Daily Commentaries 16th June 2008

Due to a lack of key market-moving news from the local market, attention shifted to the performance of the U.S market last Friday. DJIA and S&P closed higher by over 1% while Nasdaq registered strong gains of more than 2%. The optimistic tone was established by lower crude oil which closed at USD1.90 / barrel last Friday. Stronger USD also helped fuelled the technical rebound. Technically, the KLCI is still at risk of re-testing the low of 1157.47 pts level as long as the market is still stuck in a downtrend. A dip below the immediate support of 1216 pts level would likely see the key index falling towards the 1157.47 pts level.