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Friday, March 27, 2009

FKLI Morning Outlook 27 Mar 2009

KLCI ended 6..66 pts higher to settle at 885.47 taking cue from stronger regional market as better-than-forecast economic data in the U.S. restore investors’ confidence. STI gained 65 pts or +3.85%, Nikkei up 156 pts or +1.84% while HSI surged 486.87 pts or +3.57% on stronger financial stocks. Trading turnover increased to 569M worth 88M. Meanwhile, FKLI was gyrating in 10 pts range and settle 2.5 pts higher at 887. Turnover was heavy with 11,869 lots and open interest stood at 21,843 contracts. Further consolidation is expected today with range 880-895 levels. We reiterate our call to sell at 890-895 levels. Immediate support at 879 (SMA 50) while resistance stood at 890.

Overseas Market Highlight:

Dow Jones climbed 174.75 points to 7924.56, after US government’s $24billion sale of seven year notes drew a yield of 2.384%, close to the 2.385% forecast. The auction for treasury notes spurred optimism that the government will be able to continue its record bond sales without spurring higher interest rates.

Currently there is no more strong and fresh catalyst to further boost up the market, Dow Jones is very likely to test the 8000level before its retreat after the rebound.

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