Wednesday, July 13, 2011

FBM KLCI Has More sideways consolidation

Bursa Recap: KLCI up 2.6 points, tracking regional markets recovery
After falling 16.6 points on 11-12 July, the FBM KLCI recovered 2.6 points to 1580.7, tracking positive regional markets on fresh data showing that China’s economy grew faster than expected at 9.5% in 2Q11 (consensus: 9.3%).

Leading movers were DIGI (+50 sen to RM30.00), MISC (+14 sen to RM7.70), PETDAG (+56 sen to RM18.00), IOICORP (+3 sen to RM5.30) and AXIATA (+2 sen to RM5.05). Sentiment improved slightly with 389 gainers vs. 306 losers, supported by a 1.2% increase in trading volume to 843m shares.

FBM KLCI Outlook: Sideways consolidation to continue
As KLCI had surged 6% from 3-month low of 1507 (6 May) to recent high of 1597 (11 Jul), current profit taking consolidation is healthy. The local bourse is likely to remain in near term thin volume consolidation given the external uncertainties and volatility.

Although this consolidation could last a while longer, we believe that any pullback should be seen as an opportunity to accumulate as KLCI is still holding above its 30-day SMA and the uptrend line support near 1560 levels. Further support levels are at 1553 (50-d SMA) and 1547 (lower Bollinger band). Resistance remains at 1600-1610 points.

Daily KLCI's Uptrend Remains Intact As Long As Up-Trend-Line (UTL) Support Is Not Violated
FBM KLCI 14-07-2011



Source: HLeBroking

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