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Thursday, February 10, 2011

Bursa Malaysia and Wall St. Morning Outlook >>> 10 Feb 2011

Malaysian Stocks May Inch Lower On Thursday

The Malaysian stock market on Wednesday wrote a finish to the three-day winning streak in which it had collected nearly 20 points or 1.2 percent. The Kuala Lumpur Composite Index finished just above the 1,535-point plateau, and now analysts are forecasting a slightly lower open when trade begins on Thursday.

The global forecast for the Asian markets is flat with a hint of weakness, with caution expected to reign in the absence of any real impetus. Steel stocks are likely to see some softness, as are the gold, oil and natural gas companies. The European markets finished lower and the U.S. bourses ended mixed but little changed - and the Asian markets are forecast to split the difference.
The STI finished slightly lower on Wednesday, nudged into the red by profit taking among the plantations.
For the day, the index eased 3.48 points or 0.23 percent to finish at 1,536.07 after trading between 1,533.38 and 1,541.98. Volume was 2.20 billion shares valued at 2.66 billion ringgit. There were 493 decliners and 347 gainers, with 285 stocks finishing unchanged./Among the decliners, IOI Corporation shed 0.5 percent, while Kuala Lumpur Kepong and Genting also ended lower.

In economic news, Malaysia will on Thursday announce industrial production numbers for December, with forecasts calling for an increase of 5.0 percent on year following the 5.1 percent gain in November. 


WALL STREET : Eleventh-Hour Bulls Salvage Blue-Chip Winning Streak

The Dow Jones Industrial Average (DJIA – 12,239.89) rallied to a new two-plus-year acme of 12,254.23 within the first 90 minutes of trading, but eventually settled for a much slimmer gain of 6.7 points, or 0.06%. Seventeen of the index's 30 components ended in the black, led by Walt Disney's earnings-induced gain of 5.3%, while Chevron (CVX) paced the 13 declining equities with a deficit of 1.5%.

Meanwhile, the S&P 500 Index (SPX – 1,320.88) also reversed course around midday, finishing with a loss of 3.7 points, or 0.3%. Nevertheless, the broad-market barometer managed to maintain its perch atop the 1,300 level for the second consecutive session. Finally, the Nasdaq Composite (COMP – 2,789.07) initially took its cues from the Dow, touching a three-year peak of 2,789.91 before backpedaling around midday. By the time the dust settled, the tech-rich index surrendered nearly 8 points, or 0.3%.

The March NASDAQ 100 closed lower due to profit taking on Wednesday as it consolidated some of Tuesday's rally but remains above broken resistance marked by January's high. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are overbought but remain bullish signaling that sideways to higher prices are possible near-term. This week's breakout above resistance marked by January's high crossing at 2346.50 opens the door for a test of weekly resistance crossing at 2477.50 later this winter. Closes below the 20-day moving average crossing at 2312.68 would confirm that a short-term top has been posted. First resistance is today's high crossing at 2365.50. Second resistance is weekly resistance crossing at 2477.50. First support is the 20-day moving average crossing at 2312.68. Second support is last Monday's low crossing at 2248.50.

Crude futures settled another volatile session lower today, reversing course thanks to a surprise increase in domestic stockpiles. More specifically, the Department of Energy reported that distillate supplies rose by 300,000 barrels last week, defying expectations for a weather-related decline. In the same vein, gasoline inventories rose by more than anticipated, advancing 4.7 million barrels to their highest level since 1990. By the close, crude oil for March delivery shed 23 cents, or 0.3%, to finish at $86.71 per barrel.


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