KUALA LUMPUR: The FBM KLCI shed 0.31 points to 1,351.92 at mid-morning on Wednesday, July 28 amidst cautious trading, in line with the regional markets as mixed earnings reports and a fall in consumer confidence in the US weighed on the broader index on Wall Street.
On Bursa Malaysia, gainers led losers by 194 to 143, while 201 counters traded unchanged. Volume was 136.94 million shares valued at RM131.68 million.
RHB Research Institute Sdn Bhd in a note July 28 said that despite the previous "hangman-like" candle, the FBM KLCI managed to neutralise the early profit-taking pressure by closing at above the major 1,350 technical level for a second day.
But with a "doji-like" candle which paints uncertainties ahead, coupled with the weak market breadth as well as shrinking daily volume to below the 800 million shares mark on Tuesday, it seems that most of the investors may have turned cautious after the recent rally, it said.
Moreover, without any strong convincing confirmation signal on the recent technical breakout from 1,350 so far, the FBM KLCI's medium-term outlook remains unclear, said the research house.
"Therefore, unless the FBM KLCI can extend a further upside from 1,350 with stronger volume at between 800 million and one billion shares in the immediate term, we believe profit-taking leg could kick in at anytime soon.
"Once profit-taking activities set in, this will lead to a revisit of key resistance-turned-support level of 1,350. After that, lower supports near a technical gap at 1,345.68 and 10-day SMA of 1,341 will be tested. Still, the supportive 10-day SMA is expected to buffer selling pressure in order to protect the current uptrend," it said.
RHB Research said that on the upside, 1,390 remains as a key resistance target.
On Bursa Malaysia, debutant Ivory PROPERTIES [] was the most actively traded stock with 24.9 million shares done. The counter rose 21 sen to RM1.21 at 10am.
AmResearch's fair value is RM1.75 per share pegged to a 35% discount to its estimated net asset value of RM2.70 per share.
"Our fair value implies a forward PR of 7 times, backed by strong three-year earnikng CAGR of 63% over FY10F to FY12F," it said.
Other actives included Titan, IFCA MSC, Talam, E&O, Chuan Huat and Mulpha.
Perstima was the top gainer and added 24 sen to RM5.10, Nestle up 20 sen to RM38.80, Chuan Huat 17.5 sen to 73.5 sen, Hong Leong Industries up nine sen to RM4.95 while Heitech Padu and Cocoaland added eight sen each to RM1.17 and RM2.98 respectively.
Malayan Flour Mills was the top loser, falling 18 sen to RM4.10. Pharmaniaga was down 11 sen to RM5.50, Yeo Hiap Seng down nine sen to RM1.57, Computer Forms down seven sen to 53 sen while Krisassets and Berjaya Land lost five sen each to RM3.24 and RM4.25 respectively.
At the regional markets, Japan's Nikkei 225 jumped 1.88% to 9,675.47, but the other key bourses fell. The Shanghai Composite Index lost 0.30% to 2,567.62, the South Korean Kospi down 0.09% to 1,766.75, Taiwan's Taiex declined 0.03% to 7,745.81, the Singaporean Straits Times Index shed 0.01% to 2,979.06 while Hong Kong's Hang Seng Index opened 0.2% lower at 20,942.06.
On Bursa Malaysia, gainers led losers by 194 to 143, while 201 counters traded unchanged. Volume was 136.94 million shares valued at RM131.68 million.
RHB Research Institute Sdn Bhd in a note July 28 said that despite the previous "hangman-like" candle, the FBM KLCI managed to neutralise the early profit-taking pressure by closing at above the major 1,350 technical level for a second day.
But with a "doji-like" candle which paints uncertainties ahead, coupled with the weak market breadth as well as shrinking daily volume to below the 800 million shares mark on Tuesday, it seems that most of the investors may have turned cautious after the recent rally, it said.
Moreover, without any strong convincing confirmation signal on the recent technical breakout from 1,350 so far, the FBM KLCI's medium-term outlook remains unclear, said the research house.
"Therefore, unless the FBM KLCI can extend a further upside from 1,350 with stronger volume at between 800 million and one billion shares in the immediate term, we believe profit-taking leg could kick in at anytime soon.
"Once profit-taking activities set in, this will lead to a revisit of key resistance-turned-support level of 1,350. After that, lower supports near a technical gap at 1,345.68 and 10-day SMA of 1,341 will be tested. Still, the supportive 10-day SMA is expected to buffer selling pressure in order to protect the current uptrend," it said.
RHB Research said that on the upside, 1,390 remains as a key resistance target.
On Bursa Malaysia, debutant Ivory PROPERTIES [] was the most actively traded stock with 24.9 million shares done. The counter rose 21 sen to RM1.21 at 10am.
AmResearch's fair value is RM1.75 per share pegged to a 35% discount to its estimated net asset value of RM2.70 per share.
"Our fair value implies a forward PR of 7 times, backed by strong three-year earnikng CAGR of 63% over FY10F to FY12F," it said.
Other actives included Titan, IFCA MSC, Talam, E&O, Chuan Huat and Mulpha.
Perstima was the top gainer and added 24 sen to RM5.10, Nestle up 20 sen to RM38.80, Chuan Huat 17.5 sen to 73.5 sen, Hong Leong Industries up nine sen to RM4.95 while Heitech Padu and Cocoaland added eight sen each to RM1.17 and RM2.98 respectively.
Malayan Flour Mills was the top loser, falling 18 sen to RM4.10. Pharmaniaga was down 11 sen to RM5.50, Yeo Hiap Seng down nine sen to RM1.57, Computer Forms down seven sen to 53 sen while Krisassets and Berjaya Land lost five sen each to RM3.24 and RM4.25 respectively.
At the regional markets, Japan's Nikkei 225 jumped 1.88% to 9,675.47, but the other key bourses fell. The Shanghai Composite Index lost 0.30% to 2,567.62, the South Korean Kospi down 0.09% to 1,766.75, Taiwan's Taiex declined 0.03% to 7,745.81, the Singaporean Straits Times Index shed 0.01% to 2,979.06 while Hong Kong's Hang Seng Index opened 0.2% lower at 20,942.06.
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