Wednesday, January 11, 2012

KLCI IS Taking Cue From Positive Wall Street And Europe Markets

Bursa Recap: KLCI ends flat as November IPI misses estimates
Asian markets closed higher, driven by a 2.7% surge on SHCOMP as December 11 new lending and money supply in China exceeded estimates, boosting speculation the government is relaxing monetary policies to bolster economic growth and engineer a soft landing.

Sentiment was also boosted by increasing evidence of a U.S. recovery, but concerns over euro zone sovereign funding ahead of key auctions kept investors cautious.

Despite a strong regional performance, KLCI ended flat as November 11 IPI was lower than market expectations.

FBM KLCI Outlook: FBM KLCI is taking cue from positive Wall Street and Europe markets
While bigcaps continue to consolidate, second and lower liners continue to hog the limelight following the lifting of trading designation on Harvest and rash of M&A news. Today, KLCI is expected to retest 2011’s close of 1530, taking cue from positive Wall Street and European markets overnight.

In the wake of a strong breakout above the 200-d SMA (now at 1501) and 10-d SMA (1513), the KLCI is poised to trend higher towards upper channel near 1550 points. Immediate supports are 10-d SMA and 200-d SMA whilst upside targets are the huge gap within 1529-1546 dated 5 August 11.

Daily KLCI: Short Term Uptrend Intact Unless 10-Days SMA Is Violated
FBM KLCI 11-01-2012



Source: HLIB Research

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