Monday, December 03, 2007

CI to test historic high of 1423.18

KLCI ends +1.6% at 1419.34 in moderate volume, with gainers edging out decliners 416 to 406; dealers say rise largely due to gains in government-led companies including Sime Darby +4.6% at MYR11.80, Telekom +4.6% at MYR11.30, Tenaga Nasional +4.9% at MYR9.70 and Proton +3.9% at MYR3.74. KLCI may test and breach historic high of 1423.18 tomorrow in follow through trade but caution gains may not be sustainable. Buying interest was not broad-based. Depending on the performance on Wall Street, there may be a fresh attempt at a new record high (for the KLCI) but profit taking into strength may narrow gains. Chartwise, KLCI convincingly broken out of a downtrend channel, dating back to early November. Although indicators on daily charts, including stochastic and MACD, have turned bullish, volume trade remains sluggish. Without any significant catalysts in the near term, the market could slip into a consolidation pattern within 1400-1423 range, if not reverse to test technical support 1391.

TOMYAM SHOOPINGG LIST

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