FBM KLCI - likely to further correct downward

Stocks on Bursa Malaysia ended lower last Friday on continuous selling activities in key blue-chips and heavyweights as the market reacted to the rising geopolitical tensions sparked by the downing of Malaysia Airlines Flight MH17 over Ukraine and Israel’s ground offensive in Gaza. The benchmark FBMKLCI fell 10.17 points or 0.54% to 1,872.97, after moving between 1,871.4 and 1,877.34 throughout the day. On a weekly basis, the key index lost 10.18 points from 1,883.15 on previous Friday. Losers trounced gainers by 550 to 303 with 307 counters unchanged. Total volume fell to 2.38 billion units valued at RM2.182 billion from 2.12 billion units valued at RM2.21 billion. Weekly turnover for the holiday-shortened week declined to 6.92 billion shares valued at RM9.005 billion from 8.89 billion shares valued at RM10.88 billion recorded the previous week. Read more>>

FBM KLCI - in consolidation mode

Stocks on Bursa Malaysia closed lower yesterday with interest subdued due to lack of buying support in the absence of clear signals from overseas equity markets, as buyers are not participating aggressively in the market with foreign investors reducing their holdings gradually. The FBMKLCI ended 2.06 points or 0.11% lower at 1,828.68, after moving between 1,826.53 and 1,833.80 throughout the day. Losers led gainers by 446 to 432, with 283 counters unchanged. Volume rose to 3.06 billion shares worth RM2.08 billion, from 2.98 billion shares worth RM2.39 billion, recorded on Friday. ...Read more>>

FBM KLCI - lower on continued profit-taking

Stocks on Bursa Malaysia closed mixed yesterday with the FBM KLCI closed marginally lower on mild selling activities amid weaker external sentiment. The market was volatile throughout the day, moving sideways below the 1,800 level, amid bearish regional bourses on concerns over the global economic outlook. Asian stocks fell on uncertainty over when the United States Federal Reserve would start to scale back its monetary stimulus programme which had spurred growth in Asian economies, especially emerging countries. The FBM KLCI ended 1.52 points or 0.08% lower at 1,792.21 after moving between 1,791.23 and 1,797.17 throughout the day. Gainers led losers by 418 to 381 with 320 counters unchanged. Total turnover increased to 2.41 billion shares, worth RM2.07 billion, from Wednesday's 2.2 billion shares, valued at RM1.7 billion. ...Read more>>

FBM KLCI - higher on last minute buying

Stocks on Bursa Malaysia finished higher yesterday on continuous buying interest in selected heavyweights. The benchmark index, which was in the red since it started trading yesterday, managed to pull back into positive territory in the last ten minutes, helped by Maybank shares which counter back losses in the index. The FBM KLCI ended 1.02 points or 0.06% higher at 1,786.67 after opening 3.73 points lower at 1,781.92, and hovered between 1,781.64 and 1,786.67 throughout the day. Market breadth was positive, with 372 gainers and 356 losers, while 304 counters were unchanged. Turnover dwindled to 1.121 billion shares worth RM1.615 billion from 1.16 billion shares valued at RM1.72 billion on Friday. ...Read more>>

FBM KLCI - likely to re-test historical high

Stocks on Bursa Malaysia closed higher for the third consecutive day yesterday, surpassing the 1,600-point level, bolstered by gains in selected consumer and blue-chip stocks due to active local funds buying of index-linked blue chips. Tracking the positive movement of its regional peers, the FBM KLCI closed 9.41 points higher at 1,604.39 after opening 0.96 point higher at 1,595.94. Gainers thumped losers by 621 to 196 while 291 counters were unchanged. Turnover was higher at 1.401 billion shares worth RM1.763 billion from the 932.560 million units valued at RM1.459 billion posted on Tuesday.

Taking cue from the strong performance of the Dow overnight, the FBM KLCI opened 0.96 of a point higher at 1,595.94 and slipped to the intra-day low of 1,594.88 rights after the opening. The key index rebounded and continued to move higher with intermittent mild pullback to finish at the highest point of the day. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates buyers were in a state of bullish euphoria, and the key index might continue its upward momentum to move higher today. However, over-bullishness near the top often attracts heavy profit-taking. Immediate overhead resistance is at the historical high of 1,609.33, and a break above this level will send the FBM KLCI into an uncharted territory with a possible target of 1,632 and 1,661.

MACD continued to surge higher and so is the histogram, indicating a strong increase in the upward momentum. RSI (14) was higher at 66.1 from previous reading of 62.5, indicating a continued improvement of the short term relative strength and the FBM KLCI is getting more bullish. Stochastic was higher at 95.3, indicating a very strong market strength and continuation of the up cycle, nevertheless, it also indicated a short term overbought situation, and some pullback on profit taking is expected ahead. Readings from the indicators showed that the FBM KLCI is in a bullish state now, and the upward momentum is likely to carry the key index to a higher level with some shallow pullback expected ahead.

As mentioned in the previous analysis, the FBM KLCI will turn bullish after it crosses the 1,591-point level, and it did. The trend of the FBM KLCI is currently up and bullish as it is now staying above all the moving averages. With the total volume picking up again and reached 1.4 billion shares yesterday after staying below the 1.0 billion shares mark for about four weeks, it is likely to see more rotational play on the second and third liners.

Overnight, the Dow fell -12.94 points or -0.10% to close at 12,824.39. Today, the FBM KLCI is likely to trade within a range of 1,588 to 1,614

 
This week's expected range: 1561 – 1614
Today’s expected range: 1588 – 1614

Resistance: 1608, 1611, 1614
Support: 1588, 1591, 1598

Stocks to watch: TGOFFS, SCOMIMR, CRESBLD, KINSTEL, IJACOBS

FBM KLCI - higher in tandem with regional rebound

Stocks on Bursa Malaysia ended firmer yesterday tracking the steadier trend on regional markets. The market, however, remained cautious due to uncertainties over the Eurozone situation. The FBM KLCI closed 6.45 points or 0.42% higher at 1,538.91, after hovering between 1,531.95 and 1,540.29 throughout the day. Gainers led losers by 385 to 306 while 301 counters were flat. Turnover fell to 780.02 million shares, valued at RM1.07 billion, from 1.06 billion shares, worth RM1.5 billion, recorded last Friday.

The FBM KLCI opened 0.71 of a point higher at 1,533.17 but slipped to the intra-day low of 1,531.95 within the first five minutes of trading. The key index then rebounded and moved into the positive territory and gradually moved higher for the rest of the day. It touched the intra-day high of 1,540.29 before pulling back on mild profit-taking. Chart-wise, the FBM KLCI formed a bullish white candlestick in Harami position, which is a bottom reversal pattern, and a confirmation is required to confirm the reversal. Based on the price action yesterday, the FBM KLCI is likely to rebound further today. Immediate overhead resistance zone is at 1,544 to 1,552, while the downside support zone is at 1,531 to 1,526.

MACD continued to slide lower, however, its histogram was shorter upward, indicating a slow down in the bearish downward momentum. RSI (14) hooked upward to 33.4 from 29.1 previously, indicating the short term relative strength is still in the bearish state. Stochastic oscillator has turned upward to 14.8 and has crossed above the slow stochastic line, giving out an initial buy signal. Anyway, the buy signal required further confirmation. Readings from the indicators show that the FBM KLCI is staging a mild rebound after falling into the short term oversold zone. Nevertheless, this could just well be just a dead-cat-bounce in a bearish downtrend and more data is required to confirm a trend change.

The trend of the FBM KLCI remained down, as the FBM KLCI continued to stay below the short, medium and long term moving averages. Nonetheless, it is still considered up from a much longer term perspective as it is above the cluster of a much longer term SMA which forms the critical support zone. The up move yesterday is viewed as a technical rebound as the key index hit the lower support line of the downtrend channel. In order for the FBM KLCI to reverse its current downtrend it must move above the 1,591-point level.

Overnight, the Dow rose +135.10 points or +1.09% to close at 12,504.48. Today, the FBM KLCI is likely to trade within a range of 1,525 to 1,549.

This week's expected range: 1489 – 1606
Today’s expected range: 1525 – 1549

Resistance: 1543, 1546, 1549
Support: 1525, 1528, 1533

Stocks to watch: CRESBLD, PERMAJU, MBL, MKH, SKPETRO