In tandem with the steady buying support in the local bourse, both cash and index futures closed at a fresh high for the year as external headwinds dissipated. Taking the cue from Pacific markets stocks rise for the fourth day on earnings outlook for raw-material and technology companies, notably China and Hong Kong, the cash-led surge prompted a short-squeeze yesterday propelling KL index futures through psychological 1200-level. On the external front, China's car sales jumped a record 90% last month as tax cuts and government subsidies spurred demand, bringing the nation closer to overtaking the US as the world's largest auto market. At close, September contract extended the upward thrust for five straight day on increase volume to finish 13.5 points higher, or 1.1% to peak at 1206 index points.
Technically, the solid rise has resulted in more bullish signals with potentialities of establishing new highs in the immediate term. For the coming sessions, the
next upper target is seen at 1220, followed by 1225. A pullback on profit taking should seen support resting at 1196.
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