Malaysia Stock Market Review for KLCI 31 Dec

The FBM-KLCI was at 1,759.76 down 7.07 points. There were 391 gainers, 394 losers and 954 counters traded unchanged on the Bursa Malaysia. Share prices on Bursa Malaysia traded sideways at mid-morning today in the face of fading window dressing activities coupled with profit taking.
The FBM KLCI index lost 5.58 points or 0.32% on Wednesday. Finance Index fell 0.07% to 15704.35 points, Properties Index dropped 0.28% to 1285.67 points and Plantation Index rose 0.63% to 7887.23 points. Market traded within a range of 12.92 points between an intra-day high of 1768.85 and a low of 1755.93 during the session. Market ended in red after losing 5.58 points to 1761.25 on the last trading day of the year, amid fresh led as some regional peers are closed for New Year holidays. The performance of our benchmark index was bogged down by selling in heavyweight counters such as FGV and banking-linked stocks. Meanwhile, investors became more cautious on global economy outlook after the decline of Chinese factory gauge which sank to a 7 month low in December.

FBMKLCI Day Performance
Open: 1759.76
High: 1768.85
Low: 1755.93
Close: 1761.25
Change (in Points): -5.58
%Change: -0.32
Volume: 1355.4 M
Rise: 391
Fall: 394
Unch: 954
Market forecast for KLCI: The market trend is moving in sideways, resisting at 1769. It is now anticipated that after breaking previous low of 1753, will likely to move within range of 1747-1740.
Technical indicators: RSI stood below the center line at 50.846 with its CCI at 78.064. Difference line of MACD performed at -8.501 below its signal line which performed at -17.123.
KLCI LEVELS
Support 1: 1740
Support 2: 1720
Support 3: 1700
Resistance 1: 1769
Resistance 2: 1789
Resistance 3: 1810
ECONOMIC FACTORS:

•     Malaysia’s real gross domestic product (GDP) growth is likely to expand by 5.8 per cent year-on-year (y-o-y) in 2014 and 5% next year.
•     The government may introduce new measures next year to boost its coffers and improve expenditure to meet the 3.0 per cent fiscal deficit target for 2015.
•     Standard and Poor’s (S&P) expects the top 41 banks in the Asia-Pacific region, including three Malaysian banks, to enjoy stable prospects next year even as the slowdown in China remains a hot spot.
•     It’s been a rough year for Bursa Malaysia so far, but things fared better as we approach the second last week of the year. A host of factors, including a sharp sell down in the United States markets, siege in Sydney and the persistent downtrend in crude oil prices last week, hammered investor sentiment across Asia, and Bursa was equally affected.
•     Crude oil prices have dipped to the lowest level since the global crisis. The 50% slump in prices which set in since July was not seen in most of economic forecast reports as most of the noise was focused on locations like Iran, Iraq, Russia and Ukraine and sanctions.
•     The blue-chip benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) gapped down and sold off to a fresh four-month low last week, depressed by heavy falls in emerging markets and oil prices that slumped to fresh five-year lows. Extreme oversold conditions then sparked a technical rebound mid-week as crude oil prices stabilized above a five-year low of US$53.60 (RM186.53) a barrel and the United States Federal Reserve signaled patience in keeping interest rates low.
•     Saudi Arabia’s oil minister defended the Organization of the Petroleum Exporting Countries (Opec) decision to keep output steady despite the biggest market slump in years yesterday, saying current prices would help global economic growth and petroleum demand, while Arab states would escape major damage.