MYR In­ter­est Rate Swap (IRS) Mar­ket

The Star Malaysia - StarBiz - - Treasury Pulse - By Fong Min Yuan

As at Fri­day’s 11am pric­ing, the IRS curve inched slightly higher in re­sponse to the lower MGS yields ex­cept for the 15-year and 20-year yields de­spite the de­crease in the fiveyear CDS.

Else­where, the three-month Kli­bor re­mained at 3.43%.

LOOK­ING at the short-term for­ma­tion, Care­plus Group Bhd (Code: 0163) ex­pe­ri­enced a pos­i­tive break­out in the fi­nal week of May and ral­lied over two weeks of trad­ing, push­ing prices to a peak of 44.5 sen on June 9.

Soon, a bout of ap­par­ent profit-tak­ing sell­ing brought the counter lower be­fore it re-tested the re­sis­tance on July 13, fail­ing which it re­sulted in a “dou­ble-top” pat­tern thus send­ing prices into cor­rec­tion mode.

In the midst of a down­trend on Aug 30, Care­plus faced heavy sell­ing pres­sure, which re­sulted in a sharp drop of seven sen to 32 sen and a re­turn to the pre-break­out lev­els. It fi­nally found shel­ter at 30 sen on Sept 8 and suc­cess­fully filled a small run­away gap be­fore con­sol­i­dat­ing and trad­ing side­ways.

Based on the daily chart, there was ev­i­dence of some re­newed buy­ing in­ter­est over the last two trad­ing days that saw Care­plus climb­ing to 35 sen by mar­ket close on Fri­day.

Vol­ume was pil­ing up, al­beit on a grad­ual pace, with 9.82 mil­lion shares ex­chang­ing hands yes­ter­day and should it con­tinue to grow over the next few days, this stock could pull it­self out of the cur­rent bear­ish state to more lofty lev­els.

As of now, the de­scend­ing trend line re­mains in­tact at 37.5 sen. If the counter chal­lenges the re­sis­tance, which co­in­cides with the up­per­most 100-day sim­ple mov­ing av­er­age, a de­ci­sive break­out will pro­pel Care­plus to the 41-sen mark. The next up­per hur­dle is an­tic­i­pated at the 44.5-sen level.

Tech­ni­cally, in­di­ca­tors are paint­ing a promis­ing pic­togram, with the slow sto­chas­tic in­dex show­ing a sharp up­turn and the os­cil­la­tor K per cent out­pac­ing the os­cil­la­tor D per cent. A short-term buy was is­sued on Sept 22.

The daily mov­ing av­er­age con­ver­gence/ di­ver­gence his­togram is main­tain­ing its strong up­wards tra­jec­tory as it pre­pares to en­ter pos­i­tive ter­ri­tory while money flow re­mains healthy just below over­bought ter­ri­tory. The 14-day rel­a­tive strength in­dex is bullish but slightly over­bought at 76 points.

On the con­trary, if cor­rec­tion kicks in, a pull­back would see sup­port at the 33-sen mark, and below that, the 30-sen level last touched on Sept 8. — The com­ments above do not rep­re­sent a rec­om­men­da­tion to buy or sell.

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