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Selling continues on the broader market

On Bursa Exchange, it has been fairly negative as market players continue to sell off on several heavyweights last week. Despite the higher Covid-19 confirmed cases globally on a daily basis, selling pressure continues to mount on healthcare stocks especially the glove segment and this has contributed to the negative broad market sentiment

On Bursa Exchange, it has been fairly negative as market players continue to sell off on several heavyweights last week. Despite the higher Covid-19 confirmed cases globally on a daily basis, selling pressure continues to mount on healthcare stocks especially the glove segment and this has contributed to the negative broad market sentiment. Besides, Apple and Amazon’s forward guidance seems to be on the weaker tone; resulting in selldown across technology stocks. 


Another factor could be the listing of Ant Group, which is the largest IPO after the previous Saudi Aramco IPO. To recap, prior to Saudi Aramco, the biggest IPO back then with nearly 3 times of oversubscription went for listing, S&P500 dipped from peak to trough near to 3%. We think this is due to market players cashing out their exposure in the market to get a piece of Saudi Aramco on the listing day itself.

For Ant Group, it is oversubscribed more than 870 times and in our view we think the euphoria moment is there for market players to reduce most of their exposure in the market to get a piece of Ant Group to trade on listing date this week. Nevertheless, this is just our assumption on the recent negative sentiment on the broader market. 

What was triggered in our M+ Wiz list today? 

Although the sentiment is weaker than expected, we noticed there is a strong sector outperforming the market since last week; the Transportation and Logistic sector. We opine that the improved trading interest within this sector was due to MCMC putting on hold the issuance of courier service license for the next 2 years. Besides, the upcoming global shopping festival, Singles’ Day (11.11) and Double 12 should also boost shipping orders higher over the near term. 

We have then put in counters such as CJCEN and GDEX today.

So we will post some of the examples in this blog post for your reference. 

CJCEN – Triggered at the start of the trading day

Source: M+ Wiz

GDEX – Signal was alerted at 9.01am

Source: M+ Wiz

We would like to emphasize that the examples above are not a recommendation for buying and selling purposes, please take advice from your brokers to get a clearer picture of the market before making any important decisions in the market. 

Please tune in later for our M+ Wiz highlights webinar at 1230pm. To stay up to date with us, like and follow us on facebook at M+ Online

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Technical Focus – HARBOUR

An integrated logistics services provider, shipping and engages in construction works, heavy lifting and haulage as well as property development with established footprint extends across the Intra-Asia region. Capitalising on the increasing charter and freight rates that was stemmed by the global supply chain disruption following the shortage of vessels, coupled with the improving trade activities. Current price at RM1.01 is trading at a discount to its book value per share of RM1.12 which was recorded in 3QFY21. Technically, traders may anticipate for a short-term breakout above RM1.01, to target next resistances at RM1.06-1.13 with long term target set at RM1.20.

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Cautious undertone prevails

The FBM KLCI drifted lower earlier Wednesday but rebounded to close flat on lastminute
buying amid cautious market sentiment. Nevertheless, we believe bargain
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stock markets on the back of our reopening of economic activities following
several relaxations of SOPs under our National Recovery Plan; month-to-date
foreigners have registered an inflow of RM904.6m. Commodities wise, the crude
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Technical Focus – MMSV

Involved in the design and manufacture of LED and semiconductor industrial automation systems and machinery as well as software development. Tapping onto the recovery in smartphone sales that fell sharply in 2020 as demand will be driven by the evolution into 5G mobile devices, while sales towards the automotive sector will pick up from the low base effect last year. Riding onto the surge in global demand for semiconductor test equipment across other sectors such as automotive, industrial automation and general lighting. Technically, traders may anticipate for a breakout above RM1.10, to target next resistances at RM1.16-1.26 with long term target set at RM1.43.

Kelington Group Bhd – 15Sep21

We gather that this would be KGB’s single largest project win to-date. The move subsequently boosted KGB orderbook replenishment year-to-date to another record high at approximately RM764.0m (inclusive of smaller scale projects). This also exceeded our orderbook replenishment target of RM450.0m for FY21f. We expect the momentum to continue with another RM50-100m worth of projects coming into the picture for KGB to wrap up the record year, premised to the strong global semiconductor sales.

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