Showing posts from October, 2015

Sell on Strength Ahead of Budget 2016

The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) sustained moderate gains last week despite profit-taking in the four-day week due to the Awal Muharam holiday, with robusttrading momentum focused mostly on the ACE Market and small cap sector. A strong rally in China  stocks with a weekly gain of more than 6 percent sparked by stimulus hopes, and Wall Street rally due to lower odds for a rate hike this year following weak US economic data spilled over to boost sentiment in the local market.

The FBM KLCI added 10.28 points, or 0.6 percent last week to 1,716.82, as Tenaga (+30sen), IHH Healthcare (+36sen), Public Bank (+28sen) and AMMB (+21sen) contributed to most of the index’s rise. Average daily traded volume and value improved to 2.38 billion shares and RM2.36 billion, compared to the 2.3 billion shares and RM2.54 billion respectively the previous week, with trading momentum switching to ACE Market and small cap stocks.

The FBM KLCI pared earlier losses to clos…