CIMB Research has technical buy on Winsun at 12 sen

KUALA LUMPUR (March 22): CIMB Equities Research has a technical buy on Winsun Technologies at 12 sen at which it is trading at a price-to-book of 0.8 times.

It said on Thursday since it featured Winsun as a technical sell stock on March 5, prices fell from a high of 20 sen to its recent swing low of 11 sen. At current levels, it sees the formation of a short term support, which is near the 61.8% Fibonacci Retracement levels.

“MACD histogram bars are falling at a slower pace, suggesting that selling pressure is tapering off. RSI has also flattened out,” it said.

CIMB Research said aggressive traders may take some position now with a stop place below 11 sen. Next resistance levels are 13.5 sen and 15 sen.



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Stocks to watch: Padini, Silver Bird, Pelikan, WinSun

KUALA LUMPUR (March 8): Malaysian stocks could be in for further profit taking on Thursday as the European debt crisis continues to take centre stage in global financial markets .

Key regional markets fell on Wednesday as investors were kept vigilant on the status of Greece’s debt relief scheme. The FBM KLCI fell 0.95% or 15.08 points to finish at 1574.83 points, the biggest one-day decline this year. However, year-to-date, it is up 3%. FBM KLCI futures closed seven points down to 1575.5.

Private holders of Greek government bonds have until Thursday night to voluntarily swap their bonds for new ones. The bond swap is vital to help Greece to obtain bailout funds, without which the country may default on its debt obligations this month. A default could have a negative impact on global financial markets.

Weakness across major importing countries in Europe, and China has already been reflected in Malaysia’s latest trade numbers.

Malaysia’s January exports grew at slower year-on-year pace of 0.4 % as shipments of electrical and electronic and commodity-based products to China and Europe declined. This compares to December 2011’s export growth of 6.1%.

Stocks on watch on Thursday are PADINI HOLDINGS BHD [], SILVER BIRD GROUP BHD [], Pelikan International Corporation Bhd and WINSUN TECHNOLOGIES BHD []. Other stocks which could see trading interest are SYARIKAT TAKAFUL MALAYSIA BHD [] and Brahim’s Holdings Bhd.

AmResearch Sdn Bhd initiated coverage on Padini, an apparel maker with a Buy call and target price of RM1.80. Padini shares closed unchanged at RM1.48 on Wednesday. The stock had earlier traded to a fresh intraday high of RM1.49.

The research house said Padini’s market capitalisation, which is approaching RM1billion, will improve the stock’s visibility among institutional funds. Despite its strong share price performance, Padini’s valuation is undemanding in anticipation of the firm’s earnings growth, according to the research firm.

Bread manufacturer Silver Bird was the third most actively traded stock on Wednesday on speculation that Fraser & Neave Holdings Bhd chief executive officer Datuk Tan Ang Meng may be roped in to lead Silver Bird.

This follows news of alleged financial irregularities at the bread manufacturer. However,Tan has denied the speculation. Silver Bird shares rose 4.5 sen to finish at 23 sen.

Pelikan plans to reward its shareholders with one treasury share for evey 50 existing shares held for FY ended Dec 31, 2011. The board also recommended a final cash dividend of one sen per share single tier dividend.

Industrial automation systems entity Winsun Technologies Bhd secured a letter of intent from Ningbo Shanghao which has indicated its intention to buy from Winsun 60,000 tonnes of iron ore a month for a duration of two (2) years. Winsun shares closed 0.5 sen higher at 17 sen.

Brahim’s whose shares closed 8% higher at RM1.23, announced that it had fixed the issue price for its 17.9 million new placement shares at RM1.10. This translates into gross proceeds of close to RM20 million should all the new securities placed out.

Syarikat Takaful Malaysia Bhd could also draw interest after its managing director Datuk Hassan Kamil indicated the Islamic insurer’s plans to further grow earnings in key market Indonesia for the long term. The stock rose seven sen or 3.3% to close at RM2.18.



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WinSun get LOI to supply 60,000 tonnes of iron ore a month

KUALA LUMPUR (March 7): WINSUN TECHNOLOGIES BHD []’s unit has received a letter of intent from Ningbo Shanghao Mining Investment Co. Ltd to buy 60,000 tonnes of iron order month over two years.

WinSun said on Wednesday the group was on track to diversify into the trading of raw materials for its clients which were mainly companies involved in the heavy industries.

It said that its unit WinSun Engineering Sdn Bhd would have to supply to Ningbo Shanghao 720,000 tonnes of high grade iron ore a year, or 1.44 million tonnes during the two-year contract.



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KLCI closes slightly higher on late buying, broader market cautious

KUALA LUMPUR (March): Late buying of selected index-linked stocks pushed the FBM KLCI, which as in the red all Tuesday, back into positive territory, with GENTING BHD [] emerging as the bigger index mover.

The FBM KLCI closed 0.69 of a point higher to 1,589.91. Turnover was 1.29 billion shares valued at RM1.73 billion. The broader market reflected the cautious sentiment, with 519 decliners to 257 advancers while 315 stocks were unchanged.

Key regional markets posted losses between 0.63% and 2%. Hong Kong’s Hang Seng Index fared the worst, down 2.16% to 20,806.20, Singapore’s Straits Times Index fell 2% to 2,932.01, Shanghai Composite Index 1.41% to 2,410.45, Taiwan’s Taiex 0.83% to 7,937.97 while South Korea’s Kospi fell 0.78% to 2,000.36.

European shares extended losses in morning trade on Tuesday on fresh concerns about economic growth in Europe and uncertainties regarding a bond swap deal between Greece and its private creditors.

Britain's FTSE 100 extended its losing streak into a third session on Tuesday, as concern about the health of the global economy hit heavyweight oils and miners, pushing the index towards the bottom of its recent range and darkening the technical outlook, Reuters reported.

At Bursa Malaysia, Genting rose 16 sen to RM10.92, pushing the KLCI up by 1.4 points while Tenaga added eight sen to RM5.25 and Petronas Chemicals three sen to RM6.92.

There was some nibbling on banking stocks, with Maybank and Public Bank up two sen each to RM8.79 and RM13.78, Hong Leong Bank 10 sen to RM12.40 and AMMB three sen to RM6.30.

Dutch Lady rose the most, adding 40 sen to RM29.90 with 6,100 shares done. Genting PLANTATION []s rose 25 sen to RM9.49 and Petronas Dagangan 18 sen to RM18.46.

CI Holdings added 13 sen to RM1.48 after the company announced its capital repayment of 50 sen per ordinary share would go ex on March 16.

Winsun was the most active with 47.67 million shares done, down two sen to 16.5 sen.

CIMB declined six sen to RM7.42, dragging the KLCI down 1.06 points. Tenaga shed seven sen to RM6.24 while BAT lost 32 sen to RM52.52 and KLK 12 sen to RM23.28.



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CIMB Research has technical sell on Winsun at 19 sen

KUALA LUMPUR (March 5): CIMB Research has technical sell on Winsun Technologies at 19 sen at 19 sen at which it is trading at a price-to-book value of 19 sen.

It said on Monday that Winsun Technologies is trading in a rising wedge pattern, suggesting that the run-up is about to exhaust. Once the candles fall below the support trend line (now at 17.5 sen), expect correction to be sharp. Next support is at 15.5 sen and 14 sen.

"Hence, our strategy here is to unload on strength, especially near the 19 sen to 20 sen resistances. Always put a buy stop at 20.5 sen, just in case. The bearish divergence on the RSI indicator shows that buying momentum is losing pace. MACD signal line is also about to stage a negative crossover," it said.



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