KLCI up midday; further liberalisation for the capital market

The KL Composite Index edged higher at midday in line with regional markets, lifted by selected blue chips as Prime Minister Datuk Seri Najib Razak announced a slew of measures aimed at boosting the capital market here. Najib said the 30% Bumiputera equity requirement for Malaysian companies seeking public listing was dropped but they will now have to offer 50% of the public shareholding spread to Bumiputera investors. The measures also cut the powers of the Foreign Investments Committee (FIC) by repealing its guidelines covering the acquisition of equity stakes, mergers and takeover. The limit for foreign shareholding in unit trust management firms was raised to 70% from 49% previously.
Najib also announced that a private equity fund called Ekuiti Nasional Berhad (Ekuinas), with an initial capital of RM500 million was set up to invest in private sector funds, to promote genuine partnerships and a fully commercial approach. He said that Bumiputera participation through Ekuinas would be based on merit. The fund will eventually grow to RM10 billion.
At regional markets, Japan's Nikkei 225 gained 1.65% to 9,944.93; Hong Kong's Hang Seng Index added 0.83% to 18,683.23, Singapore's Straits Times Index rose 1.1% to 2,342.76, Taiwan's TAIEX Index added 0.30% to 6,410.32 and the Shanghai Composite Index rose 0.05% to 2,976.69. The South Korean Kospi, however, slipped 0.01% to 1,388.36.

Crude palm oil added RM4 per tonne to RM2,274 for August delivery and RM9 per tonne to RM2,271 for September delivery; crude oil gained US$1.32 per barrel to US$72.81 at midday.

At Bursa Malaysia, the KLCI added 0.15% or 1.61 points to 1,077.45 at 12.30pm. Turnover was 734.92 million shares valued at RM569.26 million. Gainers led losers by 270 to 219, while 218 counters traded unchanged. Among the major gainers at the Bursa Malaysia were MISC, IOI Corp, Public Bank, YTL Corp, Axiata and PLUS Expressways.MISC, Parkson and F&N added 15 sen each to RM8.60, RM5.15 and RM9.65, respectively; AirAsia gained 14 sen to RM1.08, Edaran up 30 sen to 90 sen while BAT gained 25 sen to RM44.25.

Public Bank and YTL Corp added 5 sen each to RM9.05 and RM7; IOI Corp, PLUS and KNM Group gained two sen each to RM4.70, RM3.24 and 85.5 sen, respectively, while Axiata rose one sen to RM2.36.

Among the losers, DFZ Capital fell 64 sen to RM4.26, Woodlandor down 16 sen to 32 sen, Kumpulan Perangsang Selangor fell 15 sen to RM2.14, while MPI and Subur fell 12 sen each to RM4.98 and RM1.85. Meanwhile, Kwantas lost 11 sen to RM1.96 while Puncak Niaga fell 10 sen to RM3.12.Time Engineering was the most actively traded counter this morning with 76.3 million shares done. It was unchanged at 32.5 sen. Other actively traded stocks included Talam, KNM<>

DON'T SLIP-UP ON OIL AND GAS STOCKS

Yes, there were yoyos but ZL never lost faith that crude oil prices will recover. Same views for O&G stocks in Bursa Malaysia ........ Prevail, we shall

Recently, oil stocks peaked in early June and have been trending lower ever since. Again, same views for O&G stocks in Bursa Malaysia. But they're rapidly approaching the oversold level. Rebound. it shall.

So it appears today that it isn't the time to be bailing out but to be reconsidering where money can be made and being ready for whatever opportunities are impending.

"Get Ready, Get Set, Not Quite Yet!"

And there is nothing more royal in KLSE than our "Raja Saham Minyak" 7164 KNM which had being going through a consolidation phase for the 3rd week running off RM1.09 high 08 June 09 >>> till RM0.745 low on 23 June following up with a rebound closing 29 June at RM0.835.
According to ZL's personal rules of consolidations, 30% is a cut off mark for a normal stock without the frills, thrills & spills of unforeseen circumstances. In other words, based on simple trading, profit takings, support & resistance, KNM has found bottom at recent 74.5 sen. All recent FYE or quarterly PL had presumeably factored into it's prices.

So where do we go from here? TARGET ..... that's the most FAQ b4 an entry and KNM is no exception. Answer in KNM chart oledi hehehe!!!

Most KLSE O&G stocks are potentials >>> RANHILL, PETRA, ALAM, EPIC, VASTALX, DAYANG, SAPCRES etc etc >>> Good investments!!!

Dow Rally As Crude Oil Gushes

Wall Street closed higher Monday on low volume as a rally in the commodities complex allowed the markets to bounce back from last week's disappointing performance. While Monday’s session saw solid gains for stocks, analysts said not to read too much into the move as it was marked by ridiculously low volume due to the holiday-shortened trading week. The markets are closed on Friday for the Fourth of July.

Wall Street rallied around solid gains in the commodity markets, where crude oil enjoyed its biggest one-day rally since early June. Boosted by a Nigerian militant attack, crude settled up $2.33 per barrel, or 3.37%, to $71.49.

With some of the gains attributable to end-of-the-quarter technical maneuvering by portfolio managers, analysts cautioned against seeing the upswing as a sign of conviction among investors that it was time to move into the market ahead of an economic bounce. Stocks seesawed in the early going but jumped after oil gained.

The Dow Jones industrial average rose 90.99, or 1.1 percent, to 8,529.38. The S&P 500 index rose 8.33, or 0.9 percent, to 927.23, while the Nasdaq composite index rose 5.84, or 0.3 percent, to 1,844.06. Stocks ended last week mixed.

The Dow is up 30.3 percent from a 12-year low on March 9, though it has fallen 3.1 percent from a five-month high on June 12. The blue chips are now down only 2.8 percent in 2009.

With the quarter's end coming up on Tuesday some money managers were buying stocks bolster their returns. The Standard & Poor's 500 index is up 16.2 percent since the start of the April-June quarter.

The solid gains on Wall Street come after the markets capped off their second-straight weekly loss with a mixed picture on Friday. The two-week slide, the Dow’s first since early March, shaved 4% off the blue chips’ three-month surge. In recent weeks, the bears have successfully argued that stocks have gotten ahead of the still-weak economy. Despite the recent struggles, it’s been a stellar second quarter for Wall Street as the Dow has jumped 11% and is on track for its biggest quarterly percentage gain since 2003. The Nasdaq Composite has surged more than 20%, putting it on pace to break a string of three-straight losing quarters.

The market is trying to digest the gains that have occurred over the past two or three months, which I think is a positive. We’re really not giving back much of them.

Due in part to these huge gains, market strategists expect to see some window-dressing at the end of the quarter as portfolio managers look to scoop up some of the quarter's strongest performers.

All financial markets are closed Friday for the Independence Day holiday weekend. Ahead of that, a slew of economic reports are due, including readings on housing, manufacturing and the labor market. Stocks are likely to be volatile this week due to the confluence of the holiday, the heavy spate of economic news and the quarter end.

However, stocks could benefit Monday and Tuesday from some end-of-quarter machinations as market pros look to "window dress" their portfolios before closing the books. Generally, that impact is positive as money managers look to add the quarter's big winners to their portfolios.

GUSHING OIL AND COMMODITY PRICE JUMP BOOST STOCKS
Rising oil prices boosted Dow oil components Chevron and Exxon Mobil. Other big gainers included Boeing, United Technologies, Microsoft, Hewlett-Packard and Intel paced technology gains.

A jump in oil sent investors rushing to put money into the stock market in the final days of the second quarter. Energy, industrial and materials stocks pulled the market higher in light trading Monday as investors raced to keep up with the gains in oil.
Crude rose $2.33 to settle at $71.49 a barrel on the New York Mercantile Exchange after China said it would boost oil reserves and Nigerian militants partly shut down an offshore oil platform.

TECHNICAL ANALYSIS >>> Composite Index 29/06/2009 / 综合指数 2009年 6月 29日

Composite Index Daily Technical Analysis 29/06/2009
As shown on the chart above, the KLCI ended flat on Monday, and as a result, the KLCI might be forming a Symmetrical Triangle (study L1 and L2), which suggests a consolidation for the KLCI. If the KLCI should remain resisted by the L2 line, it shall confirm the formation of the Symmetrical Triangle.

As indicated by A, the Bollinger Bands Width contracted 9%, suggesting the KLCI is indeed consolidating. Resistance for the KLCI remains at 1095.91 while the support is at Bollinger Middle Band and 1035 Fibonacci Retracement.

As indicated by B, total market volume declined 27.1%, with volume staying below the 40-day VMA level. This implies that investors' confidence is still low as the market participation is relatively insufficient. If volume should remains below the 40-day VMA level, the KLCI is expected to stay in its consolidation mood.

As circled at C, the Stochastic breaks above 70%, but however, due to the lower volume on Monday, the short term bullish signal is yet to be confirmed by the increased of volume. Nevertheless, the Stochastic has to remain above 70% in order to suggest the short term bullish signal, or else, it might just be an over-sensitive signal, as the Stochastic is highly sensitive.

During the contraction of the Bollinger Bands Width, the KLCI is also forming a possible Symmetrical Triangle pattern. Other than suggesting a consolidation signal, the Symmetrical Triangle can also indicate the timing of a beginning of a new movement. If the KLCI should break above the Symmetrical Triangle with strong volume, it would be a bullish signal for the KLCI. Other wise, if the KLCI should break below the Symmetrical Triangle, it would be a bearish signal for the KLCI. This is why chart patterns is still the most important aspect in Technical Analysis.

综合指数 2009年 6月 29日

如图所示，综合指数周一未能上扬，几乎以平盘挂收，所以有可能形成图中L1及L2 线的对称三角形（Symmetrical Triangle），接下来若综指继续在L2线遇阻，那将确认形成对称三角形的盘整格局，直到上扬突破或跌破对称三角形为止。如图中箭头A所示，布林频带进一步的收窄9%，这显示综指依然处于巩固格局，符合形成称三角形的图形讯号。综指目前阻力水平依然是1095.91点的胜图自动费氏阻力线，支持水平则是布林中频带及1035点胜图自动费氏线。

如图中箭头B所示，马股总成交量再度减少27.1%，这使到成交量依然处于40天的成交量平均线（VMA）以下，这表示投资者对市场还未完全恢复信心，所以市场交投还是属于淡静，接下来若成交量继续处于40天的成交量平均值以下，那综指将继续维持目前巩固的格局。

如图中C圈所示，随机指标（Stochastic）周一上扬突破70%，惟综指周一成交量未能增加，所以此短期转强讯号未能获得成交量确认。无论如何，随机指标是非常敏感的短期指标，接下来随机指标必须维持在70%水平以上，那综指短期才有望完全恢复强势，否则，此讯号只是短期指标过敏所致。

布林频带目前正在收窄中，这表示综指正处于调整巩固的格局中，与此同时综指亦有形成对称三角形的迹象。对称三角形除了能显示综指进入盘整格局以外，也能发出综指盘整结束而开始新走势的讯号，接下来若综指上扬突破对称三角形，综指将有望更上一层楼，反之若综指跌破对称三角形时，综指则有转弱的风险，这也是为何技术图形（Chart Patterns ）在技术分析领域里最为重要。

Funds ready for FBM KLCI changeover

The proposed changeover from the Kuala Lumpur Composite Index (KLCI) to the FTSE Bursa Malaysia KLCI, or FBM KLCI, next Monday could be a non-event, analysts said. The KLCI comprises 100 stocks while the proposed FBM KLCI will have only 30 companies, with focus on liquidity.

The FBM KLCI comprises the Main Board’s largest 30 companies by full market capitalisation. These largest 30 companies resemble the prevailing FTSE Bursa Malaysia Large 30 Index (FBM30) which has been in existence since June 2006.Fund managers and analysts said most, if not all, of the funds had restructured their portfolios over the past six months ahead of the changeover.

While liquidity is an important factor, their emphasis would also be on the fundamentals even though some of the other companies have been dropped from the FBM KLCI list. The probable list of the 30 constituents, with ranking based on the free float factor, is topped by Bumiputra-Commerce Holdings Bhd with a weightage of 9.93%, and Public Bank Bhd (weightage of 9.86%). The free float factor of these companies is 100%.

The companies whose free float is 75% (with weightage in the FBM KLCI in parentheses) are Sime Darby Bhd (10.51%), Malayan Banking Bhd (8.7%), Tenaga Nasional Bhd (8.57%), IOI Corp Bhd (6.74%), Genting Bhd (4.9%), Axiata Group Bhd (4.71%), Telekom Malaysia Bhd (2.28%), AMMB Holding Bhd (2.19%), Berjaya Sports Toto Bhd (1.55%) and UMW Holdings Bhd (1.45%).

According to fund managers, the 30 companies will act as a market barometer and are representative of the underlying market while being a more manageable basket and more appealing for product issuers to create market liquidity.

The FTSE Bursa Malaysia index calculation methodology includes free float adjustment and liquidity screens. Free float is share capital freely available for trading. Companies must have at least 15% of free float to be eligible for inclusion. Also, the turnover must be at least 10% of the shares in issue in the last 12 months prior to an annual review in December.OSK-UOB Unit Trust Management Bhd, which manages the KLCI Tracker Fund, has informed its unitholders the fund will generally invest in the 30 companies in the FBM KLCI. Currently, its funds are invested the 100-stock KLCI components.It has informed the unitholders that they have the right to redeem their unit holdings anytime before the changeover on July 6, if they feel the KLCI Tracker’s objective no longer meets their investment objective.

“You have the right to call for a unitholders’ meeting to consider this changeover,” it said.However, a unitholders’ meeting can only be held if the manager receives notice from at least 50 unitholders or one-tenth of all unitholders of the fund, whichever is lower, according to OSK-UOB Unit Trust Management.

Would the revamp of the FBM KLCI see fund managers focusing on the top 30 companies with the 70 which have been left out becoming less important?

ECM Libra Investment Bank head of equities research, Ching Weng Jin, said it depended very much on the mandates of the funds. “For index-linked funds, the fund managers would have to follow the 30 stocks in the FBM KLCI for benchmarking purposes. “But for performance purposes, there will still be some focus on the other 70 companies. While IJM Corp Bhd, Gamuda Bhd, S P Setia Bhd will not be in the new benchmark, most funds would still be invested in these companies,” he said.Ching added that for foreign funds, they would be driven more by performance. “If it is in either one of the indices, and if it is large and liquid enough, they will invest in those companies which are performing.

“Most times, they follow the MSCI Index,” he added.Another research head expected the changeover to be a non-event as many local funds would rather follow the 100 stocks currently in the KLCI. A local fund manager said many funds were using the FBM100 instead of the current FBM30 as “the latter is too concentrated, while demand for the other 70 stocks is still good”. Another fund manager said there would be some portfolio restructuring. With the FBM KLCI, he said liquidity would be important and “hence, those with single large shareholders may lose out”.

According to fund managers, the 30 companies will act as a market barometer and are representative of the underlying market while being a more manageable basket and more appealing for product issuers to create market liquidity.

The FTSE Bursa Malaysia index calculation methodology includes free float adjustment and liquidity screens. Free float is share capital freely available for trading.Companies must have at least 15% of free float to be eligible for inclusion. Also, the turnover must be at least 10% of the shares in issue in the last 12 months prior to an annual review in December.OSK-UOB Unit Trust Management Bhd, which manages the KLCI Tracker Fund, has informed its unitholders the fund will generally invest in the 30 companies in the FBM KLCI. Currently, its funds are invested the 100-stock KLCI components.It has informed the unitholders that they have the right to redeem their unit holdings anytime before the changeover on July 6, if they feel the KLCI Tracker’s objective no longer meets their investment objective. “You have the right to call for a unitholders’ meeting to consider this changeover,” it said.However, a unitholders’ meeting can only be held if the manager receives notice from at least 50 unitholders or one-tenth of all unitholders of the fund, whichever is lower, according to OSK-UOB Unit Trust Management.Would the revamp of the FBM KLCI see fund managers focusing on the top 30 companies with the 70 which have been left out becoming less important? ECM Libra Investment Bank head of equities research, Ching Weng Jin, said it depended very much on the mandates of the funds.“For index-linked funds, the fund managers would have to follow the 30 stocks in the FBM KLCI for benchmarking purposes.“But for performance purposes, there will still be some focus on the other 70 companies. While IJM Corp Bhd, Gamuda Bhd, S P Setia Bhd will not be in the new benchmark, most funds would still be invested in these companies,” he said.Ching added that for foreign funds, they would be driven more by performance. “If it is in either one of the indices, and if it is large and liquid enough, they will invest in those companies which are performing. “Most times, they follow the MSCI Index,” he added.

Another research head expected the changeover to be a non-event as many local funds would rather follow the 100 stocks currently in the KLCI. A local fund manager said many funds were using the FBM100 instead of the current FBM30 as “the latter is too concentrated, while demand for the other 70 stocks is still good”.

Another fund manager said there would be some portfolio restructuring. With the FBM KLCI, he said liquidity would be important and “hence, those with single large shareholders may lose out”.

Bursa Malaysia marginally up at Midday 29 June 2009

The local bourse was marginally up with the benchmark KLCI rising barely over a tenth of a percent at midday Monday while markets in the region were mixed. At the midday break, the KLCI was 0.14% higher at 1,077.31 while Singapore’s Straits Times Index was 0.03% down at 2,317.27.

Tokyo’s Nikkei 225 fell 0.38% to 9,839.79 and Hong Kong’s Hang Seng Index lost 0.30% to 18,544.18. Shanghai’s A share index gained 0.61% to 2,946.04 and Seoul’s Kospi Index added 0.32% to 1,399.04.

At Bursa Malaysia, 180 counters were up, 257 were down and 218 others were traded unchanged. There were 462.95 million shares done with a total value of RM470.45 million. Bank stocks Maybank added 5 sen to RM5.85, Public Bank gained 10 sen RM9 while its foreign tranche rose 20 sen to RM9.05, AMMB added 4 sen to RM3.46, BCHB lost 5 sen to RM9.05 and Alliance Financial dropped 4 sen to RM2.28.

Among plantation stocks, Sime gained 10 sen to RM7, KL Kepong dropped 10 sen to RM12 and United Plantations was 10 sen higher at RM12.60.
YTL was up 10 sen at RM7 and Genting lost 10 sen to RM5.80. MISC added 10 sen to RM8.65 while its foreign tranche fell 10 sen to RM8.55. Shell gained 10 sen to RM10.30. MAS fell 12 sen to RM3.08 and AirAsia was 2 sen lower at RM1.15. TM gained 3 sen to RM2.94 and TimedotCom was up 2.5 sen to 42.5 sen. Puncak dropped 10 sen to RM3.20 and BAT rose 75 sen to RM44.50.

Nymex crude oil dropped 33 cents to US$68.83 per barrel.
Crude palm oil third-month futures fell RM48 to RM2,271 per tonne.
The ringgit was quoted at 3.535 to the US dollar.

4529 Leader Universal Holdings

Leader Universal Holdings Berhad (4529 LEADER) is the investment holding company of the LEADER Group and is listed on the Bursa Malaysia Securities Berhad. LEADER was established in 1988 to implement a merger exercise between Leader Cable Industry Berhad and Universal Cable (M) Berhad, two of the largest cable companies in Malaysia.The union of these two giants propelled the Group into becoming the largest wire and cable producer in Malaysia and in the ASEAN region.

The Group also reaped other benefits in terms of production capacity, manufacturing technology and product research.

To uphold our commitment to product excellence and manufacturing efficiency, acquiring the latest technology and hi-tech machinery remains a strong priority. By making this discerning move we have successfully transformed our manufacturing facilities into top-class plants in the country.

CORPORATE PHILOSOPHY
L e a d e r s h i p in giving the best at all times to enhance our position as a leading corporate entity.

E q u a l i t y of opportunities for all our people to participate in the growth of the Company.
A d v a n c e m e n t for the realization of both the Company’s and individual’s goals.
D i v e r s i f i c a t i o n of strength through new ventures and technological breakthrough.
E x c e l l e n c e in providing quality products and services to meet our customers’ needs.
R e w a r d s for the commitment of working towards the Company’s goal of creating value for our customers.

Updates

Leader Universal Holdings >>> its joint venture Cambodia International Investment Development Group Co., Ltd was granted the rights by the Cambodian authorities to plan and negotiate for the development of the 700MW coal-fired power generation facility in Sihanoukville, Cambodia.

Bear Market Billionaires >>> Ronald Burkle

In a time where billionaires are losing bundles of money as the economic down turn squeeze the life out of their fortunes; some billionaires are rebuilding their fortunes in recent bear market rally, one in particular is Ronald Burkle ........

Eight months ago, as panic gripped Wall Street, billionaire investor Ronald Burkle waited patiently. Then, on Nov. 24, he pounced, buying up hefty stakes in bookseller Barnes & Noble and grocery chain Whole Foods, two brand names the market had severely punished.

The cases were compelling. Whole Foods shares were down 90% from their 2006 high, yet the company had managed to grow its revenue by 40% since then. Still, with consumers humbled by the ailing economy, many believed high-end grocery stores would be left for dead.

Nonetheless, Burkle's bet--that the companies' underlying financials outweighed common-sense notions about how cash-strapped consumers would behave in the short term--paid off. Since late last year, Whole Foods shares are up 85% while Barnes & Noble stock is up 80%. The value of Burkle's $165 million investment (made via his investment outfit, Yucaipa Cos.) has ballooned to $305 million.

Burkle declined to comment for this story.

Profile : Ronald Burkle

Age: 53

Fortune: self made

Source: Investments

Country Of Citizenship: United States

Residence: Los Angeles, California, United States, North America

Industry: Investments

Marital Status: divorced, 3 children

High School, Diploma

Former bag boy founded investment company Yucaipa 1986; made fortune with leveraged buyouts of supermarket chains Fred Meyer, Jurgensen's, Ralph's. Dealmaking ever since. Recent transactions: invested $100 million in Sean (P. Diddy) Combs' Sean John clothing line; sold majority stake in food supplier Golden State Foods to Wetterau Associates, of St. Louis, for $110 million. Also big stake in Pathmark grocery stores. Longtime Democratic fundraiser a close friend of Bill Clinton; former President calls Burkle's 757 private jet "Ron Air."

KLCI reverses course to stay above key 1,050 support level

RENEWED buying support in key heavyweight index-linked counters helped to reverse the falling trend on Bursa Malaysia. The Kuala Lumpur Composite Index (KLCI) continued to stay above its critical support of 1,050 when it closed at 1,075.77 points yesterday.

The KLCI opened marginally higher at 1,061.88 points before drifting lower to its intra-day low of 1,040.40 on Monday. The KLCI closed at 1,045.97 points, giving a day-on-day loss of 13.53 points, or 1.28 per cent. It continued to fall further on the weak performances on Wall Street and regional stock markets on Tuesday. The KLCI staged a late-day rebound to close at 1,044.48 points, giving a day-on-day loss of 1.49 points, or 0.14 per cent.Renewed buying support in key heavyweight index-linked counters sent the KLCI higher on Wednesday. The KLCI closed at 1,057.85 points, giving a day-on-day gain of 13.37 points, or 1.28 per cent.

Continuing buying support on key heavyweight index-linked counters' sent the KLCI above its 1,070 level on Thursday. The KLCI closed grossly higher at 1,074.11 points, recording a day-on-day gain of 16.26 points, or 1.54 per cent. The KLCI consolidated at around the overnight level yesterday. It closed at 1,075.77 points, giving a day-on-day gain of 1.66 points, or 0.15 per cent.

On the foreign front, the Dow Jones Industrial Average (DJIA) continued to consolidate its recent gains over the last four trading days.

The DJIA closed at 8,472.40 points on Thursday, giving a four-day loss of 67.33 points, or 0.79 per cent. The tech stock heavy Nasdaq Composite Index continued to maintain its technical composure above its support of 1,800. It closed at 1,829.54 points on Thursday, recording a four-day gain of 51.08 points, or 2.75 per cent. Dow closed Friday at 8438.39 down -34.01 or 0.4%

The Tokyo stock market trended within tight trading range. The Nikkei 225 Index closed at 9,877.39 points yesterday, giving a week-on-week gain of 91.13 points, or 0.93 per cent.

The Hong Kong stock market maintained its technical composure above its critical support of 18,000 points. The Hang Seng Index closed at 18,600.26 points, posting a week-on-week gain of 679.33 points, or 3.79 per cent.

The KLCI rebounded towards the later part of the week to close at 1,075.77 points yesterday, giving a week-on-week gain of 16.27 points, or 1.54 per cent.

The FTSE Bursa Malaysia Second Board Index eased 15.35 points, or 0.32 per cent to 4,798.80 level while the FTSE Bursa Malaysia Mesdaq Index lost 22.54 points, or 0.54 per cent, to 4,116.97 level.

Following are the readings of some of the KLCI's technical indicators: Moving Averages: The KLCI had since stayed above its 10-, 20-, 30-, 50- 100- and 200-day moving averages.

Momentum Index: Its short-term momentum index stayed below 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.

Relative Strength Index: Its 14-day RSI stood at the 60.03 per cent level yesterday.

Outlook

The KLCI's brief and short technical pullback hit its intra-week low of 1,028.14 on Tuesday, staging a successful re-test of the envisaged support zone (1,022 to 1,056 levels). Subsequent technical rebounds sent the KLCI to its intra-week high of 1,081.83 yesterday, moving into the confines of the envisaged resistance zone (1,062 to 1,096 levels).

Despite a sharp technical pullback last week and the rebounds during the week, the KLCI continued to stay comfortably above its immediate downside support (See KLCI's weekly chart - A3:A4). It continued to stay above its resistance-turned-support trendline (A7:A8).

Chartwise, the KLCI's daily trend continued to stay below the support of its revised intermediate-term uptrend (See KLCI's daily chart - B7:B8) over the last five trading days. It stayed decisively above its intermediate-term downtrend (B5:B6).

The KLCI's weekly fast MACD (moving average convergence divergence) indicator stayed above its weekly slow MACD yesterday. Its daily and monthly fast MACDs continued to stay marginally below their respective slow MACDs. The KLCI's 14-day RSI stayed at 60.03 per cent level on Thursday. Its 14-week and 14-month RSI stayed at 65.97 and 50.61 per cent levels respectively. Last week, this column commented that key heavyweight index-linked counters would continue to maintain their technical composure in holding the KLCI from slipping further. It did.

The KLCI managed to reverse to the upside after hitting its intra-week low of 1,028.14 on Tuesday.The KLCI is likely to hold on to its technical composure in its run-up to the window-dressing exercise on June 30.

Thereafter, the KLCI will ease off to consolidate its recent gains during the later part of next week.

Next week, the KLCI's envisaged resistance zone hovers at the 1,079 to 1,113 levels while its immediate downside support is at the 1,038 to 1,072 levels.

The subject expressed above is based on technical analysis and opinions of the writer. It is not a solicitation to buy or sell

US Stocks End Mixed on Consumer Spending Data

Stocks finished mostly lower riday as investors worried that consumFers are saving money rather than spending it, a dynamic that could prolong the recession, which is now well into its second year.

Today’s Markets

The Dow Jones Industrial Average fell 34.01 points, or 0.40%, to 8,438.09, the Standard & Poor’s 500 fell 2.45, or 0.27%, to 917.81, the Nasdaq Composite rose 8.68, or 0.47%, to 1,838.22. Volume was light. Just over 1 billion shares traded on the New York Stock Exchange.

The Dow Jones industrial average closed the week down 101.34, or 1.2 percent, at 8,438.39. The Standard & Poor's 500 index fell 2.33, 0.3 percent, to 918.90. The Nasdaq composite index rose 10.75, or 0.6 percent, to 1,838.22.

The Commerce Department reported that personal spending, incomes and savings all rose in May. The troubling part to investors, though, was that the savings rate soared to 6.9%, a 15-year high, while spending rose by a modest 0.3%. It was a volatile week for the stock market. After four straight days of losses, the Dow Jones industrial average rebounded by nearly 200 points, or 2.1% , on Thursday. A day later, traders skimmed some profits from that jump ahead of the weekend, analysts said.

The trend suggests consumers are being very careful with their money. That's good for the individual, but not great for the overall economy in the short-term.

But some market watchers predicted that technical factors would prevent a broad selloff, and their predictions proved right.

Specifically, explained Marc Pado, U.S. market strategist for Cantor Fitzgerald, as the end of the second quarter approaches, many fund managers will seek to gain positions in stocks that have been performing well during the recent stock market rally. That will provide a foundation that will keep stocks from collapsing. “They’re running out of time. They’ve got to show they’re putting their clients’ money to work,” said Pado.

Data Dump The markets, after opening lower, responded positively to some welcome news: the University of Michigan reported a rise in consumer sentiment in June. Analysts had anticipated a flat reading. Government bond prices rose modestly. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.51 percent from 3.54 percent late Thursday.

TECHNICAL ANALYSIS >>> Composite Index 26/06/2009 / 综合指数 2009年 6月 26日

Composite Index Daily Technical Analysis 26/06/2009

Due to the overnight gains of the Dow Jones Industrial Average, the KLCI opened higher on Friday, but soon it started to decline as profit taking activities kicked in. The KLCI closed 1.66 higher to 1075.77 points. Resistance for the KLCI remains at 1095.91 Fibonacci Retracement while the supports are at the Bollinger Middle Band as well as the 1035 Fibonacci Retracement.
As indicated by A, the Bollinger Bands Width contracted another 6%, suggesting that the KLCI is likely to consolidate, and the consolidation is expected to continue all the way until the Bollinger Bands Width should re-expand.

As indicated B, total market volume declined 19.4%, with volume below the 40-day VMA level. This shows that the market overall participation is still low, as the investors' confidence has not totally recovered. Therefore, as long as the volume is still below 40-day VMA level, the KLCI is less likely to regain its strength.

As circled at C, the Stochastic continued to climb on Friday but failed to break above 70%. Therefore, the Stochastic has not suggested a bullish biased signal for the KLCI. Generally, Stochastic has to break above and remain above 70% to signal a short term bullish signal. On the other hand, if the Stochastic should fall and break below 50%, it would be a signal suggesting the KLCI short term is weakening.
Since rebounding from the 1035 Fibonacci Retracement, the KLCI has risen for 4 days. However, the Bollinger Bands Width remains contracting, and therefore, did not suggests any bullish signal. When the Bollinger Bands Width is contracting, it suggests that the KLCI is preparing for a new movement, and the direction of the new movement shall only be revealed once the Bollinger Bands Width re-expands.

综合指数 2009年 6月 26日

由于美国道指隔夜上扬，综合指数周五开高，随后出现套利导致综指一度下跌至1071点的盘中最低水平，最后以1075.77点挂收，按日涨1.66点。综指阻力水平依然是1095.91点的胜图自动费氏阻力线，支持水平则是布林中频带的动态支持线及1035点的胜图自动费氏支持线。

如图中箭头A所示，布林频带进一步的收窄6%，这表示综指依然没有出现转强的讯号，接下来若布林频带继续收窄，那综指将进入巩固的格局，直到布林频带重新打开为止。

如图中箭头B所示，马股总成交量周五减少19.4%，使到成交量继续低于40天的成交量平均线（VMA），这表示目前市场正缺乏新的买盘，所以马股交投有转入淡静的迹象，接下来若成交量依然处于40天的成交量平均值以下，综指将难以转强。

如图中C圈所示，随机指标（Stochastic）继续上扬，惟未能突破70%水平，这表示综指短期还未真正进入涨势。随机指标必须上扬突破并保持在70%水平以上，综指短期才有望转强。相反的，若随机指标开始回软并跌破50%水平，那便是综指短期再度转弱的讯号。

综指自1035点胜图自动费氏线反弹以来，一共上扬4天，惟布林频带依然收窄，所以未能显示综指完全转强。一般上，当布林频带收窄时，这表示综指正酝酿着一个新的走势，等到布林频带重新打开时便是综指新走势的开始，届时再以综指处于布林中频带以上或以下来判断综指进入涨势或跌势。

KLCI claws back midday losses 26 June 2009

The local bourse ended Friday’s trade in positive territory after clawing back losses from earlier in the day with the KLCI up marginally.
Markets in the region were also up with Hong Kong’s Hang Seng Index rising 1.78% to close at 18,600.26.

The KLCI was 0.15% higher at 1,075.77 at 5pm.
At Bursa Malaysia, 323 counters were up, 293 counters were down and 234 others were traded unchanged. There were 1.20 billion shares done with a total value of RM1.24 billion. The KLCI rose eight points in the morning, but ended just 1.7 points up at 1,075.8. Market breadth was mixed with advancing stocks edging our declining ones by a very slim margin.

The relatively flat performance on Friday came after two days of very strong gains – where the KLCI rose a total of 29 points on Wednesday and Thursday alone. Thus, some investors could have opted to lock in their gains ahead of the weekend.

Bargain hunting has increased in recent days and the KLCI appears to find support above the 1,050 mark. However, sentiment is still generally cautious. For the week, the benchmark index gained a total of 16.3 points or 1.5%.

Investors are unsure whether the intermittent rallies are just technical in nature during a correction phase, or if they are related to the mid-year book closing exercise. New leads are needed and expectations are much higher now after the rally.

BCHB was up 15 sen to RM9.10, Public Bank gained 10 sen to RM8.90, Maybank dropped 10 sen to RM5.80 and Hong Leong Financial Group was 12 sen lower at RM4.98.
TNB lost 5 sen to RM7.75, Petronas Dagangan fell 20 sen to RM8.30, Shell shed 30 sen to RM10.20 and MMC rose 9 sen to RM2.09.
Measat surged 23 sen to RM1.93, Astro advanced 18 sen to RM3.22 and Tanjong rose 20 sen to RM13.70. TM was 3 sen lower at RM2.91, DiGi gained 20 sen to RM22.20 and TimedotCom added 1.5 sen to 40 sen.
Genting Plantations fell 15 sen to RM5.50, Sime gained 5 sen to RM6.90,

IOI was 2 sen higher at RM4.70 and KL Kepong added 10 sen to RM12.10. BAT dropped 50 sen to RM43.75 and Panasonic Malaysia fell 10 sen to RM11.90.
Nymex crude oil was up 87 cents to US$71.10 per barrel.
Crude palm oil third-month futures fell RM23 to RM2,313 per tonne.
The ringgit was quoted at 3.532 to the US dollar.

KLCI in red midday, GBH in focus 26 June 2009

The KL Composite Index slipped into the red at midday on June 26 as investors sold Maybank, Genting, Petronas Dagangan and Tenaga. However, Goh Ban Huat (GBH) was in focus after businessman Tan Sri Tan Hua Choon, or better known as Robert Tan, launched a surprise conditional takeover for the company.At 12.30pm, the KLCI was down 0.15% or 1.56 points to 1,072.55, off its intra-morning high of 1,081.83.Turnover was 699.84 million shares valued at RM594.71 million. Losers led gainers by 288 to 225, while 225 counters traded unchanged.Regional markets were generally positive, with Hong Kong's Hang Seng Index up 1.1% to 18,476.29, Japan's Nikkei 225 up 0.81% to 9,875.90, Singapore's Straits Times Index up 0.85% to 2,321.96, Taiwan's TAIEX Index up 0.44% to 6,486.10 and the South Korean Kospi up 0.19% to 1,395.31.

The Shanghai Composite Index fell 0.25% to 2,917.76.Crude palm oil fell RM18 per tonne for the August and September deliveries respectively to RM2,324 and RM2,318, respectively.Crude oil gained 42 cents per barrel to US$70.65 at midday.Among the major losers, Maybank, IJM Corp and Bursa fell 10 sen each to RM5.80, RM5.60 and RM7, respectively, while Genting, Tenaga and Petronas Gas lost 5 sen each to RM5.80, RM7.75 and RM9.75, respectively.Petronas Dagangan fell 25 sen to RM8.25, MSHB lost 6 sen to RM3.14, IOI Corp fell 2 sen to RM4.66 while PLUS Expressways declined 4 sen to RM3.20.

Among the major gainers, Sime Darby, BCHB and Public Bank added 5 sen each to RM6.90, RM9 and RM8.85, respectively, while Tanjong Plc gained 30 sen to RM13.80.KL Kepong was up 10 sen to RM12.10, YTL Corp and UMW gained 5 sen each to RM6.90 and RM5.95, while Astro added 6 sen to RM3.10.GBH surged 31 sen to RM1.36 after businessman Tan offered RM1.25 cash per share for loss-making GBH, which was 20 sen above June 25's traded price of RM1.05 before it was suspended for the takeover announcement. The offer for the outstanding 43.06 million shares or 69.55%, will cost him about RM54 million