Thursday, March 20, 2008

Sure Rebound lar

KLCI ended +0.6% at 1186.54 in moderate volume, rebounding from an intraday low of 1179.09 on mild bargain hunting from local funds. Firmer regional bourses and DJIA's 3.5% overnight gain spurred buying interest in early trade, lifting the benchmark to intraday high of 1206.84 but profit-taking weighed on stocks. Some 694 million shares changed hands; market breadth ended negative with losers outpacing gainers 431 to 312. Benchmark tipped to trade in 1170 to 1190 band Friday (market closed Thursday for Muslim religious holiday); KLCI March Futures ended down 20 points at 1163, reflecting weak underlying sentiment. RHB Research takes contrarian view; says in a note, "the index may have a chance to rebound towards the 1200 psychological level and the 10-day SMA near 1,224 in near term on value hunting. "Strong follow-through buying momentum may push the index to close part of the huge 32-point gap near the 1251-1280 region," RHB says.

My bet is on KUB, SALCON and SCOMIMR

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