FBM KLCI - a technical rebound

Stocks on Bursa Malaysia ended firmer yesterday, in line with regional bourses, driven by continuous gains mostly seen in selected heavyweights. The local market started the day on a positive note as investors took the cue from the powerful surge on Wall Street last Friday and the positive vibes spilled onto regional bourses. The FBM KLCI finished 7.41 points higher at 1,632.35 after hovering between 1,623.26 and 1,632.35 throughout the day. Gainers outpaced losers by 426 to 305 while 334 counters closed unchanged. Total volume appreciated to 1.229 billion shares, valued at RM1.285 billion, from 978.76 million shares, valued at RM1.71 billion, recorded on Friday. Read more...

FBM KLCI - likely to further consolidate

Stocks on Bursa Malaysia ended marginally steadier in range-bound trade last Friday in line with other bourses in Asia. Buying support for select heavyweights helped the FBM KLCI to finish 1.03 points higher at 1,624.94. The index, which opened at 1,624.97, traded between 1,620.76 and 1,630.57, and week-on-week, it lost 18.06 points from previous Friday’s 1,643. Gainers outpaced losers by 396 to 365 while 337 counters closed flat. Turnover was lower at 978.76 million shares valued at RM1.7102 billion compared with 1.15 billion shares worth RM1.82 billion on Thursday, and weekly volume decreased to 5.212 billion shares valued at RM8.744 billion from previous week’s 5.916 billion shares worth RM8.29 billion. Read more...

FBM KLCI - lower on heavy selling pressure

Stocks on Bursa Malaysia closed lower across-the-board yesterday amid weaker buying momentum with sentiment dampened by fear of a global economic slowdown, and the market was expected to remain under pressure unless new measures to bolster the US economic growth really materialised. At the close, the FBM KLCI declined 11.18 points, or 0.68%, to 1,623.91 after hovering between 1,621.31 and 1,638.65 throughout the day. Losers outpaced gainers by 448 to 274 while 369 counters closed unchanged. Total volume decreased to 1.15 billion shares worth RM1.82 billion from Wednesday’s 1.32 billion shares worth RM2.49 billion. Read more...

FBM KLCI - rebounded to close marginally higher

Stocks on Bursa Malaysia ended on a mixed note yesterday following the dual listings of IHH Healthcare Bhd (IHH) on the Malaysian and Singapore stock markets. Asia’s largest hospital operator, IHH, debuted on the Bursa Malaysia’s Main Market at RM3.07 for a 27-sen premium from its RM2.80 initial public offering price, with 35.771 million shares transacted. The stock closed at RM3.09, up 29 sen. At the close, the FBM KLCI which opened at 1,631.01 rose 2.52 points, or 0.15%, to 1,635.09 after hovering between 1,624.88 and 1,635.09 throughout the day. Decliners led advancers by 448 to 298 while 313 counters closed unchanged. Total volume rose to 1.32 billion shares valued at RM2.49 billion from Tuesday’s 845.75 million shares valued at RM1.51 billion. Read more...

FBM KLCI - lower on continued selling pressure

Stocks on Bursa Malaysia closed lower yesterday on continued selling amid a lack of any major catalyst to move up the market. The sell-off came on investor concern over the ongoing Eurozone debt crisis resurfacing amid indications that Spain might require a full bailout. The selling spree remained mild compared with regional markets due to FBM KLCI’s defensive traits and local funds’ support ahead of the IHH Healthcare Bhd listing today. The FBM KLCI, which opened at 1,638.05, slipped 3.6 points or 0.22% to 1,632.57 after hovering between 1,629.18 and 1,639.71 throughout the day. Decliners led advancers by 413 to 294 while 351 counters closed unchanged. Total volume fell to 845.75 million shares valued at RM1.51 billion from 915.89 million shares worth RM1.22 billion on Monday. Read more...

FBM KLCI - lower on profit-taking correction

Stocks on Bursa Malaysia ended in the negative territory yesterday amid weak market sentiment following concerns on the Euro zone debt crisis, as well as slowdown in the US and China has pressured the equities market. Renewed concerns over Euro zone’s crisis saw the Spanish 10-year government bond yield hitting a new high and forced Wall Street to finish weaker last Friday. At close, the FBM KLCI fell 6.83 points or 0.42% to 1,636.17 after fluctuated between 1,635.12 and 1,643.33 throughout the day. Decliners led advancers by 565 to 194 while 312 counters closed unchanged. Total volume fell to 915.89 million shares worth RM1.22 billion from 1.22 billion shares valued at RM1.72 billion last Friday. Read more...

FBM KLCI - likely to consolidate

Stocks on Bursa Malaysia closed lower last Friday on profit-taking as investors trim their positions ahead of the weekend. Profit-taking and the prolonged overbought momentum restricted the index from breaking the 1,650 level. The benchmark FBM KLCI fell 1.6 points or 0.1% to close at 1,643 after moving between 1,641.58 and 1,647.41 throughout the day. Week-on-week, the benchmark index advanced 16.62 points or 1.02% higher from previous Friday’s closing of 1,626.38 after hitting a historic high of 1,645 points on Wednesday. Decliners led advancers by 410 to 376 while 352 counters closed unchanged. Total volume rose to 1.22 billion shares valued at RM1.718 billion from 1.109 billion shares valued at RM1.591 billion on Thursday, while weekly volume decreased to 5.916 billion shares, worth RM8.29 billion, from 6.309 billion shares, worth RM8.618 billion, registered the previous week. Read more...

FBM KLCI - lower on profit-taking after hitting fresh high

Stocks on Bursa Malaysia closed mixed yesterday with the FBM KLCI closed slightly lower on profit taking after the recent hike. At close, the key market barometer slipped 0.4 of a point to 1,644.6 after opening 0.46 of a point higher at 1,645.6, and it hit a new record intra-day high of 1,647.94. Advancers led decliners by 389 to 378 while 357 counters closed unchanged. Total volume declined to 1.109 billion shares valued at RM1.591 billion from Wednesday’s 1.13 billion shares, valued at RM1.46 billion.

Taking cue from the strong performance of Wall Street overnight, the FBM KLCI opened 0.46 point higher at 1,645.46 and rallied to a new record intra-day high of 1,647.94 within the first thirty minutes of trading, thereafter, heavy profit-taking activity set in and pressed the key index lower to end near the intra-day low. Chart-wise, the FBM KLCI formed a bearish black inverted hammer candlestick, which is a top reversal candlestick formation when it occurred at a high level, and hence, the FBM KLCI is likely to take a breather to consolidate itself after charting new high continuously for the past few sessions. Immediate overhead resistance zone is at 1,648 to 1,650 while the downside support zone is at 1,640 to 1,632.

MACD was higher but its histogram turned slightly shorter, indicating a slow down in the upward momentum, and nevertheless, the momentum is still bullish. RSI (14) hooked downward slightly to 75.7 from 76.1 previously, reflecting the mild profit-taking activity and the short term relative strength is still in the very bullish state. Stochastic also hooked downward to 91.6 but is still above the slow stochastic line, reflecting the mild pullback in the key index. Readings from the indicators showed that the FBM KLCI is experiencing a pullback after the recent hike, and is likely to consolidate itself.

The broad trend of the FBM KLCI remained up and bullish, and the mild pullback yesterday is viewed as a healthy correction after many days of scaling new high, and the correction is expected to be shallow and provide opportunities to buy into weakness for quality shares. The benchmark index is likely to consolidate as it is coming to the weekend. However, as the underlying trend is still strong, the benchmark index is expected to re-test the recent high after the correction is over, and our short term target of 1,661 stay.

Overnight, the Dow rose +34.66 points or +0.27% to close at 12,943.36. Today, the FBM KLCI is likely to trade within a range of 1,639 to 1,652.

This week's expected range: 1600 – 1650
Today’s expected range: 1639 – 1652

Resistance: 1647, 1650, 1652
Support: 1639, 1641, 1643

Stocks to watch: HIBISCS, SKPETRO,  PERDANA, MNRB, UOADEV, SCOMIMR

FBM KLCI - moving higher steadily

Stocks on Bursa Malaysia closed higher for the third consecutive day yesterday, despite cautious trading in the Asian markets. The Asian stock markets were broadly lower during late trade yesterday after US Federal Reserve Chairman gave a bleak assessment of the US economy and failed to signal a fresh round of stimulus to boost growth. The FBM KLCI ended 5.85 points or 0.36% higher at 1,645 after trading between 1,640.39 and 1,645.39 throughout the day. Advancers led decliners by 362 to 358 while 388 counters closed unchanged. Total volume slipped to 1.13 billion shares, valued at RM1.46 billion, from Tuesday’s 1.347 billion shares valued at RM2.013 billion.

Following the rebound on Wall Street overnight, the FBM KLCI opened 1.33 points higher at 1,640.48 and rallied to the intra-day high of 1,645.39 within the first thirty minutes of trading. The key index pulled back on mild profit-taking and moved sideways for a major part of the day, and some last minute buying of selected blue-chips helped pushed the index to close near the day’s high, recording another all-time high. Chart-wise, the FBM KLCI formed a bullish white Marubozu-like candlestick which indicates the bulls were in control and continues to push the benchmark index higher. Immediate overhead resistance zone is at 1,647 to 1,650 while the downside support zone is at 1,640 to 1,632.

MACD and its histogram continued to rise, indicating a continued improvement of the upward momentum. RSI (14) was higher at 76.1 from 73.9 previously, indicating a very bullish state of the FBM KLCI, however, it also mean short term overbought for the benchmark index and a pullback is likely to happen. Stochastic rose higher to 93.6 after crossing the slow stochastic line, indicating a continuation in the up cycle and very strong market strength. Readings from the indicators showed that the FBM KLCI is in a very bullish state but is short term overbought, and a correction is likely to take place soon.

The FBM KLCI is currently in a bullish uptrend, and it has also closed above the middle trend line of the uptrend channel, which means it has a potential of moving higher with the upper channel line as its target. With the current steady upward momentum, it is likely to move higher to the next immediate target of 1,650, follow by 1,661 and 1,700. Total volume remained lukewarm with a high average unit value, indicating a market dominated by bigger fund and not much of retail participation.

Overnight, the Dow rose another +103.16 points or +0.81% to close at 12,908.70. Today, the FBM KLCI is likely to trade within a range of 1,636 to 1,651.

This week's expected range: 1600 – 1650
Today’s expected range: 1636 – 1651

Resistance: 1647, 1649, 1651
Support: 1636, 1638, 1641

Stocks to watch: MISC, SKPETRO, TWSCORP, INGRESS, GTRONIC, SCOMIMR

FBM KLCI - appearance of toppish signal amid charting new record high

Stocks on Bursa Malaysia closed higher yesterday for the second consecutive day with buying interest seen in telecommunication blue-chips. The market was riding on the stronger Ringgit and optimism on China’s economic growth but the uptrend was limited by profit taking activities. At close, the FBM KLCI ended 3.19 points or 0.19% higher at 1,639.15 after trading between 1,632.5 and 1,646.97 throughout the day. Market breadth was negative with decliners leading advancers by 409 to 401 while 314 counters were unchanged. Total volume rose to 1.347 billion shares, valued at RM2.013 billion, from Monday’s 1.112 billion shares valued at RM1.509 billion.

The FBM KLCI opened 0.2 of point lower at 1,635.76 and slipped to the intra-day low of 1,632.50 within the first twenty minutes of trading. The key index then rebounded and rallied to an intra-day high of 1,646.97 at mid day, and the afternoon session saw heavy profit-taking activity which pressed the index to close of high at 1,639.15, charting another record close. Chart-wise, the FBM KLCI formed a white spinning-top candlestick with a slightly longer upper shadow which indicates uncertainty and the market was under some profit-taking selling pressure. The appearance of this candlestick at this historical high level indicated that the benchmark index might have seen its top and is likely to correct and consolidate before continuing its journey to a higher level. Immediate strong overhead resistance zone is at 1,647 to 1,650 while the downside support zone is at 1,632 to 1,621.

MACD and its histogram were higher, indicating a continued increased in the momentum. RSI (14) was higher at 73.99 from 72.7 previously, indicating very bullish state of the benchmark index and was overbought for the short term. Stochastic was higher at 89.7 from 88.9, and has just crossed-over the slow stochastic line, indicating a reversal of the short term cycle from down to up. However, a divergence has developed, which indicated that some internal weakness is developing and a correction is impending. Readings from the indicators showed that the FBM KLCI is currently in a very bullish state but signs are there that it is overbought and a correction is expected ahead.

The FBM KLCI is currently in a bullish uptrend, and it has just crossed over the middle trend line of the uptrend channel. If the key index is able to stay above the middle line of the trend channel, it is likely to continue its up move with an upside target of 1,700-point, the upper line of the trend channel. Overall volume remained lukewarm, and the market is likely to see more rotational play in the second and third liners with the index-linked counters leading the direction.

Overnight, the Dow rebounded +78.33 points or +0.62% to close at 12,805.54. Today, the FBM KLCI is likely to trade within a range of 1,617 to 1,662.

This week's expected range: 1600 – 1650
Today’s expected range: 1617 – 1662

Resistance: 1647, 1654, 1662
Support: 1617, 1625, 1632

Stocks to watch:  PRESBHD, JOHOTIN, REDTONE, TAMBUN, KFIMA, WCT, HARVEST

FBM KLCI - closing at all-time high

Stocks on Bursa Malaysia closed on a bullish note yesterday with the benchmark FBM KLCI finishing at an all-time high of 1,635.96, up 9.58 points or 0.58%, buoyed by buying interest in selected finance and utility blue chips. Bullish regional bourses as well as overnight gains on Wall Street helped to lift the local bourse. The index’s previous all-time high was recorded on July 11 at 1,629.45. Advancers outpaced decliners by 476 to 298 while 328 counters closed unchanged. Total volume decline to 1.112 billion shares, valued at RM1.509 billion, from 1.29 billion shares valued at RM1.616 billion last Friday.

Taking cue from the strong performance of Wall Street last Friday, the FBM KLCI opened with an up gap of 1.89 points at 1,628.37 and rallied higher to touch the all-time high level of 1,635.96 at late morning, the key index pulled back to consolidate and again moved higher on last minute buying to close at the highest point of the day. Chart-wise, the FBM KLCI formed a bullish white Marubozu candlestick which indicates buyers were very strong and was in control, and the buying momentum is likely to push the benchmark index higher. However, it may not be a good sign when the index gets too bullish near the top as it can also mean distribution. Immediate upside target is pegged at 1,641 follows by 1,650.

MACD and its histogram has both turned upward, indicating a pickup in the momentum after a short breather. RSI (14) was higher at 72.7 from 68.6, indicating an improvement of the relative strength from bullish to very bullish. Stochastic hooked upward to 88.9, but is still below the slow stochastic line, indicating a possible change in the short term cycle from down to up. Readings from the indicators showed that the momentum of the FBM KLCI has again pickup and is turning very bullish.

The FBM KLCI is currently very bullish and on a strong uptrend, and is likely to continue to chart new high in the short term with an immediate upside target of 1,641 to 1,650, and from a longer term perspective, it is likely to reach 1,661 and 1,700. From the total volume and value traded, the overall market is in a lukewarm state with blue-chip counters leading the way and is likely to remain so.

Overnight, the Dow fell -49.88 points or -0.39% to close at 12,727.21. Today, the FBM KLCI is likely to trade within a range of 1,623 to 1,644.

This week's expected range: 1600 – 1650
Today’s expected range: 1623 – 1644

Resistance: 1639, 1641, 1644
Support: 1623, 1625, 1630

Stocks to watch: IJMLAND, PERDANA, PRESBHD, MALTON, AMEDIA

FBM KLCI - likely to trend higher

Stocks on Bursa Malaysia ended slightly higher last Friday after see-saw trading throughout the day, lifted by gains in selected key heavyweight counters. Regional market sentiment improved after China’s second-quarter growth report met market expectations. Back home, the market showed some continued sell-off in plantations counters, and the benchmark FBM KLCI gained 0.89 of a point to end at 1,626.38, after hovering between the 1,621.37 and 1,628.09 levels, Week-on-week, it gained 5.83 points from 1,620.55 the previous week, and it touched a new high at 1,629.45 on Wednesday. Gainers led losers by 379 to 367 while 330 counters were unchanged. Turnover advanced to 1.290 billion shares worth RM1.616 billion from 1.279 billion shares worth RM1.681 billion on Thursday. Weekly volume increased to 6.309 billion shares worth RM8.618 billion from 5.671 billion shares worth RM7.734 billion the previous week.

Last week was a recording making week for the FBM KLCI which saw the benchmark index continuously chart new high. The FBM KLCI opened 1.2 points lower last Monday at 1,619.35 and slipped to the intra-week low of 1,616.24 before rebounding to close 0.24 of a point lower at 1,620.31. Tuesday saw the FBM KLCI rose 3.98 points to close at a new high of 1,624.29 prompted by gains in plantation counters. Buoyed by persistent buying interests in selected blue-chips, the benchmark FBM KLCI rose 5.16 points on Wednesday to a new record close of 1,629.45 after touching an intra-day high of 1,632.15. On Thursday, The FBM KLCI opened 0.63 point lower at 1,628.82 and slipped lower, but it rebounded fairly quickly to hit another new record intra-day high of 1,632.94 before heavy profit-taking activity sent it to close 3.96 points lower at 1,625.49, and Friday saw the benchmark index rebounding marginally to close 0.89 point higher after hitting an intra-day low of 1,621.37.

On the weekly chart, the FBM KLCI formed a bullish white spinning-top candlestick with a slightly longer upper shadow which indicates the upward momentum of benchmark index has reduced comparing with previous week’s bullish white Marubozu candlestick, and slight uncertainties due to profit-taking has surfaced as the index charts record high. Anyway, the FBM KLCI is still in a bullish uptrend. On the daily chart, the FBM KLCI rebounded to form a bullish white piercing-line candlestick after opening lower and hitting the intra-day low of 1,621.37, indicating the bulls were trying to fight back after being beaten on Thursday, and the key index is likely to continue its rebound to climb higher today.

Weekly MACD continued to climb higher after making a golden-cross last week, indicating a continued improvement in the weekly momentum. Daily MACD, however, has turned flat and its histogram has turned shorter, indicating a reduction in the daily upward momentum. Weekly RSI (14) was higher at 64.1 from 63.1 reflecting the continued gain and the weekly relative strength is still in the bullish state. Daily RSI (14) has hooked up marginally to 68.6, reflecting a mild rebound and the daily relative strength of the FBM KLCI is still in the bullish state. Weekly Stochastic was marginally higher at 93.4 but has tapered off, indicating a slow down in the upward strength. Daily stochastic, however, continued to slide lower 86.3, indicating the short term profit-taking correction is not over yet. Readings from the weekly indicators showed that the FBM KLCI is still in a bullish state while the daily indicators showed that the key index is undergoing a short term pullback correction but overall is still bullish.

The FBM KLCI has corrected itself on last Thursday after hitting a new record intra-day high level of 1,632.94, but Friday’s price action showed that the key index is likely to stage a rebound to re-test the recent high. Immediate overhead resistance zone is at 1,629 to 1,633, if the key index is able to break through the 1,632.94-point level convincingly, then it might rally to the next target level of 1,641 follow by 1,650. Technically, the FBM KLCI has an upside target of 1,660 to 1,700 from a longer term perspective.

Last Friday, the Dow rose +203.82 points or +1.62% to close at 12,777.09. This week, the FBM KLCI is likely to trade within a range of 1,600 to 1,650, and for today, it is likely to trade within a range of 1,615 to 1,635.

This week's expected range: 1600 – 1650
Today’s expected range: 1615 – 1635

Resistance: 1629, 1632, 1635
Support: 1615, 1618, 1622

Stocks to watch: OLDTOWN, SCOPE, SUPERMX, WEIDA, PRLEXUS

FBM KLCI - lower on profit-taking correction

Stocks on Bursa Malaysia closed mostly easier yesterday on persistent sell-off in line with tepid performance in key regional markets. The local index saw some profit-taking amid the selling pressure with the market overbought recently, and external uncertainties also continued to hurt investors’ appetite to take more risk in the market. The benchmark FBM KLCI eased 3.96 points to end at 1,625.49, after opening 0.63 of a point lower at 1,628.82. Losers led gainers by 478 to 289 while 341 counters were unchanged. Turnover declined to 1.279 billion shares worth RM1.681 billion from 1.34 billion shares worth RM2.49 billion on Wednesday.

The FBM KLCI opened 0.63 point lower at 1,628.82 and slipped lower, but it rebounded fairly quickly to hit another new record intra-day high of 1,632.94 after thirty five minutes of trading. Thereafter, persistent selling pressure on heavy profit-taking pressed the benchmark index to the intra-day low of 1,624.56 before rebounding slightly to close off low. Chart-wise, the FBM KLCI formed a bearish black inverted hammer candlestick, a top reversal candlestick pattern, which indicates heavy selling pressure and the FBM KLCI might have temporarily seen its top at 1,632.94, and the key index is likely to further correct itself. Immediate downside support zone is at 1,621 to 1,611 and the overhead resistance is at 1,633.

MACD has tapered off while its histogram has turned shorter, indicating a reduction in the upward momentum. RSI (14) hooked downward to 68.2, reflecting the pulled back in the key index, and nevertheless, the short term relative strength is still in the bullish zone. Stochastic was lower at 90.5 from 96.4 previously, indicating the weakening of the market strength and possible beginning of a short term correction cycle. Signals from the indicators showed that a short term correction phase of the FBM KLCI has just started and it is likely to further consolidate.

The overall trend of the FBM KLCI remained up and bullish as the key index is still staying above all the moving averages. The key index is currently sitting right above the very short term 5-day SMA at 1,624 and a break below the 5-day SMA is likely to see the key index sliding lower to the 10-days SMA which is currently at 1,615-point level. Nevertheless, the medium to longer term uptrend is very much intact, and the short term correction should be viewed as an opportunity to buy into weakness for quality shares.

Overnight, the Dow fell -31.26 points or -0.25% for the sixth consecutive sessions to close at 12,573.27. Today, the FBM KLCI is likely to trade within a range of 1,614 to 1,642.

This week's expected range: 1585 – 1641
Today’s expected range: 1614 – 1642

Resistance: 1631, 1636, 1642
Support: 1614, 1619, 1622

Stocks to watch: MHB, MPHB,  DELEUM, HARVEST, KHSB

FBM KLCI - closing at another record high

Stocks on Bursa Malaysia closed on a firm note again yesterday, buoyed by persistent buying interests in selected blue-chips. The benchmark FBM KLCI rose 5.16 points or 0.32% to a high of 1,629.45 after opening 3.23 points lower at 1,621.06. The index touched an intra-day high of 1,632.15. Gainers led losers by 406 to 364 while 340 counters were unchanged. Turnover rose to 1.34 billion shares worth RM2.49 billion from Tuesday’s 1.13 billion shares worth RM1.54 billion.

Taking cue from the weak overnight performance of Wall Street, the FBM KLCI opened 3.23 points lower at the intra-day low of 1,621.06 and rebounded to move higher gradually for the rest of the day. The key index hits another new record intra-day high of 1,632.15 at mid afternoon but the rise could not sustained and retreated on heavy profit taking activity. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates the bulls were still in control, and may attempt to move higher today.

MACD and its histogram are both higher, indicating a continued increased in the upward momentum. RSI (14) was higher at 72.1, indicating a very bullish state of the FBM KLCI but is short term overbought, and a pullback is likely to happen. Stochastic, on the other hand, has turned downward to 96.4 from 99, and has crossed below the slow stochastic line, indicating a pullback correction might take place anytime. Readings from the indicators showed that the FBM KLCI is in a very bullish state but is short term overbought, and is poised for a correction.

The FBM KLCI is currently in a bullish uptrend as it is staying above all the moving averages. However, it has hit onto the middle resistance trend line of the uptrend channel and pullback below it. If the key index is able to close above this resistance trend line, then it has a strong likelihood of moving higher to the upper trend line region which is now at 1,690 to 1,700. Immediate overhead resistance is now at 1,632, and if the benchmark index can breakthrough this resistance level convincingly, it might climb to the next target level of 1,641. Nonetheless, chances that the FBM KLCI may pullback on correction is becoming higher as it has risen for the past eight out of ten sessions and the stochastic oscillator has shown that weakness is surfacing.

Overnight, the Dow fell -48.59 points or -0.38% for the fifth consecutive sessions to close at 12,604.53. Today, the FBM KLCI is likely to trade within a range of 1,611 to 1,643.

This week's expected range: 1585 – 1641
Today’s expected range: 1611 – 1643

Resistance: 1634, 1639, 1643
Support: 1611, 1616, 1622

Stocks to watch: REDTONE, MALTONE, HIBISCS, KFIMA, JOHOTIN, SCOPE, KINSTEEL

FBM KLCI - hitting another new record high

Stocks on Bursa Malaysia closed higher yesterday in line with the rally in regional bourses with the FBM KLCI touching an all-time intra-day high of 1,625.04. The local bourse’s uptrend was mainly prompted by gains in plantation counters, and investor sentiment was also lifted by new progress on the Eurozone after their finance ministers agreed to grant Spain an extra year, until 2014, to reach its deficit reduction targets. The benchmark FBM KLCI rose 3.98 points or 0.25% to close at a new high of 1,624.29, after the index opened 0.7 of a point better at 1,621.01. Gainers led losers by 436 to 338 while 355 counters were unchanged. Turnover increased to 1.132 billion shares worth RM1.536 billion from 1.266 billion shares worth RM1.293 billion on Monday.

The FBM KLCI opened 0.7 point higher at 1,621.01 and climb higher to hit an all-time intra-day high of 1,625.04 within the first hour of trading. Profit-taking activity which emerged pressed the key index lower and traded in a sideways band for most part of the day, but some last minute buying of selected blue-chips helped to push the FBM KLCI to close at another record high. Chart-wise, the FBM KLCI formed a bullish white candlestick which continues the uptrend, and buyers were still in control. The upward momentum is likely to carry the index to a higher level with 1,625 to 1,631 being the immediate resistance zone.

MACD continued to move higher and its histogram also grew longer, indicating a continuation of the upward momentum after a day of slow down. RSI (14) was higher at 70.03 from 68.3, entering the short term overbought zone for the first time since April 3^rd, indicating a very bullish state of the FBM KLCI but is now overbought. Stochastic has hooked downward slightly to 99.02 from 99.4, indicating very strong market strength but is extremely overbought for the short term. Readings from the indicators showed that the FBM KLCI is currently in a very bullish state but is overbought, and a correction is expected ahead.

The bullish uptrend of the FBM KLCI continues, however, as it is in a record making state for the past few days, the bears might have quietly creep in as can be seen from the intra-day sell-off and a last minute push up during the past few trading sessions. The best strategy now is to trade short term and lock-in profit along the way as the key index rises. Overall volume remained low, but the total value traded was higher, indicating the first and second liners stocks are dominant, and the FBM KLCI may hit the peak when the buying euphoria comes in.

Overnight, the Dow fell -83.17points or -0.65% for the fourth consecutive days to close at 12,653.12. Today, the FBM KLCI is likely to trade within a range of 1,617 to 1,630.

This week's expected range: 1585 – 1641
Today’s expected range: 1617 – 1630

Resistance: 1626, 1628, 1630
Support: 1617, 1619, 1621

Stocks to watch: MHB, MBSB, RSAWIT, YINSON, WEIDA, PRLEXUS

FBM KLCI - taking a breather

Stocks on Bursa Malaysia closed slightly easier yesterday on profit taking after a record high last Friday and coupled with a soft external markets performance. Investors were hesitant to take any major position in the market; on jitters over external woes following a weaker than expected jobs data in the United States. However, gains in some blue-chip counters helped the local bourse stay above the 1,615 level. The FBM KLCI shed 0.24 of a point to close at 1,620.31 after moving between 1,616.24 and 1,620.54. Losers led gainers by 423 to 319 while 333 counters were unchanged. Turnover increased to 1.266 billion shares worth RM1.293 billion from the 1.14 billion shares worth RM1.52 billion last Friday.

Taking cue from the weak performance of Wall Street last Friday, the FBM KLCI opened 1.2 points lower at 1,619.35 and slipped to the intra-day low of 1,616.24 within the first thirty minutes of trading on mild selling pressure, and the key index rebounded to move sideways before some last minutes buying lifted it to close almost unchanged. Chart-wise, the FBM KLCI formed a white hanging-man candlestick, a top reversal candlestick pattern which indicates the appearance of selling pressure especially when it appeared at the high level. Hence, the FBM KLCI is likely to further consolidate before continuing its northward move. Immediate downside support zone is at 1,616 to 1,611

MACD continued to climb higher but the histogram was slightly shorter, indicating a small reduction in the upward momentum. RSI (14) hooked gently downward to 68.3 from 68.5 and the short term relative strength is still in the bullish zone. Stochastic was higher at 99.4 but is tapering off, indicating a mild reduction in the upward strength. Readings from the indicators reflected the mild pulled back in the key index yesterday, but the overall momentum is still bullish.

The trend of the FBM KLCI remained bullish and up as the key index is still above all the moving averages. After recording new highs continuously last week, the FBM KLCI is likely to pause for a breather before continuing its uptrend, and a pullback will offer opportunity to buy into quality shares at lower price level. Overall volume remained thin, and rotational play on second and third liners is likely to continue dominating the active scene.

Overnight, the Dow fell another -36.18 points or -0.28% to close at 12,736.29. Today, the FBM KLCI is likely to trade within a range of 1,613 to 1,625.

This week's expected range: 1585 – 1641
Today’s expected range: 1613 – 1625

Resistance: 1621, 1623, 1625
Support: 1613, 1615, 1617

Stocks to watch: MPHB, SUPERMX, BIMB,UOADEV, CATCHA

FBM KLCI - bullish uptrend mode

Share prices on Bursa Malaysia closed higher last Friday, driven by gains on selected counters. Asian markets, however, fell as the European Central Bank’s decision on Thursday to cut interest rate to a record low failed to excite investors. The FBM KLCI rose by 6.12 points to close at another new record high of 1,620.55, and week-on-week, the benchmark index rose 21.40 points to an all-time high from 1,599.15 the previous week. Gainers led losers by 482 to 281 while 322 counters were unchanged. Turnover increased to 1.14 billion shares worth RM1.52 billion from 1.12 billion shares worth RM1.39 billion on Thursday, while weekly volume decreased to 5.671 billion shares worth RM7.734 billion, from 6.163 billion shares valued at RM8.988 billion the previous week.

The FBM KLCI was basically in an uptrend mode the whole of last week. It opened 0.72 point higher at 1,599.87 on last Monday and ended the day 1.70 points higher to close at 1,600.85 after hitting an intra-day high of 1,605.22. The benchmark index continued to climb higher on Tuesday to close 6.89 points at 1,607.74 in line with gains in regional markets driven by hopes that policymakers will act to boost growth in view of weak manufacturing data released by major economies. Wednesday saw the FBM KLCI moving higher in tandem with the rally in regional bourses hitting a new record intra-day high of 1,614.79 before settling with a gain of 6.01 points at 1,613.75. Bursa Malaysia traded mixed on Thursday with the FBM KLCI going into a profit-taking correction mode for a major part of the day but late buying interest in selected blue-chip stocks pushed the market barometer to close at another new high of 1,614.43 with a marginal gain of 0.68 of a point, and Friday saw some mild profit-taking activity in the first half of the day but continued buying support for blue-chips drove the benchmark to close the week at the all-time high level of 1,620.55.

On the weekly chart, the FBM KLCI formed a bullish white Marubozu candlestick, and on the daily chart, the benchmark index also formed a bullish white candlestick with a short lower shadow but closed at the highest point of the day which indicated strong buying support for blue-chip stocks, and the upward momentum may continue to drive the key index higher this week with an immediate target level of 1,631 follow by 1,641 while the downside support is pegged at the psychological support level of 1,600-point.

Weekly MACD continued to climb higher and has just made a golden-cross over its signal line, flashing a buy signal on the weekly chart. Daily MACD and its histogram also climbed higher indicating continued improvement in the upward momentum. Weekly RSI (14) was higher at 63.1 from previous reading of 59.3, and the daily RSI (14) was also higher at 68.5. Both weekly and daily RSI values showed that the key index is in a bullish mode and may climb higher. Weekly Stochastic was higher at 92.9 and the daily Stochastic was also higher at 98.8, indicating very strong market strength but both readings indicated that the key index has entered the short term overbought zone. Readings from both the weekly and daily indicators showed that the FBM KLCI is currently in a bullish state with strong upward momentum but is slightly overbought and some profit-taking might be expected ahead.

The FBM KLCI is currently in a bullish uptrend mode as it is staying above all the short, medium and long term moving averages. The benchmark index is likely to continue to scale new high into the uncharted territory this week with an immediate target level of 1,631 followed by 1,641 which is expected to be a strong resistance zone; and from the longer term perspective the FBM KLCI has an upside target of 1,660 which is the 1.618% Fibonacci expansion level measuring from the pivot high of 1,609.33 registered on April 3^rd to the pivot low of 1,526.6 registered on 18^th May.

Last Friday, the Dow fell -124.20 points or -0.96% to close at 12,772.47. This week, the FBM KLCI is likely to trade within a range of 1,585 to 1,641, and for today, it is likely to trade within a range of 1,608 to 1,628.

This week's expected range: 1585 – 1641
Today’s expected range: 1608 – 1628

Resistance: 1623, 1626, 1628
Support: 1608, 1610, 1615

Stocks to watch: CYPARK, MBFHLDG, REDTONE, MALTON, SCOPE

FBM KLCI - sign of toppishness

Stocks on Bursa Malaysia closed mixed yesterday as sentiment turned cautious ahead of the European Central Bank’s meeting later of the day where key decisions concerning the Eurozone debt crisis will be made. The benchmark FBM KLCI, however, rose 0.68 of a point to 1,614.43, driven by late buying interest in selected blue-chip stocks which pushed the market barometer to its new high. Gainers led losers by 376 to 370 while 344 counters were unchanged. Turnover was higher at 1.116 billion shares worth RM1.388 billion from RM1.082 billion shares worth RM1.696 billion on Wednesday.

The FBM KLCI opened 0.95 point lower at 1,612.80 and rebounded to touch the intra-day high of 1,614.72, just 0.07 of a point below the historical high of 1,614.79, and profit-taking activity which set in pressed the benchmark index to the intra-day low of 1,607.31 at noon, losing 6.44 points at its worst. The afternoon session saw some buying interest on selected blue-chips which pushed the key index gradually higher to close near the highest point of the day, registering another record high in terms of closing. Chart-wise, the FBM KLCI formed a white hanging-man candlestick, a top reversal candlestick pattern, which indicates toppishness and possible reversal of the key index. Immediate downside support zone is at 1,607 to 1,600 while the immediate overhead resistance zone is at 1,615 to 1,621.

MACD and its histogram continued to climb higher, indicating a continued increased in the upward momentum. RSI (14) was marginally higher at 65.9 from 65.6 previously and is turning flat, reflecting the small increment in the key index and a possible pause ahead. Stochastic was higher at 95.5, climbing deep into the short term overbought zone, indicating a very strong market strength, and a possible correction is expected ahead. Readings from the indicators showed that the FBM KLCI is currently in a bullish state but is short term overbought, and a pullback is expected ahead.

The FBM KLCI is currently in a bullish uptrend as it is staying above all the short, medium and long term moving averages. It is showing signs of toppishness with the appearance of a hanging-man candlestick and overbought for the short term, and a correction is likely to happen, which actually offers opportunity to buy quality shares in lower price level. With volume just above the one billion shares mark, the overall market is likely to remain lukewarm with rotational play.

Overnight, the Dow was down -47.15 points or -0.36% to close at 12,896.67. Today, the FBM KLCI is likely to trade within a range of 1,602 to 1,622.

This week's expected range: 1570 – 1631
Today’s expected range: 1602 – 1622

Resistance: 1617, 1620, 1622
Support: 1602, 1604, 1609

Stocks to watch: MISC, MBL, APEX, ADVENTA, MUDAJYA, REDTONE, MALTON, 3A

FBM KLCI - closing at new record high

Stocks on Bursa Malaysia closed higher yesterday in tandem with the rally in regional bourses, driven by expectation that policymakers will implement monetary measures to boost the weakening global economy. The benchmark FBM KLCI climbed to an all-time intra-day high of 1,614.79 before settling at 1,613.75, up 6.01 points or 0.37%, after opening 1.70 points higher at 1,609.44. Gainers led losers by 408 to 353 while 331 counters were unchanged. Turnover decreased to 1.082 billion shares worth RM1.696 billion from Tuesday’s 1.253 billion shares worth RM1.843 billion.

The FBM KLCI opened 1.70 points higher at 1,609.44, the intra-day low, and rallied to the new record intra-day high of 1,614.79 within the first thirty minutes of trading. Thereafter, the key index slid lower to a low of 1,610.80 on profit-taking activity before rebounding in the late afternoon to close at a new record high. Chart-wise, the FBM KLCI formed a bullish white candlestick which gaps away from the previous candlestick, indicating an increased in buying interest of the blue-chips stocks, and the key index is likely to continue scaling new high until sign of exhaustion appear.

MACD and its histogram were higher, indicating an increased in the upward momentum. RSI (14) was higher at 65.6, indicating the key index is turning more bullish, and Stochastic was also higher at 87.3, indicating an improvement in the market strength and continuation of the short term up cycle. Readings from the indicators showed that the FBM KLCI is currently in a bullish state, and the bullishness may carry the key index higher.

The trend of the FBM KLCI is up and bullish as the benchmark index is currently staying above all the short, medium and long term moving averages. After making a new record high, the key index is likely to face more profit-taking activity which will cause a pullback correction. Immediate downside support zone is at 1,611 to 1,609 while the immediate overhead resistance is at 1,615. If the key index is able to breakthrough the resistance at 1,615, the next higher target is looking at 1,621.

US market was closed yesterday for their Independence Day holiday, and over in Europe, the DAX was down -13.41 points or -0.20% to close at 6,564.80. Today, the FBM KLCI is likely to trade within a range of 1,605 to 1,621.

This week's expected range: 1570 – 1631
Today’s expected range: 1605 – 1621

Resistance: 1615, 1618, 1621
Support: 1605, 1607, 1610

Stocks to watch: SHCHAN, THPLANT, PERDANA, PRESBHD, ULICORP, CENSOF

FBM KLCI - approaching the historical high level

Stocks on Bursa Malaysia closed mostly higher yesterday in line with gains in regional markets driven by hopes that policymakers will act to boost growth in view of weak manufacturing data released by major economies, and weaknesses in economic data pointed to more stimulus measures from central banks and interest rate cut. The benchmark FBM KLCI, which stayed above the 1,600-point level, gained 6.89 points or 0.43% to close at 1,607.74. Gainers led losers by 390 to 327 while 323 counters were unchanged. Turnover increased to 1.25 billion shares worth RM1.84 billion from 1.08 billion shares worth RM1.284 billion on Monday.

The FBM KLCI rebounded to open 1.62 points higher at 1,602.47 and continued to climb higher for the rest of the day with intermittent pullback on mild profit-taking activity; it ended yesterday at the highest point of the day. Chart-wise, the FBM KLCI formed a bullish white Marubozu candlestick which gaps away from the previous day’s candlestick. With this bullish price move, the benchmark index is likely to continue its upward momentum to climb higher to re-test the historical peak of 1,611.50 registered on June 25^th.

MACD has swing upward and its histogram also turned longer for the first time after shrinking continuously for six sessions, indicating an increase in the momentum from consolidation mode to up. RSI (14) was higher at 62.97 from previous reading of 59.7, indicating a pickup in the short term relative strength and the key index is turning bullish. Stochastic swung upward to 78 from 66.9, and has crossed above the slow stochastic line, indicating a change in the short term market cycle from down to up. Readings from the indicators showed that the FBM KLCI is again turning bullish after about a week of consolidation.

The short term trend of the FBM KLCI has turned upward and bullish after the recent consolidation, and the medium and longer term uptrend still remained intact. Immediate overhead resistance is at 1,611.50 while the immediate downside support is pegged at the psychological level of 1,600-point. If the FBM KLCI is able to breakthrough this overhead resistance level with conviction, it has a potential of reaching a higher level of 1,631 follows by 1,640 and 1,660 as its immediate upside target levels, and for the longer term it has an upside potential of reaching 1,707 to 1,721.

Overnight, the Dow gained +72.43 points or +0.56% to close at 12,943.82 for a pre-national holiday half day market. Today, the FBM KLCI is likely to trade within a range of 1,598 to 1,613.

This week's expected range: 1570 – 1631
Today’s expected range: 1598 – 1613

Resistance: 1609, 1611, 1613
Support: 1598, 1600, 1604

Stocks to watch: CYPARK, MISC, MBL, MBFHLDG, PENERGY, WEIDA

FBM KLCI - closed just above 1,600-point

Stocks on Bursa Malaysia closed higher yesterday on improved sentiment in regional markets after Eurozone leaders agreed on a 120 billion Euro package as a short-term measure to combat the debt crisis. The benchmark FBM KLCI gained 1.70 points or 0.11% from last Friday to close at 1,600.85. Gainers led losers by 412 to 302, while 334 counters were unchanged. Turnover decreased to 1.078 billion shares worth RM1.284 billion from 1.301 billion shares worth RM1.885 billion last Friday.

The FBM KLCI opened 0.72 point higher at 1,599.87 and climbed to the intra-day high of 1605.22 within the first hour of trading, but active profit-taking activity kept the key index from climbing further and slid to close near the opening. Chart-wise, the FBM KLCI formed a white inverted hammer candlestick which indicates the bulls’ effort was met with selling pressure from the bears, and the FBM KLCI is likely to stay range-bound and continue to consolidate today within the flag chart pattern with immediate overhead resistance at 1,605 while the downside support is at 1,591.

MACD is almost flat but its histogram was shorter, indicating the key index is losing its momentum and goes into a consolidation. RSI (14) was marginally higher at 59.7 from 58.8 previously, reflecting the mild gain and the short term relative strength is still in the mildly bullish state. Stochastic, however, has hooked downward to 66.9 from 68.3, indicating an inherent weakness is developing. Mixed readings from the indicators showed that the FBM KLCI is going into a consolidation mode and is likely to stay range-bound.

The overall trend of the FBM KLCI remained up. However, the short term trend is turning sideways as the 5-day SMA has just crossed below the 10-day SMA with the index just floating above these two short term moving averages, and a break below the 5-day SMA at 1,598 would likely see the key index sliding towards the immediate support at 1,591. With the total market volume staying just above 1 billion shares, the overall market is likely to stay quiet with some rotational play on the second and third liners.

Overnight, the Dow fell -8.70 points or -0.07% to close at 12,871.39. Today, the FBM KLCI is likely to trade within a range of 1,593 to 1,611.

This week's expected range: 1570 – 1631
Today’s expected range: 1593 – 1611

Resistance: 1605, 1608, 1611
Support: 1593, 1596, 1598

Stocks to watch : FABER, KIANJOO, TSH, HOHUP, IVORY, SCOPE

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

Stocks on Bursa Malaysia ended last Friday, the mid-year closing day of 2012 on a steadier note in line with key regional bourses on renewed global optimism as European leaders unexpectedly agreed measures to ease the region’s debt crisis and bank problems which lifted market sentiment globally. The FBM KLCI settled just a whisker below the 1,600 points psychological level at 1,599.15 with a gain of 4.91 points or 0.31% after opening 0.20 of a point better at 1,594.53. Week-on-week, the benchmark index achieved an all-time high of 1,611.5 on June 25 before finishing the week 3.92 points lower at 1,599.15. Gainers led losers by 473 to 271, 320 counters were unchanged. Turnover declined to 1.301 billion shares worth RM1.885 billion from Thursday’s 1.563 billion shares valued at RM2.741 billion, while the weekly volume expanded to 6.163 billion shares, valued at RM8.988 billion, from 4.848 billion shares, worth RM6.437 billion, registered the previous week.

The FBM KLCI was basically in a range-bound consolidation mode the whole of last week, it opened last Monday 0.36 of a point easier at 1,602.71 and rallied to a record intra-day high of 1,611.50 but ended only 0.05 of a point higher at 1,603.12 on heavy profit-taking activity. In line with the weaker regional sentiment, weighed down by the Eurozone debt crisis that has struck global risk appetite, the FBM KLCI lost 9.02 points to 1,594.1 on Tuesday. The local bourse ended Wednesday on a mixed note with the benchmark index finished above the 1,600-point psychological level, taking cue from gains on regional markets, at 1,601.89, inching up 7.79 points. Thursday witnessed the listing of Felda Global Ventures Holdings Bhd (FGV), the world’s second largest initial public offering (IPO), but the FBM KLCI lost 7.65 points to close at 1,594.24 on persistent selling pressure, and the FBM KLCI ended Friday, the last trading day of June, with a gain of 4.91 points to close at 1,599.15.

On the weekly chart, the FBM KLCI formed a black spinning-top candlestick which indicates the benchmark index was facing uncertainties of direction after the previous week’s strong up move, and is likely to move range-bound or consolidate itself in the coming week. On the daily chart, the FBM KLCI formed a white candlestick with long upper shadow which indicates the key index was facing selling pressure above the 1,600-point psychological level, and the body of the candlestick was contained with the previous day’s black candlestick body, indicating range-bound consolidation, and the formation of a flag chart pattern further confirms the consolidation.

Weekly MACD continued to move higher and so is the histogram which turned shorter upward, indicating the weekly momentum is improving. Nevertheless, the weekly MACD is still below its signal-line. On the other side, daily MACD and its histogram was sliding lower, indicating losses in the daily momentum. However, as the MACD is still above its signal-line, the current weakness is viewed as a short term consolidation. Weekly RSI (14) has hooked downward slightly to 59.3 from 60.4, reflecting the mild pullback on the weekly chart, and the weekly relative strength is still in the upper end of the mildly bullish zone. Daily RSI (14) has hooked upward to 58.8 from 58.4, indicating a slight improvement in the daily relative strength, and is in the mildly bullish state. Weekly Stochastic continued to climb higher to 80.5, indicating the weekly up cycle is still intact and the weekly market strength is strengthening. Daily stochastic has hooked upward to 68.3 from 64.8 but is still below the slow stochastic line, reflecting the rebound and the short term down cycle is not over yet. Mixed readings from the weekly and daily indicators showed that the FBM KLCI is still generally bullish but is currently undergoing a consolidation, and when the consolidation is over, it might move higher to re-test the historical peak.

The broader trend of the FBM KLCI is up while for the immediate short term, it is in a sideways trend. Immediate overhead resistance zone is at 1,605 to 1,611 while the downside support is at 1,591, and a breakout above the upper resistance will likely see the FBM KLCI moving higher into the uncharted territory with an immediate target of 1,631 follow by 1,640. While a break below the immediate support of 1,591 will likely see the key index sliding lower to the immediate next lower support at 1,581.

Last Friday, the Dow rose +277.83 points or +2.20% to close at 12,880.09. This week, the FBM KLCI is likely to trade within a range of 1,570 to 1,631, and for today, it is likely to trade within a range of 1,582 to 1,616.

This week's expected range: 1570 – 1631
Today’s expected range: 1582 – 1616

Resistance: 1605, 1611, 1616
Support: 1582, 1588, 1593

Stocks to watch: MBFHLDG, TIMECOM, BIMB, BINTAI, PENERGY