Sabtu, 8 Oktober 2011

MAAKL Mutual Berhad. Bursa goes into rebound mode

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SHARE prices on Bursa Malaysia staged follow-through rebounds for the week ended yesterday. The local market remained firm when it moved in sync with Wall Street and the Hong Kong stock market.

The FBM Kuala Lumpur Composite Index (FBM KLCI) posted a week-on-week gain of 12.92 points, or 0.93 per cent, for the week ended yesterday. It stayed marginally above its immediate downside support of 1,400 over the week.

Bursa consolidated in tandem with the technical pullbacks on the Hong Kong and Tokyo stock markets on Monday. The FBM KLCI opened at 1,381.81 before hitting its day low of 1,353.45. It closed at 1,367.52, recording a day-on-day loss of 19.61 points, or 1.41 per cent.

Share prices on Bursa Malaysia consolidated for the second trading day on Tuesday, in tune with the market pullbacks on regional stock markets. The FBM KLCI trended between its day low of 1,356.77 and day high of 1,375.02. It ended at 1,356.77, recording another day-on-day loss of 10.75 points, or 0.79 per cent.

After a mild rebound on the Wall Street on Tuesday, the FBM KLCI rebounded in earnest on Wednesday. The FBM KLCI ended the day at 1,375.67, posting a day-on-day gain of 18.90 points, or 1.39 per cent.

The index continued to rebound further on Thursday. It trended between day low of 1,381.17 to a day high of 1,395.28 before closing at 1,393.69, recording another day-on-day gain of 18.02 points, or 1.31 per cent.

Despite the sharp rebound on Wall Street, the FBM KLCI only managed to climb the day high of 1,4002.58 yesterday before easing marginally to close at 1,400.05, giving a day-on-day gain of 6.36 points, or 0.46 per cent.

The FBM KLCI staged a follow-through technical rebound for the second consecutive week. It rebounded to close at 1,400.05 yesterday, giving a week-on-week gain of 12.92 points, or 0.93 per cent.

The FTSE Bursa Malaysia Small Cap Index gained 81.71 points, or 0.79 per cent, to close at 10,478.45 while the FTSE Bursa Malaysia ACE Index advanced 49.91 points, or 1.39 per cent, to 3,647.86 level yesterday.

The following are the readings of some of the FBM KLCI's technical indicators:

Moving Averages: The FBM KLCI continued to stay below the support of all of its 30-, 50-, 100- and 200-day moving averages. It had since stayed above the support of its 10- and 20-day moving averages.

Momentum Index: Its short-term momentum index continued to trend below its neutral reference line at the market close yesterday.

On Balance Volume: Its short-term OBV trend stayed above the support of its 10-day exponential moving averages.

Relative Strength Index: Its 14-day RSI stood at the 46.35 per cent level yesterday.


The FBM KLCI hit its week low of 1,353.45 on Monday, staging a successful re-test of the confines of this column's envisaged support zone (1,349 to 1,383 levels).

Subsequently, the FBM KLCI rebounded to its week high of 1,402.58 yesterday, moving into the confines of this column's envisaged resistance zone (1,390 to 1,425 levels).

A quick review of the performances of the FBM KLCI's 30 components, losers outpaced gainers by 16 to 14. Tenaga, Axiata, Maybank and IOI Corp's combined gains of 21-sen, 19-sen, 18-sen and 17-sen respectively accounted for the bulk of the FBM KLCI's week-on-week gain of 12.92 points, or 0.93 per cent.

Petronas Dagangan Bhd (Petdag) remained as the week's top performing component to-date with a total year-to-date gain of RM4.40, or 37.61 per cent.

The FBM KLCI's weekly chart continued to stay below its intermediate-term uptrend support (See FBM KLCI's weekly chart - A3:A4) during the week. It also continued to stay below the support of its immediate downside support (A1:A2) last week. It staged another successful re-test of its next support (A5:A6).

Chartwise, the FBM KLCI breached its immediate downside support (See FBM KLCI's daily chart - B5:B6) on September 15 and continued to stay below it on September 23. With that, the FBM KLCI had since stayed below its two trendlines (B3:B4 and B5:B6) last week. The FBM KLCI staged a successful re-test of its downside support (B7:B8) on September 26 before rebounding to close at 1,400.05 points yesterday.

The FBM KLCI's weekly and monthly fast MACDs (moving average convergence divergence) continued to stay below their respective slow MACDs yesterday. Its daily fast MACD had since stayed above daily slow MACD.

The FBM KLCI's 14-day RSI stayed at 46.34 per cent level yesterday. Its 14-week and 14-month RSI stayed at 34.38 and 50.54 levels respectively.

Last week, this column commented that the FBM KLCI might stage another attempt in trying to crack its immediate overhead resistance of 1,400. It did. The FBM KLCI closed at 1,400.05 yesterday.

Against the backdrop of rebounds on the Wall Street and regional stock markets during the week, there is an even chance that these markets will remain in their rebound mood. With that, the FBM KLCI is likely to stage yet another follow-through rebound.

Next week, the FBM KLCI's envisaged resistance zone is at the 1,404 to 1,438 levels while its immediate downside support is at the 1,362 to 1,396 levels.

The subject expressed above is based on technical analysis and opinions of the writer. It is not a solicitation to buy or sell.

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