Posts

Showing posts from June, 2012

Bursa Malaysia Market Preview

Image
Today's Market Preview
Boosted by expectations that U.S. and European policy makers would step in with additional economic stimulus measures, key indices on Wall Street climbed between 0.6% and 1.2% last night. This could provide buying support for Asian equities ahead.

Still, in the run-up to Greece’s election this Sunday, some investors are expected to stay on the sideline until there is better clarity on Greece’s political implications on the eurozone’s financial system. Back home, riding on technical rebound, the benchmark FBM KLCI may rise towards the immediate resistance barrier of 1,580.

Amid the quiet market backdrop, of added interest on our local bourse today are stocks like: (a) Sime Darby, which plans to invest RM1.4b over the next three years to grow its port operations in Weifang, China; (b) Ramunia, after being awarded fabrication contracts from Shell worth RM178m; and (c) EP Manufacturing, as its proposed acquisition of Maju Expressway for RM1.7b has appar…

FBM KLCI – Test of the 1,582, 1,586 & 1,600 levels?

Image
All “seems” well ahead of 17 JuneSupport: 1,526 to 1,568 Resistance: 1,570 to 1,609
Strategy:  The FBM KLCI lost 2.97 points to close at 1,570.62 last Friday. The local market rebounded  initially  despite  the  global market volatility  as  local nibbling low volume  activities led the market up. Volume shrank from 0.78b to 0.58b shares as weekend profit taking set-in.
above: FBM KLCI Weekly chart. (click to enlarge)
The obvious support areas for the FBM KLCI are in the 1,526 to 1,568 zone. The next resistance
levels of 1,570 and 1,609 will see very heavy liquidation activities. The FBM KLCI consolidated in
a range of 801 to 936 from Oct 2008 to Apr 2009, but broke above its resistance of 936.63 (Wave
a/B) in Apr 2009 and surged to a previous all-time high of 1,597.08 on 11 Jul 2011. Its intermediate Wave b/B low was  836.51. We have traced out a Wave C/B (of the Flat 3-3-5 variety) rebound phase. We have revised our Wave Count of a Wave iv/B correction to 1,310.53, a…