Wednesday, December 7, 2011

KLCI Market To Remain Choppy Ahead Of The EU Summit

Bursa Recap: KLCI ends flat on profit taking
Asian markets fell after S&P warned it might downgrade euro zone countries en masse if the EU summit on Dec 8-9 fails to produce a credible plan to solve the region's debt crisis. The warning brought to a halt a rally in global equities that began last week, spurred by the world's six major central banks moved to tame potential liquidity crunch for European banks by providing cheaper dollar funding, along with monetary easing in China.

Tracking regional losses, KLCI closed 9 points lower at 1480.9, driven by losses in CIMB (-12 sen to RM7.09), MAYBANK (-9 sen to RM8.20), TENAGA (-7 sen to RM5.65), GENTING (-10 sen to RM10.82) and AXIATA (-4 sen to RM4.95).

FBM KLCI Outlook: Choppy ahead of EU summit
Ahead of the EU summit and the S&P’s downgrade warnings on euro zone countries en masse, the local bourse will waver for the rest of this week.

Technically, KLCI is looking lethargic after the 9 points fall yesterday, with crucial supports at the mid Bollinger band (which is also the 20-days SMA at 1465) and 100-day SMA (1471) levels. A breakdown below 1465 support will accelerate more selling pressures towards 50-d SMA (1440) and recent low of 1423 (November 23). Immediate resistance remains at 200-d SMA (1503).

Daily KLCI Shows Crucial Support At 1465
FBM KLCI 07-11-2011

Source: HLIB Research

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