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KLCI may re-test downside support

SENTIMENT continued to be resilient on Bursa Malaysia although some
major shareholders unveiled their plans to take their listings private.

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Note :

The KLCI hit its intra-week high of 1,366.21 on Tuesday, encountering
resistance of this column’s envisaged resistance zone (1,355 to 1,380
points). It staged a successful re-test of this column’s envisaged
support zone (1,323 to 1,348 points) when it hit its intra-week low of
1,340.88 on Tuesday.

The global equity market appears directionless at
the moment. Investors took pause to mull over mixed economic data out of the
US.Meanwhile, the recent record-breaking rally means that markets are more
vulnerable to bad news. Indeed,
Hong Kong tycoon Li Ka-Shing has warned investors to be cautious in trading Chinese shares, where valuations have risen to lofty levels. The Shanghai Composite Index, for instance, has gained nearly 51% this year alone.

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