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Thursday, February 17, 2011

FBM KLCI Base Building Above 1498; Closing 0.15% Higher

BURSA Rebound Continue; Bluechips Rangebound, Pennystocks Shine
The FBM KLCI index gained another 2.26 points or 0.15% on Thursday in a follow-up to Wednesday technical rebound. The market traded within a range of 6.45 points between an intra-day high of 1512.85 and a low of 1506.40 during the session. 

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose to 1,508.56 in cautious trading after opening 2.23 points higher at 1,508.53 off intraday high due to persistent profit takings.  Mild selling from foreign funds was seen in the afternoon. Penny stocks and third-liners contributed significantly to volumes with heightened participation from retail investors. 

Leading Movers were AXIATA (+9 sen to RM5.08), CIMB (+7 sen to RM8.17), PBBANK (+6 sen to RM13.06), AMMB (+8 sen to RM6.32) and MAYBANK (+3 sen to RM8.50). Lagging Movers were IOICORP (-13 sen to RM5.58), GENTING (-6 sen to RM10.12), BAT (-60 sen to RM46.40), UMW (-6 sen to RM7.18) and DIGI (-8 sen to RM25.90). Market breadth was negative with 292 gainers as compared to 536 losers.

Trading volume decreased to 1737.64 mil shares worth RM1759.75 mil as compared to Wednesday's 1878.09 mil shares worth RM2028.93 mil.

Bluechips Index Solidifying At 1500 Base Level
Blue chips are likely to consolidate in the near‐term, while active rotational plays on low‐priced penny stocks and warrants dominate the market on retail trading interest. The index should attempt to base build above 1,498, the 76.4% Fibonacci Retracement (FR) support of the rise from 1,474 low of 29 November 2010 to the record high of 1,576.95 of 6 January, with better and stronger support levels at 1,488 and 1,478. Immediate resistance remains at 1,525, the 50%FR, and then 1,537, the 38.2%FR and next at 1,552, the 23.6%FR followed by the record high of 1,576.

Prime Minister Datuk Seri Najib Tun Razak's remarks that the country's gross domestic product growth for 2010 may exceed six per cent helped boost sentiment while Wall Street lent a helping hand at the opening bell.


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