Malaysia Stock Market Review 8th Jan

The FBM KLCI index gained 18.88 points or 1.10% on Thursday. Finance Index increased 0.78% to 15199.37 points, Properties Index up 0.26% to 1256.06 points and Plantation Index rose 1.70% to 7834.87 points. Market traded within a range of 16.16 points between an intra-day high of 1730.18 and a low of 1714.02 during the session.

KLCI reversed previous day’s losses after ending 18.18 points higher at 1728.06, buoyed by the rebound in overnight US market following the upbeat US employment data and declaration from the Federal Reserve that it was not quite ready to lift up interest rates just yet. The performance of our benchmark index was lifted by buying interest in heavyweight counters, led by KL Kepong and SapuraKencana.

Market forecast for KLCI: Players welcomed the local lead after weeks of being spooked by global crude oil price bearishness, citing Malaysia’s November 2014 export data released yesterday, which saw the country’s trade surplus at its highest in three years, successfully attracting buyers.

Technical indicators: RSI stood below the center line at 43.584 with its CCI at -24.184. Difference line of MACD performed at -11.810 above its signal line which performed at -12.604.

ECONOMIC FACTORS:

• The Malaysian ringgit pulled off 5-1/2-year lows against the dollar while other Asian currencies steadied on Thursday, as a pause in sliding global oil prices and better U.S. jobs data put a floor under emerging markets and other riskier assets.
• IJM Corporation Bhd (IJM Corp) expects to finalise the full privatisation of IJM Land Bhd by April this year after obtaining unanimous shareholders approval at the Extraordinary General Meeting (EGM) here, this morning.
• The gold futures contract on Bursa Malaysia Derivatives was lower at mid-day today.
• The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contracts (FKLI) on Bursa Malaysia Derivatives traded higher at mid-day today as traders turned more bullish in tandem with the trend on the cash market.