What’s Our View
We recommend a “Sell on Rallies” stance for the index. The KLCI June Futures moved into a 7.37-point discount against the FBMKLCI. We expect supports of 1,716 to 1,732 to be weaker, while very heavy liquidation activities may cap rebounds at the resistance areas of 1,735 and 1,750.
The index’s rebound from the 1,671.82 low finally stalled at 1,867.53 on 27 Apr 2015. The FBMKLCI’s tone had turned weaker since that high at 1,867.53. The FBMKLCI remains in a clear and firm downtrend. Investors may see minor nibbling at the stipulated support areas but heavy liquidation at the resistance areas will cap any index rebound.
We recommend a “Sell on Rallies” stance for the index. The KLCI June Futures moved into a 7.37-point discount against the FBMKLCI. We expect supports of 1,716 to 1,732 to be weaker, while very heavy liquidation activities may cap rebounds at the resistance areas of 1,735 and 1,750.
The index’s rebound from the 1,671.82 low finally stalled at 1,867.53 on 27 Apr 2015. The FBMKLCI’s tone had turned weaker since that high at 1,867.53. The FBMKLCI remains in a clear and firm downtrend. Investors may see minor nibbling at the stipulated support areas but heavy liquidation at the resistance areas will cap any index rebound.
Today’s list of BUY stocks are: BTM, DOMINAN, EIG,
HARBOUR, HARTA, HOVID, HWANG, IRCB, PANSAR, SENDAI and WELLCAL.
Today’s list of SELL stocks are: AIRASIA, ALLIANZ, AMWAY, ANNJOO, APM, BAT, BENALEC, BIG, BIOSIS, BORNOIL, BURSA,CAP, CIHLDG, CIMB, CYPARK, EWEIN, FGV, GDEX, GENTING, GLOMAC, GPACKET, HIAPTEK, HSPLANT, HUAYANG, IFCAMSC, INSTACO, IPMUDA, K1, LATITUD, LPI, MEDIA, MERCURY, MHB, MUIIND, PANTECH, PETGAS, PNEPCB, POS, PRKCORP, PTARAS, RSAWIT, SAB, SKPETRO, SMRT, TAWIN, TENAGA, TMCLIFE, TOYOINK, TSRCAP, UMW, UMWOG, UNISEM and YTL
HARBOUR, HARTA, HOVID, HWANG, IRCB, PANSAR, SENDAI and WELLCAL.
Today’s list of SELL stocks are: AIRASIA, ALLIANZ, AMWAY, ANNJOO, APM, BAT, BENALEC, BIG, BIOSIS, BORNOIL, BURSA,CAP, CIHLDG, CIMB, CYPARK, EWEIN, FGV, GDEX, GENTING, GLOMAC, GPACKET, HIAPTEK, HSPLANT, HUAYANG, IFCAMSC, INSTACO, IPMUDA, K1, LATITUD, LPI, MEDIA, MERCURY, MHB, MUIIND, PANTECH, PETGAS, PNEPCB, POS, PRKCORP, PTARAS, RSAWIT, SAB, SKPETRO, SMRT, TAWIN, TENAGA, TMCLIFE, TOYOINK, TSRCAP, UMW, UMWOG, UNISEM and YTL
MARKET ROUNDUPThe FBMKLCI inched down by 0.39 points to 1,734.37 last Friday. Stocks that caused the index to close lower were BAT, PETGAS, GENTING, PCHEM and UMW.
Technical Viewpoint: The FBMKLCI’s key swings are at 936.63 (high) and 836.51 (low). An “A-B-C” correction from its Oct 2008 low surged to a high of 1,597.08 (Jul 2012). From the 1,310.53 low (Sep 2011), the index moved to a high of 1,699.68 (Jan 2013). It fell to a low of 1,597.00 and made key swings at 1,664.39 (high), 1,613.94 (low), 1,826.22 (high), 1,723.74 (low), 1,811.65 (high), 1,660.39 (low), 1,805.15 (high), 1,759.66 (low), 1,822.17 (high), 1,780.54 (low), 1,882.20 (high), 1,769.80 (low) and 1,896.23 (high).
As the index reached its all-time high of 1,896.23 (8 Jul 2014), the index fell to 1,837.28 (8 Aug). After the rebound stalled at 1,879.62, it then fell to 1,766.22 (17 Oct). Index bias turned upward on 17 Oct, but stalled at 1,858.09 on 3 Nov. The index broke the 1,763.55 support to its recent low of 1,671.82 (17 Dec). After buying support emerged, the FBMKLCI rose and stalled at 1,867.53 (27 Apr 2015). The FBMKLCI has remained in a firm downtrend since 1,867.53. Investors may see minor nibbling at the support areas but heavy selling at the resistance areas will cap any rebounds.
by Maybank IB
