Malaysia Stock Market May Find Traction On Thursday

 Malaysia Stock Market May Find Traction On Thursday

The Malaysia stock market has ticked lower in two straight sessions, slipping almost 5 points or 0.3 percent along the way. The Kuala Lumpur Composite Index now rests just above the 1,520-point plateau although it's poised to find support on Thursday.

This technique is very beneficial in the bullish market but at the same time, it involves a high amount of risk. We, therefore, recommend you to have sound knowledge of the market and get daily stock picks. This research can help you to speculate the opportunities for short selling in the market.

Get High accuracy klse signals with daily fundamental and technical analysis.

How an Investor Makes Money By Short Selling Stocks?

Short selling a stock means creating an open position in the market by buying the shares that you don’t own and then selling them to another investor. Investors opt for selling short if he/she feels that share price is going to decline. This technique is useful to earn profits when the share values go down.

In this, the investor usually borrows security or shares from the broker or a person who owns such shares. The investor will then sell these shares in the open market and retain the proceeds from the sale. The investor then anticipates that the prices will fall over a period of time, which will give him an opportunity to buy back the shares at lower prices. The difference in the selling and buying back price would be the profit of the investor. 

Why is Short Selling Used By Investors?

 

This technique is used by investors for the purpose of hedging and speculation. Speculators use this technique to gain from the declining levels of stocks, whereas hedgers use this technique to migrate from the losses that can be caused in the market. Short selling is also used by institutional investors for both hedging and investment.

This technique is very beneficial in the bullish market but at the same time, it involves a high amount of risk. We, therefore, recommend you to have sound knowledge of the market and get daily stock picks. This research can help you to speculate the opportunities for short selling in the market.

Get High accuracy klse signals with daily fundamental and technical analysis.

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How Do Beginners Trade Stocks in Malaysian Market?

 Entering the financial world is not difficult at all. You need to have basic knowledge of investment, when the market is bullish and when it is bearish, market sentiments and you are good to go. Also, the returns on investment are calculated on the basis of risk. Higher the risk, the higher the returns.

So if you are new to trading, you must be wondering how to trade stocks in Malaysia. So here are some of the basic things that you must know before making any investment in the stock market. Also, we have answered a few common queries that beginners might have in the stock market.

What is the minimum amount to start trading stocks?

There is no minimum amount to start trading stocks. You can start with any amount. Although all this will depend on your strategy of stock trading and the broker that you want to use. So you can start trading with any amount but a sound trading strategy will help you to generate good returns in the market.

Also if you want to start trading in the Malaysia market you need to hire an investment advisor and also a market signal provider. They can guide you and give you proper recommendations about the stock market. They can also give you daily trading tips that will be beneficial to generate good returns in the market.

How much do I need to invest to make a profit in a month?

The key to making money in the stock market is to stay invested in the stock market. Your time in the market is the best indicator of profits generated in the market. The average return provided by the stock market is 10-12% annually. But there are many investors who fail to generate a return of even 10%.

The only reason for this is that they don’t stay for a long period of time. So if you are a beginner to the market, it is important to understand the market trend. It is also important to understand the time of investment and exit strategy for a particular stock.

With all this information you will be able to enter the market successfully, invest a good amount, and generate good returns in the course of time.

The timing of entering and exiting the market is very crucial. A stockbroker or a market signal provider is the best source to get this information. They are experts in this field and with their detailed research, they will help you to find a suitable time for investment. They will also train you about when to hold an investment and when to sell it off.

How to Collect Profit Even When The KLSE Market is Down?

  If you are new to investing, it can be hard to find the best stock suitable for your needs. It is important to have all the tips and techniques that ultimately work in your favor so that you never lose your money in the KLSE Stock Market.

One of the important share market strategies is to invest in undervalued stocks. Undervalued stocks are the ones selling at a discounted price, relative to their intrinsic value. This strategy is called value investing where you invest in undervalued stock with the hope that the prices will rise to their appropriate intrinsic value.

These Bursa Stock picks will help you to generate good returns in the market. If you want to get a consistent and predictable return from the KLSE Stock Market, you will love this guide in which we have compiled some of the Best Performing Stocks.

Follow these Five KLSE Stock Picks of 2021:

#1. AmanahRaya REIT
#2. Focus Lumber Berhad
#4. Poh Huat Resources Holdings Berhad
#5. GDB Holdings Bhd

Check out the news of the past 24 hours

  1️⃣ Yield gains will not stop anytime soon, and USD will continue to benefit

 - The dollar fell in early European session on Tuesday, but remains near a multi-month high thanks to solid treasury bond yields and strong expectations for the US economy to recover.

 Another test for the market and the USD would be the sale of 3-year Treasury bonds, a week after a match.  Less well-received 7-year bond prices triggered a yield hike.  Three-year bonds are more sensitive to short-term rates and therefore the bid will suggest a time when investors expect the Fed to start raising interest rates.

 Driven by the dollar's rise this year is also on positive economic data, analysts have revised their forecasts for U.S. growth higher while tending to revise down forecasts.  for other countries.

 2️⃣ ECB Members: Dual recession was no longer the most important problem

 The comment of the Governor of the Bank of France, Francois Villeroy de Galhau has the following notable points:

 - French economic growth this year may reach at least 5%;

🌈🌈Good morning!  Have a nice day!

- The French Central Bank estimates that the French economy will avoid a double recession, stable economic performance leading to “slight” growth in Q1;

 - I think having a double recession does not matter much, because the focus is now not on how things are going in Q1 but on how much the eurozone economy could grow in the second half of 2021 - especially  especially in the summer months;

 - Vaccine deployment and reopening the economy are more important factors at present;

 3️⃣ Notable facts and economic data today

 - At tonight, the US monthly CPI will be announced in February, is expected to be 0.4%, compared with the previous value of 0.3%.  If the data is higher than expected, it could become the catalyst for further increases in US Treasury yields.

 - The US House of Representatives is expected to consider and pass the stimulus bill

 - The Bank of Canada announced its interest rate decision.  The market is not expected to change interest rates, focus on the Canadian dollar, inflation and debt buying.

 - US EIA crude oil inventories are announced for the week to March 5th. The market is expected to drop 833,000 barrels, while API inventories are announced at the beginning of the morning.  now recorded an unexpected increase.

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 🌈🌈Good morning!  Happy new week with lots of energy, good work!

 1️⃣ The main news over the weekend

 The US Senate approves a $ 1.9 trillion stimulus plan.

 Non-farm data is still "beautiful", still 10 million lower than its peak in February 2020.

 2️⃣ Notable economic events and data this week

 This week is a period of silence before the Fed's decision.  Other major developments of the central bank include:

 On Monday, the Governor of the British Central Bank Bailey gave a speech on the prospects for the UK economy.

 On Wednesday, the President of the Reserve Bank of Australia Lowe delivered a speech;  The Central Bank of Canada has announced interest rate resolutions.

 On Thursday, the European Central Bank announced its interest rate decision, and then the President of the European Central Bank, Lagarde, held a press conference.

KLSE Stock picks

+ Check out the news of the past 24 hours

  

1️⃣ The House of Representatives plans to vote on the $ 1.9 trillion stimulus package at the weekend

 The US House of Representatives will vote on Friday on the US $ 1.9 trillion bailout bill proposed by Mr. Biden, said Representative Steny Hoyer, the House's No. 2 Democrat.

 - The American people strongly support this bill and we are moving quickly to make it into law, "Hoyer said on Twitter Tuesday.

 The House Budget Committee approved the measure on Monday.  Adopting new bailout packages to reduce the economic damage caused by the pandemic is a top priority for Democratic President Joe Biden.

 Although polls show that Americans want more economic support, Democrats - which control Congress closely - and Republicans have been very different in their views about whether it has  how can be given.

 The number of coronavirus deaths of the United States this week surpassed half a million, along with millions of others are infected and unemployed.

 2️⃣ Fed Chairman - J. Powell's statements during Monday's hearing to House Financial Services Committee:

 - Inflation may take more than 3 years to reach the Fed's inflation target.

 - Fed will continue to keep interest rates low.

 - Repeat commitment to continue buying bonds to support the economy.

 => The Chairman's comments are a sign that the Fed plans to keep interest rates unchanged for a long time, at least 3 years.  Fed will be ready to keep the stimulus to support the economy in the next 3 years.  This allayed concerns about the possibility that the Fed would soon raise interest rates when the economy began to recover.  Gold has the potential to increase in the near future.

 3️⃣ Notable facts and data for today

  - At tonight, the United States will announce the adjusted value of the annual real GDP ratio for the fourth quarter, which is expected to be adjusted up to 4.2%.  Also announced is the monthly rate of US durable orders in January, is expected to hit a record 1.1%.

 At tonight, Bostic, the 2021 FOMC voting committee and Atlanta Fed president, delivered the opening speech at the 2021 virtual banking outlook hosted by the Atlanta Fed.  In the early hours of Friday morning, the 2021 FOMC voting committee, the Atlanta Fed President, Bostic, and the FOMC permanent voting committee, New York Fed President, Williams will also make speeches.

British Pound Forecast- Levels for CAD / JPY, USD / CAD, GBP/JPY, GBP/USD, EUR/GBP

 - The US dollar continued to lose points after the CPI figure surged last night.

 - Falling Covid-19 case data and recovery in oil prices could make the Canadian Dollar stronger.

 - CAD / JPY is ready to extend its recent gain while USD / CAD is aiming a push to retest its yearly lows.

- The post-Brexit UK economy is proving resilient, particularly relative to the rest of Europe and most of the developed world, when viewed through the lens of vaccination rates.

- Both GBP/JPY and GBP/USD rates are in bullish breakout territory, while EUR/GBP rates are in bearish breakout territory.

- Retail trader positioning suggests different biases among the major GBP-crosses.

COMEX TRADING SIGNALS

EUR/USD: Options market seems bias for Euro weakness past three months

• EUR/USD three-month risk reversal shows the strongest bearish bias since June 2020. 
• Technical charts and macro factors look to have aligned in favor of the bears. 
• German Factory Orders are forecast to contract 1% in December. 

EUR/USD's options market positioning looks stacked against the single currency. 

According to data source Reuters, the three-month risk reversal shows an implied volatility premium for puts over calls at an eight-month high (of -0.275). In other words, the bearish bias is strongest since June 2020. 

The negative risk reversal is the result of demand for puts outstripping demand for calls. The metric flipped bearish with a drop below zero on Jan. 27. 

A put option gives the holder the right but not obligation to sell the underlying asset at a predetermined price on or before a specific date. Meanwhile, a call represents the right to buy.

The increased demand for puts highlighted by risk reversals is consistent with the bearish developments on technical charts, which indicate scope for a continued decline toward 1.1888. That's the 61.8% Fibonacci retracement of the rally from 1.1602 to 1.2349. 

The macro factors are also biased bearish. The battered dollar is rising with progress in coronavirus vaccinations, the US President Joe Biden's unveiling of a $1.9 trillion fiscal stimulus, and upbeat economic data. Meanwhile, concerns about the Eurozone's slow delivery of coronavirus vaccines look to be weighing over the euro. 

EUR/USD's downside will likely gather pace if the data due at 07:00 GMT shows a bigger-than-expected contraction in the German Factory Orders growth in December. The US Nonfarm Payrolls due at 13:30 GMT is expected to show the economy added 50K jobs in January, having shed 140K jobs in December. Again, a big beat on expectations could draw stronger buying pressure for the dollar.

Malaysia Stock Tips 

Malaysian Glove Stocks Fall Down

 Malaysian retail investors joined teams on social media and pushed up stocks of under-pressure rubber glove makers on Friday (Jan 29), taking inspiration from the recent GameStop trading phenomenon in the US.

Shares of the US video game shop chain surged from less than US$20 to a peak of US$492 earlier this week, after millions of amateur investors active on online forum Reddit rallied together to punish short-sellers by sending prices soaring.

In short-selling, investors borrow stock, sell it and then purchase it back at a lower price, keeping the difference. But if a stock unexpectedly soars, then investors are forced to buy it back at a loss.

Inspired by the US movement, Malaysian mom-and-pop investors Thursday set up their own Reddit group, naming it BursaBets after the country's stock exchange.

Like the US group WallStreetBets, BursaBets became an online rallying spot for those urging people to buy and hold shares, in this case, targeting glove stocks.

Malaysia is the world's top producer of latex gloves, and major producers saw their shares jump last year on strong demand due to the COVID-19 pandemic.

But the companies were hammered in recent weeks as vaccines became available and they were targeted by short-sellers after the government lifted a ban on the practice.

Malaysia Intraday Stock Picks

Malaysia Stock Picks | SGX Signals - Money life Research

SGX Stock Signals- Live Singapore Stock Market Update 

Malaysian Based Stocks on SGX

More than 40 stocks listed on SGX are either headquartered in Malaysia or have core operations based in the country, and have a combined market capitalization of over S$60 billion. Their businesses are categorized under the consumer, healthcare, real estate, information technology, energy, materials and industrial sectors.

Among these Malaysia-based listings, the 5 best performers in the 2019 year-to-date were:  Silverlake Axis (+33.5%), Aspen Group (+28.0%), JB Foods (+16.1%), ISEC Healthcare (+13.7%), and Frencken Group (+11.9%). These 5 stocks have averaged a total return of +20.6% in the YTD, bringing their one-year and three-year total returns to -8.3% and +101.4% respectively.

SGX rolls out pioneering suite of ESGderivatives

THE Singapore Exchange (SGX) has launched its pioneering suite of environment, social and governance (ESG) derivatives under the SGX First (Future in Reshaping Sustainability Together) sustainability agenda, which was announced in December 2020

Shares of SGX were down by S$0.02 or 0.2 per cent at S$10.07 as at the midday trading break.

Brokers' take: Analysts raise SGX target price; see potential upside of 1.3-15.3%

ANALYSTS have raised their target prices (TPs) for Singapore Exchange (SGX) after adjusting their forecasts higher for the bourse operator's FY2021-22 earnings. This came after SGX posted a net income of S$239.8 million for the half year ended Dec 31, 2020, up 12.4 per cent from S$213.3 million a year ago. during a bourse filing on Friday, SGX said it saw revenue increases across all three of its businesses: equities; fixed income, currencies and commodities; and data, connectivity and indices.