Retail Market Monitor - 3 Oct 2014

Author: UOBKayHian   |   Publish date: Fri, 3 Oct 10:36

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MARKET NEWS

The FBMKLCI fell 7.64pt to close at 1,837.68yesterday as investors started trimming positions ahead of an extended weekend for a holiday next Monday. The weak overnight US market played a part as the broader market took a hit amid regionaluncertainty. Meanwhile, the MSCI Asia Pacific Index fell 0.5% with the benchmark index heading for a fourth day of losses, after consumer confidence in the US unexpectedly declined and Hong Kong braced for bigger protests. The top losers were British American Tobacco (-3.5%), SapuraKencana Petroleum (-2.9%) and CIMB (-2.5%) whilethe top gainers were KLK (+1.4%), PPB Group (+1.1%) and IOI Corp (+0.4%). In the broader market, losers outpaced gainers 732 to 179 with 699 counters unchanged. Turnover was 2.13b shares valued at RM1.88b.
Despite our optimistic view, the FBMKLCI has sunk lower on the back of weaker sentiments regionally. Given the current negative connotation, the index is likely to slide lower, taking into account the extended weekend as investors are likely to trim their positions. Violation of the immediate support of 1,832 is likely to send the index towards the 61.8% Fibonacci retracement level of 1,818. Nevertheless, we maintain our longterm bullish view as we perceive the current jitters as a normal correction. Support and resistance levels are as follows:

• Support: 1,832, 1,818
• Resistance: 1,879, 1,896

US markets swung wildly between gains and losses on Thursday but finished the session virtually unchanged. The S&P 500 closed a fraction higher at 1,946.17 while the DJIA ended down 3.66 points at 16,801.05. Weekly jobless claims came in stronger than expected as the number of people applying for new unemployment benefits fell by 8,000 to 287,000 in the past week of September. DirecTV was up 0.9% after the satellite-TV provider late Wednesday said it had reached a multi-yearagreement with the National Football League.
Source: UOB Kay Hian Research - 3 Oct 2014