Market Review

1304-pt resistance proves formidable. Malaysian stocks closed broadly higher yesterday with the FBM KLCI gaining 4.76 points to 1303 points. This was some 8 points off its highest level, proving the strength of the 1304 pt-resistance. Volume was still razor thin, casting doubts on the sustainability of yesterday's rally attempt.  Today’s news headlines includes the potential sale by PNB and the Chao group of their majority stakes in Titan Chemicals, the Securities Commission obtains an injunction against Datuk Ishak Ismail from dealing with the RM10.2m proceeds from disposal of his Kenmark shares and MISC redesignates Datuk Nasarudin Md Idris as CEO. The Dow closed flat last night as did the European bourses as BP agreed to a USD20bn oil spill fund and cancelled dividends. Without a lift from these markets, local stocks could succumb to profit taking today.

Bursa ditutup kukuh seiring pasaran Wall Street

KUALA LUMPUR 16 Jun - Harga-harga saham di Bursa Malaysia ditutup lebih tinggi hari ini atas pembelian institusi asing dan tempatan, yang mengambil petunjuk daripada kenaikan semalaman di Wall Street rally. Indeks Komposit Kuala Lumpur FTSE Bursa Malaysia (FBM KLCI) meningkat 4.76 mata, atau 0.36 peratus untuk ditutup pada 1,303.13 berikutan minat belian yang aktif pada saham berwajaran tinggi dan saham mewah. Ia telah dibuka 4.77 mata lebih tinggi pada 1,303.14.Indeks penanda aras itu bergerak antara 1,312.1 dan 1,303.13 sepanjang hari. Indeks Kewangan meningkat 39.32 mata kepada 11,702.32, Indeks Perusahaan naik 15.28 mata kepada 2,613.23 dan Indeks Perladangan menokok 39.47 mata kepada 6,175.35. Indeks FBM Emas naik 46.19 mata kepada 8,791.7, Indeks FBM70 meningkat 79.98 mata kepada 8,745.37 dan Indeks FBM Ace naik 17.93 mata kepada 3,815.81. Kaunter untung mengatasi rugi  sebanyak 494 kepada 174, sementara 240 kaunter tidak berubah, 461 tidak didagangkan dan 33 yang lain digantung. Jumlah dagangan meningkat kepada 662.853 juta unit bernilai RM1.012 bilion daripada 511.873 juta unit bernilai RM891.308 juta semalam. Di kalangan kaunter berwajaran tinggi, Maybank susut dua sen kepada RM7.44, CIMB Group naik lima sen kepada RM6.94, Sime Darby meningkat enam sen kepada RM7.87, Maxis susut satu sen kepada RM5.30 sementara MISC naik tiga sen kepada RM8.51 dan Tenaga naik satu sen kepada RM8.32. Jumlah dagangan pada Pasaran Utama menokok kepada 579.899 juta saham n bernilai RM994.851 juta daripada 452.886 juta saham bernilai RM879.416 juta semalam. Perolehan dagangan Pasaran ACE meningkat kepada 52.032 juta saham bernilai RM7.511 juta daripada 33.565 juta saham bernilai RM4.590 juta sebelum ini. Warant meningkat kepada 23.224 juta saham bernilai RM3.044 juta daripada 18.838 juta saham bernilai RM2.104 juta sebelum ini. Barangan pengguna mewakili 51.469 juta saham yang didagangkan pada Pasaran Utama, barangan industri 86.895 juta, pembinaan 52.096 juta,  dagangan dan perkhidmatan 174.367 juta, teknologi 25.494 juta, prasarana 5.282 juta, kewangan 49.69 juta, perhotelan 1.356 juta, harta 119.472 juta, perladangan 12.708 juta, perlombongan 29,000, REIT 934,400 dan dana tertutup 105,500.- Bernama

Technical View 16 June 2010

Bulls and bears continued to fight for domination in the vicinity of the mid-point of May’s 100 pt-loss. Meanwhile, the massive “Downside Gap” is still pressuring the market. For today, we have drawn a new uptrend line, which would give us a better indication whether the rebound from the 1,244.54 ptlow will stretch further.
In the meantime, 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 1,300 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

Follow through buying. The market rose 1.21 points to 1,298.4 on the back of growing optimism on the sustainability of the global economic recovery. Today’s corporate news are: PT Telekomnikasi Indonesia International is believed to have increased its stake in Scicom to 29.3%, Bank Negara has appointed former  managing director of Danamodal, Datuk Muhasmmad Ibrahim, as new deputy governor, IJM has clinched a  RM350m construction contract as part of the second Penang bridge, Maxis is open to sharing its telecommunication infrastructure with other telco players, PLUS Expressways has proposed to acquire the entire equity stake of Teras Teknologi from the UEM Group for RM44m, Sarawak Plantation intends to  increase its oil palm hectarage by 8,000ha by 2011, Naim plans to increase its current 36% stake in Dayang Enterprise and Sunway REIT has indicated a potential yield of 6.8% to 7.5%. Overnight, the Dow jumped 213.9 points, driven by strong factory production data, while crude oil price closed slightly higher at USD75.98 per barrel.

Ekonomi pulih Bursa ditutup tinggi

KUALA LUMPUR 15 Jun - Harga-harga saham di Bursa Malaysia ditutup lebih tinggi hari ini dengan sentimen positif mengenai pemulihan ekonomi menarik lebih banyak pelabur membeli untuk menampung kekurangan, kata para peniaga. Indeks Komposit FTSE Bursa Malaysia (FBM KLCI) ditutup 1.21 mata atau 0.09 peratus lebih tinggi pada 1,298.37. Ia telah dibuka pada 1,297.26.Indeks penanda aras itu telah bergerak di antara 1,296.74 dan 1,299.15 sepanjang hari ini. Peniaga berkata pembelian saham berwajaran tinggi terpilih telah mengekalkan momentum pasaran sejajar dengan pasaran serantau, di sebalik penurunan penarafan hutang Greece dan perubahan semalaman yang sedikit di Wall Street. Penurunan pada penarafan kredit bon kerajaan Greek oleh Moody’s Investors Service, daripada A3 kepada Ba1, mempengaruhi  kedudukan semalaman Wallstreet. Indeks Kewangan meningkat 8.51 mata kepada 11,663, Indeks Perusahaan naik 0.44 mata kepada 2,597.95 sementara Indeks Perladangan susut 1.64 mata kepada  6,135.88. Indeks FBM Emas naik 7.72 mata kepada 8,745.51, Indeks FBM70 susut 0.25 mata kepada 8,665.39 dan Indeks FBM Ace merosot 16.56 mata kepada 3,797.88. Kaunter untung mengatasi rugi  dengan 296 berbanding 291 sementara 270 kaunter tidak berubah, 512 tidak didagangkan dan 29 yang lain digantung.Jumlah keseluruhan naik kepada 511.873 juta saham bernilai RM891.308 juta daripada 502.174 juta saham bernilai RM665.401 juta semalam. Di kalangan kaunter berwajaran tinggi, Maybank naik satu sen kepada RM7.46, CIMB Group merosot satu sen kepada RM6.89, Sime Darby tidak berubah pada RM7.81, Maxis naik lima sen kepada RM5.31 sementara MISC tidak berubah pada RM8.48 dan Tenaga susut tiga sen kepada RM8.31. Sementara itu, jumlah dagangan di Pasaran Utama naik kepada 452.886 juta saham bernilai RM879.416 juta daripada 391.037 juta saham bernilai RM642.134 juta semalam. Perolehan dagangan pasaran ACE menyusut kepada 33.565 juta unit bernilai RM4.590 juta daripada 91.63 juta unit  bernilai RM15.039 juta sebelum ini.Jumlah dagangan warant naik kepada 18.838 juta saham bernilai  RM2.104 juta daripada 11.959 juta unit bernilai RM1.688 juta sebelum ini. Barangan pengguna mewakili  69.699 juta saham yang didagangkan di Pasaran Utama, barangan industri 58.726 juta, pembinaan 33.634  juta, dagangan dan perkhidmatan 119.258 juta, teknologi 20.273 juta, prasarana 3.797 juta, kewangan  56.381 juta, perhotelan 290,700, harta 72.98 juta, perladangan 17.265 juta, perlombongan 2,000, REIT  541,300 dan dana tertutup 37,400.- Bernama

Technical View 15 June 2010

The FBM KLCI spent the entire session listlessly yesterday. While yesterday’s listless session could be due to a lack of market-moving news, it was also because the key index is now stuck in the midpoint of May’s 100 pt-loss. The bears are still expecting the market to fall further following the major breakdown at around the 1,320 pt-level but the bulls are still hoping that the index can still push further from here after creating the “Bullish Engulfing”.
As for us, 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

The World Cup effect. The market traded within a tight 4-point band yesterday on extremely thin volume of  502.1m shares. Market breadth was, however, positive from the start, taking the cue from the fairly strong performance of regional bourses led by the Hang Seng and Nikkei. Today’s key corporate headlines are: (i)  Sime Darby has appointed Datuk Mohammad Bakke Salleh (formerly MD of Felda Global) as its new CEO; (ii) Petronas Dagangan has appointed Amir Hamzah Azizan as MD/CEO effective 15 June; (iii) soon to be listed Kim Lun expresses interest to partake in the proposed MRT project; and (iv) both Boutstead and KUB inked smallish contracts. Overnight, Wall Street closed little changed after paring down its triple digit gains earlier  following the cut in Greece’s credit rating while crude oil price closed at USD74.8 per barrel.