Monday, November 21, 2011

Daily KLCI: Downside Risks Intensify

Bursa Recap: KLCI drops 20 points for a 5th straight loss
Regional markets slumped owing to prolonged uncertainty over how euro zone leaders would respond to mounting funding difficulties for European banks, coupled with the deadlock by U.S. super-committee to approve the US$1.2 trn deficit plan.

Sentiment was also dampened by the bearish remark and warning by Chinese Vice Premier that the global economy is heading towards a recession.

KLCI lost 20 pts at 1434, led by PBBANK (-14 sen to RM12.54), TENAGA (-12 sen to RM5.53), MISC (-24 sen to RM6.45), GAM (-15 sen to RM3.11) and MAYBANK (-5 sen to RM8.25).

FBM KLCI Outlook: Downside risks intensify
We reiterate that more profit taking consolidation are expected this week, given the start of year end school holidays, the contagion debt crisis in Europe and the U.S. debt ceiling resolution on 23 November.

Moreover, given the breakdown of mid Bollinger band (now at 1468 – which is also the 20-d SMA), Nov’s low of 1452 points, the 50-d SMA as well as bearish technical readings, KLCI is expected to head south towards the next support at 1420 (38,2%
FR) and the 1400 psychological barrier. Immediate resistance levels are 1468 and 1483 (100-d SMA).

Daily KLCI: Downside Risks Intensify
FBM KLCI 22-11-2011



Source: HLeBroking

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