Weekly Wrap of KLCI And Forecast for Week Ahead

Overall week it was observed low volume in the market as we had only two and a half trading days. As we had two festive days in the week traders avoided to enter the market and hold positions. Week constituted one bullish and 2 bearish days. Market ended with a closing of 1644 and in the red.

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Forecast for week ahead:

After one bullish closing we had two bearish closing days in the entire week, we observed a bullish candle on the last trading day. In the final session of the week market closed at the level of 1644. Volume has been on the lower side throughout the week because of the two festive days. In the coming market is expected to make a rounding bottom pattern and if it completes the pattern , it is expected to test the resistance level of 1663 and if it breaches this level it is expected to go up and test the second level of 1675. On the other side if it breached the support level of 1637 it is expected to go further down to the level of 1617.

Sup 1	Sup 2	Sup 3	Res 1	Res 2	Res 3
1637	1617	1600	1663	1675	1688

Technical indicators:

RSI for this week is 45.524 with CCI at -43.181 Besides, difference line of MACD -11.723.

Counter-Specific News:

• AmInvestment Bank Bhd bagged the “Project Finance House of the Year” and “Best Transport Deal” awards for the second consecutive year at The Asset Triple A Asia Infrastructure Awards 2016.
• Maybank IB Research said the potential sale of Hong Leong Assurance (HLA) and Hong Leong MSIG Takaful (HLMT) could raise about RM3.2 billion for Hong Leong Financial Group (HLFG), said.
• Mah Sing Group Bhd will be launching the final tower of Lakeville Residence here on July 16 and 17, which will bring the RM1.5 billion development to its targeted completion by 2020.
• Tropicana Corp Bhd’s disposal of land in Gelang Patah will reduce the group’s exposure in Johor and lock in a net gain of RM55.5 million, said Affin Hwang Capital.

Global factors and World Indices:

• Hong Kong stocks fell on Friday, tracking losses in Shanghai shares, on fears of further weakness in the yuan and worries that Britain's decision to leave the European Union could destabilise one of China's biggest export markets. Hang Seng Index fell 0.7 per cent to 20,564.17 points.
• Tokyo stocks closed in the red Friday, their fourth straight loss as an early rally fizzled. Nikkei 225 index slumped 1.11 per cent, or 169.26 points, to end at 15,106.98.
• Asian markets fell Friday morning, at the end to a volatile week dominated by the fallout from Britain's European Union exit, with investors now turning their attention to the release of US jobs data.
• The US dollar gained on the euro but slipped against the yen Thursday as investors waited to see if the coming US June jobs report shows a rebound from May's sharp downturn.
• Oil prices dived Thursday after US inventories fell less than expected last week, adding to market concerns about abundant global supplies.
• Crude tumbled US$2.29 to US$45.14 a barrel, its lowest price in nearly two months.
• Brent finished at US$46.40 a barrel, down a hefty US$2.40 from Wednesday's settlement.
• Gold headed for the longest run of weekly gains in two years, bolstered by the uncertainty surrounding the UK's vote to leave the European Union, with investors turning their attention to a monthly US jobs report.