Friday, September 3, 2010

HLG Research: Buying interest in big caps to continue

KUALA LUMPUR: HLG Research said as there were no surprises from Wall Street and Bank Negara's monetary policy meeting, there may be continued buying interest in large cap issues to spur further in FBM KLCI towards 1,450 on Friday, Sept 3.

It said the buying would be led by local institutions and foreign portfolio funds.

On Thursday, Bank Negara maintained the overnight policy rate at 2.75% and the central bank also provided a cautiously optimistic 2H outlook.

HLG Research said nevertheless, ahead of the key US August's jobs and ISM services reports late Friday, compounded by the more overbought technical condition of blue chips and the KLCI, further rise should see stronger profit taking corrections.

'Meanwhile, a break above the 1,450 will witness more upside at 1,472 (76.4% FR from top 1525 and low of 1300). Major support levels are situated around 1,416 (5-day SMA), 1,408 (10-day SMA) and 1,385 (20-day SMA).

For Dow Jones, should the key economic data released late Friday are in line with forecast, 'we will witness further relief rally over the next few days, supported by the rising momentum and trend indicators coupled with the short-covering rally'.


No comments:

Post a Comment