Friday, June 17, 2011

KLCI Market Remains Resilient Despite External Headwinds

Bursa Recap: KLCI eases 2 points, outperforming regional markets slump
Asian markets tumbled, led by KOSPI (-2.1%), TWSE (-2%), HSI (-1.8%) and NIKKEI (-1.7%), as investors reacted to fresh developments on Greece’s sovereign-debt crisis and Dow Jones’s overnight 1.5% plunge amid disappointing U.S. economic data.

The FBM KLCI pared down some its losses from 6.5 points to only 2 points at 1554.2. Market breadth was negative with 210 gainers as compared to 558 losers.

FBM KLCI outlook: Market remains resilient despite external headwinds
Despite facing headwinds from overseas markets, the ability of KLCI to defend the 50-d SMA near 1539 (also the uptrend line support) and 30-d SMA (1542) supports are positive signals that the index could march higher towards 1566 (May’s high) and all
time high of 1577 resistance zones once the current triangle consolidation ends.

Further support is near 1531 (lower Bollinger band).

Overall, our longer-term positive outlook remains intact as ETP is gaining traction, wealth creation culminating in continue consumption, Petronas contract awards, a resilient 2H economic growth as well as wide interest rate and growth differential.

Daily KLCI Shows Still Optimistic Of Retesting The Triangle Overhead Resistance Of 1566 Points
FBM KLCI 17-06-2011

Source: HLeBroking

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