Tuesday, November 06, 2012

Market Outlook as at November 6, 2012

Our market is getting ready for next week, which will be a short 3-day trading week. With the index down 6 points as at 10.40am, it looks likely that FBMKLCI & FBMEMas may test its uptrend line at 1630 & 11060, respectively. That is slightly below the 100-day EMA line for FBMKLCI & FBMEMas at 1633 & 11130, respectively. These supports should  arrest the fall in the market and provide an opportunity for those looking to position themselves for a possible year-end rally.


Chart 1: FBMKLCI's daily chart as at Nov 6, 2012_10.20am (Source: Quickcharts)


Chart 1: FBMEmas's daily chart as at Nov 6, 2012_10.20am (Source: Quickcharts)

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4 comments:

  1. StanleyTuesday, November 06, 2012 12:02:00 PM

    Hi Alex, any comment in Suria Capital Holdings? It it an attractive stock with low valuation.

    ReplyDelete
  2. IvanTuesday, November 06, 2012 2:21:00 PM

    Good time to buy before Dec rally?

    ReplyDelete
  3. Alex LuThursday, November 08, 2012 10:55:00 AM

    Hi Stanley

    Suria is in sideway movement with resistance at RM1.65 & support at RM1.45.

    With full-year EPS of about 20 sen, Suria is trading at a PE of 7.2 times. Dividend yield is about 4.1%. In term of valuation, it is fairly reasonable, even attractive.

    On that basis, the stock is good for long-term investment.

    ReplyDelete
  4. Alex LuThursday, November 08, 2012 10:59:00 AM

    Hi Ivan,

    Yes, it could be a good entry as the market pulls back to the uptrend line. With the election around the corner, the market is too jittery for a year end rally.

    ReplyDelete