Wednesday, April 16, 2008
KLCI ends +0.8% at 1253.64 in moderate volume with 583.6 million shares changing hands; market's rise led by plantations, consumer stocks and construction plays. Market breadth positive with gainers edging out decliners 407 to 287. The benchmark likely to extend gains tomorrow, possibly rise to test 1264 (April peak) with both foreign and local funds selectively accumulating stocks. KLCI may find psychological support at 1250. The KLCI seems to have bottomed-out at around 1150-1160. Both local and foreign funds have been accumulating plantations, consumer stocks and dividend yield plays. The ringgit's strength in recent days has acted as an additional catalyst for foreign funds. Ringgit +1.2% vs USD over last 2 weeks.