14 Sept 2009 Weekly FBM KLCI Technical Perspective

Our Malaysian bourse appears to be back on track now, ready to ride on a positive trajectory to plot fresh highs for the year going forward. This comes after the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) jumped last week, climbing to a high of 1,210.36 before finishing at 1,208.28, up 29.5-point or 2.5% from the previous Friday’s close.

Rising in tandem through the week was the FBM 70 Index (+2.0%) but the FBM ACE Index ended weaker (-1.3%). Daily average volume rebounded too to 662.2m shares valued at RM1.1b, from 548.4m units worth RM981.9m previously. While trading activity should ease ahead of the long weekend break, the bulls will still want to sustain the renewed momentum generated from last week’s upbeat performance. With news flows on the domestic scene also likely to be quiet – no key data is anticipated other than the insignificant ones namely Consumer Price Index report for Aug (due on Wednesday, 16 Sep) and the international reserves as at 15 Sep (on Friday, 18 Sep) – the focus will turn to the external front for new leads to emerge.

Report From HWangDBS