Daily Archives: March 29, 2016


KLSE : AirAsia shares surge on news of potential privatisation


  • Maybank Investment Bank Research is “neutral” on the news that AirAsia Bhd could be privatised and has downgraded the stock to “hold”.
  • Over the weekend, a business weekly reported that Tune Air (AirAsia founder) in partnership with China Everbright was planning to privatise AirAsia, citing sources familiar with the matter. However, company official stated they have not received any formal offer and would not comment.
  • “We are neutral on this event pending details. We now rate AirAsia as a ‘hold’ (previously buy) as the current share price, which has outperformed, offers limited upside to our unchanged target price of RM1.80, which is pegged to one time 2016 P/BV,” it said.
  • Maybank said AirAsia had a long history of ‘privatisation’ attempts. Since the budget carrier was listed back in November 2004, rumours of privatisation have surfaced time and again.
  • “By our count, there was at least five such ‘attempts’ and this latest one makes it six. However, there was never a formal offer made to AirAsia for a privatisation, thus inferring that it was not as ‘imminent’ as the market would have thought.
  • “A privatisation, if true, and at the last share price of RM1.81, would mean RM4.08bil to be forked out by both Tune Air and China Everbright,” Maybank said.
  • AirAsia, the second most active counters today, is up 6 sen to RM1.87.
  • Maybank said the facts were unconvincing for a privatisation to happen this time. It recalled that AirAsia had called for an Extraordinary General Meeting (EGM) on Dec 15, 2015 just to secure shareholders’ mandate to buy back 10% of its shares, effectively “sending a firm message that it is not for sale”
  • AirAsia has commenced its first buy back tranche shortly after announcing its fourth quarter 2015 results in February 2016.

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KLSE : Ringgit firms up against US dollar early Tuesday


  • The ringgit opened higher versus the US dollar on Tuesday on strong buying momentum for the local note, dealers said.
  • At 9am, the ringgit was quoted at 4.0030/0090 to the greenback from 4.0110/0160 at 5pm on Monday.
  • A dealer said the local currency was lifted by strong buying as investors shifted their interest to the local currency from the greenback following the sluggish consumer spending data released by the US.
  • “This would likely affect the US Federal Reserve’s intention to hike interest rates next month,” the dealer said.
  • The ringgit was mixed against a basket of major currencies.
  • Against the Singapore dollar, it rose to 2.9236/9286 from 2.9280/9335 on Monday and vis-a-vis the yen, improved to 3.5300/5362 from 3.5352/5411.
  • Against the British pound, the ringgit however, fell to 5.7027/7128 from 5.6856/6931 and weakened to 4.4806/4889 from 4.4799/4871 versus the euro.

For more information about KLSE stock market please feel free to visit EPIC RESEARCH MALAYSIA.


Bursa Malaysia : Genting, Public Bank lead KLCI higher at noon


  • Genting Bhd, Public Bank and AmBank underpinned the KLCI’s advance at midday on Tuesday on some window dressing activities amid a mixed broader market.
  • At 12.30pm, the KLCI was up 10.16 points or 0.6% to 1,712.57. Turnover was 863.57 million shares valued at RM900.65mil. There were 309 gainers, 320 losers and 366 counters unchanged.
  • Most emerging Asian currencies gained on Tuesday as the dollar eased after disappointing U.S. economic data, but the possibility that a speech by Federal Reserve Chair Janet Yellen could signal a rate hike soon made market participants cautious., Reuters reported.
  • The ringgit firmed up against the US dollar and Singapore dollar but slipped against the pound sterling. It was at 4.0040 to the greenback from 4.0370 on Monday while it was at 2.9250 to the Singapore dollar compared with 2.9305. It was weaker against the pound at 5.6994 from 5.909.
  • Genting rose 23 sen to RM9.51 while Genting Malaysia advanced 14 sen to RM4.62.

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Kuala Lumpur : Awang Adek wants an end to speculation about BNM governor post


  • “Stop the speculation about me becoming  the next Bank Negara Malaysia Governor,” says Malaysian Ambassador to the United States Datuk Awang Adek Hussin whose term ends on April 7.
  • Also, a former Deputy Finance Minister, his comments came in response to the intense speculation that he would replace Tan Sri Dr Zeti Akhtar Aziz, who retires next month after helming BNM for five terms from 2000.
  • Awang Adek said he was appointed ambassador to the US for a two-year period and with the term ending on April 7, he had no wish to extend the contract, as he wanted to spend more time with his family.
  • He told this to the Malaysian media covering Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi’s week-long working visit in conjunction with the 2016 Nuclear Security Summit.
  • Ahmad Zaid arrived here on Tuesday.
  • Awang Adek said the decision not to renew his contract was a personal choice.
  • On speculation that he was among the most suitable candidate for the job following his tenure as BNM Deputy Governor from 1996-2001, he said:” There are other more qualified people. I don’t know and see no reason why there is always talk of me to replace Zeti.

For more information about KLSE stock market please feel free to visit EPIC RESEARCH MALAYSIA.


China March factory activity seen contracting at slower pace


  • Activity in China’s manufacturing sector likely shrank for an eight straight month in March, but at a slower pace than in February as a reviving property market gave a much-needed boost to sales of steel and other construction materials, economists polled by Reuters said.
  • The official manufacturing Purchasing Managers’ Index (PMI) is expected to rise to 49.3 in March from 49.0 a month earlier, according to a median forecast of 32 economists in a Reuters poll. February’s reading was the weakest since November 2011.
  • Although the forecast rise implies a slower rate of shrinkage, it is still below the 50.0 mark which separates expansion from contraction.
  • China’s factory sector has been in a prolonged slowdown, weighed down by weak global demand for the country’s exports and overcapacity in key sectors such steel and basic materials.

For more information about KLSE stock market please feel free to visit EPIC RESEARCH MALAYSIA.


Comex Trading Signals and Market News – 29 March 2016


  • Oil prices rose in holiday-thinned European trade on Monday, amid indications U.S. shale oil producers are cutting back on drilling activity. Crude oil for May delivery on the New York Mercantile Exchange tacked on 64 cents, or 1.62%, to trade at $40.10 a barrel.
  • Gold futures extended losses from last week in holiday-thinned European trade on Monday, falling to a five-week low amid speculation the Federal Reserve could give serious consideration to a rate hike at its April meeting, boosting the U.S. dollar.
  • Crude oil posted early gains in Asia with a key meeting on a proposal to freeze output by major producers looming next month. On the New York Mercantile Exchange, crude oil for delivery rose 0.81% to $39.77 a barrel. In the week ahead, oil traders will be focusing on U.S. stockpile data on Tuesday and Wednesday for fresh supply and -demand signals.


  • Japan’s parliament is set to approve on Tuesday a record 96.72 trillion yen ($851.5 billion) state budget for fiscal 2016, paving the way for a fully-fledged debate on additional stimulus spending to spur the flagging economy.
  • California Governor Jerry Brown announced a deal with legislative and labor leaders on Monday to raise the minimum wage to $15 an hour by 2023, saying the nation’s most-populous state would lead the way toward higher pay for the working poor.
  • Former Brazilian President Luiz Inacio Lula da Silva urged a return to pro-growth economic policies like tax breaks and more consumer credit on Monday, doubling down on a strategy that has strained public accounts in recent years.


  • BUY GOLD ABOVE 1219 TARGET 1224 1230 SL BELOW 1214
  • SELL GOLD BELOW 1212 TARGET 1207 1201 SL ABOVE 1217

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IForex Market Trading Signals and News – 29 March 2016


  • FOREX-Dollar edges up versus yen; awaits data, Fed comments
  • FOREX-Dollar on firm footing; awaits data, Fed comments
  • FOREX-Dollar poised for weekly gain after Fed officials signal rate hikes

Offered at 1.1173 (23.6% of 1.0517-1.1376)in Europe, the EUR/USD pair is now trading around 1.1160 and threatening to drop into losses ahead of US data release. US Personal spending and income growth is seen slowing in February. Upward revision of the US Q4 GDP released on Friday was largely due to personal consumption; hence USD bulls may feel demoralized if spending figure for February slows more than expected. Post personal spending release, investors would shift their focus to goods trade balance, new home sales and Dallas Fed manufacturing index. Action in oil prices and the resulting impact on the equities could also influence the demand for the funding currency EUR.

GBP/USD posted sharp losses last week, dropping some 340 points. The pair closed the week at 1.4122. This week’s highlights are Current Account and Manufacturin PMI. The markets were treated to a flurry of hawkish comments from Fed officials last week, helping the dollar post huge gains against the pound. This leaves an April hike a real possibility and contrasts with the very dovish Fed policy statement. US Final GDP beat expectations with a gain of 1.4% in the four quarter. British Retail Sales posted a decline of 0.4%, but this was within expectations.


  • BUY GBP/USD ABOVE 1.4182 TARGET 1.4202 1.4232 SL BELOW 1.4152
  • SELL GBP/USD BELOW 1.4157 TARGET 1.4137 1.4107 SL ABOVE 1.4187

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