Friday, July 31, 2015

LCTH Ascending Triangle Breakout?

LCTH Ascending Triangle base building for next Breakout! 
Going for RM1.00 If YES!!!

Good Luck and Cheers!!!

Thursday, July 30, 2015

KLCI Tripple Bottom?

KLCI Tripple Bottom In Making! Going for 1800 if YES!!!

Good Luck and Cheers!!!

Tuesday, July 28, 2015

S&P Reaffirms Malaysia's "A-" Rating, Stable Outlook

PETALING JAYA: Standard & Poor's Ratings Services (S&P) has reaffirmed Malaysia's long-term foreign currency sovereign credit rating at "A-", with a stable outlook, reflecting the country's country's strong external position and considerable monetary flexibility.

This comes a month after Fitch Ratings upgraded Malaysia's outlook to stable and maintained its credit rating at "A-" and just days after BNP Paribas had criticised Fitch on its Malaysia centric assessments. BNP Paribas had said that Malaysia is at risk of a "multi-notch downgrade" in sovereign credit rating due to the country's credit position.

S&P however stressed that the rating is based on the assumption that the political implications of 1Malaysia Development Bhd (1MDB) investigations will not interfere with sound policymaking. It believes that corruption allegations involving 1MDB will not impede current policy flexibility and responsiveness.

"We view Malaysia as having a high degree of monetary flexibility. The central bank's track record in controlling inflation indicates strong monetary flexibility that helps absorb major economic shocks," it said, adding that Malaysia has a deep domestic bond market, compared with its peers', which reduces its reliance on external financing.

S&P said the ratings are also underpinned by Malaysia's strong external position, a result of years of current account surpluses.

"We believe this position can withstand a slowdown in the oil and gas sector over the next two years. Likewise, external indicators are likely to remain unchanged, given our assumption of continued healthy trade surpluses," it noted.

It estimates average annual increase in general government debt at 2.9% of GDP over 2015-2018 versus an average of 6% over 2009 to 2012, and the country's budget deficit to narrow toward a balance by 2020.

S&P said the government's measures to cut petroleum subsidies and introduce goods and services tax (GST) will ease its debt burden.

S&P said Malaysia's general government fiscal position also carries contingent risks from its public enterprises and financial sector, which include guarantees on debts and letters of support.

"Within our forecast horizon, we do not believe such contingent liabilities will materialise significantly," it opined.

S&P said Malaysia's public enterprises have diverse financial profiles--some with strong free cash flows and sizeable liquid assets that, in the past, have been used to support other parts of the public sector.

Although the high household debt levels pose some risks, it believes that is somewhat contained by a banking sector that is well capitalized and has a good regulatory record.

"Our bank industry country risk assessment for Malaysia is "4", with "1" being the strongest assessment and "10" the weakest," it added.

S&P said Malaysia's capital market exposure to sudden funds outflow due to a sharp rise in holdings of ringgit-denominated Malaysia government securities to 28% as at end-2014 by non-residents, is contained by its expectation of continued sound policymaking, floating exchange rate, high foreign exchange reserves, the presence of large domestic institutional investors, and the deep local capital market.

For 2015, it expects a weaker ringgit to boost exports of manufactured goods, and partly offset the impact of lower oil prices on Malaysia's energy exports.

"We project Malaysia's average annual growth in real GDP per capita will be just under 4% over 2015-2018. We expect exports of manufactured goods and growth in private consumption and investment to drive this expansion," it said.

Meanwhile, secretary general of Treasury Tan Sri Mohd Irwan Serigar Abdullah said in a statement yesterday that the reaffirmation of Malaysia's A- sovereign credit rating by Fitch and S&P is a testament to the government's continuous effort in ensuring sound macroeconomic fundamentals and its commitment to strengthening public finances.

He stated that S&P has expressed confidence in Malaysia's responsive and effective policy making.

"In this regard, S&P believes that issues surrounding 1MDB will not hinder the government's resolve to pursue economic and fiscal reforms," he added.


Friday, July 24, 2015

LCTH, JHM New High. More Upside Seen!

What is so good about LCTH and JHM? Hmmm.. I'm Lovin it, new high, new breakout ! :-) I have give my buy call in twitter and forums during profit taking on 15 and 16 July - LCTH @ 55/56cts and JHM @ 45/46cts. By now it have risen by 18%. Want more? No worry, still not too late, both have momentum to rise further high. Of course this is not for long term but base on my short term target, there will be another 10cts-20cts gain from current closing price!

LCTH after breakout from 10 years old downtrend price at 55cts, do you think it will only gain 20%-30%? I doubt so, I am banking that it will rise to about 100% which will be all time high of RM1.20 created in 2004. So this means for short term holding the price will move to the level 85cts-90cts than retreat. As long as the price can stay above 60cts for mid term target of RM1.20 is achievable. My current exit point set at 64/65cts if uptrend turn out to have negative u-turn.

JHM also have breakout from 9 years old downtrend price at 50cts. Same as what I expect, there is no less than 30% gain after a breakout. I am looking beyond all time high of 63cts created in 2007. For short term holding my target would be at 63cts-67cts. Mid term target would be around RM1.00. My current exit point set at 52/53cts if there is negative u-turn.

Finally, I am looking for a good uptrend for this stocks and hope there is no negative international or local news that may spice up the fears among us! Always stay alert and be flexible and hold base on your plan, execution and profit target.

Happy weekend. :-)

All the best and good luck! Cheers!