Stocks on Bursa Malaysia ended higher yesterday with the benchmark FBM KLCI closing 5.01 points higher, or 0.28% better, at 1,820.87 after hovering between 1,812.90 and 1,821.67. Maybank emerged as the top contributor to the gain in the key index, adding 14 Sen to RM9.16 on news its profit beat estimates. Maybank’s pre-tax profit surged to RM9.1 billion for its financial year ended Dec 31, 2014 from RM8.9 billion in 2013, on higher Islamic banking income. Gainers outpaced losers by 502 to 347 with 331 counters unchanged. Total volume surged to 1.9 billion shares worth RM2 billion from 1.7 billion shares worth RM1.9 billion on Wednesday.
The FBM KLCI opened 1.98 points lower at 1,813.88 and slipped lower to hit the intra-day low of 1,812.90 five minutes after opening. The key index rebounded from the low and climbed higher gradually for the rest of the day with intermittent pullback on profit-taking, and it hit the intra-day high of 1,821.67 just before closing. Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates the bulls were in control for the day in pushing the key index higher. Hence, the FBM KLCI is likely to climb higher today on follow through buying momentum. Immediate overhead resistance zone is at 1,825 to 1,831, while the downside support zone is at 1,812 to 1,800.
MACD turned upward and the histogram also extended upward slightly, indicating a mild increased in momentum to the upside. RSI (14) hooked upward to 63.6 from 61.7, indicating an increased in the FBM KLCI’s relative strength to the bullish side. Stochastic rose to 79.8 from 67.5, indicating further strengthening of the index and continuation of the short term up cycle. Readings from the indicators showed that the FBM KLCI is turning bullish and is likely to continue its upward momentum to climb higher.
The short and medium term trend of the FBM KLCI is up and the long term trend also starting to turn up as the key index has closed above the 100, 120 and 150-day simple moving average (SMA). Nonetheless, the FBM KLCI is still capped on top by a cluster of the longer term moving averages forming an immediate barrier at 1,824 to 1,832, and a breakthrough of this immediate overhead resistance zone will see the FBM KLCI turning more bullish and will rally higher toward the higher target levels of 1,845, follow by 1,850 and 1,858. On the broader market, rotational play on small caps and ACE market counters will continue to keep the market active.
Overnight, the Dow fell a marginal 10.15 points or -0.06% to close at 18,214.42. Today, the FBMKLCI is likely to trade within a range of 1,806 to 1,830.
This week's expected range: 1784 – 1832
Today’s expected range: 1806 – 1830
Resistance: 1824, 1827, 1830
Support: 1806, 1809, 1815
Stocks to watch: BDB, CIHLDG, CAREPLS, DGSB, EG, EVERGRN, FABER, GKENT, HOMERIZ, KKB, KNM, LANDMRK, MIECO, MIKROMB, NIHSIN, PELIKAN, PERWAJA, PRTASCO, REDTONE, SEM, VITROX, ZELAN
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