Last week was a slow and sluggish week for Bursa Malaysia due to Christmas holiday falling on last Friday. The only positive news was the revised of the 5% real property gains tax (RPGT) on Wednesday to apply for properties held for under five years, rather than across the board as was earlier announced in the 2010 Budget. That gave some properties counters some small boost in their share prices, E&O and SP Setia responded with some marginal gains.
The FBM KLCI registered a loss of 3.03 points, or 0.24% week-on-week to close at 1263.94 on last Thursday, a holiday-shortened week. Weekly trading volume slipped down further to 1.714 billion shares as compared with 2.388 billion shares the previous week, reflecting a rather quiet market.
On the weekly chart, the FBM KLCI formed a Doji candlestick, which indicates indecision of the market directions, and the narrow weekly range of 12 points reflected that the index is in a state of consolidation. In actual fact, the index has been in a consolidation mode for the last four to five weeks, and is expected to continue into this week, as this is also a holiday-shortened week with only four trading days.
On the indicators, weekly MACD continued to slide down, indicating a gradual lost of market momentum. Weekly RSI was down marginally to 68.8 and weekly Stochastic slid down further to 73.9 reflecting the consolidation state of the benchmark index.
The short term weekly trend of the KLCI has turned sideways; nonetheless, the underlying trend of the KLCI as indicated by longer term moving averages is still up.
As for this week, the FBM KLCI is expected to still trade in a range-bound mode within a range of 1245 to 1281, and for today, it is expected to trade within a range of 1258 to 1268.
This week's expected range: 1245 – 1281
Today’s expected range: 1258 – 1268
Resistance: 1265, 1267, 1268
Support: 1258, 1260, 1261
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