Yesterday, 9th July 2011 would be a history day in Malaysia. It’d been to be the global headline as supporter of Bersih 2.0 can be found not only in Malaysia, but also other country like Melbourne, Thailand, Taiwan and etc.
KLCI closed at a new high of 1595 with reduced volume last Friday. Apparently, the index was pushed up by institutional investors near the closing period. On the other hand, we can see that the volume traded decreased as the retail investors are worried about the outcome of the Bersih 2.0 rally.
Today, KLCI broke out of its yesterday high of 1579 to close at 1582 with a volume of 801 million shares. It has been decreased compared to yesterday which recorded 947 million of shares traded. Although it’s on uptrend but I believe that it may change direction or go into sideway if there’s no higher volume of at least 1 billion shares in the following days to set the firm uptrend.
I can see that not all the counters traded at their high. Lately, there’re few counters such as MAS, MUHIBAH, MAA, MYEG all tumbling to their lowest after having experience of a roller coaster ride. Thus, most of the time our KLCI was led higher by finance and plantation stocks.
Today, our FKLI futures index went up 2 points to close at 1564.5. I can see that the moving average is at a reduced pace now. As I known, no trend could goes up forever. The reason why FBM KLCI dropped till this level is because there’s the expected minor correction which is not sufficient yet.
Based on the AmInvestment forecast, the FBM KLCI may experience further downside and their expected support level will be 1550 – 1540. If the index dropped till that level, then it will be a good chance to initiate ‘LONG’ position in order to ride on the long-term uptrend.
The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) break new record high for five days continuously. This is a great start for Malaysian market in 2011.
I was shock with the result since beginning of this year as FBM KLCI always close in positive zone when the index can be in red sign. I personally believe that the market is fully control by big inflow money. As long as US did not face the economic crisis, FBM KLCI may continue to go up to 1,600 level and it’s possible to achieve 1,700 level by this year end.