On Our Technical Watch

15 February 2018

PP7004/02/2013(031762) Page 1 of 5

By Lawrence Yeo / lawrenceyeo@kenanga.com.my; Jeff Lye / jeff.lye@kenanga.com.my; Figure 1: Daily Charting – FBMKLCI

Source: Bloomberg, Kenanga Research

Basic Data

52-week High 1,880.56 (in Million) 52-week Low 1,690.64 KLCI Vol 134.76

Current Level 1,834.93 Bursa Vol 1931.87 Intraday High 1,837.80 Bursa Val 1987.79 Intraday Low 1,829.71

Technical Ratings Resistance 2 1,888 MACD Bearish Resistance 1 1,840 RSI (14) Bearish

Current Level 1,834.93 Stochastic Bearish Support 1 1,800

Support 2 1,767 Outlook Bearish

Asian Market in anticipation of US Inflation data

• Asian markets ended mixed in anticipation of US inflation numbers, which is slated for release on Wednesday. FBMKLCI was up marginally by 1.91 points (0.10%) to close higher for the third consecutive day at 1,834.93.

• Broader market sentiment was positive with 580 winners outpacing 338 losers while 376 traded unchanged. • Despite the bullish run over the past three days, investor caution is warranted as the momentum indicators remain fragile

while the US inflation report is likely to be the key determinant in near term market direction. • Investors should wait for a decisive breakout from the 1,840 (R1) resistance level which will signal a more conclusive

advance towards 1,888 (R2). Downside support levels, however, can be found at 1,800 (S1) and 1,767 (S2).

US market continues to recover

• US markets closed stronger despite higher than expected inflation data. • The DJIA jumped 253.04 points (1.03%) to end at 24,893.49. • Even though the DJIA is in the midst of a recovery from the sell down over the past two weeks, momentum indicators are

still weak and we expect the market to remain volatile in the short-term. • Immediate resistance can be identified at 25,145 (R1) with further resistance found at 26,600 (R2). • Conversely, downside support levels can be placed at 24,240 (S1) and 23,507 (S2).

Daily technical highlights – (HIAPTECK, AEMULUS)

HIAPTECK (Not Rated) • HIAPTECK rose 2.5 sen (5.3%) to close at RM0.495. • Yesterday’s strong move marked the second breakthrough from the RM0.485 resistance level. • Key indicators like RSI and Stochastics are beginning to inflect away from the oversold zone which signal a return of buying

interest. • From here, expect a move upwards towards RM0.530 (R1) over the coming weeks to resume its uptrend seen earlier in Dec

- Jan, before trending higher towards resistance level of RM0.558 (R2). • Immediate downside support can be found at resistance-turned-support level (S1) RM0.485 and RM0.458 (S2) stronger

support. AEMULUS (Close Position @ RM0.485) • We bring closure to our "Trading Buy" recommendation on AEMULUS amid on-going rationalisation of our technical

portfolio. • We first recommended the stock on the 10 November 2017 though AEMULUS has generally been stuck within a sideways

mode. Besides, in this recent month, the stock broke below its key support at RM0.542 and capitulated to yesterday's closing price of RM0.485 (-4.9%). As a result, the technical outlook has deteriorated, with trading volumes tapering and MACD turning negative.

• From here, likely supports are RM0.413 (S1) and RM0.334 (S2) while overhead resistances are RM0.542 (R1) and RM0.621 (R1).

On Our Technical Watch

15 February 2018

PP7004/02/2013(031762) Page 2 of 5

Figur e 2: Daily Charting – Dow Jones Industrial Average

Source: Bloomberg, Kenanga Research

Figure 3: Daily Charting – Hiap Teck Venture Bhd (No t Rated)

About the stock: Name

: Hiap Teck Venture Bhd

Bursa Code : HIAPTEK CAT Code : 5072 Shariah Compliant : Yes Market Cap : 656.7 52 Week High/Low : 0.52/0.3 3-m Avg. Daily Vol. : 7,549,071.00 Free Float (%) : 90.96% Beta vs. KLCI : 0.6 Key Support & Resistance Level Resistance : RM0.530 (R1) RM0.558 (R2) Support : RM0.485 (S1) RM0.458 (S2) Outlook : Bullish What does the indicator says MACD : Neutral RSI : Neutral Stochastic : Overbought Trend : Neutral What should you do Current Share Price : RM0.495 Technical Target : - Technical Cut-loss : - Fundamental Call Kenanga : - Consensus : -

Source: Bloomberg, Kenanga Research

On Our Technical Watch

15 February 2018

PP7004/02/2013(031762) Page 3 of 5

Figure 4: Daily Charting – Aemulus Holdings Berhad (Close Position @ RM0.485)

About the stock: Name

: Aemulus Holdings Berhad

Bursa Code : AEMULUS CAT Code : 0181 Shariah Compliant : Yes Market Cap : 212.8 52 Week High/Low : 0.75/0.3 3-m Avg. Daily Vol. : 3,722,792.00 Free Float (%) : 85.00% Beta vs. KLCI : 1.6 Key Support & Resistance Level Resistance : RM0.542 (R1) RM0.621 (R1) Support : RM0.413 (S1) RM0.334 (S2) Outlook : Bearish What does the indicator says MACD : Bearish RSI : Bearish Stochastic : Overbought Trend : Bearish What should you do Current Share Price : RM0.485 Technical Target : - Technical Cut-loss : - Fundamental Call Kenanga : - Consensus : RM0.57

Source: Bloomberg, Kenanga Research

This section is intentionally left blank

On Our Technical Watch

15 February 2018

PP7004/02/2013(031762) Page 4 of 5

Unrealised Positions (Feb 2018)

No CATS

Stock Name Issued Date (ID)

Price @ ID

Target Price

Stop-Loss

Upside Potential

@ ID

Downside Risk @ ID

Reward/ Risk Ratio

@ ID

Last Price

Dividend Received since ID

Gain/ Gain/ Rating Comment/ Action

Code Loss (incl.

Div.) Loss

RM RM (%) (%) (x) RM RM RM (%) 1 7100 UCHI TECHNOLOGIES BHD 4-Oct-17 2.730 3.420 2.510 25.27% -8.06% 3.1 2.820 0.144 0.23 8.57% BUY

2 5010 TONG HERR RESOURCES BHD 29-Nov-17 4.080 4.590 3.780 12.50% -7.35% 1.7 3.850 0.171 -0.06 -1.45% BUY

3 9571 MITRAJAYA HOLDINGS BHD 30-Nov-17 0.845 0.985 0.745 16.57% -11.83% 1.4 0.905 - 0.06 7.10% BUY 4 7022 GLOBETRONICS TECHNOLOGY 22-Dec-17 6.700 7.970 5.970 18.96% -10.90% 1.7 6.250 - -0.45 -6.72% BUY

5 5054 TRC SYNERGY BHD 23-Jan-18 0.775 0.985 0.625 27.10% -19.35% 1.4 0.710 - -0.07 -8.39% BUY

Simple Average 20.08% -11.50% 1.88 -0.56%

*Tracker does not include Non-Rated positions

Realised Positions (Feb 2018)

No CATS

Stock Name Issued Date

Buy Price

Price since Buy Date

Price change since Buy Date (%) Sell Date Sell

Price

Dividend Received since ID

Gain/ Gain/ Rating Comment/ Action

Code Loss (incl.

Div.) Loss

(H) (L) (H) (L) RM RM RM (%)

1 4731 SCIENTEX BHD 6-Sep-17 8.910 9.800 8.050 9.99% -9.65% 9-Feb-18 8.050 0.100 -0.77 -8.62% CLOSE POSITION

2 0097 VITROX CORP BHD 13-Oct-17 4.860 6.820 4.860 40.33% 0.00% 9-Feb-18 5.840 0.015 0.99 20.44% TAKE PROFIT Upgraded TP/SL (14 Dec 2017)

3 0181 AEMULUS HOLDINGS BHD 10-Nov-17 0.670 0.710 0.485 5.97% -27.61% 14-Feb-18 0.485 0.025 -0.16 -23.88% CLOSE POSITION

Simple Average 18.76% -12.42% -4.02%

On Our Technical Watch

15 February 2018

PP7004/02/2013(031762) Page 5 of 5

Basic Technical Terms:

Reversal Candlesticks Patterns Description

Doji Dragonfly Doji (Bullish) Gravestone Doji (Bearish)

Dojis form when a security's open and close are virtually equal. The length of the upper and lower shadows can vary, and the resulting candlestick looks like, either, a cross, inverted cross, or plus sign. Doji convey a sense of indecision or tug-of-war between buyers and sellers.

Engulfing Pattern

A reversal pattern that can be bearish or bullish, depending upon whether it appears at the end of an uptrend (bearish engulfing pattern) or a downtrend (bullish engulfing pattern). The first day is characterized by a small body, followed by a day whose body completely engulfs the previous day's price action.

Hammer (Bullish) Shooting Star (Bearish)

Hammer candlesticks form when a security moves significantly lower after the open, but rallies to close well above the intraday low. This appears in a downtrend. In contrast, the Shooting Star pattern appears in an uptrend. It opens higher, trades much higher, then closes near its open. It looks just like the Inverted Hammer except that it is bearish.

Inverted Hammer (Bullish) Hanging Man (Bearish)

The Inverted Hammer is a single-day bullish reversal pattern. In a downtrend, the open is lower, then it trades higher, but closes near its open price, therefore looking like an inverted lollipop. Hanging Man candlesticks form when a security moves significantly lower after the open, but rallies to close well above the intraday low.

Harami Harami Cross

The Harami is a two-day pattern that can be bullish or bearish. It has a small body day completely contained within the range of the previous body, and is the opposite colour. The Harami Cross is similar to the Harami. The difference is that the last day is a Doji.

Marubozu

A Marubozu candlestick has no shadow extending from the body at either the open, the close or at both.

Morning Doji Star (Bullish) Evening Doji Star (Bearish)

A Morning Doji Star (Evening Doji Star) is a three-day candlestick bullish (bearish) reversal pattern - a long-bodied black (white) candle extending the current downtrend, a short middle candle that gapped down (up) on the open, and a long-bodied white candle that gapped up (down) on the open and closed above (below) the midpoint of the body of the first day.

Spinning Top

Spinning Tops are candlestick lines that have small bodies with upper and lower shadows that exceed the length of the body. They are similar to the Doji candlesticks, and signal indecision.

Source: Various

Common Chart Patterns

Rev

ersa

l Pat

tern

s

Inverted Head & Shoulders (Bullish)

Head & Shoulders (Bearish) Wedge Reversal (Bullish/ Bearish)

Double Top (Bearish) Double Bottom (Bullish)

Con

tinua

tion

Pat

tern

s

Symmetrical Triangle (Bullish/ Bearish)

Ascending Triangle (Bullish)

Channels (Bullish/ Bearish) Flags (Bullish/ Bearish ) Pennant (Bullish/ Bearish)

Source: Various

This document has been prepared for general circulation based on information obtained from sources believed to be reliable but we do not make any representations as to its accuracy or completeness. Any recommendation contained in this document does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may read this document. This document is for the information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees. Kenanga Investment Bank Berhad accepts no liability whatsoever for any direct or consequential loss arising from any use of this document or any solicitations of an offer to buy or sell any securities. Kenanga Investment Bank Berhad and its associates, their directors, and/or employees may have positions in, and may effect transactions in securities mentioned herein from time to time in the open market or otherwise, and may receive brokerage fees or act as principal or agent in dealings with respect to these companies.

Published and printed by: KENANGA INVESTMENT BANK BERHAD (15678-H) Level 12, Kenanga Tower, 237, Jalan Tun Razak, 50400 Kuala Lumpur, Malaysia Chan Ken Yew Telephone: (603) 2172 0880 Website: www.kenanga.com.my E-mail: research@kenanga.com.my Head of Research