Comprehensive Analysis of Malaysian Retail Stocks
Comprehensive Analysis of Malaysian Retail Stocks
Report Date: November 15, 2024
Broker Name: CGS International
Southern Cable Group: Riding the Bullish Wave
Southern Cable Group, a company specializing in the manufacture of customized cables and wires, is on a bullish trajectory according to technical analysis. The stock is currently priced at RM0.96, with entry points suggested between RM0.925 and RM0.96. The company serves a diverse array of industries, including power distribution, construction, and telecommunications.
Key support levels are at RM0.88 and RM0.825, with a stop loss set at RM0.87. Resistance levels have been identified at RM1.02 and RM1.06, with these also being the target prices. The bullish momentum is supported by a breakout from a 2-week long triangle consolidation, with increased trading volume and strong MACD and RSI indicators. Aggressive traders might consider going long, aiming for a retest of historical resistances.
Nextgreen Global: Eyeing a Breakout
Nextgreen Global, renowned for its printing services, is positioned for a potential breakout. The stock closed at RM0.91, supported by a bullish candle formation and higher trading volume. It tested the upper limits of a 2-month long triangle pattern, suggesting a possible breakout.
Traders are advised to enter between RM0.88 and RM0.91, with stop-loss set at RM0.845. The resistance levels are pegged at RM0.955 and RM1.00. Both MACD and RSI indicators have shown upward momentum, indicating strong buying interest. This suggests traders might consider entering positions on weakness, with an eye towards the identified resistance levels.
Investment Strategy: Actively Managed Portfolio
The Actively Managed Portfolio by CGS International is tailored for medium-term investments, focusing on technical analysis to drive stock selection. With an initial capital of RM1,000,000, the portfolio emphasizes trend-following strategies, allowing profits to run while cutting losses short. Stocks in this portfolio are held for a maximum of 1 to 6 months.
Currently, the portfolio includes a diverse range of stocks such as Karex, ITMAX System, and Binastra Corp, with varying performances. For instance, Karex has shown a 1.2% profit, while ITMAX System has a slight loss of 0.3%. The portfolio remains in a risk-off mode, with final positions set to be closed in December.
Market Overview and Economic Indicators
The broader market has experienced fluctuations, with significant movements influenced by global economic indicators. The FBMKLCI Index has encountered selling pressure, dropping to 1,600.68, with sectors like construction and industrial products taking a hit. Conversely, energy and technology sectors have shown gains.
U.S. Federal Reserve policies, geopolitical developments, and local economic data continue to shape market dynamics, with traders adjusting expectations accordingly. Investors are advised to stay informed and consider these factors when making investment decisions.
