Showing posts from January, 2013

Bursa Malaysia Today's Market Preview

Yesterday’s market drop – which occurred despite all its regional peers posting positive performances – could mark a resume of selling activity on the Malaysian bourse ahead. Looking technically vulnerable at the moment, the benchmark FBM KLCI hitting a low of 1,613 yesterday) may pull back deeper to test the support levels of 1,615 (first) and 1,600 (second).

Probably coming under immediate selling pressures today are Malaysian banks namely CIMB, Hong Leong Bank, Maybank, PBank and RHB as sentiment may be affected by a cut in their short-term credit ratings by Moody’s.

Meanwhile, other stock names that will likely attract added interest today are:
(a) APM Automotive, after it has entered into aventure agreement with a Japanese company to undertake the manufacturing of automotive seats in Malaysia; (
b) Bursa Malaysia which will be announcing its quarterly financial results during lunch time today;
c) Homeritz, in response to its declaration
a single-tier final di…

Bursa Malaysia - No visible overseas leads to follow

Today's Market Preview
When our Malaysian stock exchange resumes trading today after an extended weekend break, investors would have no visible overseas leads to follow. Yesterday, regional equities were mixed with China (+0.8%) and Thailand (+0.7%) leading the gainers while Japan (-0.9%) and Indonesia (-0.5%) lost ground. On Wall Street, its key indices ended little changed overnight.
Still, riding on the prevailing resilience of the FBM KLCI, the benchmark index could continue its recovery momentum, albeit at a gradual pace. On the chart, the bellwether may pull away slightly further from the resistance-turned-support line of 1,635 ahead.

In terms of corporate developments, there will likely be action in the following counters today:
(a) Faber, after getting government concessions to implement the privatisation of hospital support services in the northern region of Peninsular Malaysia as well as Sabah and Sarawak; (b) Southern Steel, as a local business daily highligh…

Malaysia Election Jitters Trigger Sell-down

Bursa Malaysia shares tumbled on Monday, with the benchmark blue-chip KLCI slumping 2.4% triggered by profit-taking and selling from investors on election jitters amid recent political uncertainties. The index slumped 40.81 points to end at 1,635.63, off a low of 1,630.99, with core telcos and banking stocks leading losses, as losers swarmed gainers 904 to 85 on active trade of 1.83bn shares worth RM2.61bn.

Next Support at 1,624/1,613, More Solid Support at 1,592
Yesterday’s severe sell-off on the index to close below the 50 and 100-day moving averages at 1,650 and 1,649 respectively appears grossly overdone, reflecting heavy losses on blue chips exaggerated by panic selling. Hence, any further fall towards more formidable supports from the 200-day moving average at 1,624, or 1,613, the 50%FR of the 1,526 low of May 2012 to the 1,699 record high of Jan 2013, should attract buyers to cushion downside. A more solid retracement support is at 1,592, the 38.2%FR matching the late Nov 201…

FTSE Bursa Malaysia KLCI Today

Asian indices advanced after a regulator said that  China could substantially increase the amount foreigners are allowed to invest in its equity markets. The FBM KLCI ended 1.93 points higher at 1,684.63.

Despite the marginally higher close on Monday, the  FBM KLCI formed a black candle "Inside Day" on the daily chart. The candlestick pattern indicates that market sentiment remains cautious and hence any implication of a rebound seems premature at this moment. The short
term indicators are weakening and further profit taking appears likely. We expect the 1,679 support to be tested in coming days, and should this level be violated, the correction could potentiallydeepen to 1,660. Until some form of a reversal candlestick presents itselfon the daily chart, our views would remain biased to the Kenanga Research

Overnight US Rally to Spillover

Bursa Malaysia blue chips fell on the first trading day of 2013 due to post window-dressing profit-taking, offsetting strong regional gains after the US government passed a budget bill to avert the so-called fiscal cliff and China’s manufacturing sector rose a third month. The KLCI slumped 14.23 points, or 0.8% to end near the day’slow at 1,674.72, off an opening high of 1,685.15, but gainers edged losers 373 to 335 on slightly better trade totalling 874.5mn shares worth RM1.19bn.

Immediate Hurdles at 1,688 & 1,700
The overnight rally in key US and European stock markets should spill-over to the region today, filtering down to the local market as investors return after the year-end holidays. Hence, despite yesterday’s slump, near-term downside for the index should be well-cushioned by the 10-day moving average, which has risen to 1,671, while the 50-day moving average at 1,645 provides a more solid uptrend support. Meanwhile, immediate resistance would be at last year-end’s reco…