SGX Stock Market Weekly Technical Report

Weekly wrap of STI: Starting of the week was sideway .stocks defied the odds, trading higher even as most Asian stocks dropped, following declines in US shares, as materials and technology companies led losses and Markets waiting for the US Federal Reserve's policy statement due later in the session for clues to when the Fed will hike interest rates. Federal Reserve said data suggest economic growth has moderated and officials indicated interest rates will rise at a slower pace than previously estimated.
Weekly Technical view on STI
Support 1: 3339
Support 2: 3325
Support 3: 3200
Resistance 1: 3456
Resistance 2: 3480
Resistance 3: 3495
Market Forecast for week ahead: The trend of market is expected to be bullish for next week. Currently we have seen unusual volatility in markets due to Federal Reserve meeting. We may see bullish really in next week trading session because it has taken rebound from 3374 and we may expect that it will reach up to 3456.
STRAIT TIMES WEEKLY WRAP
OPEN:3361.38
HIGH: 3417.45
LOW: 3356.66
CLOSE: 3412.44
CHANGE (In Points): +49.67
% CHANGE: 0.14%
Technical Indicators: RSI is at 57 and CCI is at 54.
Macroeconomic factors:

• Oil touched its lowest level since 2009, dragging Asian energy shares down amid increased projections for US production. The dollar weakened from its strongest in more than a decade to major peers ahead of this week's Federal Reserve meeting.
• Singapore's anti-trust regulator blocked a takeover for the first time when it provisionally ruled last week that Malaysian IHH Healthcare Bhd's planned purchase of a local unit of India's Fortis Healthcare would lessen competition.
• SGX on issued a trade with caution regarding Civmec Limited, an investment holding company that provides heavy engineering and construction services to resources and infrastructure sectors in Australia.
• Bank of Singapore said that rate hike by the Fed in September now looks more probable, with the US central bank pushing back expectations for the path of rate increases over the coming couple of years.
• Blumont Group is planning a rights cum warrants issue to raise about $27 million in net proceeds if the rights shares are fully subscribed.
• Oil resumed its slump after rallying from the lowest price in six years as focus returned to record supply in the US, the world's biggest consumer.
• Gold rose to its highest in nearly two weeks on after the U.S. Federal Reserve signalled a slower pace of interest rate hike and gave a cautious outlook for the U.S. economy.
• The Federal Reserve opened the door to the first interest-rate increase in almost a decade, while also indicating it will go slowly once it gets started.
• Singapore-listed Noble Group's 30 per cent share-slump over the past month has thrust it on to the radar screens of Asian companies that want a bigger clout in global commodities trading.
• BLACKROCK Inc, an associate of Keppel Corp, made a series of dealings on Keppel Land shares on Thursday.It purchased 7,000 shares at S$4.55 apiece and sold a total of 48,100 shares at prices ranging from S$4.53 to S$4.55 per share.
• Singapore's financial regulator will work with commodity exchanges, investors and producers to support the development of the city-state as a trading center, including the expansion of clearing houses in Asia.

FOREX Technical Analysis for 19 March

EUR/USD
The EURUSD broke higher during the course of the day on yesterday, testing the 1.10 level after the Federal Reserve suggested that perhaps the interest rates in the United States will remain low for a longer amount of time than anticipated. Because of this, we believe that the market will test the 1.10 level again, but we can not forget this fact that there are major issues in the European Union right now. With that, we are a bit hesitant to get involved until we get a clearer signal one way or the other. As of now,it’s better to stay on the sidelines.
GBP/USD
The GBPUSD broke higher during the course of the session after initially falling on yesterday, as we sliced through the 1.50 level. In fact, the surge was massive and as a result we anticipate quite a bit of volatility in this market. However, as the US closes, we are dropping back below the 1.50 level, so right now it looks like the market is still trying to figure out what the US dollar is getting ready to do. With that, we recommend staying out of this market at the moment, as the volatility is too much.
AUD/USD
The AUDUSD broke higher during the course of the session on yesterday, testing the 0.79 level. However, we found enough resistance in that general vicinity to withstand the bullish pressure. Alternately, if we get some type of resistive candle in this general vicinity that we are willing to sell. However, we do not have that as of now and we do recognize that the 0.80 level above is a bit of a ceiling, so we are waiting to see whether or not we get a sell signal again, and as a result will remain patient.
USD/JPY
The USDJPY fell hard during the course of the day on yesterday as the Federal Reserve announced its monetary policy, suggesting that perhaps they will have to be patient for longer than anticipated about rate increases. With that, we think that there is still probably an uptrend in a fact, but we may have to be patient and wait for a supportive candle in order to start buying.
NZD/USD
The NZDUSD broke higher during the course of the day on yesterday, breaking above the 0.75 level at one point. Because of this, we need to wait to see whether or not this area holds as resistance, and gives us a nice selling opportunity. As of now, we do not have the right resistive candle, so at this point of time we believe that this market will continue to be very choppy and volatile. We have no interest in buying, but certainly can’t sell. We will let the market come down for a couple of days before placing trades.

Singapore Stock Market Technical Analysis 18 March

Market Review for STI: The Straits Times Index (STI) opened lower at 3,361, down 8.95 points or 0.27 per cent, weighed down by cautious sentiments as commodity prices fall and nervousness increased ahead of a Federal Reserve policy state.Asian stocks were mixed and the dollar marked time on Wednesday, with markets waiting for the US Federal Reserve's policy statement due later in the session for clues to when the Fed will hike interest rates.
STI Day Performance
Open: 3357.97
High: 3373.57
Low: 3356.66
Close: 3361.75
Change(Points): -8.20
% Change: -0.24%
Volume: 961.3M
Rise: 126
Fall: 278
Unch: 377
Market forecast for STI: We may expect bearish rally in next trading session.
Straits Time Levels
Support 1: 3365
Support 2: 3345
Support 3: 3300
Resistance 1: 3400
Resistance 2: 3425
Resistance 3: 3440
Technical Indicators: RSI is at 40 and CCI is at -132.
Top Gainers: sia.sg, sgx.sg, golden agri-res.sg, jsh usd.sg, dbs.sg, global logistic.sg
Top Losers: noble.sg, capitamall trust.sg, thaibev.sg, starhub.sg, hph trust usd.sg
Important Factor for today:-

Sgx on issued a trade with caution regarding Civmec Limited, an investment holding company that provides heavy engineering and construction services to resources and infrastructure sectors in Australia.

• Tata Consultancy Services, a leading IT services, consulting and business solutions organization, announced that it has expanded its presence in Singapore with the opening of the new 1,000-person TCS Singapore Banking and Financial Services (BFS) Centre.\
• XMH Holdings, the diesel engine provider in the marine and industrial sectors, posted earnings of $4.8 million that for the nine months ended Jan (9M15). This was 38.8% lower than the $7.9 million posted a year earlier
• Concern over a US interest rate hike kept sentiment in check at some of Asia's biggest firms, as optimism about the outlook for business over the next six months was near steady in the first quarter, a Thomson Reuters/INSEAD survey showed.
• SGX this morning issued a "trade with caution" regarding Civmec Limited, an investment holding company that provides heavy engineering and construction services to resources and infrastructure sectors in Australia.
• US Treasury Secretary Jack Lew said on Tuesday China will table an offer within days or weeks on which industries would remain protected from foreign investment under a bilateral investment treaty the two nations are negotiating.
• Oil extended losses to a seventh day, with prices heading back into a bear market, before US government data projected to show crude stockpiles rose to a fresh record. The dollar weakened for a third day and emerging-market shares climbed before the Federal Reserve reports on policy.

SGX Stocks: STI Technical Analysis 16 Mach

Market Review for STI: Singapore share prices opened lower with the Straits Times Index (STI) down 0.75 points to 3,362.02, tracing losses in the US markets. Singapore stocks hung on to their gains at noon after opening lower because Singapore-listed companies received an increase of 7.1 per cent in the median of the average director's fee - or S$60,000 per annum - in the financial year 2013/2014, compared to S$56,000 in the previous financial year.
STI Day Performance
Open: 3361.38
High: 3387.36
Low: 3358.03
Close: 3376.04
Change(Points): +13.27
% Change: 0.40%
Volume: 1050.5M
Rise: 143
Fall: 260
Unch; 381
Market forecast for STI: After one week STI was positive now we are expecting STI will be positive in next trading session.
STRAITS TIME  LEVELS
Support 1: 3340
Support 2: 3320
Support 3: 3300
Resistance 1: 3400
Resistance 2: 3420
Resistance 3: 3440
Technical Indicators: RSI is at 43 and CCI is at -134.
Top Gainers: sia.sg, thaibev.sg, jardine c&c.sg, jsh usd.sg, golden agri-res.sg
Top Losers: noble.sg, hongkongland usd.sg, sembcorp marine.sg, starhub.sg, sgx.sg
Important Factor for today:-

• The Monetary Authority of Singapore (MAS) said, last tuesday, it was reviewing and might delay the scheduled 1 June 2015 rollout of tighter macro-prudential measures to limit consumer debt.
• China's fiscal income rose just 3.2 per cent between January and February compared with the same period a year ago,well below an 8.6 per cent gain seen in the same period of 2014.
• Oil touched its lowest level since 2009, dragging Asian energy shares down amid increased projections for US production. The dollar weakened from its strongest in more than a decade to major peers ahead of this week's Federal Reserve meeting.
• Media group Singapore Press Holdings (SPH) has notified the Singapore Exchange of its move to buy a 20 per cent stake in a local start-up that offers quick and convenient access to curated data about companies and the people who run or own them.
• Singapore's anti-trust regulator blocked a takeover for the first time when it provisionally ruled last week that Malaysian IHH Healthcare Bhd's planned purchase of a local unit of India's Fortis Healthcare would lessen competition.

SGX : STI Weekly Technical Analysis Outlook

Weekly wrap of STI: STI performed sideways this week. First day of week it opened down by 27 points. Risk appetite remained low as investors reacted to a better-than-expected US jobs report by selling stocks, mindful that the data could prompt the Federal Reserve to raise interest rates sooner rather than later and as investor’s awaited China inflation data and following a rebound in US markets.In the mid week stocks continue their downward slide following a slump in US equities, after the dollar gained amid speculation the Federal Reserve is moving close. While the index dipped marginally below the level of 3,380 near-term supports, it is expected that the Singapore market should be resilient amid the current US rate hike uncertainty and the weak Singapore dollar against the US dollar. Last day of week Market closed at 3362 and down by 10 points.
Strait Times Weekly Wrap
Open: 3395.36
High: 3416.39
Low: 3362.16
Close: 3362.77
Change (in points): -54.74
% Change: -4.91%
Market Forecast for week ahead: We may expect STI to slide down because it is making rounding top, even Asian market was positive but STI was down, Because It is following technical pattern. It is expected that it will touch the level of 3315 as its support level and if it breaks this level, then it may further fall down.
Weekly Technical view on STI
Support 1: 3350
Support 2: 3330
Support 3: 3315
Resistance 1: 3420
Resistance 2: 3456
Resistance 3: 3495
Technical Indicators: RSI is at 40 and CCI is at -174.
Macroeconomic factors:

• SINGAPORE'S labour market will tighten further and the local workforce growth will slow significantly in the second half of this decade.
• Singapore Post has formed a joint venture with PT Trikomsel Oke Tbk, which sells mobile phones in Indonesia, to tap the e-commerce market in Southeast Asia's biggest economy.
• Jurong Aromatics Corporation (JAC) has completed maintenance at its petrochemical complex in Singapore that had started around the middle of December.
• China's consumer inflation quickened to 1.4 per cent in February, beating market expectations, recovering from a five-year low in January, but factory deflation worsened, underscoring deepening weakness in the economy
• Oil prices were mixed in Asia  as dealers weighed a strengthening US dollar with ongoing geopolitical tensions in the crude-rich Middle East.
• Asian stocks fell to a two-month low on Wednesday as nervous markets recoiled on worries about an earlier US interest rate hike, while such a prospect helped send the dollar to a 12-year high against the euro.
• Food Company Del Monte Pacific Limited (DMPL) was hit by a US$2.2 million net loss in its financial third quarter ended January 31, 2015, due mainly to acquisition expenses.
• Asian stocks fell to a two-month low on Wednesday as nervous markets recoiled on worries about an earlier US interest rate hike, while such a prospect helped send the dollar to a 12-year high against the euro.
• Food Company Del Monte Pacific Limited (DMPL) was hit by a US$2.2 million net loss in its financial third quarter ended January 31, 2015, due mainly to acquisition expenses.
• Employment growth for Singapore citizens and permanent residents is likely to taper off significantly in the coming years and employers will continue to find it costly to hire workers, whether local or foreign.
• Oil prices inched higher in Asia on Thursday but gains were capped as dealers fretted over an over-supplied global market after US crude reserves once again swelled to a record high.
• BLACKROCK Inc, an associate of Keppel Corp, made a series of dealings on Keppel Land shares on Thursday.It purchased 7,000 shares at S$4.55 apiece and sold a total of 48,100 shares at prices ranging from S$4.53 to S$4.55 per share.
• Singapore's financial regulator will work with commodity exchanges, investors and producers to support the development of the city-state as a trading center, including the expansion of clearing houses in Asia.

SGX Singapore : STI Technical Report 11-March

Market Review for STI: THE Straits Times Index (STI) rebounded to gain 3.23 points or 0.09 per cent and trade at 3.407.8 as investors awaited China inflation data and following a rebound in US markets. 

Shares rose as a rebound overnight on Wall Street lured buyers back, although gains were mostly modest as investors mulled prospects for a sooner-than-expected rate hike in the US.

Market forecast for STI: We may expect bullish trend in next trading session. Technical Indicators: RSI is at 47 and CCI is at -121. Important Factor for today:-

• Resale prices of non-landed private residential properties stagnated in February, remaining unchanged from January, according to flash estimates from SRX Property.
• China’s consumer inflation quickened to 1.4 per cent in February, beating market expectations, recovering from a five-year low in January, but factory deflation worsened, underscoring deepening weakness in the economy
• Oil prices were mixed in Asia  as dealers weighed a strengthening US dollar with ongoing geopolitical tensions in the crude-rich Middle East.
• Property stock investors now are mainly focused on Indonesian and Thai developers while interest on Singapore and Malaysian developers was relatively low
• Q3 revenue growth from logistics, ecommerce-related businesses while mail revenue declined. Operating costs including labour and related expenses continue on uptrend. Strategic investments to drive transformation while enhancing efficiency and productivity.

Singapore & Malaysia Stock Market Technical Review 9 March

Market Review for STI: Singapore shares opened lower on Monday, with the benchmark Straits Times Index at 3,389.6 in early trade, down 0.82 per cent, or 27.91 points.

Risk appetite remained low as investors reacted to a better-than-expected US jobs report by selling stocks, mindful that the data could prompt the Federal Reserve to raise interest rates sooner rather than later.  
Market forecast for STI: If STI is follow technical then we may expect bearish rally in next trading session.  
Technical Indicators: RSI is at 49 and CCI is at -170.
Important Factor for today:-

• SINGAPORE'S labour market will tighten further and the local workforce growth will slow significantly in the second half of this decade.
• Singapore Post has formed a joint venture with PT Trikomsel Oke Tbk, which sells mobile phones in Indonesia, to tap the e-commerce market in Southeast Asia's biggest economy.
• Jurong Aromatics Corporation (JAC) has completed maintenance at its petrochemical complex in Singapore that had started around the middle of December.
• SMRT Corp's growth drivers are still intact despite a series of rail service disruptions in the last two weeks that the public transport regulator deemed unacceptable,
• Asian stocks buckled while the US dollar held firm in early Monday trade after strong US jobs data fanned expectations that the US Federal Reserve may raise interest rates sooner than previously thought.
• Huang Yupeng, chairman and CEO of Sino Grandness Food Industry Group, has raised his stake to 35.34% from 35.26% in Shenhen headquartered company.

Market Review for KLCI: The FBM KLCI index lost 15.22 points or 0.84% on Monday. Finance Index fell 0.54% to 15903.41 points, Properties Index dropped 0.85% to 1306.45 points and Plantation Index down 0.50% to 7884.27 points. Market traded within a range of 19.00 points between an intra-day high of 1797.99 and a low of 1778.99 during the session.The KLCI dropped 15.22 points to 1791.74, amid losses at Wall Street last Friday as better-than-forecast jobs data fueled speculation that the US Federal Reserve is moving closer to raising interest rates. The performance of our benchmark index was bogged down by selling pressure in heavyweight counters such as Sapurakencana and Genting.  
Market forecast for KLCI: Market was bearish due to US data, formed a falling window which is showing further bearish signal.  
Technical indicators: RSI stood below the center line at 44.711 with its CCI at -187.959. Difference line of MACD performed at 6.999 below its signal line which performed at 10.636.

ECONOMIC FACTORS:

• Malaysia's ringgit slid to a six-year low versus the dollar after US jobs data hardened speculation the Federal Reserve will increase interest rates by the end of June.
• IOI Properties Group Bhd has aborted its NT$25.14 billion (RM2.74 billion) proposed acquisition of a stake in the iconic skyscraper, Taipei 101.
• The international reserves of Bank Negara Malaysia amounted to RM386 billion. The reserves position is sufficient to finance 7.9 months of retained imports and is 1.1 times the short-term external debt.
• Short-term interbank rates are expected to remain stable today on Bank Negara Malaysia (BNM)’s intervention to absorb excess liquidity from the financial system.
• There are positive outlook on the construction sector due to better earnings outlook, robust contracts award and limited valuation downside on construction stocks. The robustness of the sector may propel construction companies' earnings growth prospect further and which in turn shall translate into higher market valuation.
• Tenaga Nasional Bhd (TNB) is optimistic that its revised offer for a controlling stake in Integrax Bhd will be well-received by the port operators shareholders.
• Boustead Holdings Bhd is buying a 50% stake in Irat Properties Sdn Bhd, which recently signed a deal to buy the entire stakes in ATES Sdn Bhd and Beta Tegap Sdn Bhd, the joint operators of the automated traffic enforcement system (AES) in the country.
• Mulpha Land Bhd has received a mandatory takeover offer from entrepreneur Datuk Fakhri Yassin Mahiaddin, via his private investment vehicle Teladan Kuasa Sdn Bhd, to acquire the rest of Mulpha Land for 49.7 sen a share.
• EITA Resources Bhd’s unit, EITA-Schneider (Mfg) Sdn Bhd, has formed a JV with Shanghai STEP Electric Corp to provide elevator control systems for the Association and South-East Asian Nations and Middle East markets.
• Investment holding company, LPI Capital Bhd, is confident of sailing through the challenging FY15 and post another satisfactory performance.
• WCT Holdings Bhd has been awarded a RM1.2 billion contract in Doha, Qatar, through its wholly-owned subsidiary WCT Berhad’s joint venture with Al-Ali Projects Co. there.

STI & KLCI Technical Analysis Review 5-March

Market Review for STI: Singapore share prices opened lower with the Straits Times Index (STI) down 0.03 points to 3,415.50. Singapore shares remained mostly lower as risk appetite was subdued ahead of the European Central Bank's policy meeting later today and as investors mulled over China's reduced GDP growth target announced at the annual meeting of the National People's Congress.
Market forecast for STI: We may expect it will move in the range of 3388 to 3456
Technical Indicators: RSI is at 47 and CCI is at -147.
Important Factor for today:-

• China is facing risks of deflation and may suffer a prolonged period of economic stagnation given structural woes such as excess capacity and slumping property prices.
• Singapore is set to have the world's fastest growth in the number of super rich individuals within the next 10 years,
• Hong Kong and Shanghai markets led a broad Asian sell-off after China set tepid 2015 economic and trade growth targets, while the euro struggled to recover from 11-year lows ahead of a key European Central Bank meeting.
• Singapore-listed trusts and companies with sizable revenue from India have averaged a price gain of 6.2 per cent and divided yield of 3.7 per cent to date this year .
• Commodity trading house Noble Group said it only decided to take a US$200 million impairment charge relating to an Australian coal investment on the day of its earnings release, responding to a local newspaper report questioning the lack of a profit warning.
• Sino Construction, which lost 77% of its market value earlier this week, will return to its core construction trade even as it expands into power production.

Market Review for KLCI: Malaysia share prices opened lower on Thursday with the FTSE Bursa Malaysia Kuala Lumpur Composite Index down 5.88 points to 1819.66.
Market forecast for KLCI: Due to poor Crude data and china’s data market was bearish today, maintaining R1 at 1812 R2 at 1825 and S1 at 1805 and S2 at 1780-1790.
Technical indicators: RSI stood below the center line at 52.055 with its CCI at 0.349. Difference line of MACD performed at 10.682 above its signal line which performed at 12.092.
ECONOMIC FACTORS:

• Daya Materials Bhd has accepted Perfect Propel Sdn Bhd's request to forego the put option and reduce the price for call option shares of RM8.80 regarding the sale of its 30% stake in Daya CMT Sdn Bhd.
• The Malaysian Investment Development Authority (Mida) which will be organising a series of global supply chain conferences throughout the year, hosted an aerospace and commercial supplier conference to spur further investments in the aerospace industry.
• Integrax Bhd's board of directors have advised its minority shareholders to reject the revised take-over offer of RM3.25 a share by Tenaga Nasional Bhd (TNB).
• The Centre for Public Policy Studies (CPPS) Malaysia has recommended a Single Pricing Policy in order to establish a fair playing field for all businesses and eliminate hidden costs.
• Kwasa Land Sdn Bhd, a fully owned subsidiary of Employees Provident Fund, will make RM65 million, inclusive of its revenue guarantee, from its first bumiputra residential development, Project R3-2, in Kwasa Damansara.
• Bursa Malaysia Derivatives Bhd (Bursa Derivatives) expects the trading of crude palm oil futures to hit a new high of 325 million tonnes in 2015, a 29% jump from the record 252 million tonnes in 2014.
• Moody's Investors Service has assigned a provisional (P)A1 rating to the US$15 billion medium-term note (MTN) programme to be issued by PETRONAS Capital Ltd and guaranteed by Petroliam Nasional Bhd.
• Maybank is committed to see further growth in retail small and medium enterprise financing in 2015 after recording a strong 43 per cent rise to RM7.5 billion in 2014.
• Bina Puri Holdings Bhd, the country’s integrated civil and building construction services provider, has secured a RM128.5 million contract to construct a spa resort complex in Chendering Beach, Kuala Terengganu.
• Property developer, MK Land Holdings Bhd, will launch two projects this year with a combined Gross Development Value of RM600 million, says Group Chief Executive Officer Lau Shu Chuan.
• The Malaysian capital market grew to RM2.76 trillion and remains resilient amid global uncertainties, revealed the Securities Commission in its annual report.
• Many central banks in the region have cut policy rates, Bank Negara Malaysia is not likely to be one of them at this juncture. CIMB Investment Bank said the central bank will continue to adopt a wait-and-see stance.
• Tenaga Nasional Bhd’s (TNB) shares on Bursa Malaysia declined in early trade today after the Integrax board recommended shareholders reject a revised offer of RM3.25 by the national utility company.

Malaysia & Singapore Stock MArket Updates 4-March

Market Review for STI: Singapore share prices opened lower with the STI down 1.44 points to 3,420.67.Singapore shares rose after new data showed China's services sector grew modestly in February as new orders rose at their quickest pace in three months.
 Market forecast for STI: Still STI is not in one trend we may expect it will move in the range of 3388 to 3456
Technical Indicators: RSI is at 51 and CCI is at 24.
Important Factor for today:-

• It may be the most expensive city in the world for expatriates but Singapore is also once again the top city in Asia for this group when it comes to quality of life.
• China Oilfield Technology Services Group will be delisted after the loss-making company failed to meet regulatory requirements for removal from the SGX watch-list.
• Private equity funds worldwide sold a record US$456 billion ($621 billion) worth of investments last year, 67% more than in 2013, driven by a handful of mega deals and buoyant IPO markets in 1H2014
•  CIMB Research believes listed property developers' stock prices should sustain its growth going forward, if asset recycling activities start to occur via a trade sale, divestment to private funds, or to Singapore REITS.
• Sete Brasil is looking for a solution with its lenders and shareholders with options ranging from restructuring debt to a full write-off, according to Upstream, the global Oil & Gas news source.
• CNA Group announced a proposed placement of some 119 million new shares priced at S$0.0335 each that could rise up to S$3.79 million in net proceeds.
• Blumont Group on Tuesday said that it has obtained in-principle approval from the Singapore Exchange for the proposed placement of 100 million new shares priced at S$0.01705 each that could rise up to S$1.67 million in net proceeds.

Market Review for KLCI:
The FBM KLCI index gained 4.29 points or 0.24% on Wednesday. Finance Index increased 0.01% to 16103.45 points, Properties Index up 0.01% to 1326.84 points and Plantation Index rose 0.19% to 7988.44 points. Market traded within a range of 6.87 points between an intra-day high of 1826.05 and a low of 1819.18 during the session.
Market Review for KLCI: The FBM KLCI index gained 4.29 points or 0.24% on Wednesday. Finance Index increased 0.01% to 16103.45 points, Properties Index up 0.01% to 1326.84 points and Plantation Index rose 0.19% to 7988.44 points. Market traded within a range of 6.87 points between an intra-day high of 1826.05 and a low of 1819.18 during the session.
The KLCI extended yesterday’s gains by ending 4.29 points higher at 1825.54, despite the lower overnight close on Wall Street due to slight decline in February's auto sales. The gain in our benchmark index was underpinned by buying in heavyweight counters, led by YTL Corp.
Market forecast for KLCI: Higher closing of today’s trading session indicating market could be bullish by maintaining volume. Still there is a resistance to break 1830.
Technical indicators: RSI stood below the center line at 64.559 with its CCI at 121.129 Difference line of MACD performed at 12.305 above its signal line which performed at 12.444.
ECONOMIC FACTORS:

• Malaysia is on track to reach high income status in five years due to skillful economic management amidst an uneven global recovery, says the International Monetary Fund. Robust domestic demand supported by sound macro-financial policies is driving strong, non-inflationary growth in the face of uncertain external conditions and declining commodity prices.
• Shares of Mega First Corporation Bhd (MFCB) is bound to reach its highest since 1995 after it signed a shareholders agreement with Laos' Electricite du Laos (EDL) and two other parties to develop Don Sahong hydropower project.
• Foreign funds took profit on Malaysian equities on Tuesday with net selling at RM162.30mil after two days of net buying. foreign funds bought RM545.8mil of Malaysian equities but sold RM708.1mil.
• 4Q earnings for 2014 were uninspiring despite more corporates meeting its earnings expectations.
• Malaysia's sovereign rating is unlikely to see a downgrade, despite a possible widening in the deficit due to lower oil revenues and high household debt because of its strong fundamentals.
• The Malaysia Competition Commission (MyCC) has imposed a total financial penalty of RM247,730 on 15 infringing enterprises in relation to a price fixing agreement between 24 enterprises who are members of the Sibu Confectionery and Bakery Association (SCBA).
• The Securities Commission Malaysia (SC), the Monetary Authority of Singapore (MAS), the Securities and Exchange Commission (SEC), Thailand and the Singapore Exchange (SGX) have signed a memorandum of understanding (MoU) to establish a Streamlined Review Framework for the Asean Common Prospectus.
• Ni Hsin Resources Bhd will proceed with its investment in loss making Helios Photovoltaic Sdn Bhd, confident that it will become a major revenue and profit contributor to the group in the future.
• CIMB Group Holdings Bhd and Mitsubishi Corp yesterday launched the Asean Industrial Growth Fund (AIGF LP) to channel Japanese corporates looking to invest in mid-tier Asean companies.
• Malaysia's exports likely increased 3.0 per cent in January from a year earlier while the pace of import growth probably slowed to 2.0 per cent.