Showing posts from June, 2011

FBM KLCI will plays catch down - weekly technical analysis

A matter of time before the FBM KLCI plays catch down
  FBM KLCI – Global malaise will eventually affect the index.
  CPO Futures – Plunging to RM3,000 & lower.
  DJIA – It peaked at 12,885.92. On a big plunge if it breaks below 11,862.53.
  PANAMY – Resilient stock in adversity which offers high yield.
FBM Weekly Chart
Support: 1,536 to 1,563 Resistance: 1,564 to 1,576 
The FBM KLCI gained only 1.23-points and closed at 1,564.66 last Friday. The local market remained quite steady despite the Greek debt worries and bad US economic news (like the  increased number of people seeking unemployment benefits). Local buying on some key local blue chips cushioned the global markets’ weakness.

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 level of 936.63 on 10 April 2009 and surged to an all-
ime high of 1,576.95 on 6 January 2011. In terms of Elliott Waves,…

2011 FBM KLCI Year End Target and Strategy by UOBKH

STRATEGY: We maintain our end-11 FBMKLCI target of 1,654 which implies a forward PE target of 13.5x, although there could be downside to earnings forecasts as inflationary effects seep in following the recently-announced 8% effective electricity tariff hike. We envisage a scenario of a weak sentiment in 3Q11, in tandem with the ending of US Federal Reserve’s quantitative easing (QE2) in June 11, followed by recoveries in 4Q11.Overall, global equity markets’ upside (having recovered close to historical highs) is limited, reflective of the flattish trends in seen in global money supply. We advocate focusing on beneficiaries of Economic Transformation Plan (ETP) such as O&G, construction and selected property stocks, as well as the banking and gaming sectors. Yield-driven funds should continue to OVERWEIGHT telcos. UNDERWEIGHT the plantation sector on rising production, as the tapering off of QE2 could at least temporarily deflate the commodity theme. Top picks are Berjaya Sports Tot…

FBM KLCI Daily Chart Tecnical Outlook Jun 11

Daily Technical Outlook  by MIBFBM KLCI: Key Points 
  FBM KLCI – Resilient despite global malaise
  Obvious supports of 1,539 & 1,558
  1,560 & 1,576 resistance levels will cap rebound
The FBM KLCI closed higher by 1.62 points to close at 1,558.04 yesterday.  Its resistance areas of 1,560 and 1,576 will cap market gains, whilst the support areas are located at 1,539 and 1,558. The FBM KLCI stalled at its new all-time and major high of 1,576.95 on 6 Jan 2011. The next key swing levels were 1,474.38 (low), 1,565.04 (high) and 1,507.64 (low).  Due to the world markets’ poor tone last night; we will see some volatility in the local bourse today. We expect the FBM KLCI to remain volatile today, as it may be adversely affected by the US and regional markets.  Investors should trade the local market with a short-to-medium term time frame.

Despite the recent global volatility, the local FBM KLCI index has gone up in a small way. The question investors will ask is that how lo…