Wednesday, November 9, 2011

KLCI: Wild Swings Ahead On Worsening External Backdrops

Bursa Recap: KLCI jumps 9.2 points amid regional gains
Tracking positive regional markets gains, the FBM KLCI jumped 9.2 points to 1489.6, driven by selected index-linked counters i.e. AXIATA (+13 sen to RM4.96), SIME (+12 sen to RM8.92), GENTING (+14 sen to RM11.00), PETCHEM (+7 sen to RM6.48) and CIMB (+4 sen to RM7.36).

News of Italian Prime Minister Silvio Berlusconi's impending resignation lifted confidence that a new leader would act more effectively to tackle the country's debt woes. Trading volume and value soared 48% and 18% to 2.68 billion shares worth RM1.82 billion, focusing mainly on penny stocks and lower liners.

FBM KLCI Outlook:Formidable resistance near 100-d & 200-d SMAs
In the wake of external wild swings driven by headlines, we reiterate our SELL INTO RALLY recommendation towards stiff resistance zones at 100-d (now at 1491) and 200-d (1510) SMAs. Immediate supports are 10-d SMA (1475) and mid Bollinger band (1458). A breakdown below 1458 will mean that the current rally is likely to be disrupted, spurring more selldown towards 50-d SMA (1434) and lower Bollinger band (1422) points.

Daily KLCI: A Breakdown Below Mid Bollinger Band Will Drive KLCI Lower To 30-Days SMA
FBM KLCI 10-11-2011

Source: HLIB Research

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