KUALA LUMPUR: PLANTATION []s weighed on market sentiment on Monday, Feb 28, with KL Kepong, Batu Kawan and Kulim among the major decliners.
At 9.58am, KL Kepong was down 28 sen to RM19.38, Batu Kawan 60 sen to RM14.90 and Far East 15 sen lower at RM7. Kulim, which reported lower earnings, lost 15 sen to RM3.53.
Maybank Investment Bank Research, in its market review and outlook report, said the FBM KLCI plunged 29.30-points and closed at 1,489.27 last week, as a foreign-led high volume sell-down outweighed the local bargain hunting activities.
'The weaker support areas for the FBM KLCI are located in the 1,445 to 1,474-zone. The very firm resistance zone of 1,489 and 1,527 will see very heavy liquidation activities,' it said.
The research house said the FBM KLCI had previously consolidated in a tight range of 801 to 936 from October 2008 to April 2009, but broke above its resistance of 936.63 on 10 April 2009 and surged to a fresh all-time high of 1,576.95 on Jan 6, 2011.
'In terms of Elliott Waves, the FBM KLCI traced a broad Wave a/B consolidation phase to the 936.63 high. Its Wave b/B low was 836.51. We have traced out a Wave c/B (of Flat 3-3-5 variety) rebound phase. Bearish divergence signals are obvious on the FBM KLCI's indicators despite the index's surge to its all-time high of 1,576.95 (c/B),' it said.
Maybank Investment Bank Research said post-CNY foreign hedge fund liquidation activities have caused the FBM KLCI's downward selling pressure.
'The FBM KLCI's price action has turned its chart into a daily downtrend. As the price action on its weekly chart created a Bearish Engulfing Candle Pattern 3 weeks ago, all rebound rallies may be sold down,' it said.
The research house said the Libyan humanitarian and oil crisis have caused international investors to sell stocks on rebounds. Likewise, local investors should do the same as well. A hawkish interest rate tone for the regional markets does not augur well for equity markets too, it added.
At 9.58am, KL Kepong was down 28 sen to RM19.38, Batu Kawan 60 sen to RM14.90 and Far East 15 sen lower at RM7. Kulim, which reported lower earnings, lost 15 sen to RM3.53.
Maybank Investment Bank Research, in its market review and outlook report, said the FBM KLCI plunged 29.30-points and closed at 1,489.27 last week, as a foreign-led high volume sell-down outweighed the local bargain hunting activities.
'The weaker support areas for the FBM KLCI are located in the 1,445 to 1,474-zone. The very firm resistance zone of 1,489 and 1,527 will see very heavy liquidation activities,' it said.
The research house said the FBM KLCI had previously consolidated in a tight range of 801 to 936 from October 2008 to April 2009, but broke above its resistance of 936.63 on 10 April 2009 and surged to a fresh all-time high of 1,576.95 on Jan 6, 2011.
'In terms of Elliott Waves, the FBM KLCI traced a broad Wave a/B consolidation phase to the 936.63 high. Its Wave b/B low was 836.51. We have traced out a Wave c/B (of Flat 3-3-5 variety) rebound phase. Bearish divergence signals are obvious on the FBM KLCI's indicators despite the index's surge to its all-time high of 1,576.95 (c/B),' it said.
Maybank Investment Bank Research said post-CNY foreign hedge fund liquidation activities have caused the FBM KLCI's downward selling pressure.
'The FBM KLCI's price action has turned its chart into a daily downtrend. As the price action on its weekly chart created a Bearish Engulfing Candle Pattern 3 weeks ago, all rebound rallies may be sold down,' it said.
The research house said the Libyan humanitarian and oil crisis have caused international investors to sell stocks on rebounds. Likewise, local investors should do the same as well. A hawkish interest rate tone for the regional markets does not augur well for equity markets too, it added.
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