MALAYSIA'S benchmark Kuala Lumpur Composite Index, which rose past 920 to a three-month high yesterday, needs to stay above that level to sustain a week-long rally, according to RHB Research Institute Sdn Bhd.
The index faces a “strong test” at 920, which is a “significant technical hurdle as well as the support-turn-resistance Uptrend Line,” RHB Research said in a note today. “A failure will surely trigger a sharper dip, hence ending the current upsurge.”
The Composite Index rose for a fifth day yesterday, climbing 1.9 per cent to close at 923.77, the highest level since January 7. It gained 6.3 per cent over the five-day rally, marking the longest winning streak since March 23. The measure fell 1 per cent to 915.12 as of 11:28 am local time.
“We maintain our positive medium-term view” on the stock index “as long as it continues to trade above the crucial congestion region of 880 to 890, with a relatively firm daily turnover of 500-600 million shares,” it said. - Bloomberg