Showing posts from February, 2013

Malaysia Election Jitters to Resurface

Bursa Malaysia blue chips suffered another wave of  profit-taking correction mid last week, forcing the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) to dip below 1,600, the lowest level seen in more than two months, before staging technical rebound towards the end of the week. The sell-off was again sparked by jittery sentiments amid speculation parliament may be dissolved this month  to pave the way for the 13th general elections.

Week-on-week, the FBM KLCI eased 3.75 points, or 0.23% to 1,623.8, with (-12sen), TM (-25sen) and IOI Corp (-12sen) overshadowing gains on Public Bank (+34sen) and Maybank (+10sen). Average daily traded volume and value dwindled to 980.6 million shares and RM1.61 billion respectively, compared with the 1.12 billion shares and RM1.89 billion average the previous week.

Election Jitters to Resurface
The prevalent cautious mood in the market is not expected to change anytime soon in this holiday-shortened week. Institutional players co…

Range Bound Ahead of CNY Break

Sell IOI Corp & MMHEThe local market staged technical rebound on Thursday after blue chips slipped to a near three-month low in early trading, but follow-through buying momentum was weak with most investors sidelined ahead of the long CNY break next week. The KLCI rose 5.43 points to close at 1,619.57, off an early low of 1,597 and high of 1,621.06, as gainers edged losers 295 to 293 on dwindling trade totaling 848.3mn shares worth RM1.67bn.

Upside Capped at 1,633, Crucial Support at 1,592
Stocks should stick to narrow range bound trade today, with most market participants likely sidelined ahead of the long Chinese New Year break next week. While yesterday’s rebound to close above 1,613, the 50%FR, is positive, upside should be capped at 1,633, the 38.2%FR, followed by the 50 and 100-day moving averages at 1,649 and 1,647 respectively. The index need to prevent a breakdown below 1,592, the 61.8%FR matching the late Nov 2012 trough, otherwise next key retracement support at…