Monday, March 26, 2012

KLCI: Weak Overseas Markets Could Cap Further KLCI Gains

Bursa Recap: KLCI up 2.9 points for a 5th straight gain
Last Friday, Asian markets were rattled by slowing factory activities in China, Germany and France that could spark fresh concerns over global economic growth.

Bucking regional peers, the KLCI was up 2.6 points to 1585.8 and recorded a weekly gain of 0.9% (after two straight weekly losses), as local funds returned to prop up selected index heavyweights. However, trading volume plunged 30% and gainers/losers ratio was bearish at 0.5x after the authorities prevented proprietary and day-trading by certain brokers in selected highly speculative stocks.

FBM KLCI Outlook: Weak overseas markets could cap further KLCI gains
Due to improving daily and monthly technical readings ahead of the 1Q window dressing activities, there could be one more upleg to retest 1597 (historical high) if YTD high of 1595 (5 Mar) is violated this week. Otherwise, the market is expected to stay ranged bound. Key supports are mid Bollinger band (1575), uptrend line (UTL) or 30-d SMA (1570) and 40-d SMA (1561).

In the wake of the renewed concern of global economic health, the EU leaders meeting at Copenhagen this weekend as well as the 13th general election, we advice investors to capitalize further rallies to trim their shareholdings and stay nimble amid volatile external markets.

Daily KLCI - One More Upleg To Challenge 1600-1630 Likely As indicators Hook Up
FBM KLCI 26-03-2012

Monthly KLCI - Short To Medium Term Upside Remains Positive As MACD Golden Cross Is In The Making

FBM KLCI 26-03-2012a

Source: HLIB Research

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