FBM KLCI - turning bullish

Stocks on Bursa Malaysia closed higher yesterday amid a firmer broader market as funds were seen picking up index linked stocks driven by buying interest in plantation counters. Market sentiment improved in late afternoon in line with firmer key regional bourses as the US dollar weakened. The FBM KLCI ended 5.66 points or 0.31% higher at 1,831.97 points after hovering between 1,826.28 and 1,832.37 throughout the day. Gainers outpaced losers by 466 to 325, while 322 counters were unchanged. Total volume was lower at 2.16 billion units worth RM2.03 billion from Wednesday’s 2.91 billion units worth RM1.57 billion. Read more >>

FBM KLCI - marginally higher amid heavy profit-taking

Stocks on Bursa Malaysia closed higher yesterday in quiet trading as investors were still away for an extended Hari Raya Aidilfitri break, and the market was also waiting for the outcome of the US Federal Reserve (Fed) policy meeting later in the night. The FBMKLCI rose one point or 0.05% to 1,878.34, after moving between 1,877.51 and 1,886.39 throughout the day. Gainers edged losers by 461 to 408, with 293 counters unchanged. Total volume increased to 2.11 billion units valued at RM2.30 billion from 1.70 billion units valued at RM1.62 billion transacted on Friday. Read more>>

FBM KLCI - lower on mild profit-taking

Stocks on Bursa Malaysia ended the yesterday lower on profit taking activities, after the local benchmark index broke the all-time high twice in the last two days. Asian stock markets fell for the third day after investors remained cautious ahead of the corporate earnings season and after record highs on Wall Street. At close, the benchmark FBMKLCI ended 1.49 points or 0.08% lower at 1,891.16, after moving between 1,887.96 and 1,892.17 throughout the trading day. Market breadth was negative as decliners outpaced advancers by 498 to 341, with 308 counters unchanged. Total volume declined to 1.78 billion units, worth RM1.99 billion, from Tuesday's 1.79 billion shares worth RM2.29 billion. Read more>>

FBM KLCI - short term correction

Stocks on Bursa Malaysia closed lower yesterday amid the lack of fresh leads and some mild profit taking following the recent gains. The FBM KLCI fell 5.36 points or 0.32% to close at 1,684.57, after hovering between 1,684.57 and 1,693.72 throughout the day. Losers outnumbered gainers by 387 to 310, while 341 counters were unchanged. Total volume increased to 1.154 billion units valued at RM1.339 billion from Wednesday's 1.104 billion units valued at RM1.587 billion. ...Read more>>

FBM KLCI - lower on mild profit-taking correction

Stocks on Bursa Malaysia closed marginally lower yesterday on mild profit taking, amid mixed trading sentiment in regional stock markets. The FBM KLCI finished 5.25 points or 0.31% lower at 1,688.91 after opening 2.8 points lower at 1,691.36, with losses seen in selected blue-chips. The index moved between 1,682.23 and 1,691.70 throughout the day. Losers outnumbered gainers by 423 to 305, with 335 counters unchanged. Total volume decreased to 1.027 billion units valued at RM1.714 billion, compared with Monday's 1.203 billion shares worth RM1.604 billion. ...Read more>>

FBM KLCI - bullish rebound

Stocks on Bursa Malaysia closed broadly higher yesterday on active buying after coming under selling pressure recently. The bourse was driven by steady gains, mostly in consumer and finance stocks. Almost all indices regained strength after recent losses except mining and FBM Ace. The FBM KLCI rose 14.62 points to close at 1,628.40 after opening  0.71 of a point lower at 1,613.07, it hovered between 1,612.62 and 1,628.57. Gainers led losers by 417 to 301 while 342 counters closed unchanged. Total turnover rose to 1.02 billion shares worth RM1.62 billion from Wednesday's 804.42 million shares worth RM1.602 billion. Read more

FBM KLCI - at fresh new all-time high

Stocks on Bursa Malaysia closed mixed yesterday with the benchmark FBM KLCI charting new all-time high despite concerns over the global economy, as investors turned cautious in late trading on concern over weak economic data from the world’s second largest economy, China. The FBM KLCI rose 7.79 points or 0.47% to 1,653.90, charting a new all-time high, after opening 3.37 points higher at 1,649.48, and hovered between 1,649.27 and 1,655.49 throughout the trading session. Losers led gainers by 424 to 360, while 315 counters were unchanged. Total turnover rose to 1.49 billion shares worth billion RM1.68 billion from 1.37 billion shares worth RM1.71 billion last Thursday. Read more

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 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 - 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

FBM KLCI - closed above 1,600

Stocks on Bursa Malaysia ended broadly higher yesterday with interest in selected blue-chips pushed the FBM KLCI to end above the psychological 1,600-point level. External factors, including weaker regional bourses, had capped the local indices from going up further. The market barometer that opened 0.22 of a point higher at 1,597.39 finished 4.1 points or 0.26% higher at 1,601.27 from Tuesday’s 1,597.17. Decliners led advancers 366 to 360 while 321 counters traded unchanged. Total volume increased to 1.108 billion shares valued at RM1.601 billion from 1.105 billion units valued at RM1.577 billion on Tuesday.

The FBM KLCI opened 0.22 of a point higher at 1,597.39 and slipped to the intra-day low of 1,593.57 within the first five minutes of trading. It then rebounded and continued to move higher with intermittent mild pullback on profit-taking for the rest of the day. The key index hit the high of 1,602.05 before closing slightly off high. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates a continuation of the up move from Tuesday’s rebound. It is now standing above the psychological resistance level of 1,600-point and is expected to continue moving higher today to re-challenge the historical high level of 1,609.33.

MACD was almost flat but its histogram has turned shorter upward, indicating an initial change in the momentum from down to up. RSI (14) was higher at 61.2, indicating a return of the short term relative strength to the bullish zone. Stochastic was marginally lower at 58.8, indicating a mild weakening of the short term strength and the down cycle is still intact. Mixed signals from the indicators showed that the momentum of the FBM KLCI is showing initial signs of reversal but more data is required to confirm this.

The general trend of the FBM KLCI is up as it is staying above all the short, medium and long term moving averages. Immediate overhead resistance zone is at 1,602 to 1,610 while the immediate downside support zone is at 1,593 to 1,586. With overall volume remained at the low level of just above one billion shares, the broad market is likely to remain sluggish with rotational play on penny stocks.

Overnight, the Dow rose +181.19 points or +1.41% to close at 12,986.58. Today, the FBM KLCI is likely to trade within a range of 1,587 to 1,611.

This week's expected range: 1570 – 1630
Today’s expected range: 1587 – 1611

Resistance: 1605, 1608, 1611
Support: 1587, 1590, 1595

Stocks to watch: JOHOTIN, BRAHIMS, OLDTOWN