Technicals (as close of may 06)
FBM KLCI has peaked at 1,349.92 and a firm downside will emerge
The FBM KLCI weakened by 3.78 points to close at 1,331.87. Its resistance areas at 1,331 and 1,349 will cap market gains, whilst the weaker support areas for the FBM KLCI are located at 1,320 and 1,324. Due to the Dow’s major overnight plunge of 347.80 points, we expect the FBM KLCI to plunge initially to be followed by some minor
local bargain hunting later today.
In the longer term, we believe that the FBM KLCI has peaked at 1,349.92 and a firm downside will emerge if local funds start selling too. It is a matter of time before the local market joins the global equity contagion to the downside. SELL and STEP ASIDE.
by Maybank IB
