Stock on Bursa Malaysia closed last Friday on a positive note with investor sentiment boosted by the overnight rally on Wall Street and strong buying in blue-chip stocks. The FBM KLCI ended last Friday 9.4 points or 0.63% higher at 1506.05, after opening 4.16 points better at 1500.81. On a Friday-to-Friday basis, the FBM KLCI closed 6.24 points higher compared with 1499.81 the previous Friday. For the holiday-shortened week, the market had moved within a tight range. Weekly turnover declined to 4.56 billion shares, worth RM6.166 billion, from 8.204 billion shares, valued at RM11.334 billion the previous week.
The FBM KLCI opened last Monday 0.2 point lower at 1499.61 and slipped to the intra-day low of 1497.04, it rebounded and traded sideways in a narrow range throughout the day to close 1.75 points higher at 1501.56. On Tuesday, the FBM KLCI fell to the intra-day low of 1491.76 before rebounding to close 1.98 points higher at 1503.54 on news that South Korea was the latest to follow China to raise interest rate. The market was closed on last Wednesday for the Hari Raya Aidiladha celebration. On Thursday, The FBM KLCI opened 3.23 points lower at 1500.31 and plunged to the intra-day low of 1487.21 within the first thirty minutes, losing 16.33 points at its worst, the key index gradually recovered its lost ground to close the day 6.89 points lower at 1496.65. And on Friday, the key index rebounded strongly to close 9.4 points higher at 1506.05.
On the weekly chart, the FBM KLCI formed a hammer candlestick which indicates sellers were initially dominant in pushing the key index to its intra-week low of 1487.21, but later buyers fought back to push the key index to close near the high of the week at 1506.05. The appearance of the hammer candlestick after the formation of bearish engulfing candlestick pattern the previous week signifies the short term correction is probably over, and the market might continue its rebound to move higher this week.
On the daily chart, the FBM KLCI formed a bullish white candlestick with short lower and upper shadows, which indicates the bull was very much in control. The candlestick formed is a confirmation to the reversal signal issued by the hammer candlestick formed on last Thursday. Hence, the key index is likely to continue its rebound to move higher.
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