Foreign funds exiting the SEA region presents a buying opportunity

The FBM KLCI dipped below 1,585 but recovered from its intraday low as foreign selling and bargain hunting took place.

Foreign funds

With foreign funds exiting the SEA region, this presents a buying opportunity as they are expected to return soon. The index is projected to trade between 1,580-1,590 amid a busy earnings season.

Technical View

IOI Corp (1961):

• Resistance: RM3.88 (R1), RM4.00 (R2)

• Support: RM3.76 (S1), RM3.69 (S2)

Technical Play – Hong Kong Exchange & Clearing (HK.0388):

• BUY with a 10.6% upside based on positive technical signals.

• Resistance: HKD365.00 (R1), HKD400.00 (R2)

• Support: HKD324.00 (S1), HKD310.00 (S2)

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