By Chan Tien Hin
Nov. 11 (Bloomberg) -- Malaysia’s benchmark stock index is
set to surpass “tough resistance” at 1,300, an 18-month high,
extending this year’s 45 percent advance, OSK Research Sdn. said.
The 30-member FTSE Bursa Malaysia KLCI Index “has a good
chance of testing the 1,300 point mark soon,” OSK analyst Shin
Kao Jack said in a report today. Having “violated the recent
peak of 1,270 points,” that level now offers initial support,
followed by 1,242, he said.
“Market activities have been relatively active over the
last seven trading days with more than 1 billion shares changing
hands” daily, Shin said. Trading volume on Malaysia’s stock
market averaged 843 million shares over the past three months,
according to data compiled by Bloomberg.
The KLCI Index has risen 45 percent this year, helped by
Prime Minister Najib Razak’s 67 billion ringgit ($20 billion) of
stimulus measures aimed at reviving economic growth.
The gauge dropped 0.2 percent to 1,271.48 as of 11:45 a.m.
local time, snapping a six-day, 2.6 percent rally. It last
settled above 1,300 on May 16, 2008.
In technical analysis, investors and analysts study charts
of trading patterns and prices to forecast changes in a security,
commodity, currency or index. Support is a level where buy
orders may be clustered and resistance is where there may be
sell orders. A break below support or above resistance indicates
a security may move to the next level.
No comments:
Post a Comment