Friday 29 Mar 2024
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KUALA LUMPUR (Jan 31): The FBM KLCI is likely to remain under pressure heading into the 2H19, where the 126-monthcycle is scheduled to find a ‘bottom’, according to CIMB IB Research.

In a strategy note Jan 30, the research house said based on the Elliott Waves model, its head of retail research and technical chartist Kong Seh Siang thinks that the index may fall below 1,600, targeting the 2015 low of 1,503 or even the 200-month EMA (currently at 1,419).

“He is bearish on the FBMEMAS and FBM Small Cap index as well. Kong predicts that Crude Palm Oil (CPO) price is at the start of a new multi-year bull run.

“For 2019/20, he thinks that CPO price may climb to RM2,500-2,800 per tonne next as long as the recent low of RM1,940 remains intact for the rest of the year.

“We maintain our end-2019 KLCI target of 1,638 points,” it said.

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