E&O

Refer your Entry and Exit setups or rules before taking any action. If you dont hv one, then anything goes-you are guided by your emotions...which is always flip flop and has the tendency to follow the heart






Resistance : 1.66
Support : 1.50

Profit taking picks up in MSM

KUALA LUMPUR: Shares of MSM Holdings Bhd fell in late afternoon on Wednesday, June 29, as profit taking picked up pace in heavy trade in the company which made headlines in its trading debut on Tuesday.


As at 3.18pm, it was down 16 sen to RM4.73 with more than 13 million transacted. However, it is still up by a commendable RM1.23 from the institutional price of RM3.50.

The FBM KLCI was up 1.92 points to 1,571.94. Turnover was 710.83 million shares valued at RM953.98 million. There were 352 gainers, 310 losers and 326 stocks unchanged.

MSM, which made its trading debut on Tuesday, surged'' RM1.39 or 39.7% to close at RM4.89 with 101.92 million shares.

MSM's institutional price was fixed at RM3.50 and for retail investors at RM3.38 per share after the book-building exercise.

AmResearch has valued MSM at RM4.53 per share while RHB Research Institute had accorded a fair value of RM4.90 to the shares.

Instrument : Non-collateralised cash settled European-style call warrants over MSM
Shares
Issuer : OSK Investment Bank Berhad
Market Maker : OSK Investment Bank Berhad
Underlying Security : MSM Shares (Bursa Securities stock name: MSM)
Exchange : Bursa Malaysia Securities Berhad (“Bursa Securities”)
Issue Size : Up to 80,000,000 SW
Exercise Ratio : Five (5) SW shall initially be entitled to one (1) MSM share
Price Fixing Date : 28 June 2011
Offering Date : 7 July 2011
Expected Listing Date : 8 July 2011
Exercise Price : RM4.50, being 98.04% of the Reference Price, rounded to the nearest two
(2) decimals
Expiry Date : 7 May 2012, being the date falling ten (10) months from and including the
Issue Date
Issue Price : RM0.150, being (i) 16.34% of the Reference Price divided by (ii) the
Exercise Ratio, rounded up to the nearest half sen

MSM CA & CB : 5:1 ratio + exercise price RM 4.50 = RM6.07
MSM CC : 8:1 ratio + RM4.88 = RM6.36
Current MSM price RM5.42

MSM extends gains

KUALA LUMPUR: Sugar refiner and distributor MSM Holdings Bhd continued to be in focus on Wednesday, June 29 and extended its gains as it was actively traded.

At 9.15am, MSM was up six sen to RM4.95 with 3.93 million shares traded.

The stock made an impressive debut on the Main Market of Bursa Malaysia on Tuesday and closed RM1.39 higher to RM4.89 with 101.19 million shares traded.

AmResearch has valued MSM at RM4.53 per share based on a price earnings ratio (PER) of 10 times financial year 2012 earnings per share. Its PER of 10 times is about 23% below the regional average PER of 13 times ex-Japan and Australia.

The research house said MSM was expected to be a high dividend-yielding stock. It added the group’s estimated FY11 to FY12 dividend yields of 6% to 7% (based on the IPO price of RM3.50) would be higher than most of the consumer and numbers forecast operator companies.

It said MSM plans to pay out 50% of its net profit as dividends every year.

TECHNICAL INDICATORS

INTERPRETATION OF TECHNICAL INDICATORS:
Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band.

14‐day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30‐day moving average should be taken as a bullish move with good short‐term upside potential. A fall below 50 and a simultaneous dip below the 30‐day average is bearish and imply further near‐term downside risk.

Moving Averages: A stock’s short‐term trend is bullish if share price stays above the 10‐day moving average, and bearish if it stays below. The medium‐term trend is positive if share price stays above the 30‐day average, and negative if it remains below. A longer‐term uptrend is intact if share price sustain above the 50‐day average, and is deemed broken if it breaches below this level.

Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI‐, while a negative DMI diff is bearish due to a lower DI+ vs. DI‐ (DMI diff = DI+ minus DI‐). A crossover of DI+ above DI‐ triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI‐. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend.

Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12‐day EMA minus the 26‐day EMA) and the MACD signal line (the 9‐day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero.