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Friday, February 11, 2011

BURSA MALAYSIA >>> Market Overviews / Half Day Performance @12.30pm 11/02/2011

FBM KLCI Correction Seen Overdone
Should Increase Buying Interest
The local market tumbled Thursday on profit-taking in line with heavy regional losses led by Hong Kong banks and developers on concern inflation and higher interest rates will slow growth in the region. The KLCI slumped 32.08 points or 2.1% to settle at the day’s low of 1,503.99, off an opening high of 1,527.39, as losers trounced gainers 750 to 160 on lower trade totaling 2.22bn shares worth RM3.13bn.

Breakdown of 1,498 to Re-Visit 1,474 Low
While near-term sentiment has soured on higher inflation and interest rate concerns, a further sharp correction today would be grossly overdone and should see buyers returning to cushion downside and trigger a rebound ahead. The breakdown of 1,513, the 61.8%FR of the rise from 1,474 low of 29 November 2010 to the recent all-time record high of 1,576.95, should see 1,498, the 76.4%FR, being tested for better support. A breakdown would open up further potential weakness towards 1,474, which must hold to prevent extended correction towards 1,450, the 38.2% FR from the 27 May 2010 low of 1,243.

KL Shares Stay Lower At Mid-day
SHARE prices on Bursa Malaysia remained in negative territory at mid-day today, as investors remained cautious following weaknesses in regional Asian markets due to rising tension in Egypt, dealers said.

As at mid-day, the FBM KLCI lost 6.59 points to 1,497.40 after opening 2.92 points higher at 1,506.91. The FTSE Bursa Malaysia KLCI (FBM KLCI) also stayed below the psychological 1,500 level from 10.21am, except for one brief spell.

OSK Research said the index, now trading at below the uptrend line, was appearing weak in the near term. "We shall see if the FBM KLCI can get back above the 1,505-point level," said the research house.

Holding up above the 1,505-point level, would still see the market possibly creating a sideways trend, at above the 1,505-point level.

"If not, a convincing breakdown at 1,505 might eventually pull down the index to the 1,474-point level, which is the next strong support we can detect," it said.

The Finance Index lost 78.77 points to 13,558.24, the Industrial Index eased 14.31 points to 2,837.98 and the Plantation Index dipped 78.01 points to 7,812.54.

The FTSE Bursa Malaysia Emas Index slipped 55.58 points to 10,371.93 and the FTSE Bursa Malaysia Ace Index lost 29.97 points to 4,480.24 with the FTSE Bursa Malaysia Mid 70 Index slipping 82.44 points to 11,239.60. Turnover stood at 860.87 million shares worth RM1.142 billion.

Losers beat gainers 621 to 134 while 246 counters were unchanged, 387 untraded and 24 others suspended.

Among active stocks, Karambunai Corp lost half a sen to 24.5 sen, SAAG Consolidated was unchanged at 13 sen, Ho Wah Genting gained one sen to 81.5 sen and IRIS Corporation gained half a sen to 22 sen.

Of the heavyweights, Maybank slipped two sen to RM8.54, CIMB Group Holdings was unchanged at RM8.18, Sime Darby declined four sen to RM9.26 and Petronas Chemicals added 10 sen to RM6.06.

Buy on Weakness Gamuda & Genting Bhd

Any further weakness on Gamuda shares towards RM3.69 (76.4%FR), matching the lower Bollinger band, would be a good buying opportunity, with stronger support seen at RM3.50 (61.8%FR), for rebound upside towards RM4.00 (100%FR), and RM4.30 (1.236FP) going forward. While Genting Bhd shares may trade lower along the lower Bollinger band, look for support from RM9.77 (61.8%FR) to cushion downside in the present correction, and eventual rebound to the middle band (RM11.20), matching the 30-day ma. Strong support is seen at RM9.09, the 50%FR.

View the  above charts here >>>


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