FBM KLCI - in consolidation

Stocks on Bursa Malaysia closed mixed yesterday as last-minute selling in selected heavyweights limited gains. Market sentiment firmed up for the first time in recent days with interest seen in smaller capitalised stocks but CIMB came under some selling pressure and dragged the benchmark FBM KLCI into the negative territory. At close, the FBM KLCI slipped 2.04 points or 0.12% to 1,741.37 after hovering between 1,736.57 and 1,746.49 throughout the day. Gainers outpaced losers by 571 to 262 while 280 counters were unchanged. Total volume rose to 1.73 billion units worth RM2.15 billion, from 1.61 billion units worth RM1.81 billion recorded on Monday. Read more >>

FBM KLCI - in consolidation

Stocks on Bursa Malaysia ended almost flat yesterday after range-bound trade as sentiment was dampened by weakness in regional markets. Regional bourses were mostly down as traders turned cautious following escalating tensions in the Middle East and losses on Wall Street. The FBM KLCI closed 0.68 point or 0.04% lower at 1,818.42, after moving between 1,815.41 and 1,820.52 throughout the day. Gainers edged losers 426 to 397 with 343 counters unchanged. Total volume rose to 2.43 billion units worth RM1.95 billion from 2.03 billion units worth RM2.12 billion on Wednesday. Read more >>

FBM KLCI - lower on profit-taking

Stocks on Bursa Malaysia ended lower yesterday on continued selling in selective heavyweights. Regionally, most of the Asian stock markets were traded higher, as investors reacted positively to the People’s Bank of China’s move to lower the one-year deposit rate by 25 basis points to 2.5% and the one-year lending rate to 5.35%. The FBM KLCI slipped 4.08 points or 0.22% to close at 1,817.13, after moving between 1,812.35 and 1,825.33 points throughout the day. Losers outpaced gainers by 617 to 313 with 260 counters unchanged. Total volume rose to 2.3 billion shares worth RM2.2 billion from 2.2 billion shares worth RM2.7 billion on Friday. Read more >>

FBM KLCI - higher on technical rebound

Stocks on Bursa Malaysia rebounded to close in positive territory yesterday, spurred by bargain hunting mostly in selected blue-chips and heavyweights. The FBMKLCI rose 11.9 points or 0.66% to close at 1,818.38, after fluctuating between 1,805.35 and 1,818.38 throughout the day. Advancers thumped decliners by 437 to 345, with 306 counters unchanged. Total volume increased to 1.76 billion units worth RM1.71 billion from 1.41 billion shares worth RM1.39 billion transacted on Monday. Read more >>

FBM KLCI - range-bound with an upward bias

Stocks on Bursa Malaysia ended slightly higher last Friday on late buying support. The local market had traded cautiously throughout the week due to the lack of impetus with most investors remaining on the sidelined. The FBM KLCI gained 1.54 points or 0.1% higher to 1,617.77, and week-on-week, it rose 6.94 points from previous week's 1,610.83. Gainers led losers by 329 to 295, while 336 counters were unchanged. Volume rose to 971.095 million shares worth RM1.221 billion from Thursday's 881.16 million shares worth RM1.25 billion, while weekly turnover fell to 4.199 billion shares valued at RM6.171 billion from previous week's 5.39 billion shares, valued at RM8.62 billion. ...Read more>>

FBM KLCI - sign of toppishness

Stocks on Bursa Malaysia ended mixed yesterday with the FBM KLCI touching a record intra-day high of 1,611.50 after opening 0.36 of a point easier at 1,602.71, but ended only 0.05 of a point higher at 1,603.12 on heavy profit-taking activity. The benchmark index performed quite well in contrast to regional market performances as it held up firmly, not giving up all gains on window dressing. Gainers led losers 371 to 360 while 337 counters were unchanged. Turnover eased to 1.072 billion shares worth RM1.250 billion from last Friday’s 1.478 billion shares worth RM1.703 billion.

The FBM KLCI opened 0.36 point lower at 1,602.71 and slipped to the intra-day low of 1,601.10 within the first ten minutes after opening, it then rebounded strongly and rallied to a new record intra-day high of 1,611.50 but gave back much of its gains on heavy profit-taking activity to close almost unchanged. Chart-wise, the FBM KLCI formed a white spinning-top candlestick with a long upper shadow which indicates a bullish euphoria initially in pushing the key index higher, but was later hammered by the bears. It also indicated heavy resistances at the historical high region of 1,609. With the price action yesterday, the key index is likely to consolidate itself first before staging another attempt to re-test the historical high level.

MACD was higher but its histogram turned slightly shorter, indicating a reduction in the upward momentum, and an inherent weakness is building up. RSI (14) was flat at 64.7, indicating an unchanged condition of the short term relative strength. Stochastic slipped lower to 87.2 from 92.7, and has crossed below the slow stochastic line, indicating a possible beginning of a short term correction. Readings from the indicators showed that the FBM KLCI is taking a breather after the recent up move and is likely to consolidate itself for the immediate short term.

The uptrend of the FBM KLCI remained intact as the key index is still closing above all the moving averages. However, the immediate short term 5-day SMA is just 1.76 points lower at 1,601.39, giving the key index an immediate support. If the key index slipped below this immediate 5-day SMA support, it is likely that it will slide lower to the immediate support zone of 1,594 to 1,589. Judging from the dwindling volume, the overall market is likely to further consolidate itself.

Overnight, the Dow tumbled -138.12 points or -1.09% to close at 12,502.66. Today, the FBM KLCI is likely to trade within a range of 1,588 to 1,622.

This week's expected range: 1559 – 1636
Today’s expected range: 1588 – 1622

Resistance: 1610, 1616, 1622
Support: 1588, 1594, 1599

Stocks to watch: CANONE, PADINI, HSL, YTLPOWR

FBM KLCI - bullish momentum likely to persist

Stocks on Bursa Malaysia closed firmer last Friday, bolstered by funds buying in heavyweights despite the slide in regional markets on renewed concern over weak global market sentiment. The FBM KLCI edged up 1.64 points or 0.1% to close at 1,603.07 after opening in the red at 1,599.7 and fluctuated between 1,594.44 and 1,608.65. On a Friday-to-Friday basis, the benchmark index gained 22.1 points from previous Friday's closing of 1,579.23. Losers led gainers by 410 to 312 while 331 counters were unchanged. Turnover was at 1.478 billion shares worth RM1.703 billion compared with Thursday’s 1.572 billion shares worth RM1.577 billion. Weekly volume rose to 4.848 billion shares worth RM6.437 billion from previous week's 3.768 billion shares valued at RM7.207 billion.

Taking cue from the favourable result of the Greece’s election, the FBM KLCI opened last Monday with an up gap of 4.12 points at 1,583.35 and climbed to the intra-day high of 1,588.54 but settled with a gain of 3.5 points to close at 1,582.73. Bucking the regional downtrend, the FBM KLCI closed 12.25 points higher at 1,594.98 on Tuesday after opening 1.46 points lower at 1,581.27. On Wednesday, the FBM KLCI closed higher for the third consecutive days with a gain of 9.41 points at 1,604.39 due to active local funds buying of index-linked blue chips. Profit-taking activity set in on Thursday with the FBM KLCI closing lower by 2.96 points at 1,601.43 after opening 1.55 points higher at 1,605.94. Taking cue from a 250 points drop of the Dow overnight, the FBM KLCI opened last Friday 1.73 points lower and fell to the intra-day low of 1,594.44, losing 6.99 points at its worst but rebounded strongly to hit the intra-day high of 1,608.65 before settling with a 1.64 points gain to end the week at 1,603.07.

On the weekly chart, the FBM KLCI formed a bullish white candlestick which gaps away from the previous week’s candlestick, and this indicated a bullish sentiment of the benchmark index. At the same time, the weekly candlestick has gone above all the moving averages which indicated a bullish state. On the daily chart, the FBM KLCI formed a high wave white spinning-top which indicated a very volatile trading day on last Friday, and the market was a bit of uncertain of its direction but with an upward bias. The benchmark index came close to the historical high level of 1,609.33 but was short of 0.68 of a point to break it, and it is likely to stage a re-test of the historical high level this week. A break of the historical high level is likely to see the FBM KLCI moving higher to an uncharted territory with a possible target of 1,632 and 1,661.

Weekly MACD has hooked up, and its histogram also turned shorter for the fourth consecutive bars, indicating a change in the weekly momentum from down to up. Nevertheless, the weekly MACD is still below the weekly signal-line but above the zero-line. Daily MACD was higher but its histogram was slightly shorter, reflecting the correction that took place. Anyway, the underlying tone is still bullish. Weekly RSI (14) was higher at 60.4, indicating the weekly relative strength of the FBM KLCI has just turned bullish. Daily RSI (14) has hooked upward to 64.7, is also in a bullish state. Weekly Stochastic was higher at 69.7, indicating a continuation of the weekly up cycle and improvement of the weekly market strength. However, the daily Stochastic was lower at 92.7, reflecting the pullback in the key index. Readings from both the weekly and daily indicators showed that the FBM KLCI has turned bullish and the upward momentum is likely to send the index to a higher level.

The FBM KLCI has resumed its uptrend as it is now staying above all the short, medium and long term moving averages, and is bullish. It is likely that the benchmark index will re-test and possibly break the historical high level before the listing of Felda Global Ventures Holdings Bhd, scheduled for June 28 as the bullish momentum builds up. With volume in the 1.5 billion shares region, the overall market is likely to see more rotational play coming in.

Last Friday, the Dow rose +67.21 points or +0.53% to close at 12,640.78. This week, the FBM KLCI is likely to trade within a range of 1,559 to 1,636, and for today, it is likely to trade within a range of 1,581 to 1,623.

This week's expected range: 1559 – 1636
Today’s expected range: 1581 – 1623

Resistance: 1610, 1617, 1623
Support: 1581, 1587, 1595

Stocks to watch: PERDANA, IJACOBS, L&G, SEAL, RAMUNIA, CANONE

FBM KLCI - in sideways consolidation mode

Stocks on Bursa Malaysia closed lower yesterday as investors tracked losses in regional markets as cautious sentiment prevailed amid lingering concerns over the Euro-zone debt crisis. The FBM KLCI ended 2.24 points easier at 1,596.62 after opening 0.23 points higher at 1,599.09. Losers outpaced gainers 429 to 281 while 350 counters were unchanged. Turnover decreased to 1.708 billion shares, worth RM1.555 billion, from 2.134 billion shares, worth RM1.615 billion, registered on Wednesday.

The FBM KLCI opened 0.23 point higher at 1,599.09 and surged to the intra-day high of 1,602.12 within the first five minutes of trading. The key index then slid lower on profit-taking activity to hit the intra-day low of 1,595.54 before rebounding slightly to close off low. Chart-wise, the FBM KLCI formed a bearish black inverted-hammer like candlestick which indicates the bears were in control. With the price action dominated by selling yesterday, the FBM KLCI is likely to continue to consolidate and move range-bound today with a downward bias. Immediate downside support zone is at 1,594 to 1,587 provided by the 20 and 30-day SMA.

MACD and its histogram continued to slide lower, indicating a continued loss in the index’s short term momentum. RSI (14) hooked down to 56, indicating the short term relative strength has again weakened but is still in the mildly bullish zone. Stochastic oscillator also slid lower to 53.1, indicating a continued loss in the index’s strength and a continuation of the short term down cycle. Readings from the indicators showed that the FBM KLCI is losing its momentum and the consolidation process is likely to extend.

The short term trend of the FBM KLCI has turned sideways while the medium and longer term trend still remained up. The FBM KLCI is likely to continue with its sideways range-bound trend with an immediate overhead resistance zone at 1,602 to 1,605 while the downside support zone is at 1,594 to 1,587. With the volume staying at 1.7 billion shares, the overall market is still going to be dominated by rotational play on penny stocks with the index linked counters continued to consolidate.

Overnight, the Dow fell -68.65 points or -0.53% to close at 12,964.10. Today, the FBM KLCI is likely to trade within a range of 1,587 to 1,609.

This week's expected range: 1574 – 1623
Today’s expected range: 1587 – 1609

Resistance: 1601, 1605, 1609
Support: 1587, 1591, 1594

Stocks to watch: OLDTOWN, CANONE, DELEUM

FBM KLCI - likely to move range-bound

Stocks on Bursa Malaysia ended marginally higher last Friday on improved sentiment. The FBM KLCI rose 1.85 points or 0.12% to 1,603.12 after hovering between 1,600.75 and 1,604.71, while on a Friday-to-Friday basis the key index gained 4.25 points from 1,598.87 registered the previous Friday. Gainers led losers by 400 to 325 while 355 counters were unchanged. Total volume surged to 1.348 billion shares worth RM1.656 billion from Thursday’s 1.108 billion shares valued at RM1.601 billion, while total weekly volume declined to 4.638 billion shares, valued at RM5.913 billion, from previous week’s turnover of 5.41 billion shares worth RM6.23 billion as last week was holiday shortened due to a public holiday on Wednesday.

The FBM KLCI opened last week on a black day which saw the key index sliding to the intra-day low of 1,588.58, losing 10.29 points at its worst before rebounding to close off low at 1,591.58. Taking cue from the weak performance on Wall Street overnight, the FBM KLCI opened with a down gap of 3.51 points at 1,587.77 and slid lower to the intra-week low of 1,586.99 before rebounding to close in the positive territory with a 5.89 points gain at 1,597.17. Bursa Malaysia was closed on Wednesday in conjunction with the installation ceremony of Seri Paduka Baginda Yang di-Pertuan Agong. The FBM KLCI continued to move higher on Thursday with a gain of 4.1 points to 1,601.27 and Friday saw the benchmark index stand firmly above the 1,600-point level and ended the week at 1,603.12.

On the weekly chart, the FBM KLCI formed a white hanging-man candlestick, which indicates the bears were initially strong in driving the index lower but later the bulls re-surfaced and push the key index back to the positive territory. Technically, the appearance of a hanging-man candlestick after an uptrend indicates weakness is surfacing and a possible reversal is in sight. On the daily chart, the FBM KLCI formed a white spinning-top candlestick which indicates indecision of market direction and a possible reversal ahead. Hence, the key index may take a pause to move range-bound with an upward bias as the underlying longer term trend is still up. Immediate downside support zone is envisaged at 1,587 to 1,579 provided by the 5 and 10-week SMA, while the immediate overhead resistance is at 1,609.33, the all-time-high level.

Weekly MACD continued to rise, but with a slower momentum as shown by the shorter histogram. Daily MACD was marginally high but is still below the signal line, and the daily histogram was shorter upward, indicating a very gradual pickup in the momentum. Weekly RSI (14) was higher at 67.4 and the daily RSI (14) was also higher at 62.2, indicating both the weekly and daily relative strength are in the bullish zone. Weekly Stochastic oscillator was higher at 94.7 but showed sign of tapering off, indicating a slow down in the weekly upward momentum. Daily stochastic hooked up to 68.7 from 58.8, and has crossed above the slow stochastic line, indicating the short term down cycle or correction was over and a continuation of the uptrend. Readings from the weekly and daily indicators showed that the FBM KLCI is still in a bullish state, but the upward momentum was a bit weak, and hence, the key might go into a range-bound consolidation but with an upward bias.

The overall uptrend of the FBM KLCI remained intact as the key index continued to stay above all the short, medium and long term moving averages. However, the upward momentum was a little weak as shown by the momentum indicators. In the absence of strong stimulus on the horizon to spark a desired rally to bring the market higher, the FBM KLCI may sustain the range-bound pattern with a slight positive bias for another week or until a clearer picture emerges.

Last Friday, the Dow fell -136.99 points or -1.05% to close at 12,849.59. This week, the FBM KLCI is likely to trade within a range of 1,574 to 1,623, and for today, it is likely to trade within a range of 1,597 to 1,609.

This week's expected range: 1574 – 1623
Today’s expected range: 1597 – 1609

Resistance: 1605, 1607, 1609
Support: 1597, 1599, 1601

Stocks to watch: KFM, CYPARK, N2N, CANONE, JOHOTIN