Thursday, March 08, 2007


KLCI ends +2.6% at 1187.06, just off its intraday high in moderate volume of 2.02 billion shares led by banking stocks and continued bottom fishing by foreign funds. Market breadth positive; 916 gainers vs. 116 decliners, underscoring bullish undertones. Volume is still not convincing as it's way off the record high of 4.6 billion shares but buying momentum seems to be building up quite nicely. KLCI may test the 1200 resistance tomorrow as Rashid Hussain, RHB Capital and Utama head higher on trade resumption this after Utama accepts EPF's offer to buy its 32.8% stake in RHB for MYR2.25 billion. Construction and property stocks likely to extend gains on foreign buying.

Technically, the KLCI extends lead, rising 2.5% to 1185.67 in moderate volume, firmly cracking through 1180 resistance as foreign funds continue to bottom fish finance stocks, select blue chips while local funds lend support to government linked companies. This is the third consecutive day of gains and is crucial for the KLCI to stay above 1170 in order to encourage retail participation. Based on charts, technical indicators now neutral with slightly bullish bias. MACD flattening out but yet to make bullish crossover. Sustained buying could carry KLCI to 1191 (Jan.25 peak). On downside, immediate support at 1150, below this, expect strong support at 100-day moving average (now at 1103).

Too lazy to include any chart today.

Chap Ayam Shopping List
(However do be careful because the PERF are -ve for all counter below. As for myself, still no position)

No comments: