Written by Joseph Chin
Monday, 06 July 2009 09:14
KUALA LUMPUR: The FBM KLCI, which comprises of the 30 stocks, opened down on July 6, with Genting, Sime and Public Bank among the losers.
At 9am, the FBM KLCI was down 1.62 points to 1,071.07. Turnover was 3.65 million shares valued at only RM2.21 million.
The FBM KLCI replaces the 100-stock KLCI with effect from today.
OSK Investment Research said the market’s consolidation exhibited signs of weakening last Friday. As the KLCI gapped down at the opening bell, the key index had started trading at below the 20-day MAV line. Although the KLCI did manage to rebound back above the moving average line during the session, the market eventually closed below the 20-day MAV line.
“Note that it was the first time that the KLCI closed below the 20-day MAV line since the consolidation phase started six trading days ago. The market is now at risk of violating the recent consolidation phase. As the US market was closed last Friday, we will see today if the market can continue to fluctuate within the sideways trend,” it said in a research note on the technical outlook.
OSK Research said however, for the meantime, the market still has the potential of extending the uptrend after violating the downtrend line and gaining support at the 50-day MAV line.
To the upside, look for an immediate resistance at the 20-day MAV line, which is now situated at the
1,083 pt-level followed by the 200-week MAV line, which is now lying at the 1,096-level. To the downside, look for an initial support at the “Downside Gap” ranging from the 1,05-level to the 1,064-level.
Genting, Sime and Public Bank fell five sen each to RM5.75, RM7.20 and RM9.10 respectively.
KNM fell one sen to 78 sen in active trade, UEM Land shed one sen also to RM1.45 while Lion Diversified and Lion Corp edged up 1.5 sen each to 55 sen and 45.5 sen.
IJM jumped 25 sen to Rm5.55 with 3,000 shares done, SP Setia eight sen higher to RM3.98. BTotoa added five sen to RM5.05.
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