The Star Online: Business
The Star Online: Business |
| Posted: 15 Mar 2013 04:40 PM PDT RIMBUNAN Sawit Bhd attempted to resume the rally two months after peaking out temporarily at an all-time high of RM1.22 on Feb 20 last year, but momentum fizzled out at the RM1.16-level on lack of buying conviction. Subsequently, prices retreated and after spending several months in the doldrums, the stock made another move to advance. Again, the effort was futile, as the upward thrust once again punctured at the RM1.16 barrier. Thereafter, shares were on the downtrend, which saw prices touching a 16-month low of 72 sen on March 1 before rebounding marginally on renewed bargain-hunting interest. This stock hit to a high of 78 sen during intra-day session yesterday. Based on the daily chart, Rimbunan Sawit appeared to have found the bottom and is currently in the midst of building up the pace for recovery. But further observation is needed before we could confirm the trend ahead. Technically, the daily slow-stochastic momentum index had indicated a tentative curving up sign from the mid-range. Likewise, the 14-day relative strength index improved marginally from a reading of 42 on Thursday to end at the 64 point-level yesterday. Elsewhere, the daily moving average convergence/divergence histogram expanded positively against the signal line. It had issued a buy call on March 6. Indicators are looking better, implying prices may firm in the short term. Initial resistance is envisaged at the 50-day simple moving average (SMA) of 79 sen. The next upper hurdle is resting at the 84-sen line, also the 100-day SMA, of which a clear penetration would signal a bullish reversal, en route to challenge the greater resistance of 93.5 sen. Important support is pegged at the recent ebb of 72 sen, of which a crack would signal a downtrend continuation. > The comments above do not represent a recommendation to buy or sell. |
| Posted: 15 Mar 2013 04:36 PM PDT REVIEW: Wall Street's iconic indicator, the Dow Jones Industrial Average, added another 67.58 points to settle at a new record of 14.397.07 the previous Friday on optimism the world's largest economy was on a solid mending path following the release of payrolls data. In spite of the bullish ambiance, stocks on Bursa Malaysia kicked off the week on the negative side, with the FTSE Bursa Malaysia KL Composite Index (FBM KLCI) shedding 1.64 points to 1,652.32 in early deals, as investors took the excuse of a mixed performance in regional markets and the growing overbought condition to book gains after the recent climb. However, the pullback was cushioned by sporadic foreign accumulation in certain blue chips and consequently, the local bourse was kept within a narrow range on consolidation. Apparently, that was the trend until the late hour where fresh buying emerged suddenly from the sidelines, bidding up the quality issues and helped stocks changing directions. At the close, the key index eked out a slight gain of four points to 1,657.96 in mixed note Monday. Risky assets in the United States extended their rally, taking the Dow to another fresh peak of 14,447.29, up 50.22 points, aided by signs of improvement in the US economy. On the back of the positive setting, many people had expected stocks across the Asia-Pacific to follow suit the next day but in an unprecedented move, they were either little changed or on the slide on concerns about China after economic figures came in below expectations. Though the FBM KLCI jumped to a high of 1,664.39 in early business, reacting to the strong performance in Wall Street overnight, the lacklustre showing in regional bourses weighed on the local sentiment, prompting investors to sell into strength. In the wake of profit-taking activity, the local bourse surrendered early advances to settle down 1.42 points to 1,656.54 on Tuesday. Overnight Dow continued to set new record following the recent major breakout but it failed to bolster Asian shares, including Bursa Malaysia once again, as the upward thrust in the United States showed signs of losing momentum. With sellers leading the market, the FBM KLCI succumbed to tremendous stress to retreat, shedding 10.32 points to 1.646.22 in mid-week. Thereafter, profit-taking activity dominated the floor, with quality issues continuing to suffer amid lack of compelling leads on the horizon. In sluggish trade, Bursa Malaysia eased 5.48 points to 1,640.74 on Thursday and an extra 13.10 points to 1,627.64 on extended correction yesterday. Statistics: On a weekly basis, the major index slumped 26.32 points, or 1.6% to 1.627.64, against 1,653.96 at the close on March 8. Turnover for the regular week amounted to 4.317 billion units worth RM9.142bil, compared with 4.530 billion shares valued at RM8.327bil changed hands previously. Technical indicators: After triggering a short-term sell at the top, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index continued to weaken, ending at the 18% and 37% level respectively. Similarly, the 14-day relative strength index pulled back to the mid-range after peaking out at the overbought reading of 80 points on Monday. Though the daily moving average convergence/divergence (MACD) histogram retained the buy signal, it had indicated a tentative topping out pictogram. Weekly indicators deteriorated slightly, with the slow-stochastic momentum index keeping the buy and the weekly MACD resuming the downward expansion against the weekly trigger line. Outlook: Despite overnight Wall Street breaking records almost on a daily basis, Bursa Malaysia plunged into correction mode, as investors opted to take profit rather than bidding stocks the past week. Prior to this, the local bourse has been on an uptrend and just when the landscape is shaping up nicely and the outlook appearing promising, following the recent multiple bullish breakouts and various positive crosses of the moving averages, a fresh bout of liquidation emerged to hit the market. As we can see, Bursa Malaysia is pretty fragile and based on the daily chart, the unexpected selling, especially in the mid-week, has dragged the FBM KLCI out of the existing upward channel to the downside. Theoretically, the latest development does not bode well for the market, going forward, and hence, investors are advised to take a cautious approach in the short-term. Technically, indicators are weakening, implying the local bourse may extend the correction this week, unless fresh catalyst emerges. Initial resistance is now at the 1,665 points, followed by the all-time high of 1,699.68 points or the 1,700-point psychological barrier. The immediate support floor has been lowered to the 1,597-1,600-point level. |
| Adex soars on pre-election spending Posted: 15 Mar 2013 04:35 PM PDT THE high 24.4% jump in media advertising expenditure (adex) last month was within expectations and can be attributed to pre-election spending, according to industry experts. "The adex growth in its majority is attributed to the pre-election spending, and only a few advertisers trying to launch and promote their campaigns before the election period," says Omnicom Media Group (OMG) managing director Andreas Vogiatzakis. "Having said all this, we also believe that by looking at first-quarter adex, we should not decipher the entire year's trend from that, as the first quarter definitely looks optimistic due to the upcoming general election," he adds. Vogiatzakis says there has yet to be any increase in ad spend by local political parties. "Political parties have yet to see encouraging spending mainly because the political motive ads are now driven by the Government (the Prime Minister's Department particularly), contributing RM50.8mil or 6% to total adex in January." According to market research firm Nielsen, the PM's Department's adex soared 2,600% in the first two months against the same period a year ago. The PM's Department ranked number one among all advertisers and 1Malaysia For Youth was at 9th rung. Besides the Government, advertising for passenger cars above 2,000cc also saw a big growth, with spending doubling. While the retail market was "still holding its momentum," Vogiatzakis, citing Nielsen's Confidence Index, notes that Malaysians' confidence dwindled two points from 105 in the third quarter of 2012 to 103 in the following quarter. "This is partly due to the heightened political climax and it may get better or worse depending on the result of the election. Hence, it is not surprising if such sentiment will prompt a more cautionary approach among the advertisers. Having said that, this will likely be cushioned by spending from the Government or ruling parties as they will be all out to win votes." A media analyst also concurs that adex in February was boosted by pre-election initiatives. "With the impending election, many awareness campaigns were initiated in the early part of this year," he says. Total adex in February rose 24.4% to RM792.06mil compared with RM636.82mil in February a year earlier, according to Nielsen's data. Adex growth during the month was led by pay television, radio and free-to-air television (see table). Newspapers still continued to command the lion's share of total ad spend, accounting for 33.3% of total adex in February. Year-to-date February 2013, total adex, excluding Internet ad spend, grew 21.3% to RM1.7bil from RM1.4bil a year earlier. During the two-month period, the product/service categories with the highest ad spend were local government institutions, mobile line services, women's facial care, fast-food outlets, and tonics and vitamins. Vogiatzakis says he foresees adex trending upwards in the near term. "We continue to foresee growth in the first quarter, mainly on the election and government spends. Advertisers (in general) will likely take a more cautionary approach until after the election. Barring other non-spending related factors (increase in channel monitoring, etc), we predict first quarter adex to surpass RM3bil this year, compared with RM2.3bil last year. "Also, Nielsen will not be able to capture the full growth momentum as some mediums are not monitored. "YouTube advertising is increasing - by looking at the huge amount of advertising during the Chinese New Year period and with the expected general election in March, for example." |
| You are subscribed to email updates from The Star Online: Business To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 20 West Kinzie, Chicago IL USA 60610 | |
0 ulasan:
Catat Ulasan