FBM KLCI technical outlook 30 Dec 09

 

The FBM KLCI inched up by 2.49 points to close at 1,275.22. Its resistance areas at 1,278 and 1,288 will cap market gains, whilst the obvious support areas for the FBM KLCI are located at 1,259 and1,275. Despite the DJIA’s small decline of 1.67-points, we expect the FBM KLCI to see minor profit taking today ahead of the year-end in thin trading, with some window dressing activities.

We believe that the FBM KLCI peaked at 1,288.42 on 17 Nov 2009, and urge investors to liquidate all their stocks on any window dressing rally. The FBM KLCI’s Oscillator indicator turned negative recently. However, the CCI, DMI, MACD and Stochastic signals just turned positive, indicating a miniscule window-dressing rebound ahead. The market may have surged  late yesterday but we expect further profit taking ahead of the new year-end holidays at this weekend.

We especially love the gloves stocks like ADVENTA, HARTA,LATEXX, SUPERMX  and TOPGLOV. Other stocks that we favour are:- APM, D&O, DAIBOCHI, HAIO, HELP, KPJ, LBS, LPI, MFCB, MUDAJYA, SALCON,  SAPCRES, SCIENTX and TCHONG.

source: Maybank Invetsment