Sunday, August 28, 2011

FBM KLCI: Lacklustre Trade In This Holiday-Shortened Week

Bursa Recap: KLCI down 20 points last Friday for a 39-point decline wow
Asian markets ended mixed as investors await the outcome of Bernanke’s speech in Jackson Hole last Friday.

FBM KLCI fell almost 20 points to 1445, copying the weak regional markets, on a slew of lacklustre corporate earnings and continuous foreign selling (particularly on banking shares) ahead of the long holidays this week. Bursa Malaysia will close by 2H today and reopen only on 2 September.

Lagging movers were CIMB (-21 sen to RM7.04), GENTING (-32 sen to RM9.46), PETCHEM (-27 sen to RM6.03), IOICORP (-17 sen to RM4.61) and MAYBANK (-6 sen to RM8.67). Market breadth was negative with 168 gainers against 640 losers.

FBM KLCI Outlook: Lacklustre trade in a holiday-shortened week
FBM KLCI lost 2.6% wow, mainly attributed to renewed liquidation pressure amid a long break this week (with major markets stay open) and a slew of sluggish corporate earnings, in addition to persistent unresolved worries from U.S. and Europe.

Technically, indicators are sending out oversold signals, implying that local bourse is likely to stage a technical rebound in the short-term, but the upside is likely to be muted as most of the measurements remain negative (except a possible divergence in the weekly slow stochastics) and the 5 & 10 day SMAs continue
to head southbound.

Weekly support levels are situated at YTD low of 1423 points and 1411 (50% FR) and 1400 psychological mark. Weekly resistance zones are 1466 (5-d SMA) and 1482 (10-d SMA).

Daily KLCI Shows Bearish Indicators Could Spur Index To Retest Year-To-Date Low At 1423 Points
FBM KLCI 29-08-2011

Weekly KLCI Shows Index Should Find More Solid Floor Within 100-Days And 120-Days SMA Supports
FBM KLCI 29-08-2011a

Source: HLeBroking

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