Stock Market Review for KLCI Malaysia 15th Jan

The FBM KLCI index gained 2.99 points or 0.17% on Thursday. Finance Index increased 1.11% to 15392.79 points, Properties Index up 0.38% to 1285.87 points and Plantation Index down 0.41% to 7807.44 points. Market traded within a range of 12.70 points between an intra-day high of 1750.94 and a low of 1738.24 during the session.

KLCI ended higher at 1745.00 points after oil prices rebound the most in more than 2 1/2 years from close to six-year low. The surge in oil prices outweighed the concerns over slowdown in global economy that indicated by the decline of US retail sales in December.

Open: 1747.54
High: 1750.94
Low: 1738.24
Close: 1745.00
Change(Points): 2.99
% Change: 0.17%
Volume: 1934.5M
Rise: 497
Fall: 283
Unch: 1846

Market forecast for KLCI: Market is still in a side way movement, though it is anticipated to show some improvement.

Technical indicators: RSI stood below the center line at 49.423 with its CCI at 34.73. Difference line of MACD performed at -6.531 above its signal line which performed at -9.752.

Support 1: 1706
Support 2: 1688
Support 3: 1668
Resistance 1: 1738
Resistance 2: 1758
Resistance 3: 1770

ECONOMIC FACTORS:

• Asian currencies tend to depreciate against the US dollar in the 12-month period prior to a peak in oil prices and, this time around, the peso is likely to be the worst performing among Asian currencies, according to a study.
• Ringgit opened higher against major currencies like US dollar, Yen, Singapore dollar, Euro and British Pound. The reason for lowring of US dollar is unfavourable US retail sales data.
• Maybank Investment Bank has recommended a "Take Profit" stance for the index today as the KLCI January 2015 futures contract moved into a larger 10.01-point discount against the FBM KLCI. We expect minor nibbling at the supports of 1,718 to 1,742, whilst heavy profit taking would be at the resistances of 1,745 and 1,770.
• Khazanah Nasional Bhd, which posted a 9.2% growth in investment portfolio for 2014, said it is ready to play a "national role" in addressing Malaysia's budget conditions despite dividends to be received from its investments could be under pressure for 2015.
• Sona Petroleum Bhd said yesterday it has "officially" terminated the sale and purchase agreement with Salamander Energy Plc on the two assets in Thailand for US$281.5 million (RM1.01 billion).
• The government should review the budget given the significant change in oil prices, said CIMB Group Holdings Bhd chairman. One of the targets that external observers are watching for is the budget deficit and the target of 3% budget deficit by 2015. And also here has to be clarity in terms of where Petronas dividends are going to be and what are the main drivers because the dividends are not just a function of oil price but also a function of the group's capital expenditure plans.
• The Ministry of International Trade and Industry (Miti), which aims to see intra-Asean trade grow from 24% of total trade now to 30% to 35% in the next few years, said the harmonisation of rules and regulations for the Asean Economic Community (AEC) is still a work-in-progress. The challenge is because Asean is made up of 10 countries that can be divided into different tiers in terms of per capita income, population and economic development.