The futures of KLCI is seen as testing the immediate support level at 1,586.50 and the optimism of the bulls may defend the support level. Hence the research house of RHB is maintaining ‘LONG’ positions on this futures. On the ACE market listing, Cengild Medical Bhd is set to be listed on Bursa Malaysia’s ACE Market on April 18 under an initial public offering (IPO) of 218.8 million new shares in the company at RM0.33 each to raise RM72.2 million. According to its filing with Bursa, Cengild will have a market capitalisation of RM270.2 million upon listing with issued shares of 818.8 million.
Technical analysis on FKLI
The FKLI’s momentum has been slowing down, and last Friday, it fell 4.00 points to settle at 1,588 points – sitting on top on the 1,586.50-point support. On Friday, it opened stronger at 1,593 points and rose to the day’s high of 1,594.50 points. However, negative momentum brought it down to the day’s low of 1,587 points before closing in negative territory – the index has pulled back lower in the last five successive sessions.
As the index is undergoing profit taking amidst consolidation, it will test the immediate support of the 1,586.50-point level in the coming sessions. If the critical threshold gives way, sentiment will become weaker and attract strong selling pressure. At this stage, the research house is still holding the view that the bulls may defend the threshold and buying interest should emerge in the immediate sessions.
Any rebound will test the strong psychological resistance at the 1,600-point level. The research house is sticking to a positive trading bias until the trailing-stop is triggered.
KLCI futures traders are advised to retain the long positions initiated at 1,567.50 points, or the close of 16 Mar. To manage the trading risks, the trailing-stop is fixed at 1586.50 points. The nearest support remains at 1,586.50 points (6 April’s low), followed by 1,575.50 points. Conversely, the first resistance is pegged at the 1,600-point round figure, followed by 1,608.50 points, or the high of 25 March.
Cengild Medical Berhad
This newly listed- healthcare service provider specialising in the diagnosis and treatment of gastrointestinal, liver diseases and obesity. The healthcare provider group intends to use RM37.1 million to establish new medical centres, RM17.4 million for working capital, RM13 million for expansion of existing medical centres and the remaining RM4.7 million for listing expenses on the IPO proceeds.
