Sunday, June 28, 2015

KLCI Aiming For 1,672 Points?

As we can see from the chart, it seems that the KLCI looks very weak. On Friday closing the index makes another new low.

Personally if we look at it, the index hardly can make a good rebound. It seems the index is heading towards 1,672 points. Few days ago it try to move and make a rebound but was drag down by certain index counter especially Tenaga Nasional Berhad. 

One thing for sure, there is no such thing that the KLCI is heading straight to the south. It might eventually rebound but when? Those who anticipate that the rebound will happen will keep on long (buy) in the futures but will feel disappointing with current sentiments as the momentum still look very weak. 

The games right now is "How to catch the low and anticipate that the rebound will happen". Mmmmmmmm definately not easy.

Wednesday, June 17, 2015

AirAsia Facing Heavy Selling. "Catching A Falling Knife"

AirAsia Berhad one of darling stock for their abilities to create numerous award these few years are now facing heavy selling. This morning the stock again facing another round of selling. Current price RM1.50
At the moment no bottom has been found but based on the chart the next support should be RM1.42. An opportunity to "Catch A Falling Knife"? I think it is not easy. No one will know where is the bottom.

Friday, June 12, 2015

Not Easy To Look For Rebounds.

From the chart we can see that the MACD is almost reaching its crossover. MACD histogram still in green color. Whether got rebound or not still another question.
If today the KLCI can close higher we might see some strength on the KLCI. Basically these few days it was so tough with the KLCI trying to stabilize it position but not easy with the sentiments still look very fragile these few days.
Most of the counters still very weak especially the index link counters. After 2 weeks of hovering around 1,752 point to 1,728 point, we will have to wait where the index is heading to?

Monday, June 8, 2015

Any Chances For Good Technical Rebounds For KLCI?

Last week my posting did mention the downside will be limited. From the chart we can see the KLCI is moving side way with up and down around 15 points (1,736 to 1,751). The indicators such as MACD Histogram still flashes green with the hope that the technical rebounds are still in the process. 

After last Friday closing with a candlestick "Hammer" appeared, we still have a good chance that this coming week the KLCI might climb higher but one thing for sure we need to have a long white candlestick to determine that the KLCI still have some strength. 

The world index indicators such as the Dow Jones Index and the Hang Seng Index. These two index seems to be fragile at these moments. They tends to show more weakness ahead and bearish also. Anything can happen to the KLCI at these moments. So be careful.

Thursday, June 4, 2015

Statement On 1MDB From Bank Negara Malaysia

As the nation's Central Bank, Bank Negara Malaysia is entrusted to promote the stability and integrity of the financial system and the sustainability of our economy. Widespread news reports and commentaries regarding 1MDB have raised questions on whether the Central Bank has continued to uphold the trust that has been placed on the Bank.

The purpose of this statement is to provide clarity on the role of the Central Bank with respect to any resident entity, including 1MDB, that makes investments abroad or obtains offshore borrowings under Section 214 of the Financial Services Act 2013 and under the Exchange Control Act 1953 that was in force prior to 2013. All investments that exceed RM50 million per calendar year and any offshore borrowings that exceed RM100 million by resident entities require the Central Bank's approval. 

In relation to this, all submissions that were made by 1MDB have had to comply with the same approval criteria that is applied to submissions by other business entities. If the criteria is not met, the submission will be rejected. No leniency or special exceptions were accorded to 1MDB.

In accordance with the legislation administered by the Bank, the following developments will trigger formal investigations:
i) When monies for which approvals are given are not used for the purpose indicated in the submission;
ii) When incorrect or false information are provided in the submission; and
iii) Failure to comply with the conditions in the approval.

As part of an investigation process, the Bank will issue a legal directive requiring information pursuant to the relevant Acts that the Central Bank administers. This will require the Board and Management of the entity to provide the information within a specified time frame. Under the Financial Services Act 2013, the penalty for failure to meet this request can result in a fine of up to RM50 million or up to 10 years in prison or both.

In relation to cross border movements of funds, the Bank also relies on financial intelligence authorities in the foreign jurisdictions to bring to our attention irregular or suspicious transactions made in their jurisdiction. Such arrangements for information sharing must conform to international protocols. 

The arrangements require that the information be kept confidential and any breach will lead to the termination of such arrangements. These arrangements also provide for the Bank to share the information with relevant domestic investigation authorities after securing the permission of the foreign authorities.

The scope provided under the Central Bank's legislation does not provide powers for the Central Bank to investigate in areas such as fraud, tax evasion, corruption, cheating and criminal breach of trust. These will need to be pursued by other law enforcement agencies.

With respect to 1MDB, a formal enquiry has commenced to examine any contravention of the Central Bank's rules and legislation. This has involved the issuance of a legal directive requiring information from the entity. 

The Central Bank is also taking statements from individuals involved in the governance process and obtaining information from other relevant domestic and foreign parties. In addition, Bank Negara Malaysia has forwarded information received from foreign authorities to the relevant investigation agencies after obtaining the permission from the foreign authorities.

The Central Bank wishes to emphasise that further disclosure of details of the investigation may undermine the outcome of the investigation. The Central Bank is doing everything within the powers provided under its legislation, including collaborating with other agencies, to contribute towards a swift resolution of the matter.

Bank Negara Malaysia
03 June 2015

© Bank Negara Malaysia, 2015. All rights reserved.

Tuesday, June 2, 2015

Technical Rebound Likely To Happen This Week???

It seems that the technical rebound that we are looking for is likely to happen this week. Not really sure when it will happen but the downside is limited but the chart and the sentiment looks very bearish.

Candlestick still didn't show any sign whether there would be a rebound? No body knows. Whether the index will climb towards 1,774 point will be another issue. Anyway stay alert.

We need another confirmation on the next trading day of closing to determine whether the technical rebound is in the making. This assumption was based on our KLCI have already have 10 days "Black Candle" and a MACD Green Histogram appeared yesterday. A white candle would be better for today closing.

Monday, June 1, 2015

The Game Now "Catch A Falling Knife"

Today appear to be the 10th day of Black Candle (11.00am) and today falls also very sharp during morning hours. Basically the game now turn into "Catch A Falling Knife". How low can it goes? Till this hour no indicators stated it is a good time to buy.

Be careful but those who dares to catch it at the right timing would eventually be rewarded but not easy because the share market is quite bearish at this moment. The question right now is "how to catch a falling knife"?

Next Support for the KLCI is at 1,706 point.