Wednesday, September 19, 2007

Heavy Volume

KLCI ends +1.6% at 1297.16 in heavy volume of 1 billion shares, tad off intraday high of 1298.70; this after U.S. Fed's surprise decision to cut interest rates by 50 basis points triggered a triple digit rally on DJIA overnight. Market breadth remained positive, closing with 600 gainers vs 255 decliners. KLCI may consolidate within 1280-1300 range tomorrow after failing to test and breach 1300 psychological resistance. The DJIA's 2.5% jump overnight and strong gains in regional bourses triggered a fair amount of buying interest but persistent selling by foreign funds capped the benchmark's rise. The quantum of the rate cut has also caused some concerns among investors. Some are concerned that the subprime issue and credit crisis runs much deeper than initially assumed. Expects Wall Street's performance tonight to determine KLCI's direction tomorrow.


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