Technicals – KL Composite Index still positive

Technicals – KL Composite Index still positive





· Our positive bias on the market remained unchanged in the medium term. All technical indicators continuing to point northwards with investor psychology firmly trained towards the bullish as risk appetite improves on the back of a more benign overseas market condition as well as a general expectations that the worst could have been behind.

· The short and shallow pullback during the previous week clearly indicated that the bullish momentum is intact with investors taking every opportunity to buy on the dip. Positives for the market including seasonality, a return of risk assumption as well as the slosh of liquidity that is in the system should likely to keep the equity market buoyant.

· Upside targets remained to be the psychological 1,000 mark with 1,015 – 1,028 as next possible targets. Support remains firmly in place at the 950 – 960 levels in the near term with 933 as next.

· Strategy wise, we remain long for the longer term mandates and will let the profit run while traders will likely to have a field day given the current level of volatility





KENANGA INVESTMENT BANK BERHAD (15678-H)