The FBM KLCI opened stronger in the morning and rebounded above 1,590 before ending the day lower at 1,583.08 (-1.12 points). Market breadths worsen with losers outpacing gainers further by 632 to 386, while 420 counters were unchanged and 865 untraded.
Banking was the top performer sector today where AMBANK (1015) and HLFG (1082) were leading ahead by registering 1.48% and 1.42% higher, respectively. No major development was observed. However, the financial services index was on rising trend after rebounding off the 14,651-level. It also seems to be well supported above the 15,684-level a.k.a the middle band of regression line. Should the recovery story persist, the uptrend is likely to continue.
At the same time, it is also observed that Technology and Telecommunications sectors were also showing decent trading interest. Inari Amertron (INARI, 0166) and Redtone Digital (REDTONE, 0032) were the 2 noticeable counters that appeared in Pick@Stock’s “Today Keywords”. Technically speaking, INARI has been trending up within a well-established uptrend channel. The stock could be in the midst of testing its RM4.00-psychological resistance in the near-term. REDTONE, on the other hand, could have staged an uptrend acceleration with a significant surge in trading volume after overcoming its RM0.600-psychological resistance.
On the contrary, Hiap Teck Venture (HIAPTEK, 5072) declined 8 sen (or >12%) to 57 sen, which is marginally above its TrainYew SuperTrend support of RM0.680, with higher than average trading volume. A break below the said support will suggest potential further declines to RM0.535/520.
As for the benchmark FBMKLCI Index, TrainYew’s “Negative Signal” remains intact and the index is likely to continue its consolidation process, say towards ~1,570 or the Bollinger Middle Band. At the same time, Pick@Stock’s COWI Sentiment Index remains flattish but has yet to issue any negative signals.
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