Technical View 10 June 2010

The FBM KLCI is now in the vicinity of the middle point of two reversal signals. While the key index is some 40 pts off the low seen last month after creating the “Bullish Engulfing”, the market is still trading in bearish territory. In the meantime, we still believe that the recent rebound from the low of 1,243.86 pts is a bearish rebound after the major breakdown near the 1,320 pt-level.
Our view remains the same, i.e. the near-term technical outlook of the FBM KLCI is still firmly  bearish. We saw the key index failing to crack above the 1,350 pt-level in three separate attempts over the last three months and the market eventually dipping below the significant support near the 1,200 pt-level. Such market action is usually viewed as a strong reversal signal.
Meanwhile, the market continues to face very tough resistance at the downside gap ranging from the 1,290 pt-level to 1,304 pts. Next resistance remains at the 1,307/1,308 pt-level. To the downside, we are still  looking at the 1,276-1,285 pt-gap area as the immediate support. Another gap area ranging from the 1,269 pt-level to the 1,276 pt-level would be the next support.

Market Review

10th Malaysia Plan in focus. Following the Dow's overnight 123-point rebound, the FBM KLCI inched up by 1.9 pts to 1290 pts yesterday. Gainers outnumbered losers by 344 to 266 and volume remained thin at 630m shares. News flow was extremely thin. In the news are Exxon Mobil, which said it will invest invest more than USD1bn to enhance crude oil output at Malaysia's maturing Tapis field in 2013, Hock Seng Lee's consortium  was awarded a JKR contract worth RM72.5m for road construction in Sarawak, and Mudajaya enters into loan agreement amounting to RM2.75bn relating to its power plant project in Chhattisgarh, India. Overseas markets  closed mixed last night, with the Dow down slightly to 9899 pts after failing to clear the 10,000-pt level but  European markets gained 1% to 2%. The local market is likely to remain lackluster as it awaits leads from the 10th Malaysia Plan due to be announced this afternoon.

Saham mewah rangsang Bursa ditutup tinggi

KUALA LUMPUR 9 Jun - Harga saham di Bursa Malaysia ditutup kukuh hari ini setelah dana tempatan memberi sokongan terhadap saham wajaran tinggi terpilih. Dagangan bagaimanapun berhati-hati menunggu pembentangan Rancangan Malaysia Ke-10 oleh Perdana Menteri Datuk Seri Najib Tun Razak esok.Indeks Komposit Kuala Lumpur FTSE Bursa Malaysia (FBM KLCI) berakhir 1.9 mata lebih tinggi pada 1,290.08  selepas dibuka 3.63 mata lebih baik pada 1,291.81. Indeks Kewangan naik 3.58 mata kepada 11,586.23,  Indeks Perusahaan menambah 7.03 mata kepada 2,575.10 tetapi Indeks Perladangan susut 5.73 mata  kepada 6,077.53. Indeks FBM Emas menokok 23.74 mata kepada 8,679.19, Indeks FBM Ace menambah  7.81 mata kepada 3,782.70 manakala FBM70 melonjak 64.74 mata kepada 8,586.54. Saham untung  mengatasi rugi pada 345 berbanding 266 manakala 259 kaunter tidak berubah, 529 tidak didagangkan  manakala 58 yang lain digantung. Jumlah dagangan naik kepada 629.811 juta saham, bernilai RM795.253  juta, daripada 460.064 juta saham, bernilai RM748.316 juta, yang dicatatkan pada Selasa. Antara saham aktif, Kenmark turun 12.5 sen kepada 14.5 sen, SAAG susut setengah sen kepada 8.5 sen, IRCB menambah satu sen kepada 79 sen manakala Talam kekal pada 14 sen. Bagi saham wajaran tinggi, Maybank turun satu sen kepada RM7.38 manakala CIMB dan Sime Darby, masing-masing naik satu sen kepada RM6.88 dan RM7.80. Jumlah dagangan di pasaran utama meningkat kepada 558.085 juta saham, bernilai RM783.482 juta, daripada 460.064 juta saham bernilai RM748.316 juta, yang dicatatkan semalam. Perolehan dagangan pasaran ACE naik kepada 46.956 juta unit, bernilai RM5.113 juta, daripada 24.435 juta unit, bernilai  RM4.479 juta, sebelumnya. Waran yang diniagakan bagaimanapun susut kepada 18.734 juta saham, bernilai  RM1.942 juta, daripada 20.643 juta saham, bernilai RM2.526 juta, yang dicatatkan pada Selasa. Barangan pengguna menguasai 110.994 juta saham yang didagangkan di pasaran utama, barangan perusahaan 92.171  juta, pembinaan 49.289 juta, dagangan dan perkhidmatan 163.409 juta, teknologi 23.798 juta, infrastruktur  10.259 juta, kewangan 51.914 juta, hotel 1.417 juta, hartanah 44.691 juta, perladangan 9.518 juta,  perlombongan 53,000, REIT 508,500 dan dana tertutup 64,000. - Bernama

Technical View 09 June 2010

The FBM KLCI did not fall further yesterday even though the US market fell more than 1% on Monday. The key index only dipped into the negative territory for a brief moment after the opening but spent the rest of the session at above the flat-line. Anyhow, it was a consolidation day for the market while investors were waiting  for further hints from the US market.
Overnight, the DJIA and SPX rebounded by more than 1% on the back of stronger Euro against the greenback. Nevertheless, the rebound was considered insignificant compared to the losses experienced by the US market over the last four weeks or so.
Our view remains the same that the near-term market outlook will remain bearish as long as it does not return back above the 1,307/1,308 pt-level, which was the peak created in February 2010.
Meanwhile, immediate resistance still lies at the 1,290-1,304 pt-area, followed by the 1,307/1,308 ptlevel. To the downside, we are now looking at the 1,276-1,285 pt-gap area as the immediate support. Monday’s gap area ranging from the 1,269 pt-level to the 1,276 pt-level would be the next support.

Market Review

Drifting. The FBM KLCI staged a mild recovery to close 1.91 points higher at 1,288.2 on the back of buying support on key heavyweights Maybank, Genting, Axiata and Tenaga. Today’s key headlines include Air Asia X plans an IPO next year, MARC has placed the rating of water companies in Selangor under negative watch,  Proton has no plans to sell Lotus for now, Malaysia will issue RM2.5bn of Islamic bonds, Mudajaya has set a target of increasing its order book by RM1bn a year and a subsidiary of Kannaltec has filed a suit against the  Selangor government for RM681.7m. We expect the market to remain volatile, given the ongoing uncertainty over the European debt crisis.

Bursa kukuh seiring pasaran serantau

KUALA LUMPUR 8 Jun - Harga saham di Bursa Malaysia ditutup lebih kukuh hari ini dengan sentimen  dirangsang oleh trend menaik di pasaran serantau, kata para peniaga. Saham berwajaran tinggi yang dapat  mengekalkan keuntungan telah melonjakkan Indeks Komposit FTSE Bursa Malaysia Kuala Lumpur (FBM  KLCI) untuk ditutup kepada 1,288.18, yang meningkat 1.91 mata. Ia dibuka turun 0.49 mata kepada  1,285.78.Seorang peniaga berkata berlaku aktiviti mencari saham murah secara berterusan di kalangan saham berwajaran tinggi seperti Maybank, Maxis, Tenaga Nasional dan Hong Leong Financial Group. Indeks  Kewangan melonjak 20.45 mata kepada 11,582.65.Indeks Perladangan merosot 11.44 mata kepada  6,083.26 dan Indeks Perusahaan turun 8.25 mata kepada 2,568.07.Indeks FBM Emas meningkat 7.91 mata  kepada 8,655.45 dan Indeks FBM Ace meningkat 6.60 mata kepada 3,774.89.Bagaimana pun,  FBM70 merosot 25.26 mata kepada 8,521.80. Kaunter untung mengatasi kaunter rugi sebanyak 349 kepada 271 manakala 221 kaunter tidak berubah, 558 tidak diniagakan dan 59 yang lain digantung. Jumlah dagangan  meningkat kepada 512.045 juta saham bernilai RM767.651 juta berbanding 491.948 juta saham bernilai  RM844.286 juta pada Isnin. Jumlah dagangan di Pasaran Utama meningkat kepada 460.064 juta saham  bernilai RM748.316 juta berbanding 449.812 juta saham bernilai RM844.286 juta semalam. Perolehan dagangan di Pasaran ACE meningkat kepada 24.435 juta saham bernilai RM4.479 juta berbanding penutup  pada Isnin sebanyak 24.256 juta saham bernilai RM4.103 juta. Jumlah dagangan waran meningkat kepada  20.643 juta bernilai RM2.526 juta berbanding 13.993 juta unit bernilai RM1.625 juta yang dicatatkan  semalam. Kaunter paling untung, kedua-dua Lipo Corp dan Nestle meningkat 16 sen masing-masing kepada  67 sen dan RM34.52 manakala TSM Global menokok 13 sen kepada RM2.78. Di kalangan kaunter aktif,  SAAG tidak berubah pada harga 90 sen, IRCB meningkat 12 sen kepada 78 sen manakala BJCorp merosot  9.0 sen kepada RM1.37. Produk pengguna mencatatkan 15.506 juta saham diniagakan di Pasaran Utama,  produk perusahaan 89.091 juta, pembinaan 45.751 juta, dagang dan perkhidmatan 184.174 juta, teknologi  21.800 juta, prasarana 5.387 juta, kewangan 52.774 juta, hotel 1.162 juta, hartanah 37.031 juta,  perladangan 6.534 juta, perlombongan 31,700, REIT 735,300 dan dana tertutup 84,000. - Bernama

Technical View 08 June 2010

The FBM KLCI gapped down at the opening bell in a knee-jerk reaction to the US market’s performance last Friday. However, bargain hunting emerged not too long after that, pushing the key index all the way up to close lower by only 8.12 pts.
The way that the index rebounded off the intra-day yesterday may look encouraging to some people, but our view remains that the near-term market outlook will remain bearish as long as it does not return back above the 1,307/1,308 pt-level, which was the peak created in February 2010.
Meanwhile, immediate resistance still lies at the 1,290-1,304 pt-area, followed by the 1,307/1,308 ptlevel. To the downside, we are now looking at the 1,276-1,285 pt-gap area as the immediate support. Monday’s gap area ranging from the 1,269 pt-level to the 1,276 pt-level would be the next support.