NZD/USD declines to over three-week low, around mid-0.6800s amid modest USD strength

 

• NZD/USD witnessed selling for the third straight day and retreated further from the YTD high.
• The Fed’s hawkish outlook, elevated US bond yields underpinned the USD and exerted pressure.
• A positive risk tone might cap the safe-haven USD and limit losses for the perceived riskier kiwi.

The NZD/USD pair continued losing ground through the mid-European session and dropped to over a three-week low, around mid-0.6800s in the last hour.

The pair prolonged this week's sharp retracement slide from the 0.7035 region, or the highest level since November 2021 and witnessed some follow-through selling for the third successive day on Friday. The downward trajectory was exclusively sponsored by the blowout US dollar rally, bolstered by the Fed's hawkish outlook.

In fact, the March 15-16 FOMC minutes released on Wednesday showed that policymakers were prepared to hike interest rates by 50 bps at upcoming meetings. Moreover, there was a general agreement about reducing the Fed's massive near $9 trillion balance sheet at a maximum pace of $95 billion per month to tighten financial conditions.

XAU/USD Price Forecast: Technical outlook

 Gold (XAU/USD) bias is still up, but it would remain under selling pressure. Failure to reclaim February 24 daily high at $1974 left the precious metal exposed to selling pressure unless XAU bulls recover the aforementioned. It is worth noting that the 200-day moving average (DMA) at $1816.85, from an upslope, is horizontal, indicating that the steep rally above $2000 might be subject to a further correction lower.

Upwards, XAU/USD’s first resistance would be $1974. Once cleared, the next resistance would be $2000, and the YTD high at $2075.82.

On the flip side, and the most likely scenario, XAU/USD’s first support would be March 20 low at $1950.30. Breach of the latter would expose March 16 daily low at $1895.06, followed by November 16, 2021, low at $1877.14.

Which 5 KLSE Stock Picks Will Really Work in 2020?

KLSE Market is one of the fastest-growing markets that is usually used by investors with high risk-bearing capacity to maximize the returns on investment.

The market is very volatile and any trade in this market shall be undertaken after research and assessment.

We recommend you to keep a watch on KLSE Stock Picks and take informed decisions before considering any investment.

Here are some of the top KLSE Stock Picks with good potential and excellent returns

5 KLSE Stock Picks –

#1. Mega First Corp Bhd

The company owns the Don Sahong hydropower project in Laos saw a sharp slowdown in net profits. The net profits fell by 28 percent in 2019 due to lower construction revenue.

For 2020, strong earnings growth is expected from Don Sahong when it commences operations.

Since the shares are potentially undervalued, it is the correct time to invest in shares of Mega First Corp Bhd.

#2. Pestech International Bhd

The company is into the business of integrated electrical power technology. The net profits of the company for the year 2019 were RM 19.32 million that is 94 percent higher due to ongoing transmission, distribution, and rail electrification process.

In 2020 the company expects good chances of getting more contracts for rail electrification as it is one of the strongest players in this market presently.

Due to all these factors, we place a strong “buy” position on shares of the company.

#3. IOI Properties Group Bhd

A deep value stock with huge land assets and other investment properties. Also, the company provides an attractive Price to Book Ratio (P/B Ratio) of 0.3 times as compared to the industrial standard of 0.7. All this is backed up by strong investment properties and an excellent track record.

IOI Properties saw considerable growth in net profits to RM 136.36 million which is a 22 percent increase. This higher operating profit is a result of development projects in China and Klang Valley and good profits of the joint ventures of the company.

All these prospects make IOI Properties a good catch in KLSE Stock Market.

#4. Muhibbah Engineering (M) Bhd

Muhibbah is an International Engineering Construction company. The company has build – operate – transfer contracts for development and management of Cambodia’s International Airports.

The company saw a lower net profit of RM 93.3 million due to low turnover. Despite this, there is a strong “buy” with a target price of RM 3.68 that is 58 percent more than the closing price.

This is due to the strong future prospects of the company.

#5. Genting Bhd

The company is into casino business and the stock of the company provides a deep value. The shares of the company have a strong “buy” position with a target price of RM 7.25.

The company is the parent company of Genting Singapore Ltd and Genting Malaysia Bhd and has a strong upside potential for growth in the future.

Conclusion

We hope this guide helps you to find a profitable investment Avenue for KLSE Market and for more such updates subscribe to Money Life Research daily KLSE stock picks package and make your trade risk-free and profitable.

Source- https://www.moneyliferesearch.com/which-5-klse-stock-picks-will-really-work-in-2020/

Share Picks for Bursa Malaysia Market That Can be Good Bargain in 2020

Bursa Market is all set to get better in 2020 due to strengthening the Chinese renminbi. There are several Multinational Companies that are reducing their investment exposure in the Chinese manufacturing sector and are moving to oil and gas as well as IT industries in Malaysia as a good destination for investment and good returns.

At the same time finding investment ideas on the stock exchange is not easy. Several parameters and factors need to be considered before any investment call is made. Also, you need to keep a look at Share Trading Picks before considering any investment.

While institutional investors lookout for steady and long term gain, retail investors lookout for stocks that have received little attention despite good profits i.e. undervalued stocks.

Stocks are generally undervalued based on their price to book ratio (PB Ratio) and Return on Equity (RoE). PB Ratio can be a good measure for identifying Stocks Picks with potential that are undervalued and might prove to be a good bargain.

That said, it is also true that Stock prices sometimes do not reflect a company’s underlying fundamentals due to a number of factors market sentiments, growth potential. Some companies do well financially but for some reason remain hidden and fail to get investors’ attention.

On the other hand, some companies may be incurring huge losses but its share prices may be rising due to market speculation and investors’ attention.

Therefore, we recommend investors to research well about the company, subscribe to Stock Signals and regularly go through Daily Stock Picks before making any investment.

Here we have compiled a list of Bursa Stock Picks that can be a beneficial investment for you –

Top 3 Malaysia Stock Picks

#1. Mieco Chipboard Bhd

 The company is one of the country’s largest manufacturers and distributors of chipboards. The stock has a PB Ratio of 0.36 and a decent RoE of 22.57%. The company’s stock is quite undervalued and can be a good Stock Pick for investment.

 #2. DKLS Industries Bhd

The company is a major construction player in Malaysia Market. The company has a PB ratio of 0.4 and RoE recorded was 11.32%. The shares are quite undervalued but the company can benefit from several mega construction projects announced this year. This can lead to increased in the price of shares making it a good investment.

#3. FoundPac Group

 The company is presently engaged in the business of design, development, manufacture, marketing, and sale of precision engineering parts. The company has a PB ratio of 0.4. Also, the Return of Equity remains quite high at 18.02%.

The company can gain from good growth of the electronic and electrical segment and increased global semiconductor industry. This makes it a good investment decision.

Final Word

 We are of the opinion that current economic conditions are constructive to corporate earnings and thus a good opportunity to make a positive investment in Bursa Market.

Also, target these undervalued Stock Picks in Bursa Malaysia Market that can be a good bargain in given market conditions.

Source-  https://www.moneyliferesearch.com/share-picks-for-bursa-malaysia-market-that-can-be-good-bargain-in-2020/