The FBM-KLCI remains largely unchanged last week, shedding a marginal 0.47% for the week to close at 1,067.7 last Friday. Where will it go from here?
FBM-KLCI uncertain>
Though the 1,065 support still held steady, our local FBM-KLCI market looks uncertain with several “doji” shaped candlestick patterns in the last few days. The bulls want to push the index higher, but are fearful of plunging commodities prices particularly Crude Palm Oil (CPO) prices.
Plantation Stocks key to FBM-KLCI direction >
Looking forward, plantation stocks which form 18.6% of the FBM-KLCI will dictate where our local market goes from here. If CPO prices continue to weaken and drag the plantation index lower to break the important 5,200 support level, it could spell negative repercussions for our local market. If the 5,200 support holds, the bulls could very well still be in control of the steering wheel.
We maintain our status quo positive view on the KLCI but would be watching the plantation index closely to detect any possible negativity that might drag the FBMKLCI down.
Though the 1,065 support still held steady, our local FBM-KLCI market looks uncertain with several “doji” shaped candlestick patterns in the last few days. The bulls want to push the index higher, but are fearful of plunging commodities prices particularly Crude Palm Oil (CPO) prices.Plantation Stocks key to FBM-KLCI direction >
Looking forward, plantation stocks which form 18.6% of the FBM-KLCI will dictate where our local market goes from here. If CPO prices continue to weaken and drag the plantation index lower to break the important 5,200 support level, it could spell negative repercussions for our local market. If the 5,200 support holds, the bulls could very well still be in control of the steering wheel.We maintain our status quo positive view on the KLCI but would be watching the plantation index closely to detect any possible negativity that might drag the FBMKLCI down.
No comments:
Post a Comment