Asian and Europe market rallied despite Wall Street’s tumble last Friday, on U.S. Treasury Secretary Timothy Geithner's plan to clear toxic assets off U.S.. banks' books to revive lending and economic growth. STI gained 63 pts or +3.98%, HSI up 613 pts or +4.78%, Nikkei earned 269 pts or +3.39% while KLCI up 21.48 pts or +2.51% to end at day high at 878.3. The bull was aggressive today as FKLI edged 22.5 pts or +2.61% to settle at 883, making a confidence to spur investors that the worst is over. Local funds again support the market to show of confident in up coming UMMO election that start today. Turnover increased significantly to 9,804 while open interest at 20,466. The basis stood at 5 pts premium against cash. On technical side, the long white candle indicates that the upside is still intact. We expect correction to take place at 890 levels.
Investors may short at 890-900 levels. Immediate support at 865 while resistance stood at 890 level.Overseas News Highlight:Dow Jones surged 497.48 points to 7775.86 points yesterday, market on speculation that Obama administration’s plan to rid banks of toxic assets will spur growth. US Treasury Secretary Timothy Geithner has a plan to spur investment funds to purchase the illiquid securities and loans that have caused credit to dry up.Currently US is facing record losses from the worst housing slump since the Great Depression, prices of commercial property have down almost 20%. US current unemployment rate is 8.1%, it is still early for Dow Jones to be on uptrend.
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