KLSE OUTLOOK FOR 13-10-2020 (TUESDAY): – THE CHARTS ARE STILL STEADY AND MAY HAVE DISCOUNTED THE BAD NEWS OF A PARTIAL LOCKDOWN. STAY TECHNICAL – FRED TAM
STRICTLY NO CIRCULATION OUTSIDE OUR GROUP
KLCI: 1,518.43, -11.92 points or 0.78%
Value: RM3.7564 billion
Vol: 5.9769 billion
- Yesterday new covid-19 cases took centre stage.
2. The shock came when in late afternoon Datuk Seri Ismail Sabri Yaakob announced that Selangor, Kuala Lumpur and Putrajaya will be placed under the conditional movement control order (CMCO) from this Wednesday until Oct 27. Sabah, Kedah and Klang had announced earlier.
3. Under the CMCO, most industries will be allowed to operate normally but schools, daycares, places of worship, parks, sporting activities, social activities, weddings and entertainment outlets are off-limits.
4. Our KLCI lost 11.92 points or 0.78% as a result but instead of seeing a sell-off in Healthcare and Technology stocks our stocks remained steady. Their steadiness gave us a hint that our market may have discounted any “bad” news that come with the virus announcement.
5. A lack of sell-off could also have arisen from the strength of U.S. stocks. Dow was up again by 151 points at the opening yesterday as traders were hopeful of a fiscal stimulus from the President. The S&P 500 gained 0.8% and the Nasdaq Composite advanced 1.2%. Tech stocks led the early gains. Facebook and Amazon advanced 1.8% and 1.9%, respectively. Netflix gained more than 1% along with Alphabet and Microsoft. Apple jumped more than 2%. Later this week, Apple is expected to unveil its first 5G iPhone.
6. Of the many TECHNOLOGY and HEALTHCARE stocks that rose, we pick three stocks to watch for today. They are SUPERMX, PHARMA, RUBEREX.
7. As for the rest of the stocks, they remain HOLDS even if we going to experience another round of partial lockdown for the next two weeks like what we experienced on March 18.
8. For all you know, our selected stocks may even rally further in a CMCO environment, like before!
STOCKS TO WATCH: SUPERMX, PHARMA, RUBEREX.
STOCKS ON HOLD: AME, ASIAPLY, BPLANT, D&O, GREATEC, JHM, KAB, KAREX, KOMARK, KPOWER, LKL, MAGNI, NOTION, OCNCASH, OPENSYS, PCCS, PENTA, PHARMA, RGTBHD, RUBEREX, SCGM, SERNKOU, SKPRES, TOMYPAK, UWC, VS, WTK, TOPGLOV, SUPERMX, ADVENTA, HLT, ESCERAM, CAREPLS, COMFORT, LUXCHEM.
MFTA(USA), M. Phil(MMU)., MSTA(UK).,
Principal Lecturer of F1 Academy of Technical Analysis’s 3-month Course
Malaysia’s First Recipient of the Master of
Financial Technical Analysis (IFTA-USA)
F1 Academy of Technical Analysis
Level 3-22, 2nd Floor, The Scott Garden
Scott Soho Duplex Suite, 289, Jalan Klang Lama
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