Market Technical Reading : Further Rebound Likely Today...-12/04/2010

of 6 A comprehensive range of market research reports by award-winning economists and analysts are exclusively available for download from w w w .rhbinvest.com Local Market Leads: ♦ Buoyed by a rally in Chinese markets amid the Wall Street’s overnight rebound as well as expectations of a possible revaluation of the Chinese yuan, the local market resumed its uptrend by climbing higher on Friday. ♦ In the overseas markets, talks of a possible 3% revaluation in the Chinese yuan sent Hang Seng (+1.56%) and Shanghai Composite (+0.85%) sharply higher. ♦ This in turn, shored up the ringgit to a nearly 2-year high at 3.1880 vis-a-vis the US dollar, up from Thursday’s 3.2050. ♦ However, the overall gain was capped by the pre-weekend profit-taking activities, as investors decided to lock in profit and trim trading positions. ♦ Due to last-minute selling on selective blue chips, the FBM KLCI pared down its gains to only 1.05 pts or 0.08% to 1,333.98 on Friday. ♦ But, overall sentiment stayed positive as turnover hit 1.25bn shares for the day. Market breadth turned to positive, with 470 gainers topped 266 losers. Technical Interpretations: ♦ With the return of bargain-hunting supports on Friday, the FBM KLCI staged a timely bounce from the crucial 10- day SMA near 1,332, as we expected earlier. ♦ This resulted in a formation of a “inverted hammer-like” candle, suggesting a possible further rebound ahead. ♦ But as the short-term momentum indicators turned mix, any rebound attempt could see immediate hurdle near the recent high of 1,347.61. ♦ In other words, only by overcoming 1,347.61 will it refresh its bullish momentum to cover the entire technical gap at 1,344.46 – 1,354.79. ♦ In the meantime, solid supports are near the 10-day SMA, the 2.6-pts technical gap at 1,305.03 and 1,300. Chart 1: KLCI Daily Chart 2: KLCI Intraday Technical Research Daily Trading Strategy Market Technical Reading Further Rebound Likely Today... M a l a s i a M A R K E T D A T E L I N E P P 7 7 6 7 / 0 9 / 2 0 1 0 ( 0 2 5 3 5 4 ) RHB Research Institute Sdn Bhd A member of the RHB Banking Group Company No: 233327 -M 12 April 2010 Please read importan t disclosures at the end of this report.

Market Technical Reading : Further Rebound Likely Today...-12/04/2010

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