10 points. That is the premium-price futs players were paying to watch mini-budget at 4pm. Probably, too high to pay as cash stuck at year-low. ( 855.25/-2.97p). FKLI/cash recovered from lowest point but also failed to reach any resistance levels.This second round of economic stimulus, which worth RM60 billion (over two years 2009 and 2010) is the largest in the country history, representing 9% GDP. First round was only RM7b. Deficit is expected to reach 7.6 from 4.8 projected earlier. 2009 GDP is revised to –1 from +1.
Regional mkts recouped some losses and therefore helped to stabilize our mkt sentiment after a long holiday.
Technically, cash is bearish. FKLI seems firm above 856 and no breakdown yet on closing. However, below 7SMA (pink line), is still sell-bias but ONLY to sell on further weakness as cash may rebound after losing more than 40 point in eight days. Plus, RM60 billions package is huge and may provide short-term push.
Position-buy should wait till cash regains 870 (OCO) consider if mkts near the intended near term support around 830++.
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