Friday, January 25, 2013

KLCI: Immediate Resistance At 1645-1650

Bursa Recap: KLCI up 6.6 points after falling 57 points in five straight days
Yesterday, despite a better-than-expected HSBC flash PMI from China, most Asian markets ended lower on profit taking after rallying to multi-year highs amid concerns over weak earnings reports from Apple and Hyundai Motor. Sentiment was also dampened by news that North Korea might conduct a new nuclear test and additional long-range rocket launches.

Prior to a public holiday on 24 January, KLCI continued with its relief rally, gaining 6.6 points after hitting a low of 1602 (22 January). Selling pressure moderated as trading volume decreased to 1.16 billion shares worth RM1.67 billion against 22 Jan’s 1.27 billion shares worth RM2.23 billion. Market breadth also improved as gainers/losers ratio jumped to 1.4x against 0.59x on 22 Jan and 0.09x on 21 Jan.

FBM KLCI outlook: Immediate resistance at 1645-1650
Barring the dissolution of Parliament in the near term, KLCI could stage further relief rally amid its sharp correction of 5.8% from all time high 1700 (4 January) to a low of 1602 (22 January). Technically, the rebound above 200-d SMA (now at 1624), the golden cross in hourly MACD, the hammer candlestick formation and the refill of 8.6-pt gap on 23 Jan augur well for further recovery towards 1645 (61.8% FR) and 1650 (50-d SMA) levels.

Having said that, unless KLCI can penetrate and maintain its posture above the 50-d SMA support-turned-resistance, the rebound is not likely to be sustainable and the index may retrace back 200-d SMA and 1600 psychological supports again amid election jitters.

We still advocate investors to SELL INTO RALLIES as further surge will trigger profit taking and de-risk ahead of the major event risk i.e. 13th general election. We believe that 2013 could be a year of two distinct halves, with 1H likely to be volatile as the general election has to be held no later than end-Jun while 2H to be more promising and Bursa Malaysia should perform better to reach our Institutional Research’s year-end target of 1750 when risk appetite returns, but largely dictated by the election outcome.

KLCI HOURLY: Still Upside Bias



















KLCI DAILY: Technicals Are On The Mend




















Source: HLIB Research

How To Choose Your Forex Broker?

How Can you Make Sure You Choose an Efficient Forex Broker?
The forex markets are not closed anymore and therefore anyone who wants to trade in currencies can do so without any issues. All that you need is a working knowledge of the forex trading markets, a good forex broker that offers you an efficient forex trading platform and you can start in the area of forex trading to make some decent monies. While anyone can start to trade in the forex markets, the fact is that you need to have some information about the manner in which it works before you can start to make profits. A good forex broker provides this basic course in forex trading that you can benefit from.

There are also a large number of other aspects about a forex broker that you need to ascertain before you can make this choice. Many people take this decision in a hurry because they are so eager to start trading in the forex markets. Make sure that you do not make this mistake since this decision can be key in whether you make profits and continue in the forex trading arena or quit after a few trials.  

The Right Steps Towards Choosing an Efficient Forex Broker
The forex trading industry is not regulated via a standard or single entity. This is why there are a larger number of reasons why fraudsters can find loopholes in the process and create companies that may not be providing full and proper service to forex traders. Just because a company has a good website and makes a show of good customer service does not indicate that they will not fraud you in the end. Here are some things that you need to do to make sure that you are choosing a reliable forex broker that will help you gain better profits in the industry. Your first shortlist should be made on the basis of word of mouth information from friends, relatives and acquaintances. You can also use a quick search on the Internet to get some prominent names in the industry.

- Eliminate some names from this list on the basis of internet reviews and feedback. You can also do a quick check on the websites to get a feel of what they are offering or the number of years that they have been around. While this elimination does not guarantee that the remaining ones will be reliable and efficient, you can at least remove the forex brokers that do not seem efficient.

 - A more detailed level of research will be required for the forex brokers that are remaining. You will need to check if they are regulated by some financial body or not. These financial bodies are different in different countries since there is no global regulatory body for forex trading. NFA and CFTC in the United States of America and FSA in the United Kingdom are well known financial institutions that you can rely on.

- The remaining short list is likely to be even shorter. These are the ones that you should look through for details such as the features that they are offering and the cost of membership and fee structure.

Sunday, December 16, 2012

Why a Late Credit Card Payment Affect My Credit Score

Amongst all the bills that you have to compulsorily clear every month, credit card bills should be your top priority. One late payment have the potential of hurting your credit score badly and cost you a lot in the long run, even if it was a result of a sheer mistake. However, if you are already aware of the fact that you would not be able make payment within time, then you should try calling them up and negotiate with them to control the damage.  

The reason
The credit companies promote the different range of credit cards available to the diverse categories of customers not out of altruistic motives. The reality is that they are providing you with all these facilities because they are going to earn a grand profit by providing you with the money when you are in need of it.

Due to all the defaults in payment from the various clients, they approximately loose out about 60 billion USD every year. The strict measures that are being taken up by the credit card companies in case of late payment even for a day is owing to the fact that they categorize all the late payer as defaulters. Therefore, even if you have defaulted only once it is definitely going to impact your credit score.

Impact of late payment on credit score
The credit score is primarily a numerical digit that is used for expressing the credit worthiness of an individual. The credit score of an individual is basically dependent on his payment history of the loans and the credit cards as well as credit report. Approximately, 35% of the credit score is dependent on your credit card payment records of the past.

Thus late credit card payment is certainly going to have a negative impact on the credit history of the individual. Though any default in credit card bill payment is not informed to the bureau till 30 days but after that serious actions are taken. The credit score will drop according to the different tiers of default payments and it generally varies between 60 points to 110 points.  

Impact of lower credit score on interest rates
A good credit score increases the credit worthiness of the person i.e. he or she is being regarded as a dependable individual who will fulfill his or her responsibility to give back the borrowed money in time. An individual with better credit score enjoys a lot of benefit like lower interest rates and flexible terms. However, if your credit score suddenly drops down it is automatically going to affect the interest rate of the loans that you have already taken as well as the interest rates on your credit card. Therefore in the long run you will end up losing a lot of excess money just for your negligence.

Once you have been tagged as a defaulter, then it will take at least one year to regain back your previous score. But it can stretch up to three years depending on the gravity of the problem.

Therefore, a small negligence on your part has the potential of bringing about a massive difference in your current financial standing. So play safe and be more responsible to avoid any such situation.

About the Author:
The above article is written by AJ who is associated with Page Once as their supporting staff. In her free time, she loves to share her knowledge via her articles on different niche including finance and politics. She recommends only Cox cable bill pay for smoother and hassle free transactions advises to check www.cox.com for more details.

Monday, November 26, 2012

How To Prepare Yourself For Mortgage Rate Increases

If your existing home mortgage is a variable rate mortgage, you may be bracing yourself for an upcoming rate adjustment. Rate adjustments can work in your favor in certain instances. For example, if rates have decreased, your mortgage payment may decrease. However, if rates have increased, your mortgage payment may also adjust upward. A mortgage rate increase and the associated increase in your mortgage payment can be difficult to bear. However, by taking a few key steps, you can most easily prepare yourself for this increase.

Understand How Your Payment Will Change

A change to your mortgage payment will affect your personal budget, and you must plan for this change. If you are aware that your mortgage rate and payment are about to change, it is important that you talk to your lender and learn what the rate and payment will adjust to. You will not be able to effectively plan for this change until you know what the change will actually be. In some cases, the change may be nominal. In other cases, however the change can be rather significant. If you are already living on a tight budget, a rate increase can result in financial hardship.

Adjust Your Budget

It is best to make budgetary changes now before your first increased mortgage payment is due. This can prevent you from experiencing financial hardship or a budget shortfall. Review your budget and determine how much money you will need to trim from your expenses to accommodate the higher payment. Then, consider trimming expenses like your cell phone bill, your cable bill, your entertainment expense and others. These expenses are often easiest to trim. However, you can also shop for lower insurance rates, consolidate credit card debt and more to find extra money in your budget.

Refinance Your Home

Another option to consider is to refinance your home with a fixed rate mortgage. Mortgage rates are currently exceptionally low, and with a fixed rate mortgage, you can lock in a low rate for the life of your mortgage. This can prevent the need to make future budget changes if rates adjust again. Even a small adjustment to a variable rate mortgage can have a big impact on your budget. It is important to be aware of pending changes to your mortgage rate and monthly payment if you have a variable rate mortgage. You also need to make changes to your personal budget to account for the change in your monthly mortgage payment or consider refinancing with a fixed rate mortgage. By following these tips, you can avoid experiencing a cash shortfall when your mortgage payment adjusts. For more mortgage tips and information, you can visit www.MortgageRates.ca.

Thursday, October 4, 2012

Daily Dow Jones: More Range Bound Consolidation Within The 13200-13700 Bands.

Dow Jones Recap: Dow Jones ends flat ahead of key job data
The Dow Jones was higher by as many as 54 points after better-than-expected readings on the ADP report and ISM services data. Nevertheless, early gains were reduced to 12 points as ongoing worries over a global slowdown kept investors on edge following disappointing China’s PMI services index and the euro zone composite PMI data. Sentiment remains cautious ahead of the nonfarm payroll reports (5 October) as well as the kickoff of 3Q12 earnings next week, following another negative forecasts from Dow Jones' components i.e Hewlett Packard, which saw its price nosedived 13% to US$14.91.  

Daily Dow Jones - More Range Bound Consolidation Within The 13200-13700 Bands. DowJones04-10-2012

Source: StockCharts.com



Crude Oil Outlook - More Downside Consolidation Towards US$80-85 Before Technical Rebound

Crude oil outlook: More downside consolidation towards US$80-85 before technical rebound
After our “Downside bias” call on crude oil prices on 18 Sep, oil prices had tumbled from US$96.6 to US$88 yesterday. The fall was in line with slowing global demand amid weakening economic data and an EIA report that U.S. domestic oil output had hit the highest level in nearly 16 years last week.

 After the 4% overnight plunge, daily and weekly technicals are deteriorating, signaling further downside consolidation moving forward.

We expect more pullback towards 84.9 (76.8% FR from top 114.8 and low of 75.7) and 81.9 (200-w SMA) in the short term. More solid supports are 79.6 (weekly lower Bollinger band) and 77.3.

Immediate resistances are 90.0, 92.8 (14-d SAM) and 94.6 (30-d SAM). A more formidable resistance zones are 96.2 (200-d SMA) and 99 (daily upper Bollinger band).  

Daily WTIC - Downtrend Amid Bearish Technicals. 04-10-2012

Source: StockCharts.com

KLCI - Profit Taking Activities Were Well Absorbed

Bursa Recap: KLCI eases 1.3 points from -10.6 points intraday
Asian markets ended mixed as lingering uncertainty over the timing of a bailout for Spain, downbeat PMI’s services data from China and a widest trade deficit in 3.5 years from Australia turned investors into cautious mode.

After surging 38.6 points in the last 6 sessions, Bursa Malaysia ended 1.3 points lower on profit taking. In a volatile trade, KLCI fluctuated within a low of 1640 (-10.6 points) before mitigating its losses at 1649.8, dragged down by plantation heavyweights i.e. SIME (-33 sen to RM9.41), KLK (-114 sen to RM20.90), IOICORP (-4 sen to RM4.97) on plunging CPO prices lately.  

FBM KLCI outlook: Profit taking activities were well absorbed
The sharp profit taking fall yesterday was not unexpected given that the KLCI had rebounded 3.8% from a low of 1595 (24 September) to as high as 1653.8 (3 October). However, the selling was well absorbed.

As long as KLCI maintains its posture above mid Bollinger band, we remain cautiously optimistic that KLCI will continue its gradual uptrend and test all time high of 1656 again as technicals are on the mend. A breakout above 1656 will drive index higher towards 1670 (weekly upper Bollinger band). Supports are 1641 (5-d SMA), 1636 (30-d SMA), 1630 (mid Bollinger band).  

Daily KLCI: Market Undertone Remains Firm To Retest 1655-1660 Zones. FBM KLCI 04-10-2012

 Weekly KLCI: Immediate Resistance At Upper Bollinger Band Near 1670. FBM KLCI 04-10-2012a


Source: HLIB Research
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