IOI: Break below Rectangular.
Chart 1: IOI, chart from 25/08/2009 to 03/02/2010.
As shown on chart 1, price of IOI has been trading in the trading range betwee the RM 5.30 and RM 5.60 for nearly 4 months, forming a Rectangular pattern. This suggests that the direction for IOI is unclear, until a break out below the RM 5.30 level, as indicated by A.
After price breaking below the RM 5.30 level, the 14, 21, 31 EMA was also falling, thus serving as the dynamic resistance. Technically, it is a time to cut-loss when price broke below RM 5.30 level. If one should find it hard to cut loss immediately, gradually reducing position would be a wise move as well.
Despite the rebound at RM 5.00, price of IOI failed to break above the 14, 21, 31 EMA, and therefore, the downtrend remains intact. If price should continue falling, those who had reduced their position would find that cutting loss is no longer difficult, for they had accepted the idea of cutting losses. Support for IOI is at RM 5.00 while the resistance is at RM 5.30 followed by the 14, 21, 31 EMA.
| 4 Q Rolling PER | 26.13 times | Dividend Yield | 1.55% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 30/06/2009 | 8 sen | 1.69% | 6.74% |
| 30/06/2008 | 17 sen | 2.28% | 15.22% |
| 30/06/2007 | 7sen | 1.35% | 16.55% |
| 30/06/2006 | 43.50 sen | 3.04% | 13.81% |
| 30/06/2005 | 35.50 sen | 3.33% | 14.86% |
Table 1: IOI yearly Dividend, Dividend Yield, and Net Profit Ratio.
GENP: Testing Support line.
Chart 2: GENP, chart from 1/09/2009 to 3/2/2010.
As shown by chart 2, after price of GENP has dropped below the 14, 21, 31 EMA on the 26thof January, 2010, it is now testing the RM 6.00 support level. As indicated by A, although price of GENP did not rebounded obviously, it has stopped falling. Therefore, this implies that the RM6.00 support effect remains intact. Technically, price has to stay above the RM 6.00 level, then only it could consolidate. For this case, investors could choose to partially reducing position.
Since price of GENP is still staying below the 14, 21, 31 EMA, the technical outlook shall remain bearish biased. If price should continue to be resisted by the falling 14, 21, 31 EMA, the bearish outlook shall remain intact. Next support for GENP is at RM5.50 level.
| 4 Q Rolling PER | 23.60 times | Dividend Yield | 1.65% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 31/12/2008 | 10 sen | 2.82% | 36.03% |
| 31/12/2007 | 14 sen | 1.62% | 37.97% |
| 31/12/2006 | 7sen | 1.64% | 29.68% |
| 31/12/2005 | 6.25 sen | 2.91% | 32.87% |
| 31/12/2004 | 5.50 sen | 3.02% | 33.92% |
Table 2: GENP, yearly Dividend, Dividend Yield, and Net Profit Ratio.
KLK: Entering Consolidation.
Chart 3: KLK, chart from 20/10/2009 to 3/2/2010.
As shown on chart 3, price of KLK started falling as profit taking took place, after it touches its peak at RM 17.26, and since then, it movement is still weakening. As indicated by A, price of KLK remains below the Bollinger Middle Band, thus the immediate outlook is still on then negative side. However, the Bollinger Bands is contracting now, suggesting that KLK is likely to consolidate from now.
If price of KLK should break above the Bollinger Middle Band, and the Bollinger Bands should re-expand, there is a chance for KLK to break away from its weakening movement, but this signal has to be confirmed with a substantial increased of volume. However, if price should remain resisted by the Bollinger Middle Band, and once the Bollinger Bands re-expands, more downside movement for KLK is expected, and the next support for KLK is seen at RM 15.80 level, while the resistance is at RM 17.26 WinChart Automatic Fibonacci Retracement.
| 4 Q Rolling PER | 28.86 time s | Dividend Yield | 2.41% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 30/09/2009 | 40 sen | 2.90% | 9.20% |
| 30/09/2008 | 70 sen | 7.29% | 13.25% |
| 30/09/2007 | 50 sen | 3.79% | 13.70% |
| 30/09/2006 | 50 sen | 4.59% | 11.06% |
| 30/09/2005 | 40 sen | 5.16% | 10.84% |
Table 3: KLK, yearly Dividend, Dividend Yield, and Net Profit Ratio.
SIME: Bearish Biased.
Chart 4: SIME, chart from 17/09/2009 to 3/2/2010.
As indicated by A, after being supported by the RM 8.90 for about 2 months, price of SIME finally broke below the RM8.90 level, and the 14, 21, 31 EMA serves as the dynamic resistance. Since breaking below RM8.90 level, SIME has falled RM0.47 or 5.3%, and until now, it has not found a reliable support. Technically, provided that it is still resisted by the dynamic resistance, the outlook shall remain bearish biased. When price broke below a support level, it is a signal to cut-loss. Nonetheless, next support for SIME is seen at RM 8.23 WinChart Automatic Fibonacci Retracement while the resistance remains at the 14, 21, 31 EMA.
| 4 Q Rolling PER | 24.30 times | Dividend Yield | 2.39% |
| Dividend | Dividend Yield | Net Profit Ratio | |
| 30/06/2009 | 20.30 sen | 2.92% | 7.35% |
| 30/06/2008 | 49 sen | 5.30% | 10.32% |
| 30/06/2007 | 30.20 sen | 3.15% | 7.26% |
| 30/06/2006 | 30 sen | 5.45% | 5.56% |
| 30/06/2005 | 26 sen | 4.48% | 4.30% |
Table 4: SIME, yearly Dividend, Dividend Yield, and Net Profit Ratio.
Conclusion:
With market sentiment turning weaker, plantation counters are also not performing well. It is important for investors to always trade with the direction of the broad market, and if the chart should show any uncertain signal, or investors should feel uncomfortable, it is always a good idea to partially reduce position, and still, a laying out a trading plan before buying is absolutely important.
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