Morning Market Wraps 19 Mar 2009

Market Wrap:Asian market closed in positive territory taking cue from surged in overnight Dow on higher than expected housing data. The marginal rally in regional market including our local bourse seems to be losing steam amid doubt on the outlook of global economy. The KLCI was in lackluster trade with only 4 pts range throughout the day and settled at 847.96, +6.09 pts or +0.72%, led by financial sector (+1.65%). Volume was thin at 343M with total value at 497M.

The FKLI continued to mire within the staunch trading range of 855-846 levels with turnover of 8166 lots. The basis stand at 7 pts premium from par. FKLI is expected to remain sideway till the width of Bollinger Band begins to expand. RSI start to pick up from 36 to 43. We reiterate our call to sell into strength at 855-860 levels. Immediate support at 846 while resistance at 858.

Overseas News Highlight:

Overnight Dow Jones up slightly by 90.88 points (1.23%) and closed at 7486.58 points. As the Federal Reserve’s plan to buy $1 trillion of bonds spurred speculation lower borrowing costs will revive economic growth. While bank shares like Citigroup, Bank of America and JPMorgan Chase continue their rebound from low after announcement of they are profitable in January and February this year. Dow Jones should be able to maintain its momentum for current rebound, expected target should be at 7600