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Bursa Malaysia Review

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Sharp corrections in the region on Tuesday led by China and Hong Kong n concern China will act to further cool the overheating domestic conomy dragged the local market lower.  The FBM KLCI suffered its sarpest fall since August last year, losing 13.77 points to close at  1,283.02, off a low of 1,278.1, on very negative breadth as 708 losers warmed 152 gainers on total volume of 1.25bn shares worth RM1.65bn.

The softer overnight close on US stocks despite better-than-expected earnings and consumer confidence could dampen regional sentiment in the near-term.  Nonetheless, we note during yesterday’s correction blue chips and lower liners saw good bargain hunting support cushioning downside, hence any further correction is likely to be shallow.  Immediate
support for the index will be at 1,278, yesterday’s low matching the important 50-day moving average and the 50% Fibonacci Retracement (FR) of the upswing from 1,248.58 low to the recent peak of 1,308.52. Stronger retracement supp…

KLSE - Rotational Play on Construction Stocks

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The local market staged a  rebound in line with regional markets helped by a rosy US Federal Reserve regional survey which point to spreading economic recovery.  The FBM KLCI rose from early low of 1,289.74 to peak at high of 1,294.94 prior to closing at 1,294.71 for a 5.2-point gain for the day, as gainers beat losers 575 to 230 on stronger volume totaling 1.76bn shares worth RM2.06bn.

Resistance at 1,300/1,305, Support at 1,287
The KLCI should stay congested below the 1,300 immediate resistance, with the 29 April 2008 pivot high of 1,305 as the next significant upside hurdle. Immediate retracement support will be at 1,287, with 1,280 and 1,274 providing stronger downside cushion.  On rotational plays, rubber glove stocks should pause for profit-taking breather after  recent dizzying rallies, while trading attention switch to construction stocks with focus in Sarawak’s SCORE and the water sector.
Sell on Rally Jaks Resources, KHSB & KPS
Be ready to sell on rally MRCB to revi…

FBM KLCI - Blue Chips Pause for Profit-Taking as Lower Liners Shine

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Bursa Malaysia shares rallied a third day on firm buying interest, but gains were tempered by profit-taking, while rubber glove makers dominated the top gainers list due to the positive earnings outlook.  The FBM KLCI rose from early low of 1,288.02 to peak at a near 20-month high of 1,296.44 prior to closing at 1,293.17 to gain 4.93 points for the day, as 452 gainers led 299 losers on slower trade totaling 1.66bn shares worth RM1.81bn.

Resistance at 1,300/1,305, Support at 1,288/1,275
As gains on index heavyweight blue chips in the past three-day rally has been quite considerable, they should pause for profit-taking, especially as the index reaches the
1,300 psychological level and the 29 April 2008 pivot high of 1,305.  Immediate support is revised higher to yesterday’s low of 1,288, with gap-up support at 1,275 and stronger retracement supports at 1,267 and 1,260 cushioning downside. Meantime, keen retail participation and robust trading momentum should sustain on the lower l…

FBM KLCI Bullish Breakout Suggests Further Upside Ahead

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The local stock market extended rally for the second day of the year, boosted further by gains in regional markets as more investors returned from the year-end holidays to participate.  The FBM KLCI surged from opening low of 1,278.26 to a near 20-month high of 1,290.55, then closed at 1,288.24 to gain 12.49 points or 1% for the day, as 658 gainers led 184 losers on strong trading volume totaling 1.86bn shares worth almost RM2bn.

Rally to Stall at 1,300/1,305 on Profit-Taking
The surprisingly sharp rally in the past  two days was backed by robust follow-through buying momentum, representing a bullish breakout which promises further significant upside ahead.  However, for the immediate term, recent strong stock price gains should see keen profit-taking and selling stalling their rise as technical momentum becomes overbought, especially towards KLCI resistance at the 1,300 psychological level and the 29 April 2008 pivot high of 1,305.  Immediate support is revised higher to yesterday…

Bursa Malaysia Market View: 04.01.2010

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Mild Profit Taking Activities to Cap UpsideLate window-dressing interest by certain local funds managed to lift index heavyweights higher on the final trading week for 2009, encouraged further by decent gains on global stock markets as trading ended for the year. The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) gained 8.84 points, or 0.7% last week to close at 1,272.78. On year-on-year basis, the huge double digit gain of 45.2% was pale in comparison to some Asean bourses, which witnessed higher expansions on more robust earnings and economic growth expectations.
Last week’s gain was driven by Public Bank (+32sen), Maybank (+6sen), IOI Corp (+6sen), AMMB (+13sen), Tenaga (+8sen) and KLK (+42sen) representing almost all of the index’s rise. Daily average traded volume and value improved somewhat to 555.9mn shares worth RM744.6mn, compared with the 429.4mn shares and RM678.3mn average the previous week.
China’s move to raise its economic growth figures and Japan’s announc…