Wednesday, August 17, 2011

More Sideways Consolidationn For FBM KLCI

Bursa Recap: KLCI up 4.8 points to close above 1500 mark
Regional markets ended mixed amid macroeconomic woes. Sentiment was also dampened after German Chancellor Angela Merkel and French President Nicolas Sarkozy Tuesday rejected issuing euro-zone bonds and proposed a new financial-transaction tax to remedy the region’s sovereign debt woes, adding risks of an eventual euro-zone break-up.

FBM KLCI index gained 4.8 points or 0.3%, led by bargain hunting on index-linked stocks. Market breadth was positive with 453 gainers as compared to 255 losers but trading volume decreased to 893 million shares worth RM1.6 billion against Tuesday’s 1.29 billion shares worth RM1.97 billion, as sentiment remained cautious on external headwinds and ahead of local 2QGDP announcement.

Post market, BNM announced a better-than-expected 2Q11 GDP of 4% (consensus: 3.8%; 1Q11: 4.9%).

FBM KLCI Outlook: More sideways consolidation
For KLCI, the 200-d SMA (now at 1531 points) remains a tough resistance during this Aug reporting season, and ahead of a long holiday week in end Aug (due to Hari Raya and Merdeka day).

We remain cautious and will only turn bullish if the KLCI is able to surpass the 200-d SMA and downtrend line resistance (near 1535) levels on high volume. Relief rally targets are 1510 (50% FR) to 1535 points. Support levels are 1470, 1464 (76.4% FR) and 1450 points.

Daily KLCI Strong Upside Resistance Near 1530-1535 Levels
FBM KLCI 18-08-2011

Source: HLeBroking

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