This analysis is for Tuesday 31st Jan 2012. Take note of the word 'magic'. What It mean by magic as at FBM KLCI magic
FBM KLCI: Key Points
HARVEST – Price weakness to emerge
FBMKLCI – Still range bound
Obvious supports of 1,499 & 1,517.
Rebounds capped at 1,521 & 1,535.
"Last minute magic" saves the index
Market Review
The FBM KLCI rose 7.74 points on Tuesday to close at 1,521.29. The FBM100 and FBMEMAS also closed higher, by 46.11 and 46.25 points respectively. Market breadth had a gainer-to-loser ratio of 415 to 394, while 353 counters were unchanged. Market volume traded was 1.78b shares valued at MYR2.18b.
Regional Markets
Asian stocks rose along with investor confidence after the Greek Prime Minister reported that major progress was made in debt-swap talks, and Japan’s industrial production grew faster than economists had estimated.
US Markets
US markets rose on upbeat global manufacturing data (from China, Germany and America). Greece and its private creditors are also apparently one step away from avoiding a messy default. This helped the Dow rise 83.55 points while Brent crude declined USD0.19
to close at USD110.58/bbl.
Daily Technical Outlook
The FBM KLCI gained 7.74 points yesterday to close at 1,521.29. Its resistance areas of 1,521 and 1,535 will cap market gains, whilst obvious support areas may be located at 1,499 and 1,517. Due to the US markets’ mildly positive tone last night, we could be in for yet another range bound trading day today. From the recent 1,310.53 low to the 1,493.28 high, the index held the 38.2% retracement level of 1,424.19. The market’s next swing high was located at 1,530.73 (30 December). A range bound market phase between 1,509 and 1,530 is likely to persist this week.
Some trading stocks that we like are: AFG, CENBOND, COASTAL, CYPARK, GUH, HAPSENG, HARTA, IGB, IJMPLNT, JCY, MUDAJYA, PUNCAK, RSAWIT, SBCCORP and TDM. Some stocks in downtrends are: AXIATA, ARMADA, HARVEST, MHB, RHBCAP and TENAGA.
by Maybank IB
