Tuesday, December 19, 2006

Bloody Tuesday

KLCI down 2.1% at 1058.92, off its intraday low of 1049.88; A rebound can only be a dead-cat bounce and investors should sell into strength. Does not expect KLCI to convincingly breach 1060 (30-day moving average). It will take at least a couple of weeks before market sentiment improves and retail investor confidence is rebuilt after today's plunge in share prices. Notes also, short-term investors generally turn net sellers ahead of holiday seasons and with Christmas just around the corner, they are likely to capitalize on any opportunity to sell. KLCI immediate support 1,040.

  • Biggest Drop in 7 Months

  • Malaysian Stocks Fall as Thai Fund Restrictions Prompt Sell-Off

  • Emerging-Market Stocks Slump on Thailand's Investment Controls

  • Malaysia says no capital controls after Thai move

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