Reflections on Volume

Big volume without further upside equals distribution
Big volume without further downside equals accumulation

Volume tends to peak at turning points
Volume often precedes price movement
Volume is a relative study

Wednesday, August 29, 2012

Hong Leong reiterates "buy" call on IHH

KUALA LUMPUR: Hong Leong Investment Bank (HLIB) has reiterated a "buy" rating on Asia's largest hospital chain operator, IHH Healthcare Bhd, with sum-of-parts derived target price of RM3.49.



Tuesday, August 28, 2012

UPDATE 1-Malaysia IHH Q2 profit soars on one-off gains, revenue jump

KUALA LUMPUR, Aug 28 (Reuters) - Malaysia's IHH Healthcare Bhd, the world's second-biggest listed healthcare provider by market value, posted a more than five-fold jump in second-quarter profit, mainly on consolidation of results from a Turkish hospital and gains from the sale of assets in Singapore.

The arm of Malaysia's state investor Khazanah Nasional Bhd is one of a small number of healthcare sector plays in the region, where rising incomes and an expanding middle class are boosting demand for better services.

IHH, which raised $2.1 billion in July in the world's third-biggest IPO so far this year, said net profit was 403.54 million ringgit ($130 million) in the three months ended June 30. Analysts generally don't provide quarterly profit estimates in Malaysia.

Revenue more than tripled to 2.70 billion ringgit from 815.97 million ringgit a year earlier, according to a stock exchange filing.

Net profit for the six months period ended June 30 rose nearly two-fold to 527.38 million ringgit, exceeding the 515.5 million ringgit full-year profit estimate of analysts tracked by Thomson Reuters I/B/E/S.


Monday, August 27, 2012

Systech ?

Wall Street Week Ahead: S&P to fly after wild ride to Wyoming

NEW YORK (Reuters) - The streak is over, but is the trend intact?

A six-week string of gains in the S&P 500 (^GSPC) ended on Friday amid shifting expectations for central bank stimulus. This week could bring clarity on that issue, and that could determine whether the recent rally that took the index to four-year highs will persist.

"The streak is broken, but the trend isn't, and I think the next major move on the S&P will push us up towards 1,450 or 1,500," said Mark Arbeter, chief technical strategist for Standard & Poor's in New York. "Small- and mid-cap stocks are near their all-time highs, and if they break those highs, I think that will prompt the market to really rip higher."

Still, the market could be in for a bumpy ride this week ahead of Friday's meeting of central bankers in Jackson Hole, Wyoming. Investors are looking for clues on whether Federal Reserve Chairman Ben Bernanke will announce a third round of quantitative easing.


Wednesday, August 22, 2012

Stay Bullish Until 2 Signs Say Otherwise: Pro

On Tuesday, pros were watching the market melt up take stocks to four-year highs, with the S&P (^GSPC) now more than 3 percent higher in August alone.

Although the action seems bullish, "The drawback to this most recent strength is that although we have achieved new cyclical bull market highs, the action may have pushed a good number of stocks into overbought territory " says Dan Wantrobski, director at Janney Capital Markets in a Reuters interview.

If stocks are overbought, is the market at an inflection point?

Trader Josh Brown says not yet - but it could happen at the drop of a hat.

And on CNBC's Fast Money Halftime Report Brown reveals market 'tells' that he'll be watching.

"First there's small cap strength (^RUT). As long as that continues the light is green to own stocks," says Brown.

"The second is participation. Watch new highs versus new lows and watch advances vs. decliners. That's how you know when to walk away."


Tuesday, August 21, 2012

Sunday, August 19, 2012

Affin makes its move

PETALING JAYA: Affin Holdings Bhd’s resolve to explore a possible acquisition of a stake in Bank Muamalat Malaysia Bhd seems to reflect an aspiration to become a bigger player, especially in the Islamic banking sector.

While news of Affin getting the authorities’ approval to start negotiations to potentially buy into Bank Muamalat had caught some analysts by surprise, there was no denying by market observers that a positive conclusion of the deal would up Affin’s game in the niche sector.

Kenanga Research, for one, which called the deal a potential synergistic acquisition, said in its report: “We believe Affin has identified Islamic banking as a growth area in which it wants to build its existing position in the medium to long term.”

“In our opinion, this is a good move and probably a natural progression, given that the acquisition of Bank Muamalat will be key to the group becoming a bigger player in Islamic banking,” the brokerage explained, pointing out that the potential acquisition would not only expand Affin’s existing branch network and asset and customer base, but it would also enable Affin to tap into Bank Muamalat’s existing business collaborations with DRB-Hicom Bhd, such as those in relation to Pos Malaysia Bhd and Proton Holdings Bhd.

Read more Affin makes its move
Read Affin Q2 net profit up on rise in income
Read Affin Financial Summary

Gravity-defying boom

SWEET SPOT: Malaysia’s economy helped by strong growth

KUALA LUMPUR: MALAYSIA has received the thumbs up from foreign analysts and media on how it manages the economy.

Analysts, both local and foreign were stunned on Wednesday following Bank Negara’s announcement that the country was growing at a much faster pace than anticipated.

The central bank backed this, when it announced a 5.4 per cent growth in economic activities between April and June, spurred by the investments in both private and public sector spending.

For the first half of the year, the economy clocked a 5.1 per cent growth.

The strong results, at a time when most economies in the world are suffering, immediately caught the eye of the foreign media.

In recent days, Malaysia’s economy has been described to be in a “sweet spot” helped by strong growth and a subdued inflation trajectory.

Read more: Gravity-defying boom - Top News - New Straits Times

Saturday, August 18, 2012

Friday, August 17, 2012

Re-rating in the works for MAS?

MALAYSIA Airlines (MAS) is still in the red and has been for the last six consecutive quarters.

But this time the losses were smaller compared with the corresponding quarter a year ago.

On Tuesday, MAS reported RM349mil net loss for the April-June 2012 period versus RM526mil net loss a year ago.

However, after stripping out the forex translation gains of RM173mil and derivative fair value adjustment of RM15.3mil, the airline's core net loss for the second quarter was only RM160.4mil.

Operationally, the loss also narrowed to RM101mil from RM443mil. Moving forward, the second half is generally a stronger period for airlines globally.


Thursday, August 16, 2012

Maybank IB raises MAS earnings forecast

Maybank IB Research has raised the financial year 2013-14 earnings forecast of Malaysia Airlines (MAS) by 5.5 per cent and 1.4 per cent respectively.
It took into account the management's latest capacity growth guidance and better fuel consumption rates due to a younger aircraft fleet.

"The earnings forecast is premised on a fuel price assumption of US$125 per barrel, which will be adjusted as required," it said in a research note today.

The research house is also positive on prospects of the national airline breaking even in the second half of the financial year 2012.

Read more: Maybank IB raises MAS earnings forecast

Thursday, August 9, 2012

IHH Healthcare makes global impact and is 2nd largest in the world by market capitalisation


In a previous interview with StarBiz, IHH managing director Dr Lim Cheok Peng said that the rich valuation for IHH was justified as the healthcare provider group had strong earnings and market growth prospects over the next five years.

Lim reiterated that in the pipeline were more than 3,300 new beds to be delivered and 17 hospital developments, which would be completed by end-2016.


Read more

Wednesday, August 8, 2012

Citigroup cautious on global equity markets in H2 on political factor

KUALA LUMPUR: Citigroup Inc is maintaining its cautious stance on the global equity markets for the remainder of the year as politics continue to overshadow policy.


For Malaysia, Citi analysts are positive on the construction sector due to spillovers from the Klang Valley Mass Rapid Transit project.

Citibank Bhd head of research and investment strategist, David Chua, said: “We are also positive on the oil and gas sector as Petronas (Petroliam Nasional Bhd) have said they will be spending RM300bil in the next five years.”

Chua added that he was also bullish on the consumer sector due to the strong domestic consumption.

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