Trendspotter: In-Depth Analysis of Malaysian Companies
Trendspotter: In-Depth Analysis of Malaysian Companies
Broker: CGS International
Date: November 12, 2024
Key Market Recap
Stocks have been on the rise for a fifth consecutive session, with Bitcoin surging past \$87,000 and the dollar hitting a one-year high. Investors are betting on trades benefiting from President-elect Donald Trump’s agenda. The Russell 2000 index of smaller firms reached its highest since 2021, climbing 1.5%. Economically sensitive shares outperformed, while big tech firms like Nvidia Corp. experienced a decline. Tesla Inc. continued its surge, jumping 9%. The equal-weighted S&P 500 beat the US benchmark, indicating a potential broadening of the rally.
US Market Performance
The S&P 500 rose by 0.1%, topping 6,000 and marking its 51st record of the year, with the Nasdaq 100 remaining unchanged. The Dow Jones Industrial Average gained 0.7%. With the cash market closed due to a US holiday, Treasury futures saw mild declines. The Bloomberg Dollar Spot Index rose by 0.5%, while oil prices sank due to a weak demand outlook in China.
Corporate Earnings and Inflation
Corporate earnings are expected to be a significant driver for US stocks post-election. The third-quarter reporting season revealed an 8.4% increase in profits for S&P 500 companies, doubling the expected increase. US inflation likely remained steady in October, with the core consumer price index anticipated to rise at the same pace as in September.
Global Market Overview
Futures indicate a mixed performance for Asian markets. Tokyo stocks are expected to edge higher, Sydney’s market looks flat, and Hong Kong shares are set to decline amid disappointment over Chinese stimulus measures.
Detailed Analysis of Malaysian Companies
SD Guthrie (5285) – Technical Buy
Last price: 5.13
Entry Price(s): 5.09-5.13
Stop Loss: 4.79
Target(s): 5.50, 5.60
SD Guthrie Berhad, producing and distributing agricultural products such as palm oil, fats, oleochemicals, rubber, and more, has reached an all-time high. The formation of higher highs and a higher structure, coupled with increased trading volume, indicates a steady uptrend. Both the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) show rising buying momentum. Aggressive traders may consider going long with a stop-loss set at RM4.79. Prices may push on to test the psychological resistances at RM5.50 and RM5.60.
Zhongsheng Group Holdings Ltd (881) – Technical Buy
Last price: 18.94
Entry Price(s): 18.94, 16.00, 12.52
Stop Loss: 10.82
Target(s): 22.55, 28.00, 32.42, 39.00
Zhongsheng Group Holdings has confirmed a bullish break. Investors should consider entering at current or lower prices, with various targets set up to 39.00. The stop loss is advised at 10.82.
Inkeverse Group Ltd (3700) – Technical Buy
Last price: 1.37
Entry Price(s): 1.37, 1.20, 1.00
Stop Loss: 0.82
Target(s): 1.55, 2.00, 2.42, 3.00
Inkeverse Group Ltd has shown a bullish reversal, maintaining an uptrend. Traders might consider buying at current or lower prices, aiming for targets up to 3.00. A stop loss is recommended at 0.82.
Go Hub Capital (0311) – Technical Buy
Last price: 1.21
Entry Price(s): 1.18-1.21
Stop Loss: 1.04
Target: 1.31, 1.38
Go Hub Capital, a provider of transportation IT solutions, has extended its rally after breaking out of a downtrend. The stock closed at a two-month high with increased trading volume. Both MACD and RSI indicate strengthening buyer momentum. Aggressive traders could consider entering at current prices or on weakness, with a stop-loss at RM1.04. The stock might retest its historical resistances at RM1.31 and RM1.38.
Sunway Bhd – Maintain Add with Higher TP
Target Price: RM5.20
Sunway Bhd is expected to show strong Q3 performance, prompting upgrades in earnings forecasts. Key catalysts include the IPO process kickoff for SHG and the SEZ signing to fuel more activity at SCIP. The recommendation remains an Add, with adjusted EPS for FY24-26F and a lifted TP of RM5.20.
Westports Holdings – Upgrade to Hold with a Higher TP
Target Price: RM4.33
Westports Holdings has been upgraded to Hold with a higher TP of RM4.33. The focus remains on Trump tariffs and port tariffs.
Duopharma Biotech Bhd – Maintain Add
Target Price: RM1.55
Duopharma Biotech Bhd is recommended as a good buy for strong growth, with the recommendation maintained at Add and a TP of RM1.55.
Agribusiness – Maintain Neutral
The agribusiness sector is expected to benefit from the strength in CPO, with the recommendation maintained at Neutral.
Actively Managed Portfolio
The Actively Managed Portfolio is a medium-term investment product recommending stocks based on technical analysis. The strategy focuses on trend-following, with occasional reversal plays. The portfolio is suited for investors with limited time to monitor the stock market daily. The maximum trading period is 1 to 6 months, closing positions if targets are not met within this timeframe. The initial capital is RM1,000,000, restarting annually.
This week, the portfolio took profits on Innoprise Plantations and MKH Oil Palm, with the rest of the portfolio unchanged. The portfolio remained in risk-off mode.
Existing Stocks
| Stock |
Weighting |
Shares |
Entry Price |
Current Price |
Total Cost |
Market Value |
Stop Loss |
Target |
Position |
Dividend |
Profit/Loss |
Profit/Loss% |
| Karex |
8% |
115,600 |
0.865 |
0.860 |
99,994.00 |
99,416.00 |
0.775 |
0.895/0.96 |
BUY |
– |
(578.00) |
-0.6% |
| ITMAX System |
8% |
28,000 |
3.570 |
3.450 |
99,960.00 |
96,600.00 |
3.320 |
3.86/4.00 |
BUY |
– |
(3,360.00) |
-3.4% |
| Ta Ann Holdings |
7% |
19,100 |
4.180 |
4.540 |
79,838.00 |
86,714.00 |
3.790 |
4.38/4.51/4.73 |
BUY |
– |
6,876.00 |
8.6% |
| Binastra Corp |
6% |
54,000 |
1.480 |
1.480 |
79,920.00 |
79,920.00 |
1.340 |
1.61/1.65 |
BUY |
– |
– |
0.0% |
| Top Glove Corp |
6% |
76,100 |
1.050 |
1.080 |
79,905.00 |
82,188.00 |
0.960 |
1.14/1.21 |
BUY |
– |
2,283.00 |
2.9% |
| PGF Capital |
7% |
37,900 |
2.110 |
2.210 |
79,969.00 |
83,759.00 |
1.970 |
2.25/2.40 |
BUY |
– |
3,790.00 |
4.7% |
| Optimax Holdings |
6% |
115,100 |
0.695 |
0.660 |
79,994.50 |
75,966.00 |
0.630 |
0.77/0.795 |
BUY |
– |
(4,028.50) |
-5.0% |
| AirAsia X |
8% |
50,200 |
1.990 |
1.900 |
99,898.00 |
95,380.00 |
1.790 |
2.06/2.20 |
BUY |
– |
(4,518.00) |
-4.5% |
| Critical Holdings |
6% |
70,700 |
1.130 |
1.050 |
79,891.00 |
74,235.00 |
0.995 |
1.23/1.35 |
BUY |
– |
(5,656.00) |
-7.1% |
| KJTS Group |
7% |
108,800 |
0.735 |
0.765 |
79,968.00 |
83,232.00 |
0.660 |
0.835/0.88 |
BUY |
– |
3,264.00 |
4.1% |
| Innoprise Plantations |
9% |
63,600 |
1.570 |
1.760 |
99,852.00 |
111,936.00 |
1.480 |
1.69/1.76 |
BUY |
– |
12,084.00 |
12.1% |
| MKH Oil Palm |
7% |
125,000 |
0.640 |
0.700 |
80,000.00 |
87,500.00 |
0.590 |
0.675/0.70 |
BUY |
– |
7,500.00 |
9.4% |
Cumulative dividend: RM11,881.30
Cumulative realised gains/profits: RM259,286.78
Cash balance + Cumulative dividend: RM411,830.58
Portfolio value (RM): RM1,269,240.58 (26.9%)
FBMKLCI Index – Technical View
Last price: 1,609.26
Support 1: 1,598
Support 2: 1,565
Resistance 1: 1,649
Resistance 2: 1,675
The FBMKLCI index has extended its downward move, forming a black crows pattern. The downtrend from the 1,675 high is likely resuming, with the index potentially retesting the 200-day EMA at 1,593. The double resistance at 1,614-1,624 and the 50-day EMA may keep gains in check in the short term.
2024 IPO Tracker
| Stock |
Last (RM) |
Daily % Chg |
Intraday High at IPO(RM) |
% Chg* |
Ytd % Chg |
Sector |
Board |
Listing Date |
IPO Price (RM) |
Market Cap at IPO (RM) |
Shariah |
| KJTS Group |
0.765 |
+4.1% |
0.500 |
+53.0% |
+183.3% |
Industrial Products & Services |
Ace |
26-Jan-24 |
|
