Tuesday, April 15, 2008
Sell on strength
KLCI ends +0.9% at 1244.20 in thin volume of 440.1 million shares with gainers outpacing decliners 408 to 224; buying interest from both local and foreign funds in plantations, index-linked heavyweights, construction and select blue chips helped buoy the market but dealers remained cautious throughout. Benchmark tipped to extend gains Wednesday, possibly attempt to breach 1250 psychological resistance but profit-taking into strength may reverse gains, possibly drag index down to 1230. Buying interest is very modest. The market lacks both depth and breadth. There's a strong likelihood that selling pressure will emerge at around 1250.