Bursa Malaysia - Is sub-wave iv correction about to end ?

FBMKLCI (1,824)

FBMKLCI dropped another 9 points today to close at 1,824 which is about where I expect the sub-wave iv to end.

With the drops in the last two days, the mini-wave 5 is there. Hopefully the sub-wave iv correction has either ended or about to end.

Berjaya Corporation Bhd (Rm 0.515)

As long as the current drop does not go below the 49 sens level, my wave count for BJ Corp remains as (i)-(ii), i-ii.

Malayan United Industries Bhd (Rm 0.255)

With the drops in the last two days, my (i)-(ii), i-ii wave count for Mui no longer hold.

I have to take one of the sub-wave of major wave 2 as wave (i)-(ii). With this modification, the last high becomes the wave (v) of major wave 3. The current drop is likely to be the wave a of major wave 4.

KSL Holdings Bhd (Rm 4.06)

At Rm 4.06, KSL wave count needs to be modified as my previous wave count no longer hold. From its 10-year chart, it is clear that the current correction is of a higher degree and it can either be its wave (iv) correction.

Or it can be its lower degree sub-wave iv correction. But whether it is wave (iv) or sub-wave iv correction, I believe some investors may take this opportunity to accumulate this stock. Kenanga has estimated its 2014 and 2015 net profits to be Rm 301 million and Rm 376 million respectively. Net earning per share will be 76 sens and 96 sens for 2014 and 2015 respectively. Kenanga put a fair value of Rm 6.63 for KSL. Its warrant with conversion price at Rm 1.60 should have a fair value of Rm 5.00, it closed at Rm 2.60 today.

KSL has proposed a one for one bonus issue last week.

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