KLCI closed down 0.16% or -2.04 pts to settle 1282.97 in line with weaker regional market. Regional market fell (HSI index –1.36%, STI –1.35% and Nikkei –0.58%) as lower Chinese manufacturing growth and the prospect of higher interest rates in India spurred concern that the global economic recovery may slow. Losses from properties (-1.48%) and technologies (-2.01%) sector contribute the major losses. On fkli, new month June plunge 15.5 pts or 1.2% to closed at 1274.5, 10 points discount from 3 points premium the day before.
Expect the fkli to be choppy today and increased in volatility with basis fluctuate between premium and discount. For the record, the 10 pts discount most widen in 13 months. Players should maintain a sell-into-strength strategy. With regional market still susceptible to negative news many players still have doubts about the strength of the global recovery. We anticipated listless performance in fkli and likely to continue for the rest of this weeks. Based on yesterday performance and Dow overnight, we believe many players have more doubts about the strength of the global recovery for now. We lower our support to 1260 while resistance lower to 1292.
US Market
U.S. stocks fell last night as energy shares slid after the latest failed attempt to halt the oil spill in the Gulf of Mexico clouded future prospects for energy company profits. U.S. government said it would start a criminal probe into the oil spill in the Gulf of Mexico, where another bid to stem the leak failed. The Dow dropped 112.61 points, or 1.11%, to 10,024.02. The S & P 500 Index dropped 18.70 points, or 1.72%, to 1,070.71. The Nasdaq dropped 34.71 points, or 1.54%, to 2,222.33.
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The information herein was obtained or derived from the source that we believed are reliable.No liability can be accepted for any loss that may arise from the use of this report.All opinions and estimates included in this report constitutes our judgement as of this date and are subject to change without notice.
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