2010 July Malaysia Stock Market Outlook

The Point To Rebound??

"The rally comes as investors have grown hopeful that the market's recent drop to 2010 lows may have exaggerated expected effects on corporate earnings from the slumping euro and slower global growth."(Marketwatch)

09/07/2010 Market Roundup

The ringgit strengthened to 3.1985 to the US dollar from 3.2035 the previous day after Bank Negara raised the overnight policy rate (OPR) by 25 basis points to 2.75%.

RHB Research Institute said it believed Bank Negara would likely hold the OPR at 2.75% for the rest of this year, "given that there is no urgency to raise interest rates rapidly and the country's economy will likely slow down in the 2H of the year, as the global economy weakens".

FBMKLCI

*FBMKLCI will be testing its resistant at 1335 points next week. Failure to do so will lead to another market correction.

*Share prices on Bursa Malaysia finished the week on a positive note on Friday, July 9 with sentiment boosted by the uptrend on Wall Street and confidence over economic growth

The FTSE Bursa Malaysia (FBM) Kuala Lumpur Composite Index rose by 8.28 points to close at 1,324.31 points. It opened 0.13 point better at 1,316.16 points.

Dealers said the index was lifted by gains on banking stocks following the increase in the Overnight Policy Rate by 25 basis points to 2.75% on Thursday.

[STOCKS TO WATCH]

[UNISEM 5005]

*Target resistant at 3.25.

*Support at EMA20days.

*MACD Golden Cross.

*Good 'Buy' Call for a short term period of 2weeks.

[POS 4634]

*Target resistant at 3.20.

*Support at EMA20days.

*Awaiting MACD Golden Cross.

*Good 'Buy' Call when MACD Golden Cross. Short term period for 2weeks.

[TIMECOM 5031]

*Resistant at 0.545.

*Support at EMA20days.

*MACD Golden Cross

*Good 'Buy' Call for a period of 2weeks.

[XINQUAN 5155]

*Resistant at 1.42.

*Support at EMA20days.

*MACD Golden Cross.

*Good 'Buy' Call for a period of 2weeks.

[MAS 3786]

*Resistant at 2.18.

*Support at EMA20days.

*Awaiting MACD Golden Cross.

*Good 'Buy' Call for a period of 2weeks.

[AXIATA 6888]

*Resistant at 4.05.

*Support at EMA20days.

*MACD Golden Cross.

*Good 'Buy' Call for a period of 2weeks.

[GAMUDA 5398]

*Resistant at 3.35.

*Support at EMA20days.

*MACD Golden Cross.

*Good 'Buy' Call at a period of 2weeks.

[GAMUDA-WD 5398WD]

*Resistant at 1.28.

*Support at EMA20days.

*Stochastic Oversold.

*Good 'Buy' Call for a period of 2weeks.