Maybank IB sees uptick in KL Property Index

THE Kuala Lumpur Property Index (KLPR) has recorded an increase to 820.76 on Dec 12, from the low of 744.13 recorded on Oct 30.

Maybank Investment Bank Research (Maybank IB) said KLPR has recovered significantly since the recent month.

In a note on Dec 13, the research house said the recovery has continued to establish a new upper base and a higher low structure within the middle Bollinger band (statistical chart).

After consolidating for about a month, the KLPR is set to challenge the upper resistance following its Dec 12 breakout right above both the 50-day exponential moving average (EMA) line and the upper Bollinger band.

A strong signal from moving average convergence divergence (MACD) and backed by an uptick in the relative strength index (RSI), suggests a stronger uptrend is ahead.

“Given the current momentum, we expect the index to challenge the upper resistance of 809.20 and 833.00. On the flip side, support zones are within 766.85 to 775.10,” it said.

On Dec 12, the FBM Kuala Lumpur Composite Index (FBM KLCI) ended marginally lower due to uncertainties over US tariffs on Chinese imports that are scheduled to be imposed on Dec 15.

The benchmark index fell 0.92 points to close at 1,561.79, led by declines in Kuala Lumpur Kepong Bhd, Petronas Gas Bhd, Public Bank Bhd and Petronas Chemicals Group Bhd.

Market breadth remained negative with losers continuing to outnumber gainers by 443 to 365. Yesterday, 2.66 billion shares worth RM1.50 bil changed hands.

“Technically, today we expect the FBM KLCI to range between 1,550 and 1,580. Downside supports are at 1,550 and 1,539,” it added.

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