STI & KLCI Technical Analysis Report 5-March

Market Review for STI: Singapore share prices opened lower with the Straits Times Index (STI) down 0.03 points to 3,415.50. Singapore shares remained mostly lower as risk appetite was subdued ahead of the European Central Bank's policy meeting later today and as investors mulled over China's reduced GDP growth target announced at the annual meeting of the National People's Congress.
Market forecast for STI: We may expect it will move in the range of 3388 to 3456
Technical Indicators: RSI is at 47 and CCI is at -147.
Important Factor for today:-

• China is facing risks of deflation and may suffer a prolonged period of economic stagnation given structural woes such as excess capacity and slumping property prices.
• Singapore is set to have the world's fastest growth in the number of super rich individuals within the next 10 years,
• Hong Kong and Shanghai markets led a broad Asian sell-off after China set tepid 2015 economic and trade growth targets, while the euro struggled to recover from 11-year lows ahead of a key European Central Bank meeting.
• Singapore-listed trusts and companies with sizable revenue from India have averaged a price gain of 6.2 per cent and divided yield of 3.7 per cent to date this year .
• Commodity trading house Noble Group said it only decided to take a US$200 million impairment charge relating to an Australian coal investment on the day of its earnings release, responding to a local newspaper report questioning the lack of a profit warning.
• Sino Construction, which lost 77% of its market value earlier this week, will return to its core construction trade even as it expands into power production.

Market Review for KLCI: Malaysia share prices opened lower on Thursday with the FTSE Bursa Malaysia Kuala Lumpur Composite Index down 5.88 points to 1819.66.
Market forecast for KLCI: Due to poor Crude data and china’s data market was bearish today, maintaining R1 at 1812 R2 at 1825 and S1 at 1805 and S2 at 1780-1790.
Technical indicators: RSI stood below the center line at 52.055 with its CCI at 0.349. Difference line of MACD performed at 10.682 above its signal line which performed at 12.092.
ECONOMIC FACTORS:

• Daya Materials Bhd has accepted Perfect Propel Sdn Bhd's request to forego the put option and reduce the price for call option shares of RM8.80 regarding the sale of its 30% stake in Daya CMT Sdn Bhd.
• The Malaysian Investment Development Authority (Mida) which will be organising a series of global supply chain conferences throughout the year, hosted an aerospace and commercial supplier conference to spur further investments in the aerospace industry.
• Integrax Bhd's board of directors have advised its minority shareholders to reject the revised take-over offer of RM3.25 a share by Tenaga Nasional Bhd (TNB).
• The Centre for Public Policy Studies (CPPS) Malaysia has recommended a Single Pricing Policy in order to establish a fair playing field for all businesses and eliminate hidden costs.
• Kwasa Land Sdn Bhd, a fully owned subsidiary of Employees Provident Fund, will make RM65 million, inclusive of its revenue guarantee, from its first bumiputra residential development, Project R3-2, in Kwasa Damansara.
• Bursa Malaysia Derivatives Bhd (Bursa Derivatives) expects the trading of crude palm oil futures to hit a new high of 325 million tonnes in 2015, a 29% jump from the record 252 million tonnes in 2014.
• Moody's Investors Service has assigned a provisional (P)A1 rating to the US$15 billion medium-term note (MTN) programme to be issued by PETRONAS Capital Ltd and guaranteed by Petroliam Nasional Bhd.
• Maybank is committed to see further growth in retail small and medium enterprise financing in 2015 after recording a strong 43 per cent rise to RM7.5 billion in 2014.
• Bina Puri Holdings Bhd, the country’s integrated civil and building construction services provider, has secured a RM128.5 million contract to construct a spa resort complex in Chendering Beach, Kuala Terengganu.
• Property developer, MK Land Holdings Bhd, will launch two projects this year with a combined Gross Development Value of RM600 million, says Group Chief Executive Officer Lau Shu Chuan.
• The Malaysian capital market grew to RM2.76 trillion and remains resilient amid global uncertainties, revealed the Securities Commission in its annual report.
• Many central banks in the region have cut policy rates, Bank Negara Malaysia is not likely to be one of them at this juncture. CIMB Investment Bank said the central bank will continue to adopt a wait-and-see stance.
• Tenaga Nasional Bhd’s (TNB) shares on Bursa Malaysia declined in early trade today after the Integrax board recommended shareholders reject a revised offer of RM3.25 by the national utility company.