Bursa Malaysia - Further Profit-Taking Consolidation


Further Profit-Taking Consolidation

Stocks closed lower for the fourth straight session on Tuesday on continued profit-taking interest after the blue-chip benchmark index rallied to a two-year high.  The FBM KLCI was off 0.81 of a points to settle at 1,298.86, after easing from a mid-morning high of 1,304.43 and late afternoon low of 1,295.31 as losers edged gainers 361 to 290 on slower trade totaling 678.6mn shares worth RM1.06bn.

Revised Retracement Support at 1,292, Resistance at 1,308
The lessening negative market breadth amid reduced losses and slowingtrading`momentum indicate that stocks are moving  into a profit-taking consolidation phase, hence prices should trade sideways in the near-term.  As for the revised retracementsupports, the immediate level is at 1,292, matching the 38.2%  Fibonacci Retracement`(FR) of the 9 Feb low of 1,224 to the 11 March peak of 1,334, next at 1,279, the 50%FR level, and then the 61.8%FR at 1,266.  Immediate resistance will be at 1,308, the 23.6%FR similar to the 21 Jan peak, and next 1,325, last Monday’s high, and then the two-year high of 1,334.

Buy on Dip Latexx & Supermax for Rebound
Continue to take profit banking stocks AFG, AMMB, CIMB, Maybank, Public Bank and RHB Capital pending correction toward their middle or lower Bollinger bands, where more significant buying support should return.  As for lower liners, maintain buy on dip call on rubber glove makers Adventa, Latexx  and Supermax for medium-term upside. Construction related stocks Kinsteel, MRCB, Tebrau and UEM Land should stage strong recovery once buying momentum returns.
source: TA securities

Popular posts from this blog

Malaysia Inflation to start easing end-3Q or early 4Q2011

Image
Malaysia Inflation Rose To The Fastest Pace.
Inflation is still a major concern and we expect the upward pressure to stay in 3Q2011 coming from food & non-alcoholic and clothing/footwear in  view of the festive seasons. Impact from June’s electricity tariff hike is expected to continue. But the  upward inflation pressure can be contained from stronger RM/USD and high base comparison. Nonetheless, we expect inflation to start easing by end 3Q2011 or early 4Q2011. Meanwhile, with global uncertainties flared by euro debt crisis and slower US economic recovery lingering, it has forced AxJ policymakers to focus on growth as opposed to inflation. Rates hikes could be reaching its tail end. We expect BNM to accommodate further erosion in real returns by holding OPR at 3.00% to focus on growth. But possibilities for another 25bps hike in OPR remains, as it depends on inflation outlook. Likewise SRR hike will depend on liquidity inflow. If that happen, we expect another 50bps to 100bp…
Read more

Trump’s Win – Bark Worse Than Bite?

Image
While Asian equity markets may remain soft after the surprise of Donald Trump’s win in the US presidential election, we look forward to buying opportunities. Essentially, we do not expect significant economic repercussions on Malaysia’s economy or corporate earnings, save for the indirect impact on downward biases for the ringgit vs the US dollar and on interest rates. We highlight the trough prices of our conviction picks, as well as some buying opportunities.

WHAT’S NEW
• Near-term confidence pricked. Asian equity markets have swooned on knee-jerk reactions to Trump’s surprise win; the FBMKLCI eased 1%. Despite the major turnaround in US equities after Trump’s acceptance speech which promoted national unity and stressed on fiscal stimulus (the DJI futures initially fell by as much as 800 pts before the cash DJI remarkably recovered to positive territory), investment sentiment in Asia may remain damp and to be swayed by Trump’s anti-globalisation rhetoric. Nevertheless, we do not …
Read more

FBM KLCI Technical Outlook

Image
Stocks on Bursa Malaysia snapped a three-day losing streak to end higher last Friday on bargain hunting in selected heavyweights, which saw late fund buying of Tanaga Nasional and Malayan Banking. Bargain hunting by institutional funds supported the local market but further gains were limited by fears of a better-than-expected US third-quarter gross domestic product data which will be out later of the day. Asian stock markets were mixed as they were still affected by a flurry of major corporate earnings reports across the region and the declining oil prices. The ringgit weakened further against the US dollar at 4.1970/1020 from the 4.1810/1900 recorded on Thursday, tracking the performance of emerging Asian currencies. At close, the FBM KLCI settled at 1,670.27, up 1.24 points or 0.07%, from Thursday’s close of 1,669.03, after opening 0.58 of a point higher at 1,669.61 and moved between 1,666.97 and 1,671.72 throughout the day. On a weekly basis, the benchmark index gained 0.29 of a p…
Read more