Tuesday, April 19, 2011

FBM KLCI Is Taking Cue From External Development

Bursa Recap: KLCI closes off high despite 2/3 win in Sarawak polls
The FBM KLCI surged as much as 11 points intraday following BN’s 2/3 majority win in the Sarawak election. However, the gains were pared down to 6 points at 1527.9 amid weak regional markets.

Regional markets mostly retreated on renewed nervousness ahead of quarterly earnings results and lingering worries about indebted euro zone countries. Sentiment was also affected by concerns over more monetary policy tightening in China and key emerging countries which could potentially derailed the economic growth.

FBM KLCI outlook: Taking cue from overseas markets
Post Sarawak election, investors’ attention are likely to shift back to other topics, including global economic outlook, 1Q earnings season in U.S., rising oil prices and interest rates, Japan’s earthquake and nuclear crisis and the re-emergence of Europe’s debt crisis.

The overnight Dow’s fall could take a toll on Bursa Malaysia today. However, this should be cushioned by expectations that the government is likely to capitalize on the results in Sarawak by expediting diligent roll out and implementation of various construction projects and government land deals under ETP as well as reforms newsflow.

Upside resistance levels are 1537 (38.2% FR), 1540 (10-d SMA) and 1552 (23.6% FR) whilst major support levels are situated around 1517 (last week’s low), 1513 (61.8% FR) and 1500.

FBM KLCI Is Taking Further Consolidations As Index Still Unable To Break Above 10-Days SMA And Mid Bollinger Band.
FBM KLCI 19-04-2011

Source: HLeBroking

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...