KLCI 12Feb 2010

The Bursa Malaysia stock market ended at the day's best following more positive economic data from China and Australia, boosting markets in the region and to a certain extent locally.  The FBM KLCI closed at the day's high of 1,249.42, off an early low of 1,244.86 but market breadth was mildly negative as losers beat gainers 313 to 276 on better trade volume totaling 646.4mn shares worth RM881.9mn.

Core index heavyweights should consolidate with a slight upward bias today ahead of the long Chinese New Year holiday break next week, but Genting Bhd should lead gains following the announcement of the opening of subsidiary Genting Singapore's Resorts World casino in Sentosa Island on the first day of CNY.  Meantime, oil & gas related stocks are our focus today, with Dialog and Kencana Petroleum likely to attract keen buying interest in the near-term following the former's 2-for-5 bonus stock split and positive earnings outlook for the latter.

As for the KLCI, a decisive breach above 1,249, the 38.2%FR of 1,154 to 1308, will enhance upside initially to 1,256, the 38.2%FR of the sell-down from 1,308 high to recent pivot low of 1,224, with stronger hurdles likely at the 100-day and 50-day moving averages, currently at
1,260 and 1,273.  Immediate support is upgraded further to 1,240, with 1,231, 1,224 and 1,213 as progressively stronger support platforms.      source : TA securities

Popular posts from this blog

Malaysia Inflation to start easing end-3Q or early 4Q2011

Image
Malaysia Inflation Rose To The Fastest Pace.
Inflation is still a major concern and we expect the upward pressure to stay in 3Q2011 coming from food & non-alcoholic and clothing/footwear in  view of the festive seasons. Impact from June’s electricity tariff hike is expected to continue. But the  upward inflation pressure can be contained from stronger RM/USD and high base comparison. Nonetheless, we expect inflation to start easing by end 3Q2011 or early 4Q2011. Meanwhile, with global uncertainties flared by euro debt crisis and slower US economic recovery lingering, it has forced AxJ policymakers to focus on growth as opposed to inflation. Rates hikes could be reaching its tail end. We expect BNM to accommodate further erosion in real returns by holding OPR at 3.00% to focus on growth. But possibilities for another 25bps hike in OPR remains, as it depends on inflation outlook. Likewise SRR hike will depend on liquidity inflow. If that happen, we expect another 50bps to 100bp…
Read more

Trump’s Win – Bark Worse Than Bite?

Image
While Asian equity markets may remain soft after the surprise of Donald Trump’s win in the US presidential election, we look forward to buying opportunities. Essentially, we do not expect significant economic repercussions on Malaysia’s economy or corporate earnings, save for the indirect impact on downward biases for the ringgit vs the US dollar and on interest rates. We highlight the trough prices of our conviction picks, as well as some buying opportunities.

WHAT’S NEW
• Near-term confidence pricked. Asian equity markets have swooned on knee-jerk reactions to Trump’s surprise win; the FBMKLCI eased 1%. Despite the major turnaround in US equities after Trump’s acceptance speech which promoted national unity and stressed on fiscal stimulus (the DJI futures initially fell by as much as 800 pts before the cash DJI remarkably recovered to positive territory), investment sentiment in Asia may remain damp and to be swayed by Trump’s anti-globalisation rhetoric. Nevertheless, we do not …
Read more

FBM KLCI Technical Outlook

Image
Stocks on Bursa Malaysia snapped a three-day losing streak to end higher last Friday on bargain hunting in selected heavyweights, which saw late fund buying of Tanaga Nasional and Malayan Banking. Bargain hunting by institutional funds supported the local market but further gains were limited by fears of a better-than-expected US third-quarter gross domestic product data which will be out later of the day. Asian stock markets were mixed as they were still affected by a flurry of major corporate earnings reports across the region and the declining oil prices. The ringgit weakened further against the US dollar at 4.1970/1020 from the 4.1810/1900 recorded on Thursday, tracking the performance of emerging Asian currencies. At close, the FBM KLCI settled at 1,670.27, up 1.24 points or 0.07%, from Thursday’s close of 1,669.03, after opening 0.58 of a point higher at 1,669.61 and moved between 1,666.97 and 1,671.72 throughout the day. On a weekly basis, the benchmark index gained 0.29 of a p…
Read more