Market Preview KLCI likely to trade above 1.843.11 today

by **Cals** Fri 26 Sep 2014, 08:35

Market Preview KLCI likely to trade above 1.843.11 today

Business & Markets 2014

Written by AllianceDBS Research

Friday, 26 September 2014 07:23

KUALA LUMPUR (Sept 26): The FBM KLCI had on 25 Sep 2014 slipped to a low of 1,835.64 after the opening bell as some market participants chose to play a selling game.
However, non-follow through selling pressure at 1,835.64 prompted supportive buying interest to kick in. This had lifted the benchmark index to settle at the day’s high of 1,843.11 (+3.03, +0.16%).
In the broader market, losers outnumbered gainers with 437 stocks ending lower and 419 stocks finishing higher.
That gave a market breadth of 0.95 indicating bears were in control with the bulls closely matched.
Major stock advancers among the FBM KLCI component stocks included CIMB (+RM0.12, +1.71%), KLK (+RM0.48, +2.27%), and Maxis (+RM0.05, +0.79%).
And, major stock decliners included UMW (-RM0.28, -2.28%), Petgas (-RM0.06, -0.26%), and Tenaga (-RM0.02, -0.16%). Total market value traded was RM1.84 billion.
The downside violation of 1,836 to 1,835.64 on 25 Sep 2014 was believed to be a test carried out to gauge the strength of selling pressure below the 1,836 level as the rebound on 23 Sep 2014 was not convincing enough to encourage market participants to commit on the buying side.
The up close of 1,843.11 on 25 Sep 2014 though, should thus give extra evidence of the availability of supportive buying interest in the area of 1,836.
However, it is seen necessary for the benchmark index to pull above the 1,845 level in order to attract more buying participations. The overhead resistance zone is between 1,853 and 1,860. Indicator wise, the MACD is still below the 9-day moving average line.
The analysis of overall market action on 25 Sep 2014 revealed that buying power was stronger than selling pressure.
As such, the FBM KLCI would likely trade above the 1,843.11 level on 26 Sep 2014.