FKLI Regional Markets And DJIA

Bull continued to ride on most Asian market buoyed by strong gain in overnight Dow with continue strength in financial sector. STI gained 43 pts or +2.61%, HSI up 462 pts or +3.44%, Nikkei earned 272 pts or +3.32% while KLCI ended -0.38 pts or -0.04% at 877.92. Asian gains were relatively muted with all indexes off their highs following dow futures in negative zone during local trading hours.
AMeanwhile, the FKLI was trading in roller coaster and settled near day low at 876.5, -6.5 pts, as investors took profit after the earlier gain. The turnover fall to 8367 lots while open interest increased to 21646 contracts. The basis stood at 1.4 discount against cash. On technical side, the candlestick pattern shows a dark cloud cover that indicates bearish pattern while RSI remained neutral at 53. Investors is advised to prepare for short as the reverse pattern is emerging. Immediate support stood at 871.5 while resistance at 890.


News Highlight:US Dow Jones fell by 115.89points to 7659.97 yesterday, as the nation’s top 2 banking officials called for stronger regulation of financial firms. Analysts project that profit at financial companies in the S&P 500 will decline 33percent this quarter and 34 percent in the next. If companies earnings estimation is expected to be declining, surge in prices of financial stocks are unjustifiable. The US economy is really bad as the US government keeps injecting money into the market and bailing out financial firms, the recent rebound is short-lived and will reverse back to downtrend soon.