ZLBT Morning Views : Bursa Malaysia + Wall Street

Malaysian Market May Extend Losing Streak
The Malaysian stock market has finished lower now in consecutive trading days, although it has fallen just over a point in that span. The Kuala Lumpur Composite Index finished just above the 1,580-point plateau, and now analysts are forecasting continued if mild easing at the opening of trade on Wednesday.

The global forecast for the Asian markets is mixed with a hint of weakness following persistent debt concerns in Europe. Commodities figure to provide support - gold and crude oil, in particular - while airlines and financials are expected to slide under pressure. The European and U.S. markets finished mostly lower but little changed, and the Asian markets are tipped to follow that lead.

The KLCI finished flat again on Tuesday, nudged into the red by softness from the financial shares.

For the day, the index eased 0.50 points or 0.03 percent to finish at 1,581.85 after trading between 1,580.38 and 1,584.83. Volume was 728.6 million shares worth 1.46 billion ringgit. There were 386 decliners and 319 gainers, with 330 stocks finishing unchanged.

Among the actives, CIMB finished lower, while Maybank was unchanged and United Plantations and CI Holdings ended higher.

The lead from Wall Street provides little clarity as stocks showed a lack of direction throughout the trading day on Tuesday, with traders reluctant to make any significant moves following last week's rally. Light trading activity after the long holiday weekend also contributed to the lackluster performance.

In economic news, Malaysia's exports were up 5.4 percent year-on-year in May to 55.09 billion ringgit, the Ministry of Trade and Industry said on Tuesday, well below the 11 percent expansion forecast by economists. From April, exports fell by 4.7 percent. The monthly fall was mainly due to lower exports of liquefied natural gas and refined petroleum products.

At the same time, imports rose 5.6 percent annually. This was also weaker than the consensus forecast of 8.6 percent. On a monthly comparison, imports dipped 0.4 percent. A trade surplus of 8.49 billion ringgit was recorded in May, making it the 163rd consecutive month of trade surplus since November 1997. 

WALL STREET : DJIA Settle Shy of Breakeven

Light post-holiday volume kept U.S. stocks close to breakeven today, with the major market indexes sticking near the flat line through the final bell. Early in the session, a few buyers trickled in on the heels of a solid report on factory orders, though the resulting optimism was thin at best. Furthermore, a round of corporate deal-making barely fanned the bullish flames, with traders shrugging off acquisition-related news surrounding Southern Union (SUG), Immucor (BLUD), Western Union (WU), and OM Group (OMG), to name a few. Meanwhile, Moody's afternoon downgrade of Portugal's debt rating tipped the scales in the bears' favor, with the Dow Jones Industrial Average (DJIA) and S&P 500 Index (SPX) snapping their five-session winning streaks. However, not all was lost; the tech-rich Nasdaq Composite (COMP) ended in the black for the sixth straight session, while both crude oil and gold futures settled at multi-week highs.

The Dow Jones Industrial Average (DJIA – 12,569.87) finished a wishy-washy session with a loss of 12.9 points, or 0.1%. All but 10 of the Dow's 30 components ended lower, led by Hewlett-Packard's (HPQ) 1.6% drop. Meanwhile, Chevron Corp. (CVX) paced the bullish minority, following black gold higher for a gain of 1%.

The S&P 500 Index (SPX – 1,337.88) followed suit, surrendering 1.8 points, or 0.1%, by the closing bell. Like the Dow, the SPX hovered around breakeven for most of the session, though its upward momentum stalled in the 1,340 neighborhood. Finally, the Nasdaq Composite (COMP – 2,825.77) fared the best of its peers, adding 9.7 points, or 0.4%, to end at its highest price since May 31.

HAPPY TRADING

ZLBT Morning Views >>> Bursa Malaysia + Wall Street

Bursa Malaysia : Optimistic Day For KL Stocks
The Malaysian stock market has finished higher now in back-to-back sessions, rising 8 points or 0.5 percent in that span. The Kuala Lumpur Composite Index ended just above the 1,566-point plateau. However, traders are bracing for a mild correction to the downside when the market opens on Thursday. due to the DJIA overnite 80.3 points losses. Optimistically, some follow-up momentum of recent sessions should come into play when the local bourse dips as limited selling pressure was evident.

The global forecast for the Asian markets is firmly negative following downbeat economic news from the United States. Airlines figure to lead the markets lower, along with retail stocks and financials - although gold may provide some support. The European and U.S. markets finished under pressure, and the Asian markets also are expected to track to the downside.

The KLCI finished modestly higher on Wednesday following slim gains from the financial shares, industrial issues and plantation stocks.

For the day, the index added 6.56 points or 0.42 percent to finish at 1,567.35 after trading between 1,559.95 and 1,567.35. Volume was 847.12 million shares worth 1.52 billion ringgit. There were 383 decliners and 362 gainers.

Among the actives, Genting Malaysia, Lion Corporation and CIMB Group all finished higher, while KBB Resources and Maybank were unchanged and MAA Holdings and Petronas Chemicals ended lower.

The lead from Wall Street suggests consolidation as stocks came under pressure on Wednesday after showing a lack of direction throughout much of the day. The pullback was partly due to news that the Federal Reserve lowered its forecast for U.S. economic growth.

Wall Street : DJIA Succumbs To 11th Hour Sell-off
The Feds Trimmed Growth Forecast For 2011 & 2012
The central bank occupied the spotlight throughout the session, as a midday interest rate decision from the Federal Open Market Committee (FOMC) was followed by an afternoon press briefing with Chairman Ben Bernanke. The FOMC stood pat on rates, to no one's surprise, and confirmed that its $600 billion bond-buying program -- dubbed "QE2" -- is on track to conclude at the end of the month. What's more, the Fed trimmed its 2011 and 2012 growth estimates for the U.S. economy, and simultaneously nudged its core inflation forecasts higher. "We don't have a precise read on why this slower pace of growth is persisting," admitted Bernanke during his Q&A session. "One way to think about it is that maybe some of the headwinds that have been concerning us -- like weakness in the financial sector, problems in the housing sector, balance sheets and deleveraging issues -- some of these headwinds may be stronger, more persistent than we thought." After spending most of the day churning aimlessly around the breakeven line, the major market indexes responded to Bernanke's cautious comments by dropping decisively lower during the final hour of the session, unceremoniously ending a four-day winning streak.

The Dow Jones Industrial Average (DJIA – 12,109.67) ended on a loss of 80.3 points, or 0.7%, as 28 of its 30 components succumbed to the late-day sell-off. Boeing (BA) gave up 2.5% to lead the laggards, while American Express (AXP) and Coca-Cola (KO) were the only two blue chips to close higher. As a result of today's decline, the Dow sacrificed its short-lived foothold above its 20-day moving average -- but the index remains north of both its 10-day trendline and the 12,100 level.

After rising as high as 1,298 shortly after Bernanke started speaking, the S&P 500 Index (SPX – 1,287.14) shed 8.4 points, or 0.7%, to end up sandwiched between its own 10-day and 20-day moving averages. The Nasdaq Composite (COMP – 2,669.19) kept pace with its peers by losing 18.1 points, or 0.7%, but notched a second straight daily close above its 10-day trendline.

HAPPY TRADING & GOODLUCK2ALL

ZLBT Morning Views >>> Bursa Malaysia + Wall Street

Malaysian Stocks To Test 1550 Support Again
The Malaysian stock market has finished lower in back-to-back sessions, although it has lost just 8 points or 0.5 percent in that span. The Kuala Lumpur Composite Index finished just above the 1,550-point plateau, and now analysts are forecasting a neutral / steady open for the market on Wednesday with market sentiments slightly on the downside bias.

The global forecast for the Asian markets offers little guidance as the bourses are expected to pause and catch their breath after several days of selling pressure. Technology stocks and financials are expected to fall, with property stocks providing support. The European markets finished mixed but little changed, while the U.S. bourses ended barely lower - and the Asian markets figure to split the difference.

The KLCI finished flat on Tuesday as gains from the financial shares and plantation stocks were erased by selling among the industrial issues.

For the day, the index eased 0.25 points or 0.02 percent to finish at 1,551.89 after trading between 1,548.30 and 1,553.05. Volume was 705.809 million shares worth 1.339 billion ringgit. There were 428 gainers and 297 decliners, with 324 stocks finishing unchanged.

Among the gainers, Public Bank, CIMB Group, Tradewinds Plantation, Glenealy Plantations, Maybank and Negri Sembilan Oil Palms all finished higher.

The lead from Wall Street is flat with a touch of downside as stocks came under pressure late in the day on the heels of comments from Federal Reserve Chairman Ben Bernanke, pulling the major averages into negative territory. Speaking at the International Monetary Conference in Atlanta, Bernanke indicated that the Fed is likely to leave accommodative monetary policy in place due to slower than expected economic growth.

In economic news, Malaysia's international reserves increased to $132.75 billion as on May 31, Bank Negara Malaysia said on Tuesday. That compares to $132.62 billion as on May 13. The latest reserve position was sufficient to finance 9.3 months of retained imports and 4.4 times the short-term external debt.

Foreign currency reserves rose to $120.6 billion from $120.4 billion. At the same time, IMF reserve position remained unchanged at $0.7 billion and SDR at $2 billion. The value of gold also stayed at $1.7 billion. Other reserves fell to $7.7 billion from $7.8 billion as on May 13. 

WALL STREET : Bernanke Speech Deflates the Bulls; DJIA Surrenders 19 Points
Stocks got off to a solid start this morning, as traders hunted for bargains following four straight sessions of declining prices. In addition, International Paper's (IP) unsolicited bid for Temple-Inland (TIN) helped to lift early sentiment, fueling optimism about the collective corporate purse strings. However, the Street's cheer subsided the closer Ben Bernanke got to the podium, as traders exercised caution ahead of the Federal Reserve chairman's late-session speech.

The Dow Jones Industrial Average (DJIA – 12,070.81) surrendered a healthy lead in the final hour of trading, ending on a loss of 19.2 points, or 0.2%. Cisco Systems (CSCO) led the 14 decliners with a 3% drop, while Intel Corp. (INTC) paced the 15 advancing equities with a gain of nearly 1.1%. Pfizer (PFE), meanwhile, split the difference by ending flat. Today marks the Dow's fifth consecutive down day, as well as its second straight finish south of 12,100.


The S&P 500 Index (SPX – 1,284.94) also performed an about-face in late-session trading, giving up 1.2 points, or 0.1%, by the close. In the same vein, the Nasdaq Composite (COMP – 2,701.56) retreated in the final minutes before the bell, giving up a relatively modest 1 point, or less than 0.1%, to salvage its perch atop the 2,700 level.

HAPPY TRADING & GOODLUCK2ALL

ZLBT Market Round-ups : More Pain Predicted For Malaysian Stocks

Ready For Softness?
The Malaysian stock market on Monday saw an end to the modest two-day winning streak in which it had added just 3 points or 0.2 percent. The Kuala Lumpur Composite Index finished just above the 1,550-point plateau, and now traders are bracing for continued softness when the market kicks off trade on Monday.
The global forecast for the Asian markets remains broadly negative as markets continue to fret over the weak U.S. jobs data plus a fall in commodity prices. Oil and gold stocks figure to fall under pressure, along with properties and financials. The European and U.S. markets finished sharply lower, and the Asian bourses figure to follow suit - especially the ones that were off on Monday.
The KLCI finished modestly lower on Monday following losses from the plantation stocks and financial shares.
For the day, the index shed 7.71 points or 0.49 percent to end at 1,552.14 after trading between 1,551.85 and 1,556.67. Volume was 635.33 million shares worth 972.52 million ringgit. There were 454 decliners and 261 gainers, with 316 stocks finishing unchanged.

Among the actives, Genting, Kuala Lumpur Kepong and BAT finished lower, while Tradewinds and BLD Plantation ended higher.

The lead from Wall Street suggests continued consolidation as stocks saw further downside on Monday after seeing significant weakness last week. Concerns about the outlook for the economy continued to weigh on the markets following last Friday's disappointing employment data.

WALL STREET >>> Broad Market Tailspin
DJIA, SPX Surrender Round-Number SupportThe Dow Jones Industrial Average (DJIA – 12,089.96) extended its pullback as the session progressed, ending with a loss of 61.3 points, or 0.5%, to settle south of 12,100 for the first time since March 23. Financial stocks Bank of America (BAC) and JPMorgan Chase (JPM) paced the 23 decliners with losses of 4% and 2.5%, respectively, while United Technologies (UTX) led the bullish minority by tacking on nearly 0.6%.
The S&P 500 Index (SPX – 1,286.17) also didn't stop the proverbial bleeding until the closing bell, giving up almost 14 points, or 1.1%. Like the Dow, the SPX gave up its perch atop the 1,300 level -- a first since March 23. Finally, the Nasdaq Composite (COMP – 2,702.56) ended with a deficit of 30.2 points, or 1.1%, but found a late-session foothold atop the round-number 2,700 level, which hasn't been compromised on a daily closing basis in more than two months.

TECHNICAL ANALYSIS
Dow Jones Industrial Average
The Dow closed lower on Monday as it extends the decline off May's high. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are oversold but remain bearish signaling that sideways to lower prices are possible near-term. If the Dow extends the decline off May's high, the 62% retracement level of the March-May rally crossing at 12,059 is the next downside target. 
Closes above the 20-day moving average crossing at 12,470 are needed to confirm that a low has been posted. First resistance is the 10-day moving average crossing at 12,333. Second resistance is the 20-day moving average crossing at 12,470. First support is today's low crossing at 12,092. Second support is the 62% retracement level of the March-May rally crossing at 12,059.

Crude Oil Retreats With Stocks
Crude oil futures retreated along with stocks today, thanks to expectations for an output boost from the Organization of Petroleum Exporting Countries (OPEC), which will meet in Vienna later this week. In addition, escalating geopolitical tensions in both Yemen and Syria also contributed to crude's deficit. Against this backdrop, July-dated crude oil futures gave up $1.21, or 1.3%, to end at $99.01 per barrel -- black gold's first finish south of the century mark since May 24.

HAPPY INVESTING & GOODLUCK2ALL

ZLBT Morning Views >>> Bursa Malaysia + Wall Street

Tight Range Expected For Malaysia Stocks
The Malaysian stock market on Tuesday snapped the two-day losing streak in which it had retreated more than 15 points or 1 percent. The Kuala Lumpur Composite Index finished just above the 1,530-point plateau, and now traders are expecting the market to hold steady in that neighborhood when it kicks off trade on Wednesday.
The global forecast for the Asian markets is mixed with a touch of downside thanks to persistent debt concerns in Europe and a mixed batch of economic news from the United States. Oil and gold stocks are expected to rise, while airlines and technology stocks are expected to ease. The European markets finished higher and the U.S. bourses ended lower, and the Asian markets figure to split the difference.

The KLCI finished slightly higher on Tuesday following slim gains from the financial shares, industrial issues and plantation stocks.

For the day, the index added 3.14 points or 0.21 percent to finish at 1,532.12 after trading between 1,525.71 and 1,533.22. Volume was 812.197 million shares worth 1.54 billion ringgit. There were 437 gainers and 312 decliners, with 311 stocks finishing unchanged.

Among the actives, Tenaga Nasional, Petronas Chemicals, RHB Capital, YTL Power, Telekom Malaysia, Axiata and IOI Corporation all finished higher, while Maxis was unchanged and Maybank and CIMB Group ended lower.

The lead from Wall Street suggests minor consolidation as stocks showed a lack of direction on Tuesday, with traders reluctant to make any significant moves following the previous day's selloff. The markets eventually ended the session on the downside, extending a recent downward trend.

Wall Street : Dismay Data Downer; Dow Extend Losing Streak
Stocks struggled to pick a direction today, with all three major market indexes hemming and hawing around the breakeven line. In the bulls' corner, traders cheered a dose of surprisingly pleasant housing data, while energy-related equities made headway in the wake of an upwardly revised crude forecast from Goldman Sachs. However, another discouraging report on manufacturing rained on the bulls' parade, as did a federal report showing a growing number of problem banks. The lingering concerns about European debt merely tipped the scales in the bears' favor, with stocks settling in the red for the third straight session.


The Dow Jones Industrial Average (DJIA – 12,356.21) ended a wishy-washy session with a loss of 25.1 points, or 0.2%, as 21 of its 30 components finished lower. General Electric (GE) led the bearish majority with a 1.5% deficit, while oil concern Chevron Corp. (CVX) paced the nine advancing equities with a gain of 0.9%.

The S&P 500 Index (SPX – 1,316.28) also settled a volatile session in the red, surrendering 1.1 points, or 0.1%, by the close. In similar fashion, the Nasdaq Composite (COMP – 2,746.16) suffered the steepest loss, giving up 12.7 points, or 0.5%, to end near a session low. What's more, today marks the COMP's first finish south of the 2,750 level since April 19.

Crude Oil Rebound 1.9%
Crude futures ended higher today -- though black gold failed to finish atop the key century mark. Boosting the commodity was an ailing dollar, as well as an upwardly revised forecast from Goldman Sachs. "Although the growth environment is clearly slower than the one before the unrest began and downside risks remain in the near-term, we expect oil prices to move substantially higher over the next 18 months," the analysts wrote, citing the loss of production in war-torn Libya. Against this backdrop, crude oil for July delivery added $1.89, or 1.9%, to settle at $99.59 per barrel.

HAPPY TRADING & GOODLUCK2ALL

ZLBT Morning Views >>> Bursa Malaysia

Malaysian Stocks May Face Renewed Selling Pressure

The Malaysian stock market turned right back to the upside again on Friday, one session after it had ended the three-day winning streak in which it had collected more than 20 points or 1.3 percent. The Kuala Lumpur Composite Index finished just above the 1,540-point plateau, and now analysts are forecasting a soft start for the market when it opens on Monday.

The global forecast for the Asian markets suggests consolidation on continued unrest in the Middle East and debt concerns in Europe. Steel companies figure to bear the brunt of the damage, along with financials and technology stocks. The European markets were mixed on Friday and the U.S. bourses were sharply lower - and now the Asian markets also are expected to track to the downside.

The KLCI finished modestly higher on Friday as gains from the financial sector were dented by selling among the industrials and plantation stocks.

For the day, the index collected 8.45 points or 0.55 percent to finish at 1,540.74 after trading between 1,532.94 and 1,545.21. Volume was 1.18 billion shares worth 1.71 billion ringgit. There were 499 gainers and 258 decliners, with 303 stocks finishing unchanged.

Among the actives, CIMB Group, Sime Darby, Maybank, Genting, Axiata and Hong Leong Bank all finished higher.

The lead from Wall Street is negative as stocks moved sharply lower over the course of the trading day on Friday. Renewed concerns about the financial situation in Europe contributed to the weakness on Wall Street along with some strength in the value of the U.S. dollar.

Wall Street major averages moved roughly sideways in afternoon trading, stuck firmly in negative territory. The Dow fell 100.17 points or 0.8 percent to 12,595.75, the NASDAQ dropped 34.57 points or 1.2 percent to 2,828.47 and the S&P 500 slid 10.88 points or 0.8 percent to 1,337.77. With the lower close on the day, the Dow and the S&P 500 posted modest weekly losses of 0.3 percent and 0.2 percent, respectively, while the NASDAQ was nearly unchanged for the week.

HAPPY TRADING & GOODLUCK2ALL

Bursa Malaysia >>> April Market Revisited

APRIL 2011 MARKET REVIEWS
Bursa Malaysia shares fell back into base building mode in April, forcing the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) to pull back from a fresh three-month high, after China raised interest rates on rising inflation concerns, increased euro zone woes and lower IMF forecast for global growth. The ruling coalition’s success in securing a two-third majority in the Sarawak state elections, announcement of seven new EPP projects by the PM and the strong ringgit which appreciated to a new 13-year high however failed to kick-start a lack-luster market bent on consolidation.

For the month of April, the FBM KLCI slipped 10.18 points or 0.66% to close at 1,534.95, with losses on IOI Corp (-47sen), Maybank (-21sen), Tenaga (-24sen) and Sime Darby (-21sen) offsetting gains on Genting Bhd (+56sen) and YTL Corp (+17sen). Average daily traded volume and value for April moderated marginally to 1.24bn shares worth RM1.67bn, compared with the 1.25bn and RM1.74bn average in March.

Small cap stocks fell back into hibernation mode, but the FTSE Bursa Malaysia Small Cap (FBMSC) index, a capitalization weighted index of the top 98% of main board stocks, excluding the FTSE Bursa Malaysia 100 (FBM100) index, managed to add 105.61 points, or 0.8% in April to 13,102.1. The FTSE Bursa Malaysia EMAS (FBMEMAS) index, a capitalization weighted index of stocks in the FBM100 and FBMSC, retraced 36.37 points, or 0.3% to 10,576.09. Year-to-date, the FBMSC appreciated 3.78% while the FBMEMAS is up 1.94%.

The table below depicts the performance of KLCI, FBM Emas and FBM Small Cap Indices compared with major global and regional stock indices for the month of April and year-to-date.

The FBM KLCI Stalled Below 1,565 in April

SMA 50-day and 100-day Cushion Downside

The FBM KLCI formed a short-term double-top early last month (Chart 1), peaking at 1,565.04 on 4 April and 1,563.43 on 8 April, prior to a dip to extreme low of 1,514.94 on 19 April, before ending above the 50-day moving average line (in green). The 1,565 high ties in with the 38.2% Fibonacci Projection of the upswing from 1,445 low of Sept 2010 to the previous 1,532 peak of Nov 2010, while downside for the index was adequately cushioned by the 50-day and 100-day (in red) moving averages.

FIBONACCI FAN TARGETS & PROJECTIONS

The April consolidation has forced the signal line on the weekly MACD indicator to hook down again on the weekly chart (Chart 2), suggesting potential further consolidation in May. Nonetheless, a breakout above the January peak of 1,576 is foreseen by the second half of the year, which would lift the index up to record heights. Using the Fibonacci Projection method, upon a successful breakout, the subsequent upside targets are 1,655, 1,704, 1,743, 1,782 and 1,831, which are the respective 23.6%FP, 38.2%FP, 50%FP, 61.8%FP and 76.4%FP of 1,243 low (27 May 2010) to 1,576 high (6 Jan 2011). These projected upside targets are likely to be met as the market trade towards 2012.

Base and Best Case Upside to 1,813/2,043 by Jan 2012

Looking ahead on the monthly KLCI chart below (Chart 3), we maintain our base case upside projection for extended wave (3) rally to target of 1,813, assuming the prior wave 3 rally (from 548 low of April 2001 to 1,525 peak of January 2008) equals the current up-wave from 836 low, that is (1,525 - 548 = 977 + 836 = 1,813). Our best case upside projection is 2,043 by Jan 2012, assuming wave (3) equals 1.236X of wave 3.

Conclusion : KLCI Target 1,813 (Base Case) and 2,043 by Jan 2012 (Best Case)

We maintain that the recent correction from the Jan 2011 peak of 1,576 ended at the double-bottom support of 1,474, confirming our best case scenario for downside termination. As such, the index should resume the wave (3) rally from the March 2009 low of 836, and aim for upside target of 1,813 (base case) and 2,043 (best case) by Jan 2012, assuming wave (3) equals 1.236X of wave 3. The months of May and June were quite mixed, translating to a mixed 2Q performance, but with a reasonable 2% average return for the period.

HAPPY WEEKEND

ZLBT Morning Views >>> Malaysian Stocks May Extend Losses

Bulls Cautious Of Bear's Ambush

The Malaysian stock market has finished lower in consecutive trading days, easing just 4 points or 0.3 percent in that span. The FBM KLCI Benchmark Index finished just above the 1,530-point plateau, and now traders are bracing for further if mild downside at the opening of trade on Wednesday. Bursa expected to drift without new leads or catalysts to boost sentiments.

The global forecast for the Asian markets calls for consolidation with metal stocks and other resource plays expected to see selling pressure - although financials may provide a bit of support on bargain hunting. The European markets ended lower and the U.S. bourse finished mixed, and the Asian markets also figure to track to the downside.
 

The FBM KLCI finished slightly lower again on Tuesday as softness from the financial shares and industrial issues was offset by gains from the plantation stocks.
For the day, the index eased 3.48 points or 0.23 percent to finish at 1,531.47 after trading between 1,530.05 and 1,537.85. Volume was 1.007 billion shares worth 1.247 billion ringgit. There were 519 decliners and 255 gainers, with 262 stocks finishing unchanged.

Among the actives, Maybank and Tenaga Nasional finished lower, while Hong Leong Bank, EON Capital and Axiata ended higher.

The lead from Wall Street is mixed with a hint of pessimism as stocks moved mostly lower over the course of the trading session on Tuesday, with traders cashing in on some of the recent strength in the markets. Selling pressure was somewhat subdued, however, and the Dow ended the session nearly unchanged.

While the Dow closed slightly higher, the broader NASDAQ and S&P 500 ended the day in the red. The Dow edged up by 0.15 points or less than a tenth of a percent to 12,807.51, while the NASDAQ fell 22.46 points or 0.8 percent to 2,814.62 and the S&P 500 slipped 4.60 points or 0.3 percent to 1,356.62.

HAPPY TRADING & GOODLUCK2ALL

ZLBT Morning Views >>> Bursa Malaysia Pre-Opening

Little Changes Expected For Malaysian Shares

Ahead of Monday's market holiday for Labor Day, the Malaysian stock market had written a finish to the four-day winning streak in which it had risen more than a dozen points or 0.8 percent. The Kuala Lumpur Composite Index finished just below the 1,535-point plateau, and now analysts are expecting the market to ease slightly when it kicks off trade on Tuesday.

The global forecast for the Asian markets is mixed with a downside bias on falling commodity prices - although many of the regional bourses were closed on Monday and may get a positive burst at the open. Gold and oil stocks in particular figure to fall under pressure. The European markets ended slightly higher and the U.S. bourses were barely lower - and the Asian markets figure to split the difference.

The KLCI finished flat on Friday as losses from the financial shares were offset by gains from the plantation stocks.

For the day, the index eased 0.35 points or 0.02 percent to finish at 1,534.95 after trading between 1,529.63 and 1,540.55.

Among the actives, Kuala Lumpur Kepong finished sharply higher, while YTL and CIMB Holdings ended with mild losses.

The lead from Wall Street is slightly negative as stocks moved mostly lower over the course of the trading day on Monday after failing to sustain an early upward move. The downturn came as traders shrugged off several positive catalysts amid uncertainty about the ability of the markets to sustain their recent upward move.

Americans Jubilant Over Osama' s Demise But Not Wall Street

The major averages all ended the day in the red, although the Dow closed only just below the unchanged line. The Dow edged down 3.18 points or less than a tenth of a percent to 12,807.36, the NASDAQ fell 9.46 points or 0.3 percent to 2,864.08 and the S&P 500 slipped 2.39 points or 0.2 percent to 1,361.22.

The early strength in the markets was partly due to positive sentiment generated by news of the death of terrorist leader Osama bin Laden, who was killed by American forces in Pakistan. However, analysts have noted that bin Laden's role in leading al Qaeda has been diminished in recent years and have warned that terrorists may stage attacks to retaliate for his death. President Barack Obama acknowledged that Americans must remain vigilan.

Profit taking also contributed to the downturn by the markets, with traders cashing in on the recent strength in the markets. Resource stocks saw significant weakness after helping to lead the way higher in recent months amid rising commodities prices.

HAPPY TRADING

ZLBT Morning Views : Bursa Malaysia + Wall Street

Bursa Malaysia May Continue Winning Streak Today
The Malaysian stock market has finished higher now in three straight sessions, adding just over 6 points or 0.4 percent along the way. The Kuala Lumpur Composite Index finished just below the 1,530-point plateau, and now analysts are expecting the market to extend those gains when it kicks off trade on Thursday.
The global forecast for the Asian markets remains optimistic following upbeat economic news from the United States and continued solid earnings reports. Gold miners and retail stocks figure to lead the markets higher, although oil companies may be dented by profit taking. The U.S. markets finished mostly higher and the European bourses were mostly so, and the Asian markets also figure to track to the upside.

The KLCI finished slightly higher on Wednesday as solid gains from the financial shares were offset by weakness from the property stocks and plantations.

The benchmark FBM KLCI is hovering around the key resistance of 1,530 and once it breaches this level, the next resistance would be at 1,550.

Meanwhile, the ringgit continued to chart a new 13-year high versus the US dollar, riding on the weakening greenback.

At 5pm, the local unit stood at 2.9780/9801 as investors awaited the outcome of the US Federal Reserve's decision on interest rates yesterday.

For the day, the index added 2.57 points or 0.17 percent to finish at 1529.91 after trading between 1,526.58 and 1,534.69. Volume was 1.114 billion shares worth 1.431 billion ringgit. There were 454 decliners and 320 gainers. Volume on the Main Market increased to 832.859 million shares worth RM1.365 billion from 793.167 million shares, worth RM1.221 billion recorded on Tuesday.Among the actives, Genting, AMMB, CIMB Holdings and Sime Darby all finished higher, while Tenaga Nasional, Digi.com and BAT ended lower.

Transperant Fed Propels DJIA North Of 12600

Wall Street offers a positive lead as stocks saw some further upside during trading on Wednesday after showing a strong upward move in the previous session. The markets benefited from a positive reaction to the Federal Reserve's latest monetary policy announcement and Chairman Ben Bernanke's accompanying news conference. While stocks showed a lack of direction in morning trading, buying interest emerged as traders digested the Fed's monetary policy announcement.

As expected, the Fed once again left interest rates unchanged at near-zero levels and indicated that it will continue its asset purchase program through the end of June. In the statement, the Fed noted that the economic recovery is proceeding at a moderate pace and said overall conditions in the labor market are improving gradually. Stocks saw further upside as Bernanke held his news conference later in the afternoon, with the Fed Chief predicting that the economic recovery would continue at a moderate pace and reiterating that measures of underlying inflation remain stable despite recent increases in commodities prices. The Fed Chairman also noted that monetary policy actions must be taken with an eye toward future due to the delayed impact of policy changes.

The Dow Jones Industrial Average (DJIA – 12,690.96) settled on an impressive gain of 95.6 points, or 0.8%, as all but two of its 30 components powered higher. In the process, the Dow collected its first daily close above 12,600 since June 5, 2008, and its highest settlement price since May 20, 2008. On an intraday basis, the index tagged a new multi-year peak of 12,708.37. General Electric paced the 28 advancing blue chips, thanks to bullish comments from its CFO, while Cisco Systems was the lone Dow member to finish in the red. United Technologies finished flat.

The S&P 500 Index (SPX – 1,355.66) topped out at 1,357.49 in intraday action, before ending with a gain of 8.4 points, or 0.6%. Today marks the SPX's best daily finish since June 17, 2008. Finally, the Nasdaq Composite (COMP – 2,869.88) rounded out the rally by adding 22.3 points, or 0.8%. The COMP peaked at 2,870.80 today -- in territory the index hasn't explored since January 2001.

Earlier in the day, the Commerce Department released a report showing that new orders for manufactured durable goods increased by much more than anticipated in March. The report showed that durable goods orders surged up by 2.5 percent in March following a revised 0.7 percent increase in February. Economists had expected orders to increase by 1.9 percent compared to the 0.9 percent drop that had been reported for the previous month.

On the earnings front, aerospace giant Boeing closed up by 0.8 percent after reporting first quarter earnings of $0.78 per share on revenues of $14.9 billion. Analysts had expected earnings of $0.72 per share on revenues of $15.13 billion. The company also reaffirmed its 2011 guidance.
 

HAPPY TRADING & GOODLUCK2ALL

ZLBT morning Views : Bursa Malaysia + Wall Street

Malaysia Shares Draw Flat Lead
The Malaysian stock market picked up just a point on Monday - but that was enough to end the two-day losing streak in which it had declined nearly 10 points or 0.6 percent. The Kuala Lumpur Composite Index finished just shy of the 1,525-point plateau, and now analysts are expecting to see the market remain in that neighborhood when it opens on Tuesday.

The global forecast for the Asian markets is mixed with a hint of downside on caution ahead of a slew of economic and corporate data coming later this week. Gold and oil stocks may see consolidation, while airlines and technology stocks are expected to tick higher. The European and U.S. markets finished mixed but little changed, and the Asian markets are tipped to follow that lead.

The KLCI finished barely higher on Monday as gains from the financial shares and industrial issues were offset by softness from the plantation stocks.

For the day, the index added 1.30 points or 0.09 percent to finish at 1,524.05 after trading between 1,522.99 and 1,526.83. Volume was 1.043 billion shares worth 1.026 billion ringgit. There were 441 decliners and 313 gainers, with 320 stocks finishing unchanged.

Among the actives, Ramunia, Karambunai, CIMB Holdings and Petronas Chemicals all finished lower, while Iris and Maybank ended higher.

DJIA Dips on Pre-Fed Caution, Lackluster Earnings, and Light Volume
Wall Street offers little guidance as stocks showed a lack of direction on Monday, as traders seemed reluctant to make any significant moves ahead of some key economist events later in the week. The lackluster performance also came as some traders remained away from their desks following the long weekend.The choppy trading seen on Wall Street came as traders looked ahead to the Federal Reserve's latest monetary policy announcement on Wednesday as well as some key economic data. While the Fed is not expected to announce any major policy changes, traders have expressed some uncertainty about what Fed Chairman Ben Bernanke will say in his first accompanying news conference.

After touching a multi-year high of 12,506.22 right out of the gate, the Dow Jones Industrial Average (DJIA – 12,479.88) ended with a loss of 26.1 points, or 0.2%, snapping its three-session run higher. Intel Corp. (INTC) paced the 12 advancing equities with a gain of 2.2%, while DuPont (DD) led the bearish majority with a loss of 1.4%.
The S&P 500 Index (SPX – 1,335.25) pared its losses in afternoon trading, surrendering 2.1 points, or 0.2%, by the close. Nevertheless, the broad-market barometer maintained its perch atop the closely watched 1,333 level, which marks double its March 2009 low. Finally, the Nasdaq Composite (COMP – 2,825.88) fared the best of the three, tacking on 5.7 points, or 0.2%, by the time the dust settled.

Traders are also waiting on the release of the Commerce Department's first estimate on first quarter GDP growth on Thursday. The report is expected to show that GDP growth slowed to 2.0 percent in the first quarter from 3.1 percent in the fourth quarter.

Meanwhile, the markets did not show much reaction to a report from the Commerce Department showing that new home sales rebounded in the month of March. The report said new home sales rose 11.1 percent to an annual rate of 300,000 in March from the revised February rate of 270,000. Economists had expected new home sales to rise to 280,000 from the 250,000 originally reported for the previous month.

HAPPY TRADING

ZLBT Morning Views >>> Bursa Malaysia, Wall Street

Malaysian Stocks Poised To Open Higher
The Malaysian stock market on Wednesday wrote a finish to the three-day losing streak in which it had shed more than 30 points or 2 percent. The Kuala Lumpur Composite Index finished just above the 1,535-point plateau, and now traders are anticipating continued expansion at the opening of trade on Thursday.The global forecast for the Asian markets is positive economic and earnings news. Technology stocks are expected to provide support, along with commodity and resource plays. The European and U.S. markets finished higher, and the Asian bourses also figure to track to the upside. The STI finished modestly higher on Wednesday on gains from the financial shares, property stocks and plantations.

For the day, the index collected 9.67 points or 0.63 percent to finish at 1,535.59 after trading between 1,517.84 and 1,539.70. Volume was 1.173 billion shares worth 1.672 billion ringgit. There were 610 gainers and 204 decliners.Among the actives, Petronas Chemical, Axiata, CIMB Holdings, Tenaga Nasional and Maybank all finished higher, while Sime Darby and Public Bank ended lower.

The lead from Wall Street is cautiously optimistic as stocks saw considerable volatility on Wednesday after ending the previous session sharply lower. The choppy trading came as volume remained below average amid uncertainty about the near-term outlook for the markets. While relatively upbeat retail sales data contributed to some initial strength on Wall Street, buying interest waned not long after the open.

WALL STREET : DJIA Ends Hot-and-Cold Session Higher

DJIA, SPX, and COMP remain south of their 10-day trendlines
Stocks hemmed and hawed around the breakeven line today, as the Street digested blue-chip earnings, Beige Book data, a budget speech, and bank sanctions, among other things. On the earnings front, initial optimism over JPMorgan's (JPM) revenue figures faded by midday, after the financial firm's CEO warned investors not to expect additional dividend hikes anytime soon. Elsewhere, a lackluster retail sales report from the Commerce Department also helped to rain on the bulls' early parade. Meanwhile, a rally in the tech sector and President Obama's deficit-cutting plans helped stocks bounce back from intraday lows, though the Federal Reserve's Beige Book -- which indicated that Japan's earthquake may be taking a bigger-than-expected toll on the U.S. economy -- and news that federal regulators sanctioned a slew of U.S. banks for "misconduct and negligence" kept the afternoon rebound in check. Nevertheless, the bulls ultimately prevailed by the close, with all three major market indexes ending a hot-and-cold session with modest gains.

The Dow Jones Industrial Average (DJIA – 12,270.99) settled with a slim gain of 7.4 points, or 0.06%, as 16 of its 30 components ended higher. Leading the advancers was Caterpillar (CAT), while Bank of America's (BAC) 1.5% dip in the wake of government sanctions led the 13 laggards. The shares of Pfizer (PFE) essentially epitomized the session by finishing flat.

Meanwhile, the S&P 500 Index (SPX – 1,314.41) eked out a gain of 0.3 point, or 0.02%, but ended on the south side of both its 10-day and 20-day moving averages for the first time since March 18. On the other hand, the Nasdaq Composite (COMP – 2,761.52) fared the best of the three, advancing 16.7 points, or 0.6%, thanks to a solid day for tech stocks. Nevertheless, the COMP couldn't muster up enough momentum to reclaim its perch atop its 10-day trendline.

TECHNICAL ANALYSIS 14 April 2011
Dow Jones Industrial Average
Daily stochastics turning lower from overbought levels is bearish and will tend to reinforce a downside break especially if near term support is penetrated. The market's close below the 9-day moving average is an indication the short-term trend remains negative. The upside closing price reversal on the daily chart is somewhat bullish. It is a mildly bullish indicator that the market closed over the pivot swing number. The next downside target is 12167. The next area of resistance is around 12329 and 12354, while 1st support hits today at 12235 and below there at 12167. The Dow Jones Industrial Average(DJIA 12,270.99, +7.41, +0.06%)  closed up 7.41 points at 12,270.99, with 16 of its 30 components on the rise.

HAPPY TRADING