Showing posts from April, 2011

Sign of Plunging Foreign Fund Flow Into Bursa Malaysia

MALAYSIA EQUITY MARKET FOREIGN FLOWIn the local market, foreign investors turned net buyers after the selling last week. Based on Bursa's data until Thursday, foreign investors bought RM396.1m net last week, which was relatively aggressive. It was the second highest net add number since January. Gross purchase amounted to RM1.7b for the week, less than the RM1.8b recorded in the week before. Daily foreign gross trade (purchases + sales) stayed below RM1b indicating that interests in Malaysian stocks was still in the lower gears. Foreigners were consistent net buyer last week, selling only on Tuesday. But foreign interest in the local stocks plunged dramatically on Friday. On Friday, gross purchase amounted to only RM90.3m while gross sale was RM43.9m. The gross trade on Friday was therefore only RM134.2m, the LOWEST daily trade this year. Local institutions continued to be net sellers last week as they unloaded about RM3.9b worth of stocks.  Retail investors continued to be net buyer…

FBM KLCI Weekly Technical Analysis 0411

Bursa Malaysia FBM KLCI Weekly Technicals
Downside volatility may still beckon
  FBM KLCI – Still looking quite weak.
  CPO Futures – Peaked at RM3,967. Remain mega-bearish.
  DJIA – Dow looks to peak quite soon too.
  NAIM – The beginning of further weekly downside for this stock. Support: 1,474 to 1,517
Resistance: 1,521 to 1,576

Strategy:  The FBM KLCI plunged 35.55-points and closed at 1,521.94  last Friday. The local market sold-off ahead of the Sarawak state elections on 16 April. The obvious support areas for the FBM KLCI are located in the 1,474 to 1,517-zone. The firm resistance zone of 1,521  and 1,576 will see heavy liquidation activities. The FBM KLCI had previously consolidated in a tight range of 801 to 936 from October 2008 to April 2009, but broke above its resistance of 936.63 on 10 April 2009 and surged to a fresh all-
time high of 1,576.95 on 6 January 2011. In terms of Elliott Waves, the FBM KLCI traced a broad
Wave a/B consolidation …