KUALA LUMPUR: Hong Leong Investment Bank (HLIB) Research said despite the 3.1% surge in three days and in anticipation of more profit taking ahead, it still remains optimistic the FBM KLCI could hit the 1,600 in the near term.
In its market outlook issued on Thursday, Jan 6, it said the upward trend was on the back of rising investor's participation and buoyant sentiment.
'Overall market breadth remains bullish, supported by improving technical landscape and soaring trading volume. Immediate support levels are 1,527 (10-d SMA) and 1517 (middle Bollinger band),' it said.
HLIB Research said during the current liquidity driven rally, apart from PLANTATION [] stocks, banking shares were amongst the top gainers and hogging the limelight of local and foreign institutional investors.
'Thus, we look at the technical readings of banking stocks to determine if the momentum will continue. Technically, CIMB, Maybank, Alliance Financial Group and Affin have bullish readings, suggesting that the positive momentum would continue.
'However, due to weakening technical readings and overbought positions, Public Bank, AMMB and RHBCap could see some pullback,' it said.
In its market outlook issued on Thursday, Jan 6, it said the upward trend was on the back of rising investor's participation and buoyant sentiment.
'Overall market breadth remains bullish, supported by improving technical landscape and soaring trading volume. Immediate support levels are 1,527 (10-d SMA) and 1517 (middle Bollinger band),' it said.
HLIB Research said during the current liquidity driven rally, apart from PLANTATION [] stocks, banking shares were amongst the top gainers and hogging the limelight of local and foreign institutional investors.
'Thus, we look at the technical readings of banking stocks to determine if the momentum will continue. Technically, CIMB, Maybank, Alliance Financial Group and Affin have bullish readings, suggesting that the positive momentum would continue.
'However, due to weakening technical readings and overbought positions, Public Bank, AMMB and RHBCap could see some pullback,' it said.
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