Monday, 11 July 2011

A Cloudy Day - FBM KLCI ends lower, retrace or rebounce?

FBM KLCI ends lower - The final updates from The Star that FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) ended lower today by 6.16 points to 1588.58 or equivalent to 0.39%. One of the reader, Mr. Fong is worry and ask if this is the sign of re-tracement after market is overheat on the past few weeks.

Malaysian exchange has been outperformed many of its Asian and European peers for the past few weeks. Thus, short term pull back for FBM KLCI is expected.

Japan's rally recovering from March quake faster than most economists expected, considered as one of the biggest gear and driver for local sectors. Psychological 10,000 level for Nikkei has been catch up, which is an immediate boost for the local market. Refer to FBM KLCI Futures To Trade Higher Next Week for details.

Another good story for FBM KLCI is it likely to hit 1,900 points by Mid-2012 per USB research. Refer to 
FBM KLCI Likely To Hit 1,900 Points By Mid-2012 for details.

Technical Chart Analysis
Let's take a look on today's chart. Most of the indicators still intact. Bull is temporary resting and will continue to run the show in a short while. Please refer to Technical Chart for Technical Analysis on FBM KLCI.

Bursa Trade Statistics vs FBM KLCI 
I had performed an analysis onto Bursa Trade and found an interesting observation. It is observed that FBM KLCI trend react towards Foreign investor's net buying. Please refer to below for details of Bursa Trade Analysis.

Foreign investor continue to collect our share as showing in the positive net buying (daily trade) since  6/10/2011. I had summarized the trade at below link. Feel free to bookmark it if you found it is useful.
Bursa Trade Analysis.

As short, consideration all of above, FBM KLCI should would continue to soar like eagle below and we are looking forwards the day it break 1600 historical high at very near future.

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More info on Stock Market to be published.....

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