Stock prices on Bursa Malaysia ended last Thursday, 31st December 2009, the last trading day for the year firmer. As it happened that the last three weeks of December were holiday-shortened weeks with holiday falling on three Fridays consecutively, the local bourse was very much in a consolidation mode. The FBM KLCI ended the last trading day of the year firmer at 1272.78, with a day-to-day gain of 1.66 point or 0.13%. On a week-on-week basis, it gained 8.84 points or 0.7%.
The FBM KLCI had a good recovery last year where it rebounded from the year low of 836.51 on 12th March 2009 to its year high of 1288.42 on 17th November 2009, registering a trading range of 451.91 points. On a year-on-year basis, the benchmark index made a gain of 396.03 points or 45.17% when compared with its closing of 876.75 on 31st December 2008. This made the FBM KLCI ranked second from the bottom of the performance list of Asia-Pacific stock markets. The Nikkei 225 Index was last on the list with 19.04%. Sri Lanka's Colombo All Share Index was the best performing market with a year-on-year gain of 125.25% while the rest of the stock markets recorded year-on-year gains exceeding 50%, except Tokyo and Bursa Malaysia.
On the weekly chart, the FBM KLCI formed a bullish white candlestick with a closed on a four week’s high. It was still trapped in a sideways consolidation range of 1248 to 1288, supported immediately by the 10-weeks moving average (MA). The longer term underlying trend as indicated by the 30 weeks MA is still up.
Weekly MACD continued to slide down indicating the slowing of market momentum. The weekly RSI at 70.37 hooked up slightly is still in the bullish zone, and the weekly Stochastic also hooked up slightly but still below its slow Stochastic. Signals from the indicators reflect the consolidation mode of the FBM KLCI, however, the indicators are still very much in the bullish zone respectively.
Looking forward, the market sentiment is likely to remain upbeat in the first half of 2010, and the FBM KLCI may trade higher with a target of 1350 for the first half year and 1400 to 1450 as the target for the whole year.
For the coming week, the FBM KLCI is likely to trade within a range of 1248 to 1287. As for today, it may trade within a range of 1260 to 1281.
This week's expected range: 1248 – 1287
Today’s expected range: 1260 – 1281
Resistance: 1275, 1278, 1281
Support: 1260, 1265, 1268
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