KLSE further selling expected: Maybank Investment

Maybank Investment Bank Bhd Equity Research expects the FBM KLCI to see further selling and liquidation amidst some low volume trading on Wednesday, Dec 23 before the long Christmas weekend.

This, it said, was despite the minor overnight rise at Wall Street where the Dow Jones added 50.79 points yesterday.
The FBM KLCI rebounded by 4.76 points to close at 1,260.42 on Dec 22.

Maybank IB said the benchmark index's resistance areas at 1,261 and 1,275 will cap market gains, whilst the weaker support areas for the FBM KLCI are located at 1,248 and 1,258.

"We believe that the FBM KLCI peaked at 1,288.42 on Nov 17, and urge investors to liquidate all their stocks on any and every rally. The FBM KLCI's indicators (CCI, DMI, Stochastic, MACD and Oscillator) turned negative recently.

"The FBM KLCI will now embark on a major corrective phase, having risen from its March 2009 low of 836.51 to 1,288.42 (November 2009) without any meaningful correction. The market may have rebounded yesterday but we expect further volatility ahead of the extended Christmas weekend," it said in a note Dec 23.

The research, however, said some of the stocks it favours on a short-term trading basis were Jerneh shares and warrants, SapuraCrest, Padini and Tan Chong.

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