KUALA LAMPUR MALAYSIA: Weekly Technical view on KLCI

Weekly wrap of KLCI: Market performed sideways this whole week. The FBM KLCI index gained 4.38 points or 0.25% on Friday. Finance Index fell 0.13% to 15180.13 points, Properties Index up 0.96% to 1268.09 points and Plantation Index down 0.47% to 7798.03 points. Market traded within a range of 12.73 points between an intra-day high of 1738.54 and a low of 1725.81 during the session.

KLCI rose 4.38 points to 1732.44 on the last trading day of the week, boosted by surge in overnight US market as oil steadied, hopes for continued improvement in the U.S economy and signs of a strengthening labour market. The performance of our benchmark index was supported by buying in selected heavyweight counters, led by SapuraKencana.

FBMKLCI Week's Performance
Open	1734.61
High	1738.54
Low	1725.81
Close	1732.44
Change (Points)	-20.33
% Change	-1.15

Market Forecast for week ahead: It is anticipated the once the resistance of 1740 is broken market will perform better.

Support 1	Support 2	Support 3	Resistance 1	Resistance 2	Resistance 3
1722	1715	1700	1740	1760	1770

Technical indicators: RSI for this week is 36.155 with CCI at -122.152. Besides, difference line of MACD (29.077) overlapping its signal line (20.596).

ECONOMIC FACTORS:

• Malaysia’s Industrial Production Index (IPI) grew by 4.7 per cent in November 2014 compared with the same month a year ago. The increase was due to the positive growth in all indices of manufacturing, mining and electricity.
• The ringgit opened higher against the US dollar Friday, lifted by continued buying support for the local unit. The local note was also traded firmer against other major currencies, except the British pound.
• Gold futures contract on Bursa Malaysia Derivatives opened lower today with only one contract months traded.
• The FTSE Bursa Malaysia KLCI futures (FKLI) contract on Bursa Malaysia Derivatives opened higher in tandem with the gains in the cash market.
• Industrial output is likely to have grown at a slower pace in November. The Industrial Production Index (IPI), which tracks the manufacturing, mining and electricity indices, to post an average 4.06% annualised growth.
• Land Public Transport Commission (SPAD), which was set up in 2010 to regulate the land public transport sector, reported that it has not received any proposal from Malaysia Steel Works (KL) Bhd (Masteel) for the latter's proposed RM1.23 bilion intra-city rail transit project in Johor.

Sector Allocation Chart

SECTOR	CHANGE	%CHANGE	HIGH	LOW
MINING	-	-	526.87	526.87
CONSTRUCTN	2.66	0.96	279.24	277.24
PROPERTIES	12.03	0.96	1,270.44	1,263.28
IND-PROD	0.87	0.7	124.96	124.25
CONSUMER	3.79	0.69	555.15	551.77
TRAD/SERV	1.26	0.55	229.86	228.47
TECHNOLOGY	0.08	0.46	17.66	17.44
INDUSTRIAL	9.51	0.3	3,173.71	3,157.88
FINANCE	-19.24	-0.13	15,209.19	15,091.33
PLANTATION	-36.84	-0.47	7,884.58	7,795.38