The Malaysia stock market bounced higher again on Monday, one session after snapping the three-day winning streak in which it had jumped almost 30 points or 2 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,435-point plateau and it may add to its winnings on Tuesday.
At 9.25am, the FBM KLCI opened at 1431.57.
The benchmark FBM KLCI experienced strong bullish momentum during Monday’s session, climbing 14 pts and closing stronger at 1,437 pts.
In a note, RHB Retail Research said that on Monday, the index began the session higher at 1,430.50 pts. After it dipped to theday’s low at 1,429 pts, it rose to the day’s high of 1,438 pts before closing at 1,437 pts.
The index has been on a counter trend rebound, climbing for the fifth consecutive session.
Should the momentum follow through, the index will test the 1,445-pt immediate resistance. Breaching the immediate threshold would improve market sentiment.
At this stage, RHB expects a strong selling pressure to emerge at the 1,445-pt level, or near the 50-day SMA line. Despite the counter trend rebound still in play, RHB sticks to their negative bias until the bullish breakout occurs above the 1,445-pt level.
Traders should keep to the short positions initiated at 1,414 pts ie the close of 10 Mar. To mitigate the trading risks, the initial stop-loss is set at 1,445 pts.
The immediate support is adjusted higher to 1,412 pts (17 Mar’s close), followed by 1,400 pts. Conversely, the immediate resistance is kept at 1,445 pts (7 Mar’s high), followed by 1,476 pts, or the close of 17 Feb.
Meanwhile, Maybank Investment Bank, in a note today said that the FBMKLCI Index started the week on a higher note, boosted by gains in energy related stocks as oil price rallied 8% to an intraday high as OPEC+ unexpectedly announced a 1m+ bpd production cut from May-23.
The benchmark index gained 10.80pts, or 0.76%, to end the day at 1,433.39, led by advances in MRDIY, AXIATA, INARI and HLFG.
Market breadth was positive with gainers outnumbering losers by 592 to 312. A total of 3.38b shares valued at MYR1.63b changed hands.
Sharper gains in both small caps and the ACE market index suggests healthy rotation from blue chips, led by the energy, technology and transportation sectors.
Technically, the bank expects the FBMKLCI Index to range between 1,420pts and 1,460pts today, with supports remaining at 1,380pts and 1,350pts.
