Last Minute Magic Saves FBM KLCI

This analysis is for Tuesday 31st Jan 2012. Take note of the word 'magic'. What It mean by magic as at  FBM KLCI magic


FBM KLCI: Key Points 
  HARVEST – Price weakness to emerge
  FBMKLCI – Still range bound
  Obvious supports of 1,499 & 1,517.
  Rebounds capped at 1,521 & 1,535.


"Last minute magic" saves the index

Market Review
The FBM KLCI rose 7.74 points on Tuesday to close at 1,521.29. The FBM100 and FBMEMAS also closed higher, by 46.11 and 46.25 points respectively. Market breadth had a gainer-to-loser ratio of 415 to 394, while 353 counters were unchanged. Market volume traded was 1.78b shares valued at MYR2.18b. 

Regional Markets 
Asian stocks rose  along with  investor confidence after the Greek Prime Minister reported that major progress was made in debt-swap talks,  and  Japan’s  industrial production grew faster than economists had estimated.

US Markets
US markets rose on upbeat global manufacturing data (from China, Germany and America). Greece and its private  creditors are also apparently  one  step away from  avoiding  a messy default. This helped  the Dow rise 83.55 points while Brent crude declined USD0.19
to close at USD110.58/bbl.

Daily Technical Outlook
The FBM KLCI gained 7.74 points yesterday to close at 1,521.29.  Its resistance areas of 1,521 and 1,535 will cap market gains, whilst obvious support areas may be located at 1,499 and 1,517.  Due  to  the US markets’ mildly positive  tone  last night, we could be in for yet another range bound trading day today. From the recent 1,310.53 low to the 1,493.28 high, the index held the 38.2% retracement level of 1,424.19. The market’s next swing high was  located at 1,530.73 (30 December). A range bound market phase between 1,509 and 1,530 is likely to persist this week.

Some trading stocks that we like are: AFG, CENBOND, COASTAL, CYPARK, GUH, HAPSENG, HARTA, IGB, IJMPLNT, JCY,  MUDAJYA,  PUNCAK, RSAWIT, SBCCORP and TDM. Some stocks in downtrends are:  AXIATA, ARMADA, HARVEST, MHB, RHBCAP and TENAGA.


by Maybank IB

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