Maybank IB Research advises investors to take profit

MIDF Research said in retrospect, foreigners offloaded -RM19.5bil and -RM6.9bil in 2015 and 2014 respectively.

KUALA LUMPUR: Maybank Investment Bank Research recommended a “Take Profit” strategy for Thursday.

It said the April 2016 futures was at a 3.32-point discount against the FBM KLCI. 

“We believe supports of 1,698 to 1,715 may be weaker, while very heavy profit-taking activities will cap rebounds at the resistances of 1,717 and 1,735,” it  said. 

Maybank Research said the KLCI fell from the 1,727.41 high, but found a key floor at 1,600.92 on Jan 21, 2016. 

“Trend-wise, the index direction had turned up and stalled at 1,726.55 on March 23,  2016. 

“The 62% Fibonacci retracement (FR) level of 1,727 is proving to be a very tough level to crack. 

"Investors may continue to sell stocks as the index approaches the key 1,726 to 1,728 FR zone on the 1Q window dressing activities,” it said.