The focus of last week was the Budget 2010 tabled last Friday, which did not bring any surprises to the equity market. However, the positive outlook for the Malaysian economy next year and measures to further shore up the economy under the Budget 2010 would provide support for the market. Dow closed last Friday below the 10,000 mark at 9,972.18 (-109.13, -1.08%) may affect sentiments of the market, together with the lack luster Budget 2010, may give the market an excuse to take profit and correct.
Week on week, the FBM KLCI was up 10.33 points to close at 1267.10, however, the weekly volume dropped slightly from the previous week’s 5.221 billion shares to last week’s 5.0438 billion shares. Losers led gainers at 363 to 331, with 280 counters unchanged, and volume traded on Friday was 776.81 million shares.
On the weekly chart, the KLCI was up for the third week and closed at the year high of 1267.10. MACD, RSI and Stochastic were all up. However, on the daily chart, the MACD was up slightly but the histogram was down, indicating a slowing in upward momentum. Trend is still up.
The market is expected to trade within the range of 1244 – 1285 for this week. Immediate resistance for KLCI today is at 1271, and support is at 1262 and 1257.
This week's expected range: 1244 – 1285
Today's expected range: 1257 – 1275
Resistance: 1271, 1273, 1275
Support: 1253, 1257, 1262
Stock to watch: Hevea
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