Wednesday, August 4, 2010

FBM KLCI declines in early trade

KUALA LUMPUR: The FBM KLCI declined on Wednesday, Aug 4 in line with Asian markets on the back of the weaker overnight close on Wall Street following the weaker-than-estimated data on consumer spending and housing.

At 9.10am, the FBM KLCI shed 0.14 of a point to 1,363.69.

HLG Research said the market might take a breather on Wednesday, adding that its envisaged resistance zone of 1,370-75 pts was briefly tested but the FBM KLCI only ended with a with a 0.2-point gain on Tuesday.

With a slew of negative results and economic data from Wall St and a negative "sell" signal on the stochastic oscillators in the "overbought" region, a short term profit taking to around 1350 pts is imminent, it said.

However, a more severe correction towards 1,300-1,320 points will materialise if a negative dead cross in MACD and a hook down in 5-day SMA below 10-day SMA occur, it said.

"Immediate resistance for the FBM KLCI remains at 1,374 (50% FR from top 1,524 and low of 1,224) and 1,392 (intraday high on July 24, 2007).

"Meanwhile, support levels are 1,350 (10-d SMA) and 1338 (38.2% FR). For Dow, after breaching the 200-day SMA and 10,500 levels convincingly, immediate resistant level is 10,742 (76.4% FR from top 11,258 and low of 9073). Support level is now pegged around 10,400," it said.

Among the major losers on Bursa Malaysia Wednesday morning, Plenitude and Notion Vtec fell six sen each to RM3.60 and RM2.05, Tenaga, Krisassets and Hai-O fell four sen each to RM8.63, RM3.22 and RM3.50 respectively, while Mudajaya and Orient lost three sen each to RM5.05 and RM5.27.

Early gainers included Ann Joo, PPB, APM Automotive, Kretam, Unisem and Top Glove.


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