FBM KLCI Market Review

A rebound off the recent 1,445.33 low

Market Review
The FBM KLCI rose yesterday by 13.52 points to close at 1,464.71. The FBM 100 and the FBM EMAS also rose by 83.16 points and 80.56 points respectively. Market breadth was overwhelmingly positive as gainers outnumbered losers by 469 to 292 while 276 counters were unchanged. Market volume traded yesterday was 1.16m shares, valued at RM1.6b. 

Regional Markets
All Asian markets traded higher and were led up by the JCI (2.07%). Other gainers were the Shanghai CI, which rose 1.14% and the Nikkei 225, which added 1.39%. The SET added more than 1%, the Hang Seng rose exactly 1% while the KOSPI, STI and TAIEX gained 0.77%, 0.67% and 0.31% respectively.

US Markets
US stocks ended softer last night  as investors took profits on equities (amidst European debt worries) following last Friday’s large rise. The Dow lost 0.44% or 48.22 points to 10,812.04, the SP500 declined 0.56% or 6.51  points to 1,142.16 and the NASDAQ ended 0.48% or 11.45 points lower to 2,369.77. Crude oil rose by USD1.58 to close at USD76.52.

 

Daily Technical Outlook
The FBM KLCI rose yesterday. It surged 13.52 points on bargain hunting activities and settled at 1,464.71. Its resistance areas at 1,467 and 1,479 may cap market gains, whilst the obvious support areas for the FBM KLCI are located at 1,445 and 1,464. Due to the softer trading mode in the USA last night, we will see the FBM KLCI in a shaky mood today – with some heavy blue chip profit-taking movements as well as some rotational lower liner selling activity. 

Obvious profit-taking and liquidation activities have curtailed the market’s advance and the FBM  KLCI has peaked at 1,479.59 recently. However, the index rebound off its 1,445.33 correction low very swiftly. As such, trade with a short-term bias for most stocks over the next few weeks, using a relevant stop-loss level. 
.
FBM KLCI Line Chart  FBM KLCI: Key Points
  DXN – To rise further
  FBM KLCI – Surprising rise from 1,445 low
  Obvious supports are at 1,445 & 1,464
  Resistances seen at 1,467 & 1,479

 

by Maybank IB

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