Wednesday, February 1, 2012

KLCI: Upside Bias Amid Positive Overseas Newsflow

Bursa Recap: KLCI up 7.7 points on bigcaps bargain hunting
Asian bourses were mixed, following news on weaker US Jan Chicago PMI and consumer confidence reports. Manufacturing data from China showing manufacturing activity improved slightly in January, while a separate study by HSBC showed a continued contraction, albeit at a slower pace. This led to expectations Beijing may not immediately ease its monetary policy.

On 31 January, KLCI index jumped 7.7 points, spurred by gains in GENTING (+22 sen to RM11.12), GENM (+16 sen to RM4.04), PETGAS (+48 sen to RM15.68), MAXIS (+15 sen to RM5.71) and SIME (+5 sen to RM9.14). The gains were driven by positive progress in Greece debt talks coupled with accelerations in ETP projects rollout lately.

FBM KLCI Outlook: Upside bias amid positive overseas newsflow
The positive equities markets from Europe and Wall St are likely to inject optimism to Asia markets and Bursa Malaysia today. Sentiment will also be supported by anticipation of accelerations in ETP projects rollout in the coming months.

With the bulls and the bears still involved in a tug-of-war, the stalemate could drag on for a little longer unless KLCI is able to stage a breakout above 1531 (31 December 11 high). Immediate support is 1500 while resistance levels are the huge gap between 1529-1546 (5 August 11).

Daily KLCI - Awaiting An Ascending Triangle Breakout
FBM KLCI 02-02-2012

Source: HLIB Research

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