KUALA LUMPUR (Feb 14): Blue chips reversed into the red after the first hour of trading on Tuesday following the lack of follow-through buying support, in line with the cautious regional markets.
Reuters reported that the initial relief over Greece's approval of harsh austerity measures in exchange for crucial aid gave way to doubts about Athens' ability to pursue the reforms, with social unrest intensifying.
At 10.02am, the FBM KLCI was down 1.06 points to 1,561.76. Turnover was 620.93 million shares valued at RM300.42 million. Losers beat gainers 331 to 170 while 289 stocks were unchanged.
CIMB Equities Research in its technical outlook that it was beginning to see more weakness creeping into the KLCI index.
“The past two candles have been small with Friday’s candle forming a bearish harami pattern. The strong volume run-up the past week could potentially be a buying climax with prices stalling at the 1,560-1,565 resistance level. A close below the 1,550 levels would likely confirm the reversal and send the index back towards 1,524 and 1,500 next.
“Anything above 1,565 should be viewed as a bonus to lock in profits at a higher level. A break below 1,500 would mean that 1,565 is most likely going to be a very significant top that is unlikely to be challenged for at least a couple of years,” said CIMB Research’s technical outlook for the market.
KLK was the top loser, down 38 sen to RM25.60, BAT 20 sen to RM51.30, HL Bank 10 sen to RM11.46, Tenaga seven sen to RM6.12 and PetDag six sen to RM18.72.
Naim Indah Corp fell seven sen to 49 sen with 34.89 million shares done.
JCY fell five sen to RM1.30. CIMB Research said the rally in JCY’s share could be over and looks poised for a deep correction.
“We believe that it is time to get out and lock in gains. Even if there is upside left, it is likely limited to RM1.50-1.60 levels. The key level to watch out for is RM1.31, where a break below would likely signal that prices are headed back to RM1.08 and RM1.03 next, where the latter is its 50-day SMA. Sell now,” it said in its technical outlook.
Among the gainers were Petronas Gas, up 18 sen to RM16.78, Ta Ann 12 sen to RM5.89, MNRB 11 sen to RM2.80 while PetChem gained six sen to RM7.01.
Reuters reported that the initial relief over Greece's approval of harsh austerity measures in exchange for crucial aid gave way to doubts about Athens' ability to pursue the reforms, with social unrest intensifying.
At 10.02am, the FBM KLCI was down 1.06 points to 1,561.76. Turnover was 620.93 million shares valued at RM300.42 million. Losers beat gainers 331 to 170 while 289 stocks were unchanged.
CIMB Equities Research in its technical outlook that it was beginning to see more weakness creeping into the KLCI index.
“The past two candles have been small with Friday’s candle forming a bearish harami pattern. The strong volume run-up the past week could potentially be a buying climax with prices stalling at the 1,560-1,565 resistance level. A close below the 1,550 levels would likely confirm the reversal and send the index back towards 1,524 and 1,500 next.
“Anything above 1,565 should be viewed as a bonus to lock in profits at a higher level. A break below 1,500 would mean that 1,565 is most likely going to be a very significant top that is unlikely to be challenged for at least a couple of years,” said CIMB Research’s technical outlook for the market.
KLK was the top loser, down 38 sen to RM25.60, BAT 20 sen to RM51.30, HL Bank 10 sen to RM11.46, Tenaga seven sen to RM6.12 and PetDag six sen to RM18.72.
Naim Indah Corp fell seven sen to 49 sen with 34.89 million shares done.
JCY fell five sen to RM1.30. CIMB Research said the rally in JCY’s share could be over and looks poised for a deep correction.
“We believe that it is time to get out and lock in gains. Even if there is upside left, it is likely limited to RM1.50-1.60 levels. The key level to watch out for is RM1.31, where a break below would likely signal that prices are headed back to RM1.08 and RM1.03 next, where the latter is its 50-day SMA. Sell now,” it said in its technical outlook.
Among the gainers were Petronas Gas, up 18 sen to RM16.78, Ta Ann 12 sen to RM5.89, MNRB 11 sen to RM2.80 while PetChem gained six sen to RM7.01.
