Sell into rallies

R u ready to selllllllllll?????????????

HLIB advises “sell into rallies” ahead of 13th GE
Business & Markets 2013
Written by Fatin Rasyiqah Mustaza   
Tuesday, 29 January 2013 11:55

KUALA LUMPUR (Jan 29)- Hong Leong Investment Bank (Hong Leong IB) has advised investors to “sell into rallies” as further surge would trigger profit taking and de-risk ahead of the 13th general elections (13th GE).

“In view of the holiday-shortened week due to Thaipusam and Federal Territory holidays, FBM KLCI is likely to face a bumpy road ahead,” the research house said in a note early today.

Hong Leong IB said KLCI could stage a further relief rally this week in the middle of its sharp correction of 5.8% from an all-time high of 1700 on Jan 4, to a low index of 1602 on Jan 22.

It predicted an immediate target of 1645 and 1650 for KLCI, and said a rebound is not likely to be sustainable and the index may retrace back to 1600 psychological supports again.

The KLCI was last traded at around at 1639.

Hong Leong IB said 2013 will have an unpredictable first half due to the 13th general election and predicted a promising second half for a year-end-target of 1750.