Friday, July 01, 2011

Market Outlook as at July 1, 2011

Our FBM-KLCI made a new high yesterday when it closed at 1579- a mere 3 points above the previous all-time high of 1576 which was recorded on three days in January (Jan 6, 10 & 18). This breakout was achieved on a very average day, with modest volume of 1.044 billion shares traded and gainers outnumbering losers by a narrow margin of 399 to 325.

Today, FBM-KLCI managed to improve on yesterday's performance with a gain of 4 points to close at 1583. Volume traded was lower at 802 million shares and, to make a bad situation worse, we have losers outnumbering gainers by 388 to 352. What can one make of this upside breakout? An unconvincing breakout can be subject to a reversal. As such, it is risky & untradable. Let's wait for more convincing market action before deciding on the next course of action.


Chart 1: FBM-KLCI's daily chart as at July 1, 2011 (Source: Quickcharts)



Chart 2: FBM-KLCI's weekly chart as at July 1, 2011 (Source: Quickcharts)
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3 comments:

  1. DesmondMonday, July 04, 2011 11:12:00 AM

    Hi! Alex,

    May I ask why EONCAP exercise capital refund? is it going to be delisted or merged with Hong Leong Bank? If so, EONCAP shareholders will get Hong Leong Bank shares in exchange? Big Thank You!

    - Desmond Chong

    ReplyDelete
  2. kerry leeMonday, July 04, 2011 12:44:00 PM

    Dear Alex,

    What do you think of KSL Holdings? It is now trading around RM1.94. I went through its Annual Report and discovered that quite a few reputable foreign funds are shareholders. One of them is Mark Mobius of Franklin Templeton.

    What's your take on KSL?

    Thank you.

    ReplyDelete
  3. vincentMonday, July 04, 2011 4:02:00 PM

    Hi Alex,

    Just a quick check with you, when a stock announce share split and bonus issue, does it mean that the share price will up before the ex-date?

    ReplyDelete