2008.04.25 Market View

Bursa Malaysia shares ended off highs on Thursday, with profit-taking and selling spreading after the benchmark index failed to overcome the psychological 1,300 resistance level in morning trade. The KLCI gained 4.92 points, or 0.4% to close at 1,293.08, off a high of 1,300.15. Market breadth was bearish with 409 losers beating 325 gainers on moderating trade totaling 881.5mn shares worth RM1.36bn.

The overnight rise on US stocks, boosted by hopes the worst may be over for the financial and consumer sectors, should support early gains on the local market, with the KLCI trying to overcome the 1,300 psychological resistances again. Nevertheless, profit-taking and selling from market players clearing trading positions ahead of the weekend should act to check upside, but pockets of strength in selective lower liners should highlight trade, with some investors positioning for spill-over positive sentiment upon the listing of TM International on Monday. Immediate support is revised higher to 1,280, while next resistance upon a decisive breakout above 1,300 will be at 1,320.