Retail Research

TrendSpotter

Let’s get technical

30 Jul 2015

Top pick for the day: Soybeans

Regional Technical Team Kong Seh Siang T: +60 (3) 2261-9076 E: [email protected] Nabil Fikri Noor Iskandar Hashim T: +60 (3) 2261-9079 E: [email protected] Patricia Sumampouw T: +62 (21) 515-1330 E: [email protected] Teerasak Tanavarakul T: +66 (0)2657-9231 E: [email protected]

The selloff is not quite done yet Soybeans have now fallen back below its 200-day SMA after briefly pushing above it in late June. More selling is likely to follow next. We see more weakness for soybeans in the coming weeks as the wave counts continue to call for a move back below the June low of 895.75. In the immediate trend, yesterday’s rebound may have ended its wave-iv at 954.75, marginally above its 23.6% Fibonacci retracement of wave-iii. A quick drop to below 937.25 would likely mean that prices are heading to 926.75 or 915.25 next, where both are Fibonacci targets. Lower targets for the longer term would be the June low of 895.75 and 870.25. As long as prices continue to stay below 990.25, we expect prices to continue on lower from here.

ST Outlook (0-1mth) LT Outlook (6-12mths)

R2 R1 Last Price (local) S1 S2

R2 R1 Last Price (local) S1 S2

KLCI

FSSTI

HSI

JCI

SET

1,699

3,284

24,619

4,721

1,417

►▼ ▼

►▼ ►▼

▼ ►

▼ ▼

▼ ►▼

Datasonic Group Buy 1.55 1.31 1.26 1.19 1.07

Darco Water Technologies Buy 0.041 0.035 0.035 0.031 0.026

C Y Foundation Group Sell 1.03 0.97 0.89 0.79 0.61

Timah Buy 660 625 610 595 585

TPI Polene Buy 2.44 2.40 2.28 2.28 2.24

Abric Buy 0.670 0.630 0.595 0.540 0.525

Dragon Group International Buy 0.084 0.080 0.065 0.060 0.052

Universe International Hldgs Sell 0.530 0.456 0.320 0.278 0.234

Mitra Keluarga Karyasehat Buy 26850 26600 26025 25500 25100

Jasmine International Buy 5.30 5.20 5.00 5.00 4.92

Please read carefully the important disclosures at the end of this publication.

Commodities / Indices… Indices Indices

Last

Dow Jones

Currencies % chg Ytd % chg

Currencies (Spot)

Last

% chg Ytd % chg

17,751.39

+0.7%

-0%

US Dollar Index

96.98

+0.2%

+7%

S&P 500 Index

2,108.57

+0.7%

+2%

Australian Dollar

0.7306

+0.1%

-11%

Nasdaq Index

5,111.73

+0.4%

+8%

Canadian Dollar

1.2944

-0.0%

+11%

Euro Stoxx 50

3,575.53

+0.6%

+14%

Euro

1.0989

+0.0%

-9%

Germany's DAX

11,211.85

+0.3%

+14%

Japanese Yen

123.90

-0.0%

+3%

UK's FTSE 100

6,631.00

+1.2%

+1%

Danish Krone

6.7896

-0.0%

+10%

20,302.91

-0.1%

+16%

British Pound

1.5610

+0.0%

+0%

Shanghai SE Composite Index

3,789.17

+3.4%

+17%

Swiss Franc

0.9672

-0.1%

-3%

Hong Kong's Hang Seng Index

24,619.45

+0.5%

+4%

Singapore Dollar

1.3692

+0.0%

+3%

1,158.61

-0.0%

+6%

31.47

-0.0%

-1%

Japan's Nikkei-225

Australia's ASX 200 Index

5,624.16

+0.7%

+4%

South Korean Won

27,563.43

+0.4%

+1%

Taiwan Dollar

Singapore's Straits Times Index

3,284.00

+0.1%

-2%

Hong Kong Dollar

7.7513

-0.0%

-0%

Taiwan TAIEX

8,563.48

-0.2%

-8%

Malaysian Ringgit

3.8103

-0.0%

+9%

Korea's KOSPI

2,037.62

-0.1%

+6%

Indonesian Rupiah

Malaysia's FBMKLCI

1,698.99

-0.0%

-4%

Indonesia's JCI

4,721.12

+0.1%

-10%

Thailand's SET

1,417.49

+0.7%

-5%

Philippines' PCOMP

7,482.83

+0.1%

+3%

India's BSE Sensex 30

13,456.00

-0.0%

+9%

Thai Baht

34.98

-0.1%

+6%

Indian Rupee

63.91

-0.0%

+1%

Philippines Peso

45.50

-0.0%

+2%

China Renminbi

6.2090

-0.0%

+0%

Global Commodities Global Commodities ThomReuters/JefferiesCRB

Last

Most Actives % chg Ytd % chg

Most Active Malaysia

Last

% chg Ytd % chg

205.49

+0.5%

-11%

IKHMAS JAYA GROU

0.78

+4.7%

+36%

1,097.21

+0.0%

-7%

PESONA METRO

0.60

+4.4%

-32%

Silver Spot $/Oz

14.84

+0.1%

-6%

METRONIC GLOBAL

0.09

+6.3%

+0%

WTI Crude Oil (US$/barrel)

48.89

+0.2%

-8%

SKP RESOURCES BH

1.52

+0.7%

+138%

Brent Crude Oil

53.59

+0.4%

-7%

BTM RESOURCES

0.35

+4.5%

+169%

2.87

+0.2%

-1%

Most Active Singapore

Copper Futures

241.15

+0.2%

-15%

STRATECH GROUP L

0.06

+19.1%

N/A

Soybeans Futures

983.00

+0.8%

-4%

CHINA SPORTS INT

0.02

-17.2%

-23%

Gold Spot (US$/oz)

Natural Gas Futures

Soybean Oil Futures

30.21

-1.5%

-6%

CHINA ESSENCE GR

0.03

+28.6%

+1250%

350.00

+1.4%

-4%

HU AN CABLE HLDS

0.04

+18.8%

-28%

Sugar Futures

11.46

+2.6%

-21%

CHN GLOBAL INV

0.05

-8.8%

-65%

Cocoa Futures

3,217.00

+0.4%

+11%

Coffee Futures

122.15

+1.6%

-27%

Corn Futures

367.75

-1.9%

-7%

Wheat Futures

496.25

-2.8%

Live Cattle Futures

144.93

-0.1%

Soymeal Futures

Cotton Futures Palm Oil Futures (3th month) Orange Juice Futures Coal Futures

Most Active Hong Kong CCT LAND HOLDING

0.03

+0.0%

+53%

YUESHOU ENV

0.57

-29.6%

+161%

-16%

BANK OF CHINA-H

4.26

+0.0%

-3%

-11%

SMIC

0.70

+2.9%

-1%

NGAI SHUN HOLDIN

0.84

-3.4%

+1100%

190.00

+2.2%

-59%

55.00

+5.8%

-45%

SRI REJEKI ISMAN

455.00

+1.1%

+179%

EAGLE HIGH PLANT

383.00

+5.5%

-4%

ADARO ENERGY TBK

590.00

-1.7%

-43% +173%

63.89

-0.8%

+6%

2,111.00

-0.9%

-7%

122.75

-0.3%

-12%

SEKAWAN INTI

42.97

-0.1%

-11%

ENERGI MEGA PERS

Most Active Indonesia

Most Active Thailand

2

LIVE INC PCL

0.90

+0.0%

THREE SIXTY FIVE

0.40

+25.0%

-5%

TPI POLENE PCL

2.26

-0.9%

+32%

WICE LOGISTICS P

3.12

-18.8%

+49%

THAI INDUS & ENG

0.32

+6.7%

-55%

Retail Research

Crossroads

Market Spotlight

30 Jul 2015

Regional Technical Team

Thompson/Reuters Jefferies CRB Index (205.49)    

R2: 219.90 R1: 213.11 S1: 202.64 S2: 200.00



Since the breakdown of its Head & Shoulders pattern in July 2014, the fall has been quite relentless. The big question here is that is the fall complete? No.



The recent fall to below 206.81 likely points to a test of the psychological 200.00 levels or lower next. The rebound from 202.64 does not look strong at the moment.



Any rebound from here should find the 210.90-213.00 levels a tough nut to crack. Lower for now. Source: Bloomberg

WTI Crude Oil (US$48.90)    

R2: 56.51 R1: 53.89 S1: 47.05 S2: 43.58



Has crude oil bottomed? For the longer term, no.



The recent fall to 46.68 could continue as the rebound does not look impulsive. Look for a retest of 44.20 and possibly even 42.03 next. Any rebound should find the 50.50-53.89 level a tough resistance.



If prices can strongly push above the said tough resistance, a larger rebound could take place, targeting 57.88 next, its 200-day SMA. Source: Bloomberg

3

Retail Research

Malaysia

Trading Picks

30 Jul 2015

Nabil Fikri +60 (3) 2261-9079 – [email protected], Kong Seh Siang +60 (3) 2261-9076 – [email protected]

Datasonic Group (DSON MK; RM1.26) – BUY    

R2: 1.55 R1: 1.31 S1: 1.19 S2: 1.07



Prices appear to be consolidating within a bullish flag pattern. We expect prices to breakout once this consolidation pattern ends.



MACD remained in the bullish zone while RSI is above the 60pts mark.



Aggressive traders may start to nibble now while others should wait for a push above its resistance trend line (now at RM1.31) before going long. Put a stop below RM1.19. The targets are at RM1.55 and RM1.65. Source: Bloomberg

Abric (ABR MK; RM0.595) – BUY    

R2: 0.670 R1: 0.630 S1: 0.540 S2: 0.525



Prices broke above the ST resistance trend line on the back of rising volume yesterday. This breakout could push prices higher in coming days if not weeks.



MACD has turned upwards together with its RSI, signaling buying momentum is picking up.



Aggressive traders may go long here with a stop placed below yesterday’s low at RM0.555. The next leg up should see prices take out the RM0.63 high and test RM0.67 next. Source: Bloomberg

4

Retail Research

Singapore

30 Jul 2015

Trading Picks

Nabil Fikri +60 (3) 2261-9079 – [email protected], Kong Seh Siang +60 (3) 2261-9076 – [email protected]

Darco Water Technologies (DWT SP; S$0.035) – BUY    

R2: 0.041 R1: 0.035 S1: 0.031 S2: 0.026



We see a smallish triangle pattern taking from here. With prices holding up well above the moving averages, a breakout is likely.



The indicators have been trading sideways, which is in line with the triangle view.



Aggressive traders may go long here ahead of the breakout with a stop placed below S$0.031. Other should wait for the breakout above S$0.035 before getting in. The breakout should take prices to above S$0.041 and test S$0.047. Source: Bloomberg

Dragon Group International (DGI SP; S$0.065) – BUY    

R2: 0.084 R1: 0.080 S1: 0.060 S2: 0.052



The stock broke above the MT resistance trend line on the back of heavy volume recently. With prices trading above the SMAs, higher prices are likely.



Both MACD and RSI have turned upwards, signaling buying momentum is picking up.



Traders may go long here with a stop placed below S$0.060. It is possible to see another test at S$0.080, the 2015 high. Closing above this level would send prices shooting to S$0.084 next. Source: Bloomberg

5

Retail Research

Hong Kong

Trading Picks

30 Jul 2015

Raymond Yap+60 (3) 2261 9072 – [email protected]

C Y Foundation Group (1182 HK; HK$0.89) – SELL    

R2: 1.03 R1: 0.97 S1: 0.79 S2: 0.61



Yesterday’s shooting star-like candle could signal that the next leg down is underway. Prices tested the previous support turned resistance trend line but failed to move back above the said line.



Despite the bounce, MACD is still stuck in negative territory. RSI is below the 50-60pts mark.



The stock remains a sell on rally as long as prices stay below yesterday’s high of HK$0.97. Look for a move towards HK$0.61 if the HK$0.79 support gives way.

Source: Bloomberg

Universe International Hldgs (1046 HK; HK$0.32) – SELL    

R2: 0.530 R1: 0.456 S1: 0.278 S2: 0.234



The recent fall has taken prices to below its bearish flag support. Yesterday’s failure to rebound is a sign of weakness and more selling could follow next.



MACD is beginning to turn down again and is close to confirming its dead cross. RSI has reversed and is pointing lower now.



Aggressive traders may go short here with a stop placed above HK$0.415, its 30-day SMA. One should ideally place their stop above HK$0.53. Look for prices to at least retest the HK$0.234 low. Lower prices are possible here, with the HK$0.20 the psychological support level next. Source: Bloomberg

6

Retail Research

Indonesia

Trading Picks

Patricia Sumampouw +6221 515-1330 – [email protected]

PT Timah (TINS IJ; Rp 610) – BUY    

R2: 660 R1: 625 S1: 595 S2: 585



TINS moved slightly higher after hitting the channel support recently. As long as the said channel support holds, a stronger rebound is likely.



MACD has confirmed its golden crossover while RSI has hooked upwards from the oversold position.



Traders may go long here with a stop placed below 585. Prices could rebound towards 625 and 660 next.

PT Mitra Keluarga Karyasehat (MIKA IJ; Rp 26025) – BUY    

R2: 26850 R1: 26600 S1: 25500 S2: 25100



MIKA moved up and close strongly above its ST triangle pattern. This breakout is likely to lead to a more bullish near term outlook.



MACD has risen further in the positive territory while RSI is pointing upwards.



Traders may go long here with a stop placed below 25100. Prices could potentially climb higher towards 26600 and 26850 next.

7

30 Jul 2015

Retail Research

Thailand

Trading Picks

Teerasak Tanavarakul -(66) 2 657 9236 - [email protected]

Market is closed due to Public Holidays and will re-open on Monday TPI Polene (TPIPL TB; THB 2.28) – BUY    

R2: 2.44 R1: 2.40 S1: 2.28 S2: 2.24



The fall from the Jun high found support at the key support band as well as its support trend line. As long as candles remain above the said support lines, a rebound is likely.



There are no signs of a reversal on its MACD but the RSI has turned upwards from the oversold position.



We recommend buying into this stock which has support at 2.28 and 2.24. Meanwhile, it has resistance at 2.40 and 2.44. Put a stop below 2.14.

Jasmine International (JAS TB; THB 5.00) – BUY    

R2: 5.30 R1: 5.20 S1: 5.00 S2: 4.92



The stock is sitting at the channel support. With prices forming a doji candle yesterday, a rebound is likely.



MACD is stable while RSI has turned upwards slightly.



We recommend buying into this stock which has support at 5.20 and 4.92. Meanwhile, it has resistance at 5.20 and 5.30. Put a stop below 4.82.

8

30 Jul 2015

Trading Portfolio

30 Jul 2015

Kong Seh Siang +60 (3) 2261-9076 – [email protected]

Portfolio Monitor Trading portfolio Stock

Country

Weighting

Shares Entry price

%

(local curr)

Current price (local curr)

Total cost (local curr)

Market value

Stop loss

Target

(local curr)

(local curr)

(local curr)

Position

Market value S$

Dividend S$

Profit/loss S$

Profit/loss

Forex

%

Existing stocks Wintoni Group

MK

6%

50,000

0.335

0.340

16,750.00

17,000.00

0.300

0.425

LONG

6,111.59

-

89.88

1.5%

2.78

Inari Amerton

MK

11%

10,000

3.420

3.410

34,200.00

34,100.00

3.250

4.030

LONG

12,145.17

-

(35.62)

-0.3%

2.81

Sunzen Biotech

MK

8%

50,000

0.480

0.490

24,000.00

24,500.00

0.440

0.575

LONG

8,726.00

-

178.08

2.1%

2.81

Signature International

MK

10%

10,000

2.750

2.930

27,500.00

29,300.00

2.760

3.050

LONG

10,533.13

-

647.09

6.5%

2.78

Tex chem Resources

MK

7%

12,000

1.490

1.660

17,880.00

19,920.00

1.500

1.950

LONG

7,161.09

-

733.36

11.4%

2.78

Genting Singapore

SP

8%

10,000

0.930

0.905

9,300.00

9,050.00

0.845

1.165

LONG

9,050.00

-

(250.00)

-2.7%

1.00

New purchases Share sales

Cumulative dividend

74.89

Cumulative realised gains/profits

7,284.83

Cash balance + Cumulative dividend

54,995.54 Portfolio value

108,722.52

* Assuming no transaction cost inv olv ed.

Note: Trading Portfolio is a simulation that incorporates technical analysis as a means of stock-picking. The modus operandi is such that we select companies that were recommended in Trading Picks across the five countries (Malaysia, Singapore, Hong Kong, Thailand and Indonesia). Trading, however, may not take place on a day-to-day basis but from time to time, we may up our stop loss point towards breakeven or even to turn it into a trailing stop. For a start, we have allocated SGD100,000 as our initial capital for this Trading Portfolio.

We make no changes to our portfolio today.

9

20 February 2012

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Further, CIMB, its affiliates and its related companies do and seek to do business with the company(ies) covered in this research report and may from time to time act as market maker or have assumed an underwriting commitment in securities of such company(ies), may sell them to or buy them from customers on a principal basis and may also perform or seek to perform significant investment banking, advisory, underwriting or placement services for or relating to such company(ies) as well as solicit such investment, advisory or other services from any entity mentioned in this report. CIMB or its affiliates may enter into an agreement with the company(ies) covered in this report relating to the production of research reports. CIMB may disclose the contents of this report to the company(ies) covered by it and may have amended the contents of this report following such disclosure. 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However, the analyst(s) may receive compensation that is based on his/their coverage of company(ies) in the performance of his/their duties or the performance of his/their recommendations and the research personnel involved in the preparation of this report may also participate in the solicitation of the businesses as described above. In reviewing this research report, an investor should be aware that any or all of the foregoing, among other things, may give rise to real or potential conflicts of interest. Additional information is, subject to the duties of confidentiality, available on request. Reports relating to a specific geographical area are produced by the corresponding CIMB entity as listed in the table below. The term “CIMB” shall denote, where appropriate, the relevant entity distributing or disseminating the report in the particular jurisdiction referenced below, or, in every other case, CIMB Group Holdings Berhad ("CIMBGH") and its affiliates, subsidiaries and related companies. Country CIMB Entity Regulated by Hong Kong CIMB Securities Limited Securities and Futures Commission Hong Kong India CIMB Securities (India) Private Limited Securities and Exchange Board of India (SEBI) Indonesia PT CIMB Securities Indonesia Financial Services Authority of Indonesia Malaysia CIMB Investment Bank Berhad Securities Commission Malaysia Singapore CIMB Research Pte. Ltd. Monetary Authority of Singapore South Korea CIMB Securities Limited, Korea Branch Financial Services Commission and Financial Supervisory Service Taiwan CIMB Securities Limited, Taiwan Branch Financial Supervisory Commission Thailand CIMB Securities (Thailand) Co. Ltd. Securities and Exchange Commission Thailand 10

20 February 2012

(i) As of 29 Jul 2015, CIMB has a proprietary position in the following securities (which may include but not limited to shares, warrants, call warrants and/or any other derivatives) covered or recommended in this report: (a) Dragon Group International, TPI Polene, Jasmine International, Genting Singapore (ii) As of 30 Jul 2015, the analysts, Raymond Yap, Kong Seh Siang, Nabil Fikri Noor Iskandar Hashim, Patricia Sumampouw, and Teerasak Tanavarakul who prepared this report, and the associate(s), has / have an interest in the securities (which may include but not limited to shares, warrants, call warrants and/or any other derivatives) in the following company or companies covered or recommended in this report: (a) This report does not purport to contain all the information that a prospective investor may require. 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the meaning of the Indonesian capital market law and regulations. Ireland: CIMB is not an investment firm authorised in the Republic of Ireland and no part of this document should be construed as CIMB acting as, or otherwise claiming or representing to be, an investment firm authorised in the Republic of Ireland. Malaysia: This report is issued and distributed by CIMB Investment Bank Berhad (“CIMB”) solely for the benefit of and for the exclusive use of our clients. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Conduct Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. CIMB has no obligation to update, revise or reaffirm its opinion or the information in this research reports after the date of this report. New Zealand: In New Zealand, this report is for distribution only to persons who are wholesale clients pursuant to section 5C of the Financial Advisers Act 2008. 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The securities as referred to in this research report have not been and will not be registered with the Financial Supervisory Commission of the Republic of China pursuant to relevant securities laws and regulations and may not be offered or sold within the Republic of China through a public offering or in circumstances which constitutes an offer or a placement within the meaning of the Securities and Exchange Law of the Republic of China that requires a registration or approval of the Financial Supervisory Commission of the Republic of China. Thailand: This report is issued and distributed by CIMB Securities (Thailand) Company Limited (“CIMBS”) based upon sources believed to be reliable (but their accuracy, completeness or correctness is not guaranteed). The statements or expressions of opinion herein were arrived at after due and careful consideration for use as information for investment. Such opinions are subject to change without notice and CIMBS has no obligation to update its opinion or the information in this research report. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Conduct Authority apply to a recipient, our obligations owed to such recipient are unaffected. CIMB Securities (Thailand) Co. Ltd. may act or acts as Market Maker and issuer including offering of Derivative Warrants Underlying securities of the following securities. Investors should carefully read and study the details of the derivative warrants in the prospectus before making investment decisions. AAV, ADVANC, AIT, AMATA, ANAN, AOT, AP, ASP, BANPU, BAY, BBL, BCH, BCP, BEC, BECL, BGH, BH, BIGC, BJC, BJCHI, BLAND, BMCL, BTS, CENTEL, CK, CPALL, CPF, CPN, DELTA, DEMCO, DTAC, EARTH, EGCO, ERW, GFPT, GLOBAL, GLOW, GUNKUL, HANA, HEMRAJ, HMPRO, 12

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ICHI, IFEC, INTUCH, IRPC, ITD, IVL, JAS, KBANK, KCE, KKP, KTB, KTC, KTIS, LH, LOXLEY, LPN, M, MAJOR, MC, MEGA, MINT, NOK, PS, PSL, PTG, PTT, PTTEP, PTTGC, QH, RATCH, RML, ROBINS, SAMART, SAWAD, SCB, SCC, SCCC, SF, SGP, SIM, SIRI, SPALI, SPCG, SRICHA, STA, STEC, STPI, SVI, TCAP, THAI, THCOM, THREL, TICON, TISCO, TMB, TOP, TPIPL, TTA, TTCL, TTW, TUF, UV, VGI, TRUE. Corporate Governance Report: The disclosure of the survey result of the Thai Institute of Directors Association (“IOD”) regarding corporate governance is made pursuant to the policy of the Office of the Securities and Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand and the Market for Alternative Investment disclosed to the public and able to be accessed by a general public investor. The result, therefore, is from the perspective of a third party. It is not an evaluation of operation and is not based on inside information. 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STOCK RECOMMENDATIONS BUY: The stock's total return is expected to be +15% or better over the next three months.

SECTOR RECOMMENDATIONS OVERWEIGHT: The industry, as defined by the analyst's coverage universe, has a high number of stocks that are expected to have total returns of +15% or better over the next three months. NEUTRAL: The industry, as defined by the analyst's coverage universe, has either (i) an equal number of stocks that are expected to have total returns of +15% (or better) or -15% (or worse), or (ii) stocks that are predominantly expected to have total returns that will range from +15% to -15%; both over the next three months. UNDERWEIGHT: The industry, as defined by the analyst's coverage universe, has a high number of stocks that are expected to have total returns of -15% or worse over the next three months.

HOLD: The stock's total return is expected to range between +15% and -15% over the next three months.

SELL: The stock's total return is expected to be -15% or worse over the next three months. CIMB Research Pte Ltd (Co. Reg. No. 198701620M)

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