2009
KL Composite Index: Up trend starts to weaken
Filed Under (Finance Help) by Admin on 17-05-2009
The bullish momentum in the equity market has started to ease last week after the KLCI went to a high of 1,037.81 points on the 7th of May. The market was in a trading range. I mentioned last week that the KLCI resistance is at 1,040 two weeks ago the KLCI has not broken above this level. Last week, the KLCI closed at 1,014.21 points on Thursday. The KLCI is down 12.57 points on week. Trading volume continues to increase another 35% on week with a daily average of almost 3.1 billion shares. Average daily trading volume in the past week and the week before are 2.3 billion and 1.7 billion shares respectively.
The market sentiment has started to be divided now. The market was bullish for the past 8 weeks. Despite having stronger volume, the KLCI has not gone up. This shows that there is a selling pressure that prevents price from going higher although there is still strong buying. The selling pressure is generally caused by profit taking activities by short term traders as the market has given them good profits from the 8 weeks rally. Other markets in the region faced similar situation with higher volatility.