FKLI Trading 14th October 2009

In spite of the modest advance at Wall Street, Malaysian index futures began the day slightly lower and fluctuated between positive and negative territory on bottom-fishing activity offsetting profit-taking selling pressure. In subdue trade, traders seemed to have taken a breather taking its cue from the lackluster regional peers following the recent rally that propelled KL index futures prices to 2009 high of 1243 on Monday. Nevertheless, the underlying tone of the cash market was pretty firm, thus cushioning the downside. At the close, October contract eased 3 points lower at settle at 1234.5. With upward thrust decelerating, there is a possibility index futures will trip into consolidation mode temporarily this week. However, any pullback may be shallow and brief as sentiment remains upbeat though players are sitting on the sidelines as reflected in daily thin turnover. Overnight, Intel's Q3 earnings that surpassed analyst's expectations failed to soothe jitters sparked by Goldman's downgrade by influential analyst Meredith Whitney. For the coming sessions, the immediate overhead resistance is pegged near 1241 level. As for the downside, current support is anticipated at 1230 index points.