Showing posts from February, 2011

Bursa Malaysia: Liquidate On Rally by MIB

A very jerky and stilted rebound to sell intoFBM KLCI: Key PointsKIANJOO – May surge furtherFBM KLCI – A stilted rebound to sell intoObvious supports are at 1,500 & 1,5231,526 & 1,544 resistance levels will cap Market Review The FBM KLCI rose 8.29 points to 1,525.85 yesterday, as bargain-hunting activities lifted the index from the morning’s low. The FBM 100 also gained by 32.84 points and the FBM EMAS added 24.41 points. Market breadth was again quite negative, as he gainer-to-loser ratio was 259 to 639 while 238 counters were unchanged. Market volume traded was 1.84b shares - valued at RM2.06b. Daily Technical Outlook The FBM KLCI rebounded strongly by gaining 8.29 points to 1,525.85 yesterday. Its resistance areas of 1,526 and 1,544 will cap market gains, whilst the obvious support areas are located at 1,500 and 1,523. The FBM KLCI has temporarily stalled at its new all-time high of 1,576.95 on 6 January 2011. Since then, the index has moved into a new 2011 low of 1,490.44 …

Bursa Malaysia at AF2011 highlights

Presenter: Dato’ Yusli Yusof, Chief Executive Officer (9th Feb 2011)Dato’ Yusli presented to a good crowd. He went through in detail of the different
product offerings. Bursa has the largest value of sukuk (Islamic bonds) listed on
any exchanges globally. Market velocity is picking up. In January, it hit 49% and Bursa's target velocity
is 60%. The peak was 59% in 1997.  Its main objective is to increase the quality of the market with better corporate
governance and initial public offerings of larger companies to add more depth to
the market. Bursa would like to see more participation of foreigners in the Crude Palm Oil
futures market as currently it is only 20%. There were some Chinese portfolio flows after Malaysia was designated as one of
11 QDII markets that Chinese institutional investors can invest in. There were many questions on the ASEAN Link. It is progressing well and ideally
believes that all the exchanges should me…


50-day SMA support for KCLI remains under threat. The KLCI recovered from its 1,505pt low a fortnight back. However, we do not see this as a start of a new uptrend but rather as a rebound from the recent sell-off. At the current juncture, the KLCI could be doing an “a-b-c” correction from the peak in early Jan. If so, the index should see more downleg which will complete the correction. A 5-wave downleg over the next few weeks would, however, paint a different picture, indicating this downtrend could be more than a downtrend. Until that happens, we are assuming that the KLCI is just in a correction. The immediate support is at the 50-day SMA (1,526) and the 200-day SMA is at 1,422. The resistance trendline is currently at 1,552.FBM KLCI Daily Chart: click to enlargeby: CIMB