KLCI-Finance “M” shape in the forming?
KLCI Finance sector which comprises of mainly banking stocks is currently in the bearish trend with double top “M” shape in the forming. To-date, it slid 1.7% from 15676 last Friday to 15403 recorded yesterday (29/1).
If it continues to break the 20 days Moving Average, the next support will be at the “Valley” of the “M” shape which is 15032, after which a “M” bearish momentum is confirmed.
On individual stock, Maybank has gone down 3.7% from RM9 to RM8.66 during the same period. Public Bank has gone down from RM18.14 to RM18.08, Both CIMB and AEONCR were unchanged. Biggest loser is AMBANK from RM6.62 slid to RM6.3 which is 4.8% decline mainly due to negative news flow of the stepping down of its Managing Director.
Overall, there is no new catalyst to support the finance sector. Market sentiment remains cautious with anticipated lower GDP growth this year and the likely impacts on the introduction of GST in Apr.