Correction ahead for KL stocks
Publish date: Sat, 22 Sep 2012, 08:16 PM
Share prices on Bursa Malaysia is expected to undergo a correction next week with the FBM KLCI confined within 1,600 and 1,620 points, dealers said.
A series of bearish reports, which included back-to-back negative economic data from US and Europe and, China's manufacturing data which dipped to a three-year low, could see the local bourse coming in for consolidation.
"Given the local stock run over the past 12 months, we believe the local stock may do corrective movement next week," said Affin Investment Bank Vice-President, Head of Retail Research, Dr Nazri Khan.
He said that despite the short-term dips, the medium-term looked promising as there were some resilience with the local stocks recouping earlier losses and was still holding above the 1,620 points support level.
"Investors are now waiting and wondering when China and other Group of Seven countries will act to boost the market.
"In fact, we view the latest boost of bigger-than-expected US$127 billion in asset purchases from the Bank of Japan as a positive surprise for investors and hence opens out a possibility of more coordinated central bank action to boost the global economy.
"We are currently pegging 1,620 and 1,600 as support levels while resistance stands at 1,640 and 1,650," he added.
For the week just-ended, the FBM KLCI finished 2.62 points lower at 1,640.33 against last Friday's 1,642.95.
The Finance Index lost 160.58 points to 14,602.62, Industrial Index declined 6.29 points to 2,812.71 and the Plantation Index erased 187.86 points to 8,279.28.
The FBM Emas Index trimmed 126.94 points to 11,048.67, the FBM Mid 70 Index fell 134.24 points to 11,982.13 and the FBM Ace dipped 25.34 points to 4,328.48.
The weekly volume fell to 3.85 billion units, valued at RM6.99 billion, from 4.73 billion shares, valued at RM8.52 billion, recorded last Friday.
Main market volume decreased to 2.73 billion units worth RM6.84 billion from 3.34 billion units valued at RM8.29 billion registered previously.
Volume on the ACE market declined to 911.53 million units, worth RM130.84 million, from 1.1 billion shares worth RM204.74 million transacted last week. -- BERNAMA
A series of bearish reports, which included back-to-back negative economic data from US and Europe and, China's manufacturing data which dipped to a three-year low, could see the local bourse coming in for consolidation.
"Given the local stock run over the past 12 months, we believe the local stock may do corrective movement next week," said Affin Investment Bank Vice-President, Head of Retail Research, Dr Nazri Khan.
He said that despite the short-term dips, the medium-term looked promising as there were some resilience with the local stocks recouping earlier losses and was still holding above the 1,620 points support level.
"Investors are now waiting and wondering when China and other Group of Seven countries will act to boost the market.
"In fact, we view the latest boost of bigger-than-expected US$127 billion in asset purchases from the Bank of Japan as a positive surprise for investors and hence opens out a possibility of more coordinated central bank action to boost the global economy.
"We are currently pegging 1,620 and 1,600 as support levels while resistance stands at 1,640 and 1,650," he added.
For the week just-ended, the FBM KLCI finished 2.62 points lower at 1,640.33 against last Friday's 1,642.95.
The Finance Index lost 160.58 points to 14,602.62, Industrial Index declined 6.29 points to 2,812.71 and the Plantation Index erased 187.86 points to 8,279.28.
The FBM Emas Index trimmed 126.94 points to 11,048.67, the FBM Mid 70 Index fell 134.24 points to 11,982.13 and the FBM Ace dipped 25.34 points to 4,328.48.
The weekly volume fell to 3.85 billion units, valued at RM6.99 billion, from 4.73 billion shares, valued at RM8.52 billion, recorded last Friday.
Main market volume decreased to 2.73 billion units worth RM6.84 billion from 3.34 billion units valued at RM8.29 billion registered previously.
Volume on the ACE market declined to 911.53 million units, worth RM130.84 million, from 1.1 billion shares worth RM204.74 million transacted last week. -- BERNAMA
Discussions
1 person likes this. Showing 5 of 5 comments
Attended a few roadshows by analysts and investment bankers, and even CITIBANK is down rating Malaysia to UNDERPERFORM..... So, how not to be under selling pressure??
The only hope is probably the BUDGET 2013 goodies..... If the candies are sweeter than last year, we will probably get sugar high by year end. Otherwise, HoHoHo!!!
2012-09-23 09:33
He..he..last week he said market to going up ...this week going down...next week.......?
2012-09-23 17:33
All macd indicators (daily, weekly and monthly) pointing south, we should expect major correction is on the way. Happy selling.
2012-09-24 08:54
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2012-09-23 07:29