SHARE prices on Bursa Malaysia consolidated in the first four trading days of this week before staging a sharp rebound yesterday. The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) continued to stay above its critical support of 1,100 points when it closed at 1,174.90 as yesterday.The FBM KLCI opened marginally lower on Monday before slipping to its intra-day low of 1,148.26. It closed at 1,156.43 points, giving a day-on-day gain of 0.55 point, or 0.05 per cent.
Overall market sentiment on Bursa Malaysia strengthened in tandem with rebounds on regional stock markets on Tuesday. The FBM KLCI closed at 1,172.38, giving a day-on-day gain of 15.95 points, or 1.38 per cent.
The market's rhythm was disrupted when investors reacted to the sharp fluctuations on the Shanghai market on Wednesday. The FBM KLCI closed lower at 1,164.48, giving a day-on-day loss of 7.90 points, or 0.67 per cent. Continuing consolidations and follow-through selling pressure sent the FBM KLCI to its intra-day low of 1,153.81 on Thursday. The benchmark index closed marginally lower at 1,160.66, giving a day-on-day loss of 3.82 points, or 0.33 per cent.
Overall market sentiment on Bursa Malaysia strengthened in tandem with rebounds on regional stock markets on Tuesday. The FBM KLCI closed at 1,172.38, giving a day-on-day gain of 15.95 points, or 1.38 per cent.
The market's rhythm was disrupted when investors reacted to the sharp fluctuations on the Shanghai market on Wednesday. The FBM KLCI closed lower at 1,164.48, giving a day-on-day loss of 7.90 points, or 0.67 per cent. Continuing consolidations and follow-through selling pressure sent the FBM KLCI to its intra-day low of 1,153.81 on Thursday. The benchmark index closed marginally lower at 1,160.66, giving a day-on-day loss of 3.82 points, or 0.33 per cent.
Once again, the top 10 components of the FBM KLCI sent the benchmark higher to 1,176.67 yesterday. The FBM KLCI closed higher at 1,174.90, giving a day-on-day gain of 14.24 points, or 1.23 per cent.
On the foreign front, after last week's sharp rebound gain of 3.72 per cent, the Dow Jones Industrial Average (DJIA) unfolded its consolidations. The DJIA closed at 9,154.46 on Thursday, giving a four-day gain of 61.22 points. The tech stock heavy Nasdaq Composite Index stayed above its support of 1,900 points. It closed at 1,984.30 on Thursday, posting a four-day gain of 18.34 points, or 0.93 per cent.
On the foreign front, after last week's sharp rebound gain of 3.72 per cent, the Dow Jones Industrial Average (DJIA) unfolded its consolidations. The DJIA closed at 9,154.46 on Thursday, giving a four-day gain of 61.22 points. The tech stock heavy Nasdaq Composite Index stayed above its support of 1,900 points. It closed at 1,984.30 on Thursday, posting a four-day gain of 18.34 points, or 0.93 per cent.The Tokyo stock market staged yet another follow-through technical rebound over the last five trading days. The Nikkei 225 Index closed at 10,356.83 yesterday, posting a week-on-week gain of 412.28 points, or 4.15 per cent.
The Hong Kong stock market broke its overhead resistance of 20,000. The Hang Seng Index closed at 20,573.33, recording a week-on-week gain of 590.54 points, or 2.96 per cent.
On Bursa Malaysia, the FBM KLCI rebounded to close higher at 1,174.90 yesterday, giving a week-on-week gain of 19.02 points, or 1.65 per cent.The FTSE Bursa Malaysia Second Board Index jumped 280.53 points, or 5.608 per cent to 5,291.32 while the FTSE Bursa Malaysia Mesdaq Index gained 160.72 points, or 3.92 per cent, to 4,258.71.
Following are the readings of some of the FBM KLCI's technical indicators:
* Moving Averages: The FBM KLCI continued to stay above its 10-, 20-, 30-, 50-, 100- and 200-day moving averages.
* Moving Averages: The FBM KLCI continued to stay above its 10-, 20-, 30-, 50-, 100- and 200-day moving averages.
* Momentum Index: Its short-term momentum index continued to stay above the support of its neutral reference line.
* Momentum Index: Its short-term momentum index continued to stay above the support of its neutral reference line.
* On Balance Volume: Its short-term OBV trend stayed above the support of its 10-day exponential moving averages.
* On Balance Volume: Its short-term OBV trend stayed above the support of its 10-day exponential moving averages.
* Relative Strength Index: Its 14-day RSI stood at the 77.69 per cent level yesterday.
* Relative Strength Index: Its 14-day RSI stood at the 77.69 per cent level yesterday.
Outlook
The FBM KLCI's consolidation on Monday hit its intra-week low of 1,148.26, staging a successful re-test of this column's envisaged support zone (1,116 to 1,150 levels). Subsequent technical rebounds on Tuesday and Wednesday sent the FBM KLCI to its intra-week high of 1,178.99 on Wednesday, moving into the confines of this column's envisaged resistance zone (1,159 to 1,193).
The FBM KLCI's weekly chart staged a technical breakout of its overhead resistance (See FBM KLCI's weekly chart A5:A6) yesterday. It continued to stay above its resistance-turned-support trendline (A3:A4).
* Moving Averages: The FBM KLCI continued to stay above its 10-, 20-, 30-, 50-, 100- and 200-day moving averages.
* Momentum Index: Its short-term momentum index continued to stay above the support of its neutral reference line.
* Momentum Index: Its short-term momentum index continued to stay above the support of its neutral reference line.
* On Balance Volume: Its short-term OBV trend stayed above the support of its 10-day exponential moving averages.
* On Balance Volume: Its short-term OBV trend stayed above the support of its 10-day exponential moving averages.
* Relative Strength Index: Its 14-day RSI stood at the 77.69 per cent level yesterday.
* Relative Strength Index: Its 14-day RSI stood at the 77.69 per cent level yesterday.
Outlook
The FBM KLCI's consolidation on Monday hit its intra-week low of 1,148.26, staging a successful re-test of this column's envisaged support zone (1,116 to 1,150 levels). Subsequent technical rebounds on Tuesday and Wednesday sent the FBM KLCI to its intra-week high of 1,178.99 on Wednesday, moving into the confines of this column's envisaged resistance zone (1,159 to 1,193).
The FBM KLCI's weekly chart staged a technical breakout of its overhead resistance (See FBM KLCI's weekly chart A5:A6) yesterday. It continued to stay above its resistance-turned-support trendline (A3:A4).Chartwise, the FBM KLCI's daily trend staged a technical breakout of its overhead resistance (See FBM KLCI's daily chart B1:B2) yesterday. It continued to stay below its intermediate-term uptrend (B7:B8).
The FBM KLCI's daily, weekly and monthly fast MACDs (moving average convergence divergence) stayed above their respective slow MACDs yesterday. It will continue to underpin its near-term trend.
The FBM KLCI's 14-day RSI stayed at 77.69 per cent level yesterday. Its 14-week and 14-month RSI stayed at 75.47 and 57.70 per cent levels respectively. Last week, this column commented that the FBM KLCI was likely to pause for a brief consolidation before resuming its prior technical rebounds. It did.
The FBM KLCI's daily, weekly and monthly fast MACDs (moving average convergence divergence) stayed above their respective slow MACDs yesterday. It will continue to underpin its near-term trend.
The FBM KLCI's 14-day RSI stayed at 77.69 per cent level yesterday. Its 14-week and 14-month RSI stayed at 75.47 and 57.70 per cent levels respectively. Last week, this column commented that the FBM KLCI was likely to pause for a brief consolidation before resuming its prior technical rebounds. It did.
The FBM KLCI is likely to move into its range-bound phase in consolidating its recent gains. There is an even chance of the index staging a re-challenge of its major psychological resistance of 1,200 sometime next week.
Next week, the FBM KLCI's envisaged resistance zone hovers at the 1,178 to 1,212 levels while its immediate downside support is at the 1,137 to 1,171 levels.
Next week, the FBM KLCI's envisaged resistance zone hovers at the 1,178 to 1,212 levels while its immediate downside support is at the 1,137 to 1,171 levels.
KL Shares End +1.2%; May Test 1200 Soon
KLCI ends +1.2% at 1174.90 supported by gains across all sectors following positive cues from Wall Street, gains in regional markets and positive local developments, say dealers. "Some positive changes are taking place in the local market which should improve liquidity and reduce volatility effective August 3. 
The planned launch of the 1Malaysia unit trust fund worth MYR10.0 billion has also triggered buying interest from retail investors. There''s a good chance the index may extend gains next week and possibly test psychological resistance at 1200 if this momentum can be maintained," says dealer. Market volume moderate with 1.26 billion shares worth MYR1.95 billion traded. Market breadth positive with gainers leading decliners 485 to 207. Among gainers, Cycle & Carriage (2925) +39.1% at MYR3.70, Handal (7253) +15.5% at MYR1.34, Bumiputra-Commerce (1023) +4.9% at MYR10.80 and Gamuda (5398) +5.7% at MYR3.36.
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