FKLI Market Outlook 17 Feb 2009The KLCI start the week marginally lower to end at 907.19, -2.65 pts or -0.29% in line with weakness in regional market where STI shed 22.33 pts or 1.31%, Nikkei 225 fell 29.23 pts or -0.38% and HSI eased 98.79 pts or -0.73% amid concern on rising crude oil prices. FKLI was off high in the second session resumed trading after Bursa halted the trading on the equities and derivatives market from 12:19pm due to technical glitch. The spot month contract ended 1.5 pts lower to settle at 909, which is 2 pts premium to the cash. Turnover for spot month contract reduced to 3,719 contracts from 6,075 contracts as investors tend to stay sideline and remain caution on US market closed for President’s day on Monday. On technical side, the chart is well supported at 905 (SMA100) and RSI is seen at 57.8.
We expect there will be a small rally FKLI in coming trading days as Malaysia government is planning to announce its stimulus package, which is believe can help to lift up the market sentiment. Besides this we can hardly find any other positive factors that are likely to lead the market gain, so FKLI maybe traded in tight range bound pattern. A better approach now is to go for long, investors may long around 905 levels with tight stop-loss at around 899 as breach below 900 may indicate bearish trend is on track. Resistance is at 915 while support is pegged at 905.HAPPY TRADING
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