Wilmar is also a 200D MA stock

Wilmar Holdings Pte Ltd (WHPL), a 48.1% substantial shareholder of Wilmar International Ltd (Wilmar), has informed the group that its liquidator had on 1 April made an interim distribution of about 40% of its shares held in the company – amounting to 1.19bn Wilmar shares – in specie to its shareholders.

Similarly, the liquidator of Wilmar International Holdings Ltd (WIHL), which owns 91.3% of WHPL, made an interim distribution to its shareholders of all the shares held by the liquidator of WHPL, which WIHL is entitled to receive from WHPL’s interim distribution. WIHL is entitled to receive 1.095bn shares in Wilmar following the interim distribution.

In the aftermath, Wilmar’s free float will rise to 17.7% from 13.6%. The shareholding interests of existing key substantial shareholders will also change.

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Wilmar - More near-term downside expected

Wilmar set a recent high of S$3.46 but the price action on that day also resulted in the formation of a bearish doji star ? a potential trend reversal signal, which was confirmed by the subsequent formation of two bearish candlesticks.

More importantly, the formation of the doji star came when the stock just managed to clear the important S$3.27 resistance (provided by the 38.2% Fibonacci retracement of the fall from S$5.71 to S$1.76).

The subsequent breach and failure to regain the S$3.27 level has bearish implications, which could see the stock heading back lower towards S$3.11 (centre line of the Bollinger Band).

Daily technical indicators have also turned negative ? the most obvious coming from the bearish divergence seen in the RSI indicator.

However, we think that the stronger support will probably be around S$3.00 (near 50-day moving average and the 5-month uptrend line).

But if that fails, then there is a good chance of it pulling back to S$2.60, which was the previous low made during the pullback in Jan (the other instance when Wilmar failed to stay above the 38.2% Fibonacci retracement level).

Near-term resistance remains at S$3.27 ahead of S$3.46. Key resistance is at S$3.74 (50% Fibonacci retracement level).

Sell Wilmar, Golden Agri, Indofood Agri

Wilmar International (WIL SP; S$3.26) – SELL

• The stock is still holding on to its short-term uptrend channel after hitting a temporary bottom at S$1.76. However, the may be little upside for now, as there is a cluster of resistances at S$3.38-S$3.46. Next upside target is at S$3.68 and S$3.88.

• It is poised for further correction as the indicators are showing signs of exhaustion. MACD is losing momentum while RSI has also hooked down.

• Despite our immediate negative view on the stock, it is unlikely that the pullback may derail its longer term uptrend. Support is at S$3.12 and S$3.02 (also its 30-day SMA). Take profit now.

Golden Agri-Resources (GGR SP; S$0.295) – SELL

• The stock is still holding above its 30-day SMA but it appears that momentum is easing after it fails to hold above S$0.305. Consolidation may take place after recent rally as sellers at S$0.305 and S$0.33 would cap gains.

• MACD is still positive but RSI indicator has hooked down. Mixed technical readings usually point to volatility.

• Daily chart still looks conducive but could succumb to short-term weakness. Initial support is seen at S$0.28 followed by S$0.26. Time to take some profits, possibly near its resistances. However, there could be buying opportunities near its supports.

Indofood Agri Resources (IFAR SP; S$0.625) – SELL

• The stock looks toppish after it failed to overcome recent high at S$0.655. The formation of a black candle coupled with the easing technical landscape suggests that there are downside risks to the stock.

• MACD is weakening while RSI also hooks down. Initial support is seen at S$0.59 followed by S$0.57. A fall below its 30-day SMA at S$0.55 would paint a very bearish outlook on the stock.

• It needs to cut above the S$0.67 resistance to conclude its sideways pattern but chances are remote at this juncture. Sell into strength.

Technically sell SIA, Golden Agri, Wilmar

Technically…

Singapore Airlines (SIA SP; S$9.97 – SELL): Fallen below its consolidation triangle’s support and its 30-day SMA, suggesting that longer term downtrend has resumed. Could retest its October lows of S$9.05/S$8.83.

• The stock is fallen below its consolidation triangle’s support and also its 30-daySMA. This breakdown suggests that the longer term downtrend would likelyhave resumed.

• Indicators are looking negative with the RSI hooking downwards from a neutralposition. MACD has also maintained its negative stance and hence anyrebound would likely be weak.

• Maintain sell as any rebounds towards its resistance at S$11.00 and S$12.20should be seen as a selling opportunity. The stock could fall to retest itsOctober lows of S$9.05 and S$8.83 next.


Golden Agri-Resources (GGR SP; S$0.275 – SELL): Broke below its short term uptrend channel, suggesting that the longer term downtrend has resumed. S$0.26/S$0.21 could be tested soon.

• The stock broke below its short term uptrend channel yesterday and this is asign of weakness. The breakdown also suggests that the longer termdowntrend has resumed. Resistance is at S$0.30.

• Its MACD just confirmed its dead cross while RSI has hooked down afterfailing to climb above its trend line.

• S$0.26 and S$0.21 could be tested soon. Sell.


Wilmar International (WIL SP; S$2.89 – SELL): Tested its support turned resistance at S$3.10-3.14 but failed to close above it. This could cause further selling pressure and the stock could test the S$2.60/2.26 support.

• The stock tested its support turned resistance at S$3.10-3.14 but failed toclose above it. This would likely result in further selling pressure after fallingbelow its 30-day SMA (S$2.93).

• Indicators have just turned negative with the MACD confirming its negativecrossover.

• The stock would likely re-rate downwards to the next support at S$2.60 andS$2.26 respectively.



Fundamentally…

Lion Asiapac Limited (LAP SP; S$0.12 - HOLD): Excluding gains on sales of investments, 1H results were weak. The Company has announced restructuring of its electronics business which could see inventory and receivables write offs. We maintain HOLD with S$0.15 TP.

MAP Technology Hldgs Ltd (MAP SP; S$0.255 - SELL): Reported worse-than-expected 4Q but remains in net cash and has sustained its 1.77 US cts dividend (more than 10% dividend yield. We switch to P/BV valuation with S$0.195 TP. Downgrade from HOLD to SELL.