Last Friday, our market had a decent rally ahead the Merdeka holiday. The index, which was hovering at 1602 around 3:00 pm, was pushed up to close at 1612 in the last 1 hour. Coupled with the morning gain, FBMKLCI rose nearly 17 points last Friday.
Chart 1: FBMKLCI's daily chart as at Sep 2, 2019 (Source: Malaysiastock.biz)
Given the hour push-up, I expect the index to cede easily 10 points on opening Tuesday. However, if you were to take a closer look at the FBMKLCI chart, the index is poised for recovery after a long decline from 1690 in late July. Thus I believe the index will likely trade around 1600 next week.
Chart 2: FBMKLCI's daily chart as at Sep 2, 2019 (Source: Malaysiastock.biz)
Market will remain lethargic next week. Cautious buying of attractive good stocks, is still advisable. Of those stocks which had announced their results last week, CIMB and Maybank look quite attractive, and worth buying on weakness. Good luck!
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