Bursa Malaysia : Bluechips Index Slow Recovery To Continue

Upside Momentum Slow & Steady

FBM KLCI : The bluechips index manage to inches up about 3.22 points to ended slightly higher to 1,565.81 level yesterday. The helping sectors behind stock index recovery was spearheaded by banking stocks all the way. It seems some investors are willing to increase their portfolio in risky asset and start accumulating shares in the market. 

Major external market sentiment remain weak as white house is yet finalize to resolve the debt ceiling issues in Washington which will due in 2nd August and escalating worries over Euroz zone debt crisis that might be contagious to other European countries.

FKLI : The FTSE Bursa Malaysia 

KLCI (FBM KLCI) futures on Bursa Malaysia 

Derivatives closed mixed amid lack of buying 

interest, dealers said.

July 2011 and September 2011 declined one

point and three points, respectively, to close at 

1,563 and 1,562 while August 2011 and 

December 2011 gained half-a-point and 1.5 

points to 1,563.5 and 1,565, respectively. 

Volume rose to 6,303 lots from Wednesd

ay’s 6,189 lots while open interest narrowed 

to 23,208 contracts from 23,701 previously.

Technically, we could expect some recovery on index futures as well judging from the formation of higher lows on hourly time frame. FKLI contracts also manage to rebound from a oversold level of 1,547 previously. For today, support level is located around 1554 while resistance is pegged at 1,570.

Daily Pivot Point

R2= 1570

R1= 1566

S1= 1558

S2= 1554