FBM KLCI - lower on continued consolidation

Stocks on Bursa Malaysia closed mostly lower yesterday, weighed by losses in heavyweights, with sentiment remaining cautious over high oil prices, and questions remained as to whether the European Central Bank’s second liquidity injection could resolve the Eurozone debt crisis. The FBM KLCI ended 2.31 points lower at 1,556.73, after opening 3.09 points higher at 1,562.13. Losers led gainers by 511 to 309 while 309 counters were unchanged. Turnover was higher at 1.727 billion shares worth RM1.588 billion, from 1.642 billion shares, worth RM1.633 billion transacted on Monday.

The FBM KLCI opened 3.09 higher at 1,562.13 and slid lower throughout the day and hit the intra-day low of 1,552.62 at late afternoon before rebounding to close off low. Chart-wise, the FBM KLCI formed a bearish black candlestick with long lower shadow which is a confirmation to the top reversal signal produced by the black inverted hammer candlestick formed on Monday. This indicated that the market was under selling pressure, but there are buying supports when it comes down to the support level. Nevertheless, the FBM KLCI is still trapped in the consolidation range and formed a rectangle shape chart pattern.

MACD was lower, indicating a continued loss in the market momentum. Nonetheless, as it is still above the zero-line, the current weakness is viewed as just a correction in a bull market. RSI (14) slid lower to 59.6, indicating a continued loss in the short term relative strength of the key index, and has now moved into the mildly bullish zone from the bullish zone previously. Stochastic slid lower to 69.1, also indicated that the key index is losing its strength and the short term down cycle is in continuation. Readings from the indicators showed that the FBM KLCI is losing its momentum and is poised to further consolidate. Nevertheless, it has not turn bearish yet.

The short term trend of the FBM KLCI remained sideways while the medium and longer term trend is still up. Immediate over resistance zone is at 1,567 to 1,577 while the immediate downside support zone is at 1,553 to 1,540, with 1,549 being the critical support level. A break below the 1,549-point level will likely see the FBM KLCI sliding lower to the 1,540 and 1,530 zone. The volume registered reflected the consolidation mode of the index-link counters but the penny stocks were still in active rotational play.

Overnight, the Dow rose +23.61 points or +0.18% to close at 13,005.12, the first time since financial crisis. Today, the FBM KLCI is likely to trade within a range of 1,542 to 1,573.

This week's expected range: 1541 – 1577
Today’s expected range: 1542 – 1573

Resistance: 1562, 1567, 1573
Support: 1542, 1547, 1552

Stocks to watch: ZELAN, HSL, KIANJOO

FBM KLCI - marginally higher on mixed market

Stocks on Bursa Malaysia ended mixed yesterday, with profit-taking activities seen in selected blue-chip counters. Investor sentiment was dampened following an increase in oil prices and the absence of a new catalyst for markets regionally, which turned in unimpressive performances. The FBM KLCI rose slightly by 0.27 of a point or 0.017% to close at 1,559.04 after opening 1.86 points higher at 1,560.63. Losers led gainers by 455 to 327 while 341 counters were unchanged. Total turnover declined to 1.642 billion shares worth RM1.633 from the 1.695 billion shares worth RM1.941 billion last Friday.

The FBM KLCI opened 1.86 points higher at 1,560.63 and surged to the intra-day high of 1,565.87 within the first fifteen minutes after market opened, and profit-taking activity which followed sent the key index lower for the rest of the day to hit the intra-day low of 1,558.29 before rebounding slightly to close off low. Chart-wise, the FBM KLCI formed a black inverted hammer candlestick which indicates buyers were initially dominant in pushing up the key index but was later succumb to heavy selling pressure. A black inverted hammer candlestick which appeared near the top of an uptrend indicates toppishness and may forewarn of a possible trend reversal.

MACD continued to slide lower, indicating a continued loss in momentum. RSI (14) was just marginally higher at 61.6, indicating the short term relative strength is still at the borderline of the bullish zone. Stochastic slid lower to 75.8, indicating the continued loss in market strength and the beginning of a short term down cycle. Readings from the indicators showed that the FBM KLCI is in a consolidation mode but is still in the bullish territory.

The short term trend of the FBM KLCI is currently sideways, while the medium and longer term trend remained up. The key index is currently trapped within the consolidation range with a boundary of 1,567 and 1,549, and a breakout in either one direction will likely see the key index continue moving in that direction. With the overall volume continued to shrink, the consolidation process is likely to extend. However, rotational play on the lower liners may continue to dominate the active scene.

Overnight, the Dow fell a marginal -1.44 points or -0.01%to close at 12,981.51. Today, the FBM KLCI is likely to trade within a range of 1,548 to 1,574.

This week's expected range: 1541 – 1577
Today’s expected range: 1548 – 1574

Resistance: 1564, 1569, 1574
Support: 1548, 1553, 1556

FBM KLCI - likely to move sideways range-bound

Stocks on Bursa Malaysia ended last Friday on a higher note, recouping early losses on late buying activities. Bargain hunting and short covering lifted the key index to close higher, despite a lack of fresh, local catalysts. The sentiment improved due to external signs of improvement in the US and German economic data, which gave new hope for better global economic growth. The benchmark FBM KLCI advanced 2.11 points, or 0.14%, to close at 1,558.77, while on a Friday-to-Friday basis, the benchmark index earned 1.62 points from 1,557.15 previously. Gainers led losers by 425 to 373 while 344 counters were unchanged. Total turnover declined to 1.695 billion shares worth RM1.941 billion from the 1.951 billion shares worth RM2.109 billion on Thursday, and weekly volume decreased to 9.635 billion shares worth RM9.345 billion from 11.968 billion shares worth RM10.437 billion the previous week.

The FBM KLCI was in a sideways range-bound last week. It opened at 1,557.91 last Monday and climbed to the intra-week high of 1,565.25 on Wednesday before pulling back to close lower on profit-taking. The key index slid lower on Thursday on heavy profit-taking and touched the intra-week low of 1,553.62 on Friday before rebounding to end the week off low at 1,558.77.

On the weekly chart, the FBM KLCI formed a small white spinning-top candlestick; a second consecutive one after the formation of a black spinning-top candlestick the previous week, and they indicated uncertainty and indecision of market direction at this level. As the second spinning-top was bound within the range of the previous one without any new high or low, it shows consolidation. On the daily chart, the FBM KLCI formed a bullish white hammer candlestick last Friday, which is a bottom reversal candle pattern, and hence, the key index may continue its rebound to move higher today. Judging from the weekly and daily candlesticks formation, the FBM KLCI is likely to remain range-bound this week with immediate overhead resistance at 1,567 while the downside support is at 1,549-point level.

Weekly MACD continued to climb higher, but its histogram was shorter, indicating a slow down in the weekly upward momentum. On the contrary, daily MACD continued to slide lower and the daily histogram also turned longer southward, indicating a continued loss in the daily momentum and the key index is in a consolidation mode. Weekly RSI (14) hooked up slightly to 61.75, and daily RSI (14) is also at 61.5, indicating both the weekly and daily relative strength are still in the bullish zone. Weekly Stochastic has hooked downward slightly to 95, and has just touched the weekly slow stochastic line, indicating the key index may further consolidate. Daily Stochastic was lower at 82.6, and continued to stay below the daily slow stochastic line, indicating a possible continuation of the short term down cycle. Readings from both the weekly and daily indicators showed that the FBM KLCI is gradually losing its upward momentum, and may further consolidate.

The short term trend of the FBM KLCI has turned sideways, nevertheless, the medium and longer term trend are still up as the key index is still staying above the 30, 60 and 120-day SMA, and on top of that, it is also staying above the middle line of the uptrend range. As the FBM KLCI is forming a triangle now on the daily chart, it is likely to move range-bound this week with immediate overhead resistance zone at 1,567 to 1,577, while the immediate downside support zone is at 1,549 to 1,540.

Last Friday, the Dow fell a marginal -1.74 points or -0.01% to close at 12,982.95. This week, the FBM KLCI is likely to trade within a range of 1,541 to 1,577, and for today, it is likely to trade within a range of 1,549 to 1,566.

This week's expected range: 1541 – 1577
Today’s expected range: 1549 – 1566

Resistance: 1561, 1564, 1566
Support: 1549, 1551, 1555

FBM KLCI - lower in line with regional performance

Stocks on Bursa Malaysia ended weaker yesterday in line with the bearish sentiment on Asian markets on concern over the higher oil prices which will affect global growth. In the absence of fresh local catalysts the investors stayed on the sidelines to be further depressed by weak European economic data and China’s new export orders shrank in February. The FBM KLCI declined by 3.86 points, or 0.247%, to close at 1,556.66 after opening 1.39 points lower at 1,559.13. Losers led gainers by 689 to 217 while 264 counters were unchanged. Total turnover declined to 1.951 billion shares worth RM2.109 billion from 2.230 billion shares worth RM1.937 billion on Wednesday.

The FBM KLCI opened 1.39 points lower at 1,559.13 and rebounded to the intra-day high of 1,561.50-point near midday. However, the rebound could not sustain and the key index slipped lower on continued profit-taking activity to end the day at its lowest point. Chart wise, the FBM KLCI formed a bearish black inverted hammer candlestick which indicates continuation of selling pressure from a day before. As the key index has closed below the previous day’s low of 1,558.94, it is likely that it may continued its downward move today. Immediate support is at 1,549-point level.

MACD continued to slide lower after making a dead-cross yesterday, indicating a continued increase in the downward momentum. RSI (14) was lower at 60.4, reflecting the correction, and the short term relative strength is now weakened and is at the borderline of the bullish zone. Stochastic has hooked downward and crossed below the slow stochastic line, indicating the possible beginning of a down cycle. Readings from the indicators showed that the FBM KLCI is currently undergoing a correction and the correction is likely to extend.

The overall trend of the FBM KLCI remained up, nevertheless, the immediate short term trend has turned down as the key index has closed below the short term 5 and 10-day moving averages, but is still above the 20 and 30-day moving averages. Immediate downside support zone is at 1,553 to 1,540 while the overhead resistance zone is at 1,561 to 1,567. With the dwindling volume, the correction and consolidation process is likely to extend. Overnight, the Dow rebounded +46.02 points or +0.36% to close at 12,984.69. Today, the FBM KLCI is likely to trade within a range of 1,550 to 1,567.

This week's expected range: 1531 – 1584
Today’s expected range: 1550 – 1567

Resistance: 1560, 1564, 1567
Support: 1550, 1553, 1555

FBM KLCI - likely to further correct

Stocks on Bursa Malaysia ended on easier note yesterday following losses in selected plantation and banking counters. The local bourse also saw losses in second-liners on profit-taking as investor sentiment now was affected by the pressure on oil prices due to tensions in Iran, and this has dampened the manufacturing, transport and consumers sectors. The FBM KLCI closed 3.26 points or 0.21% lower at 1,560.52, after opening 0.04 point higher at 1,563.82. Losers led gainers by 541 to 302 while 298 counters were unchanged. Total turnover advanced to 2.230 billion shares worth RM1.937 billion from 1.894 billion shares worth RM1.747 billion on Tuesday.

The FBM KLCI opened 0.04 point higher at 1,563.82 and slipped to the intra-day low of 1,558.94 within the first hour of trading. The key index then rebounded to hit the intra-day high of 1,565.25 before pulling back to close off high. On the daily chart, the FBM KLCI formed a bearish black spinning-top candlestick which served to confirm the top reversal signal issued by the hanging-man candlestick formed on Tuesday. Hence, the FBM KLCI is likely to further correct downward with immediate support at 1,549-point level, which is a critical immediate support level. If this level could not hold, then the key index might visit the next lower support zone of 1,540 to 1,530.

MACD continued to slide lower, and has made a dead-cross below the signal-line, issuing a sell signal for the FBM KLCI. RSI (14) has hooked downward to 63.4, reflecting the pullback, but the short term relative strength is still in the bullish zone. Stochastic continued to move higher to 91.2, but is tapering off, indicating a slowdown in the upward strength. Readings from the indicators showed that the FBM KLCI is undergoing a mild pullback correction, and may continue to consolidate itself for the short term.

The general trend of the FBM KLCI remained up, as the key index continued to stay above all the moving averages. However, if the key index closes below the immediate short term support at 1,558 provided by the 5-day SMA, the FBM KLCI is likely to slide lower to test the immediate critical support at 1,549-point level. The broad market is likely to remain buoyant with the second and third liners dominating the active scene, while the index-link heavyweights may further consolidate.

Overnight, the Dow fell -27.02 points or -0.21% to close at 12,938.67. Today, the FBM KLCI is likely to trade within a range of 1,551 to 1,572.

This week's expected range: 1531 – 1584
Today’s expected range: 1551 – 1572

Resistance: 1565, 1568, 1572
Support: 1551, 1555, 1557

FBM KLCI - higher on mixed market

Stocks on Bursa Malaysia ended mixed yesterday buoyed by bargain hunting and gains in selected blue-chip stocks. Investors’ risk appetite improved after Eurozone finance ministers decided to seal a second bailout for Greece that will resolve its immediate financing needs. The FBM KLCI closed 3.21 points or 0.21% higher at 1,563.78 after fluctuating within 1,564.86 and 1,558.13 point throughout the day. Market breadth was negative with losers led gainers by 442 to 370 while 345 counters were unchanged. Total turnover advanced to 1.894 billion shares, worth RM1.747 billion, from 1.864 billion shares, worth RM1.611 billion, transacted on Monday.

The FM KLCI opened 2.38 points higher at 1,562.98 and slipped lower to touch the intraday low of 1,558.13 in early morning trade. The key index rebounded in the afternoon and rallied to the intra-day high of 1,564.86 before pulling back on profit-taking to close off high. On the daily chart, the FBM KLCI formed a white hanging-man candlestick which is a top reversal candlestick pattern, and hence, the key index might make a pause at this level before continuing its uptrend. Immediate overhead resistance is at 1,567-point level.

MACD continued to slide lower but is tapering off, and the histogram is also shorter, indicating the key index is in a consolidation mode. The MACD is just marginally higher above the signal-line, and a crossed below the signal-line would generate a sell signal. RSI (14) was higher at 65.9, indicating the short term relative strength is in the bullish zone. Stochastic was at 89.2, and has just made a cross above the slow stochastic line, indicating the market strength has again pickup and the short term up cycle has resumed. Readings from the indicators showed that the FBM KLCI is in a range-bound consolidation mode but with an upward bias.

The trend of the FBM KLCI is up, and the key index is likely to continue its range-bound consolidation but with an upward bias. Immediate overhead resistance zone is at 1,567 to 1,577 while the downside support zone is at 1,558 to 1,549. Rotational plays on second and third liners are likely to continue dominating the active scene while the heavyweights may consolidate. Overnight, the Dow rose +15.82 points or +0.12% to close at 12,965.69. Today, the FBM KLCI is likely to trade within a range of 1,552 to 1,572.

This week's expected range: 1531 – 1584
Today’s expected range: 1552 – 1572

Resistance: 1567, 1569, 1572
Support: 1552, 1555, 1559

FBM KLCI - likely to climb higher

Stocks on Bursa Malaysia ended higher yesterday, tracking gains in heavyweights and penny stocks in line with the performance of regional bourses. The benchmark FBM KLCI rose 3.42 points to close at 1,560.57, after opening 0.76 of a point higher at 1,557.91. Losers led gainers by 469 to 349 while 339 counters were unchanged. Total turnover declined to 1.864 billion shares worth RM1.611 billion from the 2.265 billion shares worth RM1.942 billion last Friday.

The FBM KLCI opened 0.76 points higher at 1,557.91 and slipped to the intra-day low of 1,557.31. It then rebounded and moved higher to touch the intra-day high 1,562.60 before profit-taking activity pressed it lower to close off high. On the daily chart, the FBM KLCI formed a bullish white candlestick which indicated that the bull was more dominant and managed to push the key index to the intra-day high of 1,562.60. Hence, the FBM KLCI is likely to move higher today on continued upward momentum. Immediate overhead resistance is envisaged at 1,567-point level.

MACD continued to slide lower but showed sign of tapering off, indicating the downward momentum is reducing. RSI (14) hooked up to 64.6, indicating the short term relative strength of the key index is moving back to the bullish zone. Stochastic was marginally lower at 81.5 and showed sign of tapering off; indicating the down cycle is weakening. Mixed signals from the indicators showed that the downward momentum of the FBM KLCI is weakening and the short term consolidation end soon.

The overall trend of the FBM KLCI remained up as the key index has again closed above all the moving averages; including the short term 5-day SMA which it broke below 3 sessions ago. The FBM KLCI is likely to continue moving higher but on a cautious pace. Immediate overhead resistance zone is at 1,567 to 1,577 while the downside support zone is at 1,549 to 1,540. Overnight, US market was closed for a public holiday, and today the FBM KLCI is likely to trade within a range of 1,552 to 1,568.

This week's expected range: 1531 – 1584
Today’s expected range: 1552 – 1568

Resistance: 1563, 1566, 1568
Support: 1552, 1554, 1557

FBM KLCI - likely to move range-bound with an upward bias

Stocks on Bursa Malaysia rebounded to close steadier last Friday on renewed optimism sparked by encouraging US economic data and Greece's bailout hopes. The benchmark FBM KLCI rose 6.66 points to close at 1,557.15, after opening 3.19 points better at 1,553.68, and on a Friday-to-Friday basis, the FBM KLCI eased 4.51 points to 1,557.15 from previous Friday’s 1,561.66. Weekly volume increased to 11.968 billion shares valued at RM10.437 billion, from 11.06 billion shares worth RM9.08 billion on previous week.

On the weekly chart, the FBM KLCI formed a bearish black spinning-top candlestick which indicates profit-taking correction and indecision of market direction after a strong upward move the previous week. It is likely that the key index may continue to consolidate this week until a breakout above the immediate overhead resistance of 1,567-point is observed. Immediate downside support level is at 1,549, if this level could not hold, then the FBM KLCI may slides lower to test the lower support zone of 1,540-1,530.

On the daily chart, the FBM KLCI formed a bullish Harami candlestick which indicated a technical rebound, and had registered an intra-day high level of 1,559.92. The rebound last Friday managed to keep the key index above the middle line of the trend channel, and it also rebounded off the 10-day SMA, but was below the 5-day SMA. In short, the trend is still up. If the FBM KLCI is able to break above the 5-day SMA which is currently at 1,560, the key index might climb higher to re-test the immediate resistance at 1,567 follow by the next resistance level at 1,577

Weekly MACD continued to climb higher; however, its histogram was marginally shorter, indicating a possible slowdown in the weekly upward momentum. Daily MACD, on the contrary, was lower, indicating a slowdown in the daily momentum. Weekly RSI (14) has hooked downward slightly to 61.5, reflecting the mild pullback in the weekly index. Daily RSI (14) has hooked upward to 63.3, reflecting the weak rebound last Friday. Nevertheless, both weekly and daily RSI (14) showed that the key index is still in the bullish zone. Weekly Stochastic continued to climb higher into the overbought zone and is at 96.1, indicating strong market strength on the weekly chart. Daily Stochastic, however, continued to slide lower to 81.9, indicating a continuation in the short term down cycle. Mixed signals from the weekly and daily indicators showed that the FBM KLCI might go into a short term consolidation mode. Nevertheless, the signals showed an overall upward bias.

The overall trend of the FBM KLCI remained up as the key index continued to stay above the middle line of the trend channel. For the coming week, the key index may move range-bound with an upward bias. Immediate overhead resistance zone is at 1,567 to 1,577 while the downside support zone is at 1,549 to 1,540.

Last Friday, the Dow rose 45.79 points or 0.35% to close at 12,949.87. This week, the FBM KLCI is likely to trade within a range of 1,531 to 1,584, and for today, it is likely to trade within a range of 1,547 to 1,567.

This week's expected range: 1531 – 1584
Today’s expected range: 1547 – 1567

Resistance: 1561, 1564, 1567
Support: 1547, 1550, 1553

FBM KLCI - short term bearish

Stocks on Bursa Malaysia ended broadly lower yesterday as investors reduced their holdings on worries about the Euro-zone debt crisis. The Greek second bailout fund delay, Moody's warning to slash ratings of 17 global and 114 European financial institutions as well as weak leads from New York market rattled dealer confidence. The FBM KLCI fell 10.81 points or 0.69% to close at 1,550.49 after opening 3.03 points lower at 1,558.27. Market breadth was negative with losers overwhelmed gainers by 668 to 239 while 272 counters were unchanged. Turnover slipped lower to 2.185 billion shares worth RM1.972 billion from 2.309 billion shares valued at RM2.145 registered on Wednesday.

Taking cue from the weak performance of Wall Street overnight, the FBM KLCI opened with a downside breakaway gap of 3.03 points at 1,558.27 and slipped lower to the intra-day low of 1,549.34 before rebounding slightly to close off low. Chart-wise, the FBM KLCI formed a bearish black candlestick which indicates sellers were in full control for the day, and the downside breakaway gap also indicated the market was selling out on fear. The key index is now sitting right on the psychological support of 1,550-point. This level also happened to be the uptrend channel’s middle support line, and is a critical level to determine whether the uptrend is still intact. If the FBM KLCI continues to close below the 1,550-point level, then there is a strong likelihood that it may slip lower to test the support level at 1,540.

MACD has turned downward and the histogram was also shorter, indicating a loss in the upward momentum. Nevertheless, as the MACD is still above the signal-line, the current weakness may well be just a pullback correction in an uptrend. RSI (14) has slipped lower to 60.4 from 68.3 previously, indicating a big loss in the short term relative strength, and is moving to the lower borderline of the bullish zone. Stochastic slipped lower to 87.4 and has crossed below the slow stochastic line, giving out a short term sell signal. Readings from the indicators showed that the FBM KLCI is undergoing a short term correction and is likely to further consolidate itself before the next strong up move.

The immediate short term trend of the FBM KLCI has turned down as the key index is now closing below the 5 and 10-day SMA, while the short term trend represented by the 20 and 30-day SMA is still up. Nonetheless, the medium and long term uptrend is still intact. Immediate downside support zone is at 1,549 to 1,540 while the overhead resistance zone is at 1,559 to 1,567. With the overall volume continued to shrink, the market is likely to go into a consolidation mode. However, the penny stocks may still continue to remain active.

Overnight, the Dow rebounded +123.13 points or +0.96% to close at 12,904.08. Today, the FBM KLCI is likely to trade within a range of 1,537 to 1,569

This week's expected range: 1524 – 1589
Today’s expected range: 1537 – 1569

Resistance: 1557, 1563, 1569
Support: 1537, 1543, 1546

Stocks to watch: HIBISCS, HIBISCS-WA, CYPARK, MUDAJYA

HIBISCUS PETROLEUM BERHAD - PRESS RELEASE

Hibiscus Petroleum’s Qualifying Acquisition Receives SC Approval

Kuala Lumpur, 16 February 2012: Hibiscus Petroleum Bhd (“Hibiscus Petroleum”), Malaysia’s first Special Purpose Acquisition Company (“SPAC”) today received the Securities Commission's approval for its qualifying acquisition.

In October last year, Hibiscus Petroleum announced that as its qualifying acquisition, the Company would be acquiring a 35% equity interest in Lime Petroleum Plc (“Lime”) for a total purchase consideration of USD55 million. Lime has majority interests in companies with concession rights in three offshore oil and gas exploration assets located in the United Arab Emirates and Oman.

Out of the total consideration, USD50 million will be injected into Lime to primarily fund Lime’s activities whilst the balance of USD5 million is for the purchase of existing shares in Lime.

Hibiscus Petroleum’s Managing Director, Dr Kenneth Pereira, said, "to complete the qualifying acquisition, we require specific approvals from the Securities Commission and our shareholders. Today, we are very pleased to announce that Hibiscus Petroleum has received the approval of the Securities Commission for the qualifying acquisition. In accordance with the SPAC guidelines, Hibiscus Petroleum will convene an Extraordinary General Meeting (“EGM”) to seek shareholders’ approval for the qualifying acquisition as soon as we receive clearance from the Securities Commission to issue the finalized version of the EGM circular.”

Dr Kenneth Pereira added, “This is a major milestone for the Company. We hope that the shareholders will also approve the Lime transaction so that the Company can look towards the future with more certainty.”

Since the announcement of the Lime transaction, Hibiscus Petroleum's shares and warrants prices have increased by 173% and 255%, respectively. The shares closed at RM 1.84 while the Company's warrants closed at RM 1.03 today.

FBM KLCI - toppish signal

Stocks on Bursa Malaysia ended on a mixed note yesterday after a weak performance throughout the day with the market barometer remaining in the red, somewhat ignoring improved regional sentiment. The benchmark FBM KLCI was down 4.75 points to close at 1,561.3, after opening 0.61 of a point higher at 1,566.66. Market breadth was positive with gainers led losers by 433 to 385 while 346 counters were unchanged. Turnover was lower with 2.309 billion shares worth RM2.146 billion changed hands from Tuesday’s 2.546 billion shares, worth RM2.258 billion.

The FBM KLCI opened 0.61 point higher at the intra-day of 1,566.66 and slipped lower on heavy profit-taking activity to the intra-day low of 1,558.55, it then rebounded slightly and moved in a narrow range in the negative territory for the rest of the day. Chart wise, the FBM KLCI formed a bearish engulfing candlestick which served to confirm the top reversal signal issued by the hanging-man candlestick on Tuesday, and the key index is likely to further consolidate today with immediate downside support envisaged at 1,558 follows by 1,553.

MACD was higher but tapered off with the histogram turning shorter, giving an indication that the key index’s upward momentum is weakening. RSI (14) was lower at 68.3, reflecting the pullback. Nevertheless, the short term relative strength is still in the bullish zone. Stochastic has just made a crossover below the slow stochastic line, indicating a short term correction had started. Readings from the indicators showed that the FBM KLCI is undergoing a short term pullback correction in a bull market.

The overall trend of the FBM KLCI remained up. However, as the key index has just cross below the 5-day SMA, it is likely that the key index may slide lower towards the 10-day SMA support level at 1,548. As this is likely to be just a shallow pullback correction in a bull market, one should view this as an opportunity to accumulate quality share at lower level. Immediate downside support zone is at 1,558 to 1,548 while the overhead resistance zone is at 1,567 to 1,577. Judging from the dwindling volume, the broad market is likely to go into consolidation mode, however, penny stocks are still likely to dominate the active scene.

Overnight, the Dow fell -97.33 points or -0.76% to close at 12,780.95. Today, the FBM KLCI is likely to trade within a range of 1,549 to 1,575

This week's expected range: 1524 – 1589
Today’s expected range: 1549 – 1575

Resistance: 1566, 1571, 1575
Support: 1549, 1554, 1557

Stocks to watch: CYPARK, NAIM, PRESBHD, PERISAI, DATAPREP, TMCLIFE

FBM KLCI - higher amid profit-taking

Stocks on Bursa Malaysia ended broadly lower yesterday but the market barometer, the FBM KLCI, closed steady indicating the market’s undertone was still intact. The market was undergoing a temporary pullback after the recent gains. Moody’s downgrade of six countries in the Euro-zone and its warning to downgrade top-rated countries also affected investor sentiment globally. The FBM KLCI ended the day at 1,566.05, up 3.23 points, or 0.21%, aided by blue-chips which remained strong. Market breadth was bearish with 58l losers and 321 gainers, 288 were unchanged. Trading volume was lower at 2.546 billion shares, worth RM2.258 billion, compared with Monday’s 2.661 billion shares worth RM2.119 billion.

The FBM KLCI opened with an up gap of 2.43 points at 1,565.25 and slipped to the intra-day low of 1,560.83 in early morning trade. The key index then rebounded and moved gradually higher to touch the intra-day high of 1,566.12 at late afternoon before pulling back slightly to close off high. Chart wise, the FBM KLCI formed a white hanging-man candlestick, a top reversal candlestick pattern, which indicates selling pressure was strong in early part of the day but buyers later surfaced to lift up the key index. Hence, the FBM KLCI may take a pause at this level to consolidate itself before moving higher. Immediate overhead resistance is at 1,567-point level.

MACD was higher but its histogram has turned shorter, indicating a reduction in the upward momentum. RSI (14) was higher at 72.2, indicating the short term relative strength of the key index is still in the very bullish zone. Stochastic, however, continued to slide lower to 96.3, indicating the market strength is reducing. Readings from the indicators showed that the upward momentum of the FBM KLCI has reduced, and is poised to head for a correction soon.

The underlying trend of the FBM KLCI remained up as the benchmark index continued to stay above the short, medium and long term moving averages. Immediate strong overhead resistance zone is at 1,567 to 1,577 while the immediate downside support zone is at 1,560 to 1,558. A breakout in either one direction will see the FBM KLCI continue moving in that direction. Judging from the dwindling volume, the broad market is likely to head for a consolidation after the recent rally. While the index-link counters may continue to consolidate, the penny stocks may still dominate the active scene.

Overnight, the Dow rose +4.24 points or +0.03% to close at 12,878.28. Today, the FBM KLCI is likely to trade within a range of 1,557 to 1,572

This week's expected range: 1524 – 1589
Today’s expected range: 1557 – 1572

Resistance: 1568, 1570, 1572
Support: 1557, 1559, 1562

Stocks to watch: HIBISCS, XINQUAN, WCT

FBM KLCI - in consolidation mode

Stocks on Bursa Malaysia ended on a softer note yesterday amid profit-taking, while the FBM KLCI closed a shade higher. Meanwhile, markets in the region made modest gains as Greece passed an austerity bill to secure a second bailout package to avoid a debt default. The FBM KLCI stood at 1,562.82 at the close yesterday, up 1.16 points, or 0.074%, after opening 1.31 points lower at 1,560.35. Losers outnumbered gainers by 517 to 364 while 321 counters were unchanged. Turnover fell to 2.661 billion shares worth RM2.119 billion from 3.35 billion shares worth RM2.81 billion last Friday.

Taking cue from the weak performance on Wall Street last Friday, the FBM KLCI opened 1.31 points lower at 1,560.35 and slid lower for a major part of the day with intermittent rebound to hit the intra-day low of 1,558.06. However, a last minute buying of selected blue-chips managed to lift the key index to close in the positive territory. Chart wise, the FBM KLCI formed a small white piercing-line candlestick which indicates a reversal after the profit-taking correction is over. Hence, the FBM KLCI is likely to move higher today, and the immediate overhead resistance is at 1,565-point level.

MACD continued to climb higher while the histogram was just marginally higher, indicating the upward momentum is still intact but showed sign of a slow down. RSI (14) hooked up slightly to 71.1, indicating the short term relative strength of the FBM KLCI is still very bullish. Stochastic slid marginally lower to 96.3, reflecting the correction over the last two sessions. Nonetheless, it is still above the slow stochastic line, and the short term up cycle is still intact. Readings from the indicators showed that the FBM KLCI is undergoing a mild correction, but the underlying strength is still intact. The key index is likely to resume its upward move to scale new high once the correction is over.

The overall trend of the FBM KLCI remained up and bullish although the key index is undergoing a correction now. Immediate overhead resistance zone is at 1,565 to 1,577 while the immediate downside support zone is at 1,558 to 1,553. If the key index is able to break through the 1,567-point resistance level, it is likely to move higher to the next target level of 1,577. Trading activities have slowed down slightly with the overall volume sliding below the 3 billion shares mark. Nevertheless, rotational play on the second and third liners will still dominate the scene while the blue-chips continued to consolidate.

Overnight, the Dow rose +72.81 points or +0.57% to close at 12,874.04. Today, the FBM KLCI is likely to trade within a range of 1,554 to 1,568

This week's expected range: 1524 – 1589
Today’s expected range: 1554 – 1568

Resistance: 1565, 1566, 1568
Support: 1554, 1556, 1559

Stocks to watch: PELIKAN, DIGISTA

FBM KLCI - bullish uptrend heading for 1,577

Stocks on Bursa Malaysia ended mixed last Friday on renewed concerns about Greece’s debt talks. Although Greece's leaders clinched a deal on economic reforms in return for a loan bailout, the country faces fresh hurdles as EU partners ask for more cutbacks. The FBM KLCI fell 3.66 points or 0.23% to close at 1,561.66 after opening 2.6 points weaker at 1,562.72. Week-on-week, the benchmark index rose 22.89 points from previous Friday’s close of 1,538.77. Market breath was positive with gainers leading losers by 566 to 371, while 315 counters were unchanged. Volume increased to 3.35 billion shares worth RM2.81 billion from 3.31 billion shares worth RM2.97 billion on Thursday. Total weekly volume increased to 11.06 billion shares, worth RM9.08 billion, from previous week’s 9.52 billion shares, worth RM9.2 billion.

Share prices on Bursa Malaysia continued their uptrend after the two-day holidays on Monday and Tuesday last week. The FBM KLCI rose 14.41 points to close at 1,553.18 on Wednesday after opening 3.5 points higher at 1,542.27. On Thursday, the market extended its uptrend from Wednesday, despite the cautious trading on regional Asian markets, due to the uncertainty in the Greece debt talks and the key index rose another 12.14 points to 1,565.32. Profit-taking activity set in on Friday which saw the FBM KLCI easing 3.66 points to end the holiday-shortened week at 1,561.66.

On the weekly chart, the FBM KLCI formed a bullish white candlestick which gap away from previous Friday’s candlestick. It indicated a bullish up move of the benchmark index which continued to move higher to close near the high of the week. On the daily chart, the FBM KLCI formed a small black spinning-top candlestick which indicated a pulled back profit-taking correction on last Friday, and the key index may take a short breather before continuing its uptrend. With this bullish up move the FBM KLCI is likely to continue its uptrend to climb higher this week to test the next target level of 1,577 follows by the all time high level of 1,597.

Both weekly and daily MACD continued to climb higher and so is the histograms, indicating a strong upward momentum of the key index. Weekly RSI (14) was higher at 62.6 compared with previous week’s 59.1, indicating the key index’s weekly relative strength has turned bullish. Daily RSI (14) has hooked down to 70.8 from Thursday’s 73.5, reflecting the pulled back correction, but the daily relative strength is still in the very bullish zone. Weekly Stochastic was higher at 95.6 while the daily stochastic was marginally lower at 97.1, indicating very strong underlying market strength from both the weekly and daily perspective. Readings from both the weekly and daily indicators showed that the FBM KLCI is currently in a very bullish state. However, as the oscillators have entered the short term overbought zone, some pullback correction is inevitable.

The FBM KLCI is now on a bullish uptrend, as it is staying above the short, medium and long term moving averages. After a steep rise from 1,520-point level to the current level of 1,561 in just five trading sessions, the key index is likely to take a breather at the current level before continuing its uptrend. Immediate overhead resistance zone is at 1,565 to 1,577 while the downside support zone is at 1,553 to 1,545. With the overall volume remained high and above the 3 billion shares mark, the broad market is likely to continue with the rotational play on the second and third liners with penny stocks taking the centre stage while the index-linked heavyweights may take a short breather.

Last Friday, the Dow fell -89.23 points or -0.69% to close at 12,801.23. This week, the FBM KLCI is likely to trade within a range of 1,524 to 1,589, and for today, it is likely to trade within a range of 1,553 to 1,570.

This week's expected range: 1524 – 1589
Today’s expected range: 1553 – 1570

Resistance: 1565, 1568, 1570
Support: 1553, 1556, 1559

Stocks to watch: ALAM, ANNJOO, KINSTEL, PERWAJA, LIONIND

FBM KLCI - higher on strong buying momentum

Stocks on Bursa Malaysia closed on a steady note yesterday, driven by late buying interest in penny stocks and selected blue chips. The market extended its uptrend from Wednesday, despite the cautious trading on regional Asian markets, due to the uncertainty in the Greece debt talks. The FBM KLCI rose by 12.14 points or 0.78% to close at 1,565.32 after opening 1.97 points higher at 1,555.15, with trading mostly seen in banking and plantation stocks. Losers led gainers by 456 to 447 with 309 counters unchanged. Turnover was lower at 3.31 billion shares worth RM2.97 billion from Wednesday’s 4.39 billion shares worth RM3.3 billion.

The FBM KLCI opened 1.97 points higher at 1,555.15 but slid lower to the intra-day low of 1,551.19 on profit-taking in the first hour of trading. The key index rebounded and moved sideways in the positive zone, and some late buying on selected blue-chips helped push the index to close at the highest point of the day. Chart wise, the FBM KLCI formed a bullish white candlestick which indicates the bulls were still in control, and the uptrend has continued. Immediate overhead resistance is at 1,567, if the FBM KLCI can cross above this immediate resistance level firmly, then, it is likely that the key index will move higher to test the next target level of 1,577.

MACD continued to climb higher, indicating a continued improvement of the market momentum. RSI (14) was higher at 73.4, indicating the short term relative strength of the key index has turned very bullish, and nevertheless, it also showed a short term overbought situation and a pull back correction is expected ahead. Stochastic continued to climb higher into the overbought zone at 97.4, indicating very bullish market strength and a continuation of the short term up cycle. Readings from the indicators showed that the FBM KLCI is in a very bullish state, however, a pull back correction is expected ahead as the indicators showed signs of overbought situation.

The underlying trend of the FBM KLCI is up and bullish as the key index is now staying above all the short, medium and long term moving averages. Immediate overhead resistance zone is at 1,567 to 1,577 while the immediate downside support zone is at 1,553 to 1,545. With volume trading above 3 billion shares, the broad market sentiment is likely to remain bullish with active rotational play on the lower liners.

Overnight, the Dow rose +6.51 points or +0.05% to close at 12,890.46. Today, the FBM KLCI is likely to trade within a range of 1,541 to 1,580

This week's expected range: 1498 – 1562
Today’s expected range: 1541 – 1580

Resistance: 1570, 1575, 1580
Support: 1541, 1546, 1555

Stocks to watch: AZRB, MULPHA, WCT, UNISEM

FBM KLCI - higher on huge volume

Stocks on Bursa Malaysia ended on a firm note yesterday, with record volume for this year, boosted by active retail participation. The positive sentiment was driven by continuous fund inflow and stronger global manufacturing data. The FBM KLCI rose 14.41 points, or 0.94%, to close at 1,553.18 after opening 3.5 points higher at 1,542.27. Market breadth was positive with gainers led losers by 593 to 322 while 293 counters were unchanged. Turnover surged to 4.39 billion shares valued at RM3.3 billion from 2.84 billion shares valued at RM2.32 billion last Friday, and yesterday’s volume almost surpassed the all-time high of 4.78 billion registered on Feb 22, 2007.

The FBM KLCI opened with an up gap of 3.5 points at the day’s low of 1,542.27 and surged to the intra-day high of 1,554.06 within the first fifteen minutes of trading. The key index pulled back on profit-taking activity and hovered between 1,554.06 and 1,548.00 throughout the day before ending the day at 1,553.18. Chart wise, the FBM KLCI formed a bullish white candlestick which indicates the bulls were in control for the day, and with the bullish up move yesterday the benchmark index is likely to continue its uptrend to test the next resistance level at 1,558 and 1,567.

MACD continued to climb higher and made a golden-cross yesterday, flashing a buy signal. This indicated the FBM KLCI’s momentum has again turned positive. RSI (14) climbed higher to 69.96, indicating the short term relative strength of the key index is turning very bullish. Stochastic was also higher at 93.4, indicating a continued improvement of the market strength and the up cycle. Readings from the indicators showed that the FBM KLCI is turning very bullish and the upward momentum is likely to carry the index to a higher level.

The trend of the FBM KLCI remained up and bullish. Immediate overhead resistance zone is anticipated at 1,558 to 1,567 while the downside support zone is at 1,542 to 1,530. Judging from the extremely high volume yesterday, the broad market is likely to continue to be dominated by active rotational trading in penny stocks and second liners, and the index-link heavyweights are likely to climb higher. Lock in some profit as the prices climb is always a good strategy especially on penny stocks that had made good gains.

Overnight, the Dow rose +5.75 points or +0.04% to close at 12,883.95. Today, the FBM KLCI is likely to trade within a range of 1,533 to 1,566

This week's expected range: 1498 – 1562
Today’s expected range: 1533 – 1566

Resistance: 1558, 1562, 1566
Support: 1533, 1538, 1545

Stocks to watch: NAIM, KIMLUN, MUDAJYA

FBM KLCI - likely to continue its bullish uptrend

Stocks on Bursa Malaysia ended last week in positive territory on continued bargain hunting of penny stocks. The positive sentiment was in tandem with regional bourses, backed by sustained inflows, the US Fed's stance and reduced worries over the Euro-zone crisis. The FBM KLCI ended 1.68 points or 0.11% higher at 1,538.77 after fluctuating between 1,526.03 and 1,541.31 throughout the day. Week-on-week, the key index made a gain of 17.87 points, or 1.17% from previous Friday’s close of 1,520.90. Gainers beat losers by 461 to 399 while 352 counters were flat. Turnover improved to 2.84 billion shares worth RM2.32 billion from 2.58 billion shares valued at RM2.87 billion on Thursday. Weekly turnover for the four-day holiday-shortened week amounted to 9.516 billion shares valued at RM9.206 billion, compared with 5.580 billion shares worth RM5.080 billion during the three-day in the previous week.

The FBM KLCI started last week on an easier note with the key index losing 7.35 points to 1,513.55 on Monday, after the US reported less-than-favourable economic growth data, which hurt investors’ sentiment. The benchmark index hit the intra-week low of 1,509.49 before rebounding strongly to close Tuesday 7.74 points higher at its intra-day high of 1,521.29. Bursa Malaysia was closed for the Federal Territory Day holiday on Wednesday. Following the progress of the European debt crisis and positive economic data coming out of the US and China, the FBM KLCI rose 15.80 points, or 1.04%, to 1,537.09 after opening 5.32 points higher at 1,526.61 on Thursday, and the key index continued its up move to touch the intra-week high of 1,541.31 on Friday before settling the week at 1,538.77.

On the weekly chart, the FBM KLCI formed a bullish engulfing candlestick pattern over the previous week’s Doji candlestick, which indicated the bulls were in control last week, and it also broke above the immediate resistance at 1,530.73 registered on 30th December 2011. With this bullish breakout, the FBM KLCI is likely to continue its uptrend to test the next target level of 1,558.

On the daily chart, the FBM KLCI formed a white hangman-like candlestick, which is a top reversal candlestick pattern, it indicated heavy profit-taking activity during the day as the bears managed to push the key index to the intra-day low of 1,526.03 before the bulls made a last minute buying effort which lifted the benchmark to close in the positive territory. Hence, the FBM KLCI may pause to take a breather before continuing its uptrend. Immediate overhead resistance zone lies at 1,541 to 1,545, while the immediate downside support zone is at 1,530 to 1,526.

Both weekly and daily MACD continued to climb higher and so is their histogram, indicating a continued improvement of the weekly and daily momentum. The daily MACD, nonetheless, is still marginally below the daily signal-line, and a crossover of the daily signal-line would generate a bullish buy signal. Weekly RSI (14) was higher at 59.1, while the daily RSI (14) was higher at 64.9, indicating the weekly and daily relative strength of the key index are bullish. Weekly Stochastic was higher at 94.7, and daily stochastic too was higher at 84.7, indicating strong market strength and continuation of the up cycle. Readings from both the weekly and daily indicators showed that the FBM KLCI had turned bullish for the short and medium term, and the upward momentum is likely to carry the key index to a higher level.

The FBM KLCI is now in a bullish uptrend as it is now closing above all the short, medium and long term moving averages. The key index is likely to continue its uptrend to test the next target level at 1,553, followed by 1,566, and possibly a re-test of the all time high level of 1,597.08 in the first half of this year. The broad market is likely to continue with its present trend of rotational play on the second, third liners and penny stocks while the index-link heavyweights may climb gradually.

Overnight, the Dow rose +33.07 points or +0.26% to close at 12,878.20. This week, the FBM KLCI is likely to trade within a range of 1,498 to 1,562, and for today, it is likely to trade within a range of 1,514 to 1,557.

This week's expected range: 1498 – 1562
Today’s expected range: 1514 – 1557

Resistance: 1545, 1551, 1557
Support: 1514, 1520, 1529

Stocks to watch: 3A, ZELAN, ALAM, WCT, HAIO, SILKHLD

FBM KLCI - breaking out of consolidation

Stocks on Bursa Malaysia ended higher yesterday on continued positive buying sentiment in line with the firmer regional markets, as investors became more confident following the progress of the European debt crisis and positive economic data coming out of the US and China. The FBM KLCI rose 15.80 points, or 1.04%, to 1,537.09 after opening 5.32 points higher at 1,526.61. Advancers led decliners by 643 to 286 while 298 counters were unchanged. Volume rose to 2.58 billion shares valued at RM2.87 billion from 1.88 billion shares valued at RM2.29 billion on Tuesday. The market was closed on Wednesday for Federal Territory Day holiday.

Taking cue from the strong performance on Wall Street overnight, the FBM KLCI opened with an up gap of 5.32 points at 1,526.61 and surged to the intra-day high of 1,540.89 within the first five minutes of trading. The key index then experienced heavy profit-taking which push it to the intra-day low of 1,526.57, and it rebounded to gradually climb higher to close at 1,537.09. Chart wise, the FBM KLCI formed a bullish white candlestick with an upside breakaway gap, which showed the bulls were rushing in to take control of the market. With the strong up move and breaking of the 1,530 resistance level yesterday, the key index is likely to continue its upward momentum to move higher today with an immediate upside target of 1,545 and 1,553.

MACD has turned upward, and so is the histogram, indicating a possible change in the market momentum from down to up. Nevertheless, the MACD is still below the signal-line. RSI (14) continued to climb higher to 64.2 from 57.2 a day ago, indicating the short term relative strength of the key index has again turned bullish. Stochastic has hooked upward to 64.9 and has crossed above the slow stochastic line, indicating an improvement in the market strength and a possible changed in the short term market cycle from down to up. Readings from the indicators showed that the FBM KLCI is undergoing a changed in terms of its momentum from down to up, and a possible new uptrend is in the making.

With the strong upward movement yesterday, the FBM KLCI had broken out of its short term sideways consolidation range to resume its uptrend. It is likely to move higher to test the immediate overhead resistance zone of 1,545 to 1,553. Judging from the volume and value traded which is above the 2 billion mark; the FBM KLCI is likely to remain active with rotational play. However, some profit-taking activity is expected today before the long weekend holiday, as Bursa Malaysia will be closed for Prophet Muhammad’s Birthday on Monday as a replacement and Thaipusam holiday on Tuesday.

Overnight, the Dow fell a marginal -11.05 points or -0.09% to close at 12,705.41. Today, the FBM KLCI is likely to trade within a range of 1,514 to 1,556

This week's expected range: 1507 – 1538
Today’s expected range: 1514 – 1556

Resistance: 1544, 1550, 1556
Support: 1514, 1520, 1528.

Stocks to watch: MUHIBAH, GUANCHG, ZELAN, TEBRAU, KIMLUN

FBM KLCI - appearance of bottom reversal signal

Stocks on Bursa Malaysia closed higher Tuesday on late buying interest. The local bourse ended in tandem with higher regional markets after encouraging comments by Greek Prime Minister Lucas Papademos that significant progress was made in talks with private sector creditors about his country’s debt woes. The FBM KLCI jumped 7.74 points to close at its intra-day high of 1,521.29 after opening 3.47 points higher at 1,517.02. Gainers beat losers by 415 to 394 while 353 counters were unchanged. Turnover dropped to 1.78 billion shares from 2.307 billion shares while the value rose to RM2.18 billion from RM1.841 billion registered on Monday.

Despite the weak performance on Wall Street overnight, the FBM KLCI opened 3.47 points higher at 1,517.02 but heavy profit-taking activity pressed the key index lower throughout the morning session to the intra-day low of 1,509.49. The key index recovered gradually in the afternoon session and managed to close at the highest point of the day. Chart wise, the FBM KLCI formed a bullish white hammer candlestick which indicates the bears were initially dominant but the bulls later took control. The appearance of a hammer candlestick after two days of downtrend indicated that the short term correction is probably over and the FBM KLCI might stage an up move.

MACD continued to slide lower, but its histogram has turned shorter upward, indicating the downward momentum is weakening. As the MACD is still above the zero line, the current weakness is viewed as a short term correction is a longer term bull market. RSI (14) has hooked upward to 57.2, reflecting the rebound and indicated that the short term relative strength is still in the mildly bullish zone. Stochastic, however, continued to slide lower to 51.5, indicating a continuation of the short term down cycle and loss of short term market strength. Readings from the indicators showed that the FBM KLCI is still in the consolidation mode with a possibility of staging a follow through rebound.

The short term trend of the FBM KLCI is sideways as it is still trapped within the triangle chart pattern, while the medium and longer term trend remained up. Immediate overhead resistance zone is at 1,524 to 1,530, while the downside support zone is at 1,509 to 1,500. The key index is likely to stay sideways range-bound until it makes a firm breakout from this range-bound zone. Judging from the volume and value traded, the overall market is likely to continue be dominated by active trading in the lower liners while the index-link heavyweights may continue to consolidate.

Overnight, the Dow rose +83.55 points or +0.66% to close at 12,716.46. Today, the FBM KLCI is likely to trade within a range of 1,501 to 1,533.

This week's expected range: 1507 – 1538
Today’s expected range: 1501 – 1533

Resistance: 1526, 1530, 1533
Support: 1501, 1505, 1513

Stocks to watch: COASTAL, MUDAJYA, PELIKAN, SEG, GTRONIC