Monday, May 9, 2011

FBM KLCI Takes Cues From Overseas Markets And 1Q11 Results

Bursa Recap KLCI falls 5.7 points to end 19.5 points or 1.3% lower week-on-week (wow)
Asian stocks traded mostly lower Friday as commodity-related shares were battered by falling crude-oil and metals prices in jittery markets ahead of U.S. nonfarm payrolls data for April.

In line with the dismal regional bourses and the hikes in OPR (+25 bsp to 3%) and SRR (+100 bsp to 3%), FBM KLCI lost 5.7 points to end at 1515.

Week-On-Week (Wow), the index fell 1.3%, driven by a collapse in commodity prices, concern of more rate hikes in emerging markets to curb spiraling inflation coupled with BNM’s monetary normalization.

FBM KLCI outlook: Take cues from external markets and 1Q2011 reports
After rising as high as 1538 on 3 May, the KLCI tumbled to as low as 1507.6 last Friday before ending lower at 1515.5.

Technical landscapes had deteriorated last week, as the index failed to close above the 38.2% FR of 1537, as well as the breakdown of key support levels i.e. mid Bollinger band (1529), 50% FR (1525), 50-d SMA (1521) and lower Bollinger band (1516). The weakening trend and momentum indicators are also painting a bleak outlook this week.

Retracement supports are situated at 1513 (61.8%) and 1498 (76.4% FR). Further supports are 1484 (200-d SMA) and 1474 (6-month low). Resistance targets are 1525, 1529 and 1537.

DAILY FBM KLCI Is Downside Bias Following The Triangle Breakdown.
FBM KLCI 09-05-2011

Source: HLeBroking

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