Most Asian market closed in mix note with financial stocks getting a lift from the Federal Reserve’s plan to buy longer dated U.S treasury. Nikkei 225 closed 26 pts lower as exporters got whacked by the dollar tumbled against yen. Another dreary day for KLCI with tight range of 849-853 and settled 4..22 pts higher at 852.18. Volume fell to 304M with total value at 542M.The FKLI off high in 2nd session as investors took profit on rebound and close the day 2 pts higher at 856. Turnover falls significantly to 5175 lots from 8166 lots. Sentiment remain weak amid political uncertainty as Former Law Minister Datuk Zaid Ibrahim made an impassioned plea to the King not to appoint Datuk Seri Najib Razak as prime minister as he claimed that Najib is associates with matters of criminal and wrongful action. On technical side, Bollinger band width remains constant and RSI remains neutral at 44 suggesting consolidation mode to continue. FKLI is difficult to sustain at current level and vulnerable to performance of regional market, any tumble in regional market will pull down the FKLI again.
We recommend for short at around 855-865. Immediate support at 846 while resistance at 858.Overseas News Highlight:Dow Jones eased declined slightly by 85.78 points to 7400.80 points. After financial shares fell for the first time in 3days on growing skepticism the Federal Res
erve’s plan to buy bonds will revive the economy. Commodities prices surged, led by precious metal and energy on concern that Fed’s plan to revive economy will spur demand for raw materials as a hedge against inflation, crude oil reached $52 a barrel. As Dow Jones was unable to maintain above 7500 level, it is very likely Dow Jones reenter into downtrend channel after this recent strong rebound.
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