KLCI unable to make new highs
KLCI : trading session dominated by sellers
KLCI was in negative territory throughout yesterday’s trading session, and 452 counters declined vs. 253 gainers. KLCI has not made any new highs since last Thursday and is now trading range-bound between 1000-1040pts.
KLCI was in negative territory throughout yesterday’s trading session, and 452 counters declined vs. 253 gainers. KLCI has not made any new highs since last Thursday and is now trading range-bound between 1000-1040pts.
The next market catalysts: economic data, Swine Flu
In our view, markets are currently in an equilibrium state with market-moving news such as Stress Test and Swine Flu already priced-in. Potential new catalysts would include positive news to confirm the bottoming of the US economy as well as further developments in the
Swine Flu. US advance retail sales will be released tonight. Economists expect Apr09 retail sales to be flat yoy vs. -1.2% for Mar09. A stronger-than-expected result would be positive for both the Dow and the KLCI.
Swine Flu watch
Mexico has reported 2059 confirmed cases, including 56 deaths. The United States has reported 2600 confirmed cases, including 3 deaths. In Asia, no deaths have been reported yet. China has 2 confirmed infections cases, Japan 4 cases and Korea 3 cases (source: WHO).
Strategy: Wait for fresh leads
With the KLCI having failed to make new highs since last Thursday, we advise traders to remain cautious as KLCI has gained nearly 30% in this rally. Traders are advised to stay on the sidelines and watch out for key developments in the US economy and the Swine Flu.
With the KLCI having failed to make new highs since last Thursday, we advise traders to remain cautious as KLCI has gained nearly 30% in this rally. Traders are advised to stay on the sidelines and watch out for key developments in the US economy and the Swine Flu.
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