Despite global headwinds, FBM KLCI managed to record a positive m-o-m return for the month of May 2019. Guess the phrase  Sell in May and go away” does not apply to Malaysia yet….

Jun 2019.png

Technically FBMKLCI remains bearish…

  • 50D MA < 200D MA – post death cross
  • Downward Keltner channel
  • Completion of H-S pattern, possibly downward price objective of 1,552
  • MAs are pointing downward, index price struggles to breach above the MAs
  • MACD – bearish
  • RSI – bearish
  • AD- > AD+

KLCI 06062019.png

FBMKLCI may continue to be dragged by  Financials :

Financials 06062019.png

After a bumpy ride in the first half of the year, banking industry captains are bracing for a tougher second half against the backdrop of slower loan growth and thinning margins.

The prospects for the remaining year, according to industry players and analysts, do not look too rosy amid the protracted US-Sino trade spat and weak global economy.

https://www.thestar.com.my/business/business-news/2019/06/03/bankers-brace-for—tougher-second-half/

In terms of individual stocks, one particular stock that has caught my interest is Kawan Food. Technically, the stock is looking very bearish but one may consider an opportunistic trade if it falls below RM1.00 per share.

Kawan 06062019

More palatable to consider a PE entry of about 16x if compared to Kawan’s current PE of close to 24x:

Kawan Food PE.png

If you have been to Bangkok, you will instantly fall in love with a desert place called After You, listed on Thailand’s SET. Its signature Shibuya toast is crazily nice.

Fundamentally, it is not cheap (at P/E ~50x) – could be due to impressive financial / operating / growth ratios.

AfterYouStats.png

Technically speaking, it is on an upward trend. May consider a possible entry if share price retraces below $9.00.

AfterYou06062019.png

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