ACE market stocks within traders’ radar for the time being

• While the FBM KLCI and FBM Small Caps have been leading the rally over the past two weeks, we are seeing trading interest shifting towards the ACE market stocks recently as volumes seen in stocks like IFCA MSC and IRIS and SANICHI. We believe that some of the stocks under the FBM ACE could be having trading opportunities amid a bottoming out or a breakout formation.
   
• Overall market traded volumes have been sustaining above 2.5bn over the past two trading days but with slightly lower value trade (11 Jan: RM2.0bn; 10 Jan: RM2.1bn), suggesting that investors were participating within lower liners or small caps. With the FBM ACE surging above the 5,000 level a few days back, we expect the trend to sustain towards the next resistance around the 5,170 and 5,360 levels.

• From our indices trend analysis, which we have formulated based on a few moving averages, the FBM KLCI has led the market in late December on the back of window dressing activities. Buying interest spread over to FBM Small Caps last week, forming a strong rally above the 15,000 mark.
   
• Recently, the FBM ACE has been gaining traction and moved above the zero level (indices trend analysis chart), suggesting that a potential upward move that may extend into the next 2-4 weeks outlook.
   
• Here is the list of the top 30 market capitalization companies under the FBM ACE index with respective technical outlook, support and resistance.

Source: Hong Leong Investment Bank Research - 12 Jan 2017