Market Technical Reading : Near-term Weakness Likely To Be Capped By The 10-day SMA...-13/10/2010

Local Market Leads:
♦ Local market ended lower on Tuesday after struggling to keep its gain recorded in the early session.
♦ Though plantation and construction-related stocks edged higher on rotational plays, profit-taking activities extended after the overseas markets suffered strong selldown on news that China has raised reserve requirement ratio for the nation’s top six banks by 50bps, which was seen as a move to cool down its robust economy.
♦ Regional sentiment also turned cautious ahead of the release of a batch of quarterly earnings in the US this week. Among the companies due to report results is Intel.
♦ As a result, Nikkei 225 and KOSPI slid 2.09% and 1.16% respectively, while European markets dropped more than 1% in the early trade yesterday.
♦ In the local market, mild selling pressure dragged the FBM KLCI lower by 0.84 pt or 0.06% to 1,486.57. Turnover rose further to 1.17bn shares from Monday’s 1.09bn shares, but the market breadth has turned negative.

Market Technical Reading : Near-term Weakness Likely To Be Capped By The 10-day SMA...-13/10/2010