to 7,168.87.

The FBM Emas index rose 34.14 points to 11,267.25 and the FBM Emas Shariah index added 38.31 points to 12,281.98.

By sector, the Financial Services index rose 55.65 points to 15,209.51, the Industrial Products and Services index rose 1.41 points to 199.63 and the Plantation index hovered 9.13 points to 6,283.85.

Opcom Shares Continue To ‘Fly’, Retesting Highest Levels Since 2015

 After showing an excellent performance a month ago by surprisingly recording a drastic increase of up to 10 times in its share trading volume, today again, the shares of fiber optic cable manufacturer Opcom Holdings Bhd again stole the spotlight when it managed to break the RM1 level which is the level the highest ever achieved in 2015.

The drastic surge is likely to be supported by news of the implementation of the National Digital Network (JENDELA) in Perak which will involve the construction of 171 new telecommunication towers and the increase of 1,754 communication transmitters.

Chairman of the Perak Youth, Sports, Communication and Multimedia Committee, Khairul Shahril Mohamed explained that it will involve the provision of fixed line fiber optic access to 252,475 premises in Perak.

"The implementation of JENDELA will focus on the process of developing a new website, upgrading existing transmitter stations to 4G technology," added Khairul Shahril.

In addition, it is also expected to provide fiber optic access at premises nationwide in preparation for the country’s technology transition towards 5G.

At 11.31am, Opcom's share price remained at 7.21% to RM1.19 after testing the RM1.28 level and thus it was listed as the second most actively traded counter today.

Opcom is a private limited company engaged in the manufacture of fiber optic cables and cable - related products and was incorporated in Malaysia in November 1994.

SAM Engineering Shares Show ‘Fierce’ Action, Latest ATH Record

 SAM Engineering & Equipment (M) Bhd's share price recorded a strong performance by reaching the latest all -time high (ATH) in the trading session on Bursa Malaysia today.

As at 12.28pm, the counter was up 13.88% to RM19.36 after heading to the ATH level this morning around RM19.90 and was listed as the 5th most profitable counter.

At RM19.36, SAM Engineering shares displayed a market capitalization gain of RM2.62 billion with 841,300 shares traded.

However, the shadow of such an increase is still unknown and cannot be ascertained at an immediate rate.

Judging by the report stated on September 15, the company had closed two factories in Penang for 14 days for clean -up purposes based on the guidelines of the Ministry of Health (MOH).

It follows that some subcontractor workers at the plant tested positive after a Covid-19 screening test and were ordered to close for a while by the ministry.

Meanwhile, SAM Engineering's net profit jumped to RM11.98 million in the second quarter ended June 30, 2021 from RM7.21 million.

The company's revenue also jumped to RM202.78 million from RM170.98 million in the same period last year.

The group's shares have seen a 163.40% climb from the market closing level of RM7.35 on January 4, 2021.

Hint Crisis Will End, Evergrande Shares Rise 17%

 Most stock prices in Asia Pacific started to show a slight recovery in today’s trading session but investors remained vigilant on the current situation regarding Evergrande’s development.

As of 3.33pm, Chinese shares of Evergrande were up 16.30% to HK $ 2.65, however it still remained down more than 80% from the price level recorded in early 2021.

The positive sentiment came after Evergande China's main unit, Hengda Real Estate Group, announced that it would implement coupon payments for 'onshore bonds' scheduled for Thursday.

The total amount to be paid is estimated at $ 35.9 million.

Yet the total amount is not included with the interest collateral to be paid and when the payment will be cleared, just say it has been settled through private negotiations.

Based on the agreement signed with the investors, Evergrande only has a period of 30 days before the agreement will be revoked.

Director of the Institute of New Market Studies at the Hong Kong University of Science and Technology, Donald Low said it was still too early to talk about the solution plans underway.

Analysts also issued a warning that Evergrande's failure to solve the problems it faces will have a major impact on China's economy.

He added that indirectly, it is also likely to give a negative impression to the global financial system.

Following the announcement, it gave investors some reassurance about the company's future after being tied to a debt crisis of more than $ 300 billion.

Genting Highlands To Reopen, Genting Shares Back 'Roaring'

The share prices of Genting Bhd and Genting Malaysia Bhd (GENM) showed an aggressive rise after the news that Genting Highlands will reopen starting October 1.

Examining the report released, Genting Highlands has been listed among the new holiday destinations that will reopen soon, including Pulau Tioman and the state of Melaka.

As at 4.14pm, Genting's share price remained up 0.41% to RM4.92 after reaching a daily high of around RM4.99 and accumulating a market capitalization of RM19.15 billion.

Meanwhile, GENM's share price also increased by 0.33% to RM3.06 which was previously traded at RM3.09 and has a market capitalization of RM18.11 billion.

Tourism Minister Datuk Seri Nancy Shukri noted that the recent reopening of Langkawi has seen success under the trial travel bubble.

Based on the observation record, almost 10 thousand tourists have flooded the island of Langkawi to return for vacation and also revitalize the economic market.

Other priority tourist destinations in the district such as Genting Highlands and Fraser Hill have seen vaccination rates reach 100% in preparation for the reopening of the sector.

Nancy is likely to hold a meeting to discuss the reopening of interstate tourism, according to Bernama.

Following the reopening of the sector, Resort World Genting is very happy and ready to welcome tourists by ensuring the safety of visitors.

September 22, 2021

The stock market may sink even more if the Fed announces the end of QE.

 The key US stock indices (the S&P 500, Dow Jones, and NASDAQ) continue to adjust. Even despite the "collapse" of stock indices on Monday, at the moment, their entire downward movement cannot even be called a "correction" in the literal sense of the word. The problem is that the downward movement is too small to be considered a full-fledged correction. So far, this is only a "rollback." Thus, there is no panic in the stock market right now. But it can begin if the Fed announces the beginning of the completion of the asset purchase program today. Recall that in recent days, investors have begun to get rid of risky assets against the background of the possible bankruptcy of the Chinese construction company Evergrande. It is already being compared to Lehmann Brothers, the bankruptcy that gave rise to the mortgage crisis of 2008. However, from our point of view, the scale is not the same, and today's Fed meeting plays a much bigger role for investors.

The opinions of most experts today are divided into two branches. The former believe that the Fed will not delay and announce the QE program's curtailment today. It is supported by the representatives of the Fed's monetary committee themselves, who have repeatedly recently expressed their support for this step "as soon as possible." On the other hand, not all Fed members believe that this issue should be rushed. Thus, the curtailment of QE will be decided by a vote within the monetary committee, and the results of this vote cannot be predicted. The second branch believes that the Fed will announce the curtailment of QE no earlier than November. The latest macroeconomic data from the States were not the best. In particular, this applies to the report on Non-farms and inflation, which the Fed pays the most attention to. Non-farms in August were three times weaker than the values of July or June, and inflation began to slow down, but only by 0.1%. Thus, there are also enough factors that favor the opinion "we still need to wait." We believe that we should not speculate about what decision the Fed may make in the current situation. You need to wait for the publication of this decision. However, there is no doubt that we will have high volatility on the stock market, on the currency market, and even, possibly, on the cryptocurrency in the evening.

Recall that reducing the quantitative stimulus program will mean that less money will start flowing into the US economy out of nowhere. And less money for the US economy will also mean a decrease in the volume of investments in stocks and cryptocurrencies. Therefore, both the stock market and the cryptocurrency market may react with a decrease to the curtailment of QE. Recall that there are investors in any market who do not set their goal to buy assets for many years to come. Such investors sell off this or that asset as soon as there is any threat. And such a threat may be the Fed's decision to end QE.

Getting worse! Bursa Malaysia Is Expected To Fall Again To Reach The 1,500 Level

 Bursa Malaysia continued to bleed by maintaining its downtrend when it opened lower in today's trading session in line with Wall Street's weak overnight performance.

As at 10.27am, the benchmark FTSE Bursa Malaysia KlCI (FBM KLCI) index continued to decline 3.52 points to 1,526.92 from 1,530.44 at Tuesday's close.

According to Bernama, the index opened 5.81 points lower at 1,524.63.

On the broader market, losers outnumbered gainers by 268 out of 168, while 266 counters were unchanged, 1,570 untraded and five others suspended.

Turnover stood at 302.50 million units worth RM168.91 million.

According to Malacca Securities, there was a slight surge yesterday in selected sectors as the government announced a proposal to open three more holiday destinations following the number of daily Covid-19 cases continuing to decline.

On Tuesday, Minister of Tourism, Arts and Culture, Datuk Seri Nancy Shukri announced that Genting Highlands, Melaka and Pulau Tioman will participate in the domestic tourism bubble which will begin on October 1.

The proposal gives a slight hint that the reopening of the economy will be more widespread and will have a positive impact on the recovery sectors such as aviation, tourism and consumers.

For heavyweights, Maybank and TNB rose five sen each to RM8.10 and RM9.87, respectively, while Public Bank remained at RM4.02.

Petronas Chemicals fell five sen to RM7.91 and IHH Healthcare declined three sen to RM6.57.

For active stocks, Tanco jumped one sen to 25 sen, Bintai Kinden added 4.5 sen to 61.5 sen and Asastera Engineering rose two sen to 39.5 sen.

On the index board, the FBM 100 declined 38.68 points to 10,893.10, the FBM 70 fell 16.19 points to 14,821.31 and the FBM ACE fell 18.43 points to 6,997.19.

The FBM Emas index fell 38.66 points to 11,183.74 and the FBM Emas Shariah index declined 30.13 points to 12,167.75.

By sector, the Financial Services index fell 121.08 points to 15,133.12, the Industrial Products and Services index rose 0.02 points to 196.50 and the Plantation index fell 23.83 points to 6,260.99.

Dayang Shares Annoyed Investors, Falling Below RM1

 Dayang Enterprise Holdings Bhd's share price showed a drastic decline to trade below the RM1 level where the last time it broke that level was in November 2020.

At 11.21am, the counter rose slightly by 1.10% to 92 sen with a market capitalization of RM1.06 billion.

To date, Dayang shares have declined 24.58% from a March high of around RM1.65 following selling pressure on shares affected by the group's financial performance in the second quarter.

Judging by the stated statement, Dayang Enterprise is a company that provides shipboard maintenance services, ship rental and so on.

Recently, the group released a report that its net loss jumped to RM21.89 million for the second quarter ended June 30, 2021 from RM985,000 last year.

The increase in net loss is likely to be influenced by higher operating costs at the current Covid-19 pandemic situation.

Meanwhile, quarterly revenue declined by 6.59% to RM159.69 million from RM170.95 million due to the use of ships which was seen declining to 51%.

September 21, 2021

Sime Darby Plantation Accepts Tempias, Prohibition of Hiring Foreign Workers Extended

 Sime Darby Plantation Bhd's share price declined 9.47% during the trading session on Bursa Malaysia yesterday which was influenced by the sell -off between FBM KLCI shares.

The fall came as investors assessed the impact of the extended ban on the hiring of foreign workers on plantation groups and it was also hampered by environmental, social and governance (ESG) concerns.

Other plantation sectors also continued to decline yesterday such as Kuala Lumpur Kepong Bhd declined 1.78% to RM19.80 and IOI Corp Bhd fell 0.53% to RM3.75.

On September 19, Human Resources Minister Datuk Seri M Saravanan announced that the government had reached a decision not to hire foreign workers at all until the end of 2021.

UOB Kay Hian stated that Malaysia had reached an agreement in May to bring in 32,000 foreign workers for the sector but the process had been delayed.

However, as of 11.05am, Sime Darby Plantation's share price had risen 3.77% to RM3.58 in today's trading session, accumulating a market capitalization of RM24.41 billion.

Sime Darby Plantation and FGV Holdings Bhd also received tempias following the import ban by US Customs and Border Protection (GST) on charges of using forced labor.

As a result, Sime Darby Plantation is intensifying efforts to expedite the appraisal process and hopes that it will be able to reach final results by early 2022.

Evergrande Debt Crisis Also Haunts The Local Stock Market

 Concerns over the issue of Chinese real estate giant Evergrande continue to haunt investors and raise questions about whether it can afford to pay or not.

The impact of Evergrande has indirectly affected almost the entire global market, including the Asian equity market, but the impact on the Malaysian stock market is expected to be somewhat limited.

AmInvestment Bank said the risks to Asian equity markets were seen to be limited unless the Chinese government allowed Evergrande not to take any follow -up action to control the situation.

"But it is a situation that will not happen at all because of course Beijing will try to solve the problem in order to provide stability to the people," he added.

Evergrande, which is listed on the exchange, now faces liabilities in excess of 485 billion yuan ($ 300 billion) as a result of the financing loan.

According to the investment bank, the two real estate companies associated with the republic's property market are IOI Properties Group Bhd and Sunway Bhd.

Which IOI Properties has a development in Xiamen while Sunway Bhd has a development in Tianjin.

After conducting the valuation, AmInvestment Bank set the FBM KLCI target for the end of 2021 to be 1,643 points compared to the previous level of 1,695 points.

Through these concerns, it also continued to drag Evergrande's share price to decline 10% yesterday to HK $ 2.28 thus reaching the lowest level in more than 11 years.

Meanwhile, from the year to date (YTD), the stock has experienced a decline of 85% from the HK $ 14.90 level reached in early 2021.

Merry Christmas! MR DIY Offers Discount Prices Through Sales Campaigns

 MR DIY has launched a campaign called “Safe Pocket 7” to ensure people have affordable and easily accessible personal protective equipment to stay safe.

MR DIY Group (M) Bhd Vice President of Marketing, Andy Chin said the group was working hard to help people stay safe when returning to work, school and travel.

He added that following the permanent reduction in the price of protective essential goods, he hoped that the entire community would always comply with the SOPs as set by the government.

MR DIY's annual "Safe Pocket" campaign will see mega offers for popular and best -selling products and is expected to be effective for 1 month starting September 15.

Through this campaign, it will offer discounts of up to 40% for 45 selected products offered at 738 MR DIY stores nationwide as well as on retailers' e-commerce sites.

In the meantime, MR DIY also offers ‘extravaganza’ offers for hardware, electrical goods, mobile phone accessories, household products and so on.

As at 3.51pm, MR DIY's share price jumped 0.77% to RM3.91 in trading session on Bursa Malaysia today with a market capitalization of RM24.60 billion.

This Is Among The Stocks Showing Outstanding Performance Recorded Latest ATH

 Eurospan Holdings Bhd's share price 'rocketed' 16.05% or 26 sen to RM1.62 in today's trading session, thus reaching the latest all -time high (ATH).

However, as of 4.21pm, the counter remained up 9.56% to RM1.49 with a market capitalization of RM66.19 million.

The furniture manufacturing company also has an issued share capital of RM52.8 million comprising 44.42 million shares and the net asset value per share remained at 98.57 sen as at 31 May 2021.

General and managing director Guan Kok Beng is its largest shareholder which it has increased its holding last year to 23.51 million shares or 52.92%.

According to the report, 41.67% is held through TBHL Holdings Sdn Bhd.

Eurospan also recorded a net profit of RM3.46 million or 7.78 sen per share in the financial year ended May 31, 2021 compared to a net loss of RM2.49 million or 5.61 sen per share.

The factor is likely to be influenced by the steady margin rate as well as the increasing demand for furniture products in the primary market.

Meanwhile, revenue for the year also showed an increase of 11.76% to RM52.58 million from RM47.05 last year.

Annoying Market Startups, Is Safe Haven an Option?

 Today the market was shocked by news of Evergrande, China’s second -largest real estate firm that has sunk shares in Asian markets into the red sea and raised market concerns that the financial problems the company faces will bring a bigger crisis to global growth.

With $ 300 billion in debt, Evergrande says it will start paying investors with properties that resulted in massive sales by other developers and its lenders.

This has affected the yuan which depreciated to a nearly three -week low. The same is true of risky currencies and commodities due to concerns over the Evergrande issue. However, the safe haven currency has received a boost.

The US dollar index, which measures the greenback against major currencies, strengthened before declining at the market opening at 93.117. The yen strengthened 0.2% to trade level of 109.72.

The sterling, which correlated with broader risk sentiment, slipped 0.5% to a four -week low of $ 1.3662.

According to analysts, financial markets started the week with a state of caution especially the Evergrande report and the FOMC meeting.

“Today also saw the Canadian election, where failure to get a clear result will push the CAD to decline further.

Among other major central banks, the Bank of England is not expected to make any policy changes. Investors will continue to focus on the indications that will be presented by the central bank.

September 20, 2021

Bad! Bursa Malaysia Lack of Market Catalyst

 Bursa Malaysia traded lower in this week's trading session due to a lack of market catalysts and in turn has driven the key index to maintain its downtrend.

At 10.10am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) index declined 10.64 points to 1,537.87 after opening 0.89 points lower at 1,547.62 this morning.

On the broader market, losers outnumbered gainers by 263 to 154, while 306 counters were unchanged, 1,553 untraded and nine others suspended.

Turnover stood at 220.87 million units worth RM111.02 million.

Malacca Securities said the local bourse is likely to see potential low-value stock hunting activity amid the Covid-19 daily case which continues to show a decline.

At the same time, investors are waiting for Malaysia's inflation rate data which is expected to be published this Friday.

The significant decrease in daily Covid-19 cases also indirectly sent a positive signal for recovery sectors such as consumers, tourism and construction to continue to gain focus.

Despite the weaker market sentiment, the technology sector was not left behind to be given warm attention by local investors as buying interest in this sector was seen to continue to increase.

For heavyweights, Maybank and Axiata jumped four sen each to RM8.29 and RM3.95, respectively, while Petronas Chemicals and IHH Healtcare remained at RM7.94 and RM6.70 respectively.

TNB rose two sen to RM9.92, Public Bank declined three sen to RM4.03 and CIMB fell one sen to RM4.81.

For active stocks, KNM rose one sen to 27.5 sen, Emico added 1.5 sen to 68 sen and Bioalpha rose half -a -sen to 23 sen.

On the index board, the FBM 100 slipped 31.63 points to 11,028.23, the FBM 70 fell 48.74 points to 14,958.55 and the FBM ACE fell 6.96 points to 7,194.26.

The FBM Emas index fell 30.38 points to 11,335.44 and the FBM Emas Shariah index declined 32.93 points to 12,381.21.

By sector, the Financial Services index fell 47.40 points to 15,242.40, the Industrial Products and Services index declined 0.64 points to 198.97 and the Plantation index rose 12.22 points to 6,438.64.

PMB Technology Shares Showcased ‘Extravaganza’ Action Earlier This Week

 PMB Technology Bhd's share price showed strong action at the beginning of this week's trading session, reaching its latest all -time high of RM9.45.

As at 11.32am, the counter's share price had jumped 22.31% to RM9.10 with a market capitalization of RM1.97 billion.

The surge has also prompted PMB shares to be listed as the second highest gainer on Bursa Malaysia today.

For the 2021 market movement, the counter has risen 95.10% from the RM4.69 level reached on January 4, 2021 while seeing a jump of 256.03% if assessed in the same period last year.

PMB Technology is an investment holding company engaged in the manufacture and distribution of aluminum related products and related building materials.

For information, Press Metal Aluminum Holdings Bhd is the largest shareholder of PMB Technology with a stake of 20.87%.

However, it is not impossible that PMB's shares soared in today's trading session due to the metal and aluminum prices which are currently seen still increasing as well as the increasing demand for products.

In the second quarter ended June 30, 2021, PMB Technology saw an increase in net profit to RM11.58 million from RM1.36 million.

Meanwhile, the company's revenue has also doubled to RM178.25 million from RM84.86 million recorded last year.

Top Glove Shares Remain Bloody, Breaking Below RM3

 Top Glove's share price continued to plunge to its lowest level since May 2020 which has now recorded a fall of around 5.88% to RM2.88 in the trading session on Bursa Malaysia today.

According to Bernama, Top Glove's net profit has declined to RM607.95 million in the fourth quarter of financial year 2021 from RM1.18 billion achieved in the same period last year.

The company's revenue declined RM2.12 billion from RM3.11 billion.

Top Glove says the average selling price of gloves (ASP) has fallen lower following the normalization of demand following the implementation of increasingly widespread vaccination rates around the world.

However, Top Glove remains optimistic about the industry’s prospects and is confident that glove demand will maintain its upward trend especially with the emergence of new variants.

AmInvestment Bank Research expects the group’s sales volume to soar in the first quarter of financial year 2022 after the ban on exporting gloves to the US was lifted.

Meanwhile, for the financial year ended 31 August 2021, Top Glove's net profit recorded a 349% jump to RM7.87 billion compared to RM1.75 billion in financial year 2020.

The company's revenue for 2021 also increased 127% to RM16.4 billion from RM7.24 billion with the group's net cash position remaining stable at RM2.05 billion.

Judging by the aforementioned alerts, the performance has been driven by strong glove demand as well as the rise in ASP driven by the Covid-19 pandemic at this point.

Dennis Lockhart: Fed may announce taper in November

 In the last few days, US stock indices have been declining. However, so far, this drop is still too weak to be interpreted as a correction. The foreign exchange market has revived a little in the last couple of days. Traders are rather curious about whether this was a simple coincidence or not. The Fed will hold a meeting next week. It is sure to have a big impact on the market even if no important decisions are made during this meeting. In the last 2-3 months, there have been many talks about when the Fed will start trimming the quantitative easing program. Naturally, the regulator will take into account the latest Nonfarm Payrolls and inflation reports when making a decision on monetary policy. When these reports were published, they did not bring any clarity. Experts are still polarized when it comes to monetary policy tightening. The first group believes that the gradual easing of the QE program will be announced in September. The second group argues that this decision will be made no earlier than November or even in December.

Former Federal Reserve official Dennis Lockhart reckons that the Fed will not rush to make such an important decision and will wait at least until November. Waiting for Novermber will enable the FOMC members to study more data on the labor market's recovery and economic growth. "This is a first step in the gradual normalization of monetary policy. Assuming continued recovery of the US economy and the closing of employment and inflation gaps, the Fed's policy interest rates would begin to rise at some point next year," he stressed. Earlier, several policymakers spoke in favor of tapering QE as soon as possible as the labor market was recovering at a good pace. Additionally, inflation has grown strong enough to start reducing the bond-buying program. Jerome Powell did not provide any comments on this issue. The latest Nonfarm Payroll report showed a sharp decline and inflation slowed in August by only 0.1% on an annual basis. Lockhart also warned that if the macroeconomic reports turn out to be weal in September and November, this may be a reason to postpone the reduction of QE.

Thus, one can hardly be sure that the Fed will announce a tapering quote soon. The US dollar is likely to nosedive if the Fed decides to trim QE. So, its future trajectory hugely depends on the Fed's decision. The US stock market may, on the contrary, resume growth and continue to reach its all-time highs. The reduction of the asset purchases will mean that money will continue to flow into the economy, settling on the cryptocurrency, stock? and real estate markets. Thus, bitcoin may extend its rally.

NVDA Dip Ahead? Buying Opportunity?

 For all of you CFD and equity traders out there, we’re taking a technical look at NVDA as the price action tightens up. Will see see a consolidation breakout setup? Or will there be another uptrend buying opportunity?

NVDA Dip Ahead? Buying Opportunity?

As we mentioned above, our focus today falls on Nvidia (NVDA), the world’s leading maker of hardware and software for a wide range of platforms including gaming, cloud computing and artificial intelligence to name just a few.

The stock’s value has increased dramatically since the 2020 Pandemic crash lows where it traded at a post-split price of around $45, now trading around the $220. With their products deeply in demand for the world’s leading innovations like AI, gaming metaverse, and autonomous driving, the odds remain good that the stock could see further appreciation long-term.

But we’re looking at short-term opportunities today, and we can see a couple of potential setups forming on the four hour chart above.

First, the pair is currently in consolidation mode, trading roughly between the $220 – $230 area, tighter than the weekly average true range of about $14. We don’t expect a big catalyst from the company until the next earnings release in November, so one possible scenario for shorter-traders to consider is that the range will continue. In that environment, range plays like shorting $230 or longing around $220 are setups to consider for quick profits.

Another scenario to consider is that we may see a dip in NVDA in the short-term, likely sparked by the broad risk aversion vibes we’re getting from the overall market. With the recent surge in the Delta virus over the past few months, traders seem to be focused on a global slowdown at the moment. If that’s the case, a technical argument for a potential support area could be made for the $200 – $210 area, which falls not only on the Fibonacci retracement area drawn on the chart above, but also the broken previous resistance area that held off the bulls in July and early August before breaking in late August.

And finally, an upside break of the consolidation pattern between $220 – $230 would likely bring in technical buyers. In that scenario, traders should watch for a sustained break and/or a break and retest of the $230 handle before planning out what would likely be a swing or longer-term position.

What do you guys think? NVDA continue to consolidate until their next earnings? Or is a dip ahead for NVDA if the rest of the market falls on global growth slowdown concerns? 

Low Value Stock Hunt Resumes After Malaysia Day Holiday

 Bursa Malaysia opened higher in today's trading session following potential low -value stock hunting activity after the Malaysia Day holiday.

However, as of 10.32am, the FTSE Bursa Malaysia KLCI (FBM KLCI) index was slightly down 6.89 points to 1,548.39 from 1,555.26 at the close on Wednesday.

According to Bernama, the key index opened 1.09 points higher at 1,556.35.

On the broader market, gainers outnumbered losers by 165 out of 158, while 277 counters were unchanged, 1,668 untraded and six others suspended.

Turnover stood at 169.04 million units worth RM84.62 million.

According to Malacca Securities, investors resumed hunting activities for potential low -value stocks following the return of foreign participation in the local stock market.

Such factors were influenced by the reopening of the economy with more flexibility of standard operating procedures (SOPs) detailed under the implementation of the National Recovery Plan (NRP).

As a result, it continues to strengthen investors' focus on recovery sectors such as building materials as well as consumers.

For heavyweights, Maybank and Public Bank rose one sen each to RM8.30 and RM4.02 respectively while Petronas Chemicals jumped three sen to RM8.04.

Meanwhile, IHH Healthcare remained at RM6.58 and Press Metal Aluminum declined two sen to RM5.72.

For active stocks, Malayan United, Impiana Hotels and Ageson were flat at 8.5 sen, 8.5 sen and 7.5 sen respectively.

On the index board, FBM 100 rose 10.19 points to 11,096.47, FBM 70 jumped 19.84 points to 14,978.21 and FBM ACE added 29.50 points to 7,225.25.

The FBM Emas index rose 11.10 points to 11,406.95 and the FBM Emas Shariah index ‘rocketed’ 3.79 points to 12,481.58.

By sector, the Financial Services index rose 26.99 points to 15,291.50, the Industrial Products and Services index rose 0.30 points to 200.0 and the Plantation index fell 13.76 points to 6,505.69.

Fertile Stocks Can Record Most Profitable Counters With 25% Jump

 The share price of Subur Tiasa Holdings Bhd showed a drastic jump in the trading session on Bursa Malaysia today after recording a lucrative net profit rate.

At 10.44am, the counter's share price 'rocketed' 18 sen or 25% to 88 sen with 2.21 million shares traded.

The surge has also supported Subur Tiasa shares to be listed as the highest gainer counter today and has a market capitalization of RM181.61 million.

Subur Tiasa has achieved a net profit of RM19.37 million for the period May 1 to July 31, 2021 from last year which it recorded a net loss of RM26.75 million.

Following this aspect, the company's revenue also jumped 47.35% to RM106.46 million compared to RM72.25 million in the same period last year.

The income and profit before tax of the oil palm segment also saw an increase of RM32.9 million and RM24.1 million in the last quarter.

Which was driven by the surge in crude palm oil (CPO) prices of around 79% from RM2,335 per tonne to RM4,183 per tonne.

Apart from that, the timber segment revenue increased 4.35% to RM42.71 million from RM40.93 million while the loss before tax decreased by 59.35% to RM5.34 million from RM13.14 million.