October 16, 2017

Traders’ Almanac
BM CONSTRUCTION INDEX –
Rebound likely underway
 BM CONSTRUCTION INDEX – Rebound underway Analysts
 HO HUP CONSTRUCTION – Downtrend is about to reverse Nik Ihsan Raja Abdullah, MSTA, CFTe
 HOCK SENG LEE – A low is formed (603) 2297 8694
nikmohdihsan.ra@maybank-ib.com
 CRUDE PALM OIL – Still volatile
 KLCI INDEX FUTURES – Capped by its 30-day SMA Tee Sze Chiah
(603) 2082 6858
TECHNICAL

Market Overview szechiah.t@maybank-ib.com

Late buying support on selective blue chips like IHH, HLBK and
Market Summaries
ROTH lifted FBMKLCI 1.32pts higher at 1,755.32 on Friday. Market
Index Changes (%) Close Momentum
breadth was positive, with gainers outpacing loser by 452 to 396
while another 417 counters remained unchanged. A total of 3.2b FBMKLCI 0.08 1,755.32 UP
DJIA 0.13 22,871.7 UP
shares worth MYR2.0b changed hands. Sentiment could stay
MSCI W 0.22 2,028.01 UP
choppy in the early going as investors await China consumer and
MSCI AP 0.25 688.48 UP
producers price data. Technically, with the 30-day SMA still
FCPO 1.40 2,749 UP
trading below the longer-term 50-day SMA, we expect FBMKLCI to BRENT 1.64 57.17 UP
Malaysia

trade range-bound, likely between 1,751 and 1,770 in the near- GOLD 0.63 1,301.50 DOWN
term. Downside supports are 1,751 and 1,744. USDMYR 0.04 4.2220 DOWN

(Sources: Bloomberg)

TODAY’S HIGHLIGHT – BURSA MALAYSIA CONSTRUCTION INDEX, REBOUND LIKELY UNDERWAY

Bursa Malaysia Construction Index (KLCON Index) is consolidating in a bullish flag pattern. Although technical
outlook seems to favour the bear at this juncture, with the index still trading below its 30-day and 50-day
SMAs, we believe a low is formed. The 323.02 low formed in early October is likely the turning point. While
technical indicators have yet to show strong buying signals, the bullish divergence on RSI indicator suggests
that selling pressure has tapered off. To validate our bullish view, KLCON Index will need to swing past the 30-
day SMA (currently at 328.74). Once this level is taken out, expect another rally towards its multi-year high of
344.91 again. With KLCON Index poised for a rebound soon, construction stocks should also benefit from the
positive spill-over.

THIS REPORT HAS BEEN PREPARED BY MAYBANK INVESTMENT BANK BERHAD PP16832/01/2013 (031128)
SEE PAGE 5 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS
Technical Research

TRADING IDEAS

HO HUP CONSTRUCTION, DAILY CANDLESTICK CHART (MYR0.705)

STRATEGY:
ACCUMULATE (TECHNICAL)

Share price has been

consolidating in a
downtrend channel for
the past few months.
Friday’s breakout could
indicate that the trend is
about to reverse. As long
as the MYR0.66 low holds
firm, momentum should
pick up very soon.

ACCUMULATION LEVEL STOP-LOSS ESTIMATED RESISTANCE ESTIMATED TIMEFRAME

MYR0.665 ~ MYR0.68 BELOW MYR0.66 MYR0.75, MYR0.820 8 weeks

HOCK SENG LEE, CANDLESTICK CHART (MYR1.48)

STRATEGY:
ACCUMULATE (TECHNICAL)

Friday’s breakout is likely

a precursor to stronger
rebound ahead, with the
candle staying above its
30-day SMA. As long as
share price holds above
its MYR1.43 low, our
bullish stance will remain
intact.

ACCUMULATION LEVEL STOP-LOSS ESTIMATED RESISTANCE ESTIMATED TIMEFRAME

MYR1.45 ~ MYR1.48 BELOW MYR1.43 MYR1.56, MYR1.66 8 weeks

October 16, 2017 2

Technical Research

COMMODITY & DERIVATIVES WATCH

CRUDE PALM OIL FUTURES (FCPO) ACTIVE CONTRACT, HOURLY CANDLESTICK CHART (MYR2,757)

INTRADAY TREND
EXPECTATION:

We use hourly chart to

analyse potential
movement of FCPO for
intraday trading.

Friday’s rebound lifted

FCPO towards its 30-day
SMA. With MACD poised for
a positive crossover, there
is a good chance that this
moving average will be
taken out.

SUPPORT RESISTANCE SHORT-TERM MOMENTUM SHORT-TERM TREND

MYR2,653 MYR2,572 MYR2,770 MYR2,802 UP UP

KLCI INDEX FUTURES, SPOT CONTRACT, HOURLY CANDLESTICK CHART (1,757.00)

INTRADAY TREND
EXPECTATION:

We use hourly chart to

analyse potential
movement of FKLI for
intraday trading.

The bears continued to

dominate last Friday. With
the candles remain below
its 30-day SMA, we are still
negatively biased.
Technical readings remain
weak.

SUPPORT RESISTANCE SHORT-TERM MOMENTUM SHORT-TERM TREND

1,751.50 1,744.00 1,769.00 1,778.00 DOWN NEUTRAL

October 16, 2017 3