Banks lead FTSE Bursa Malaysia KLCI (.KLSE) lower as weaker-than-forecast GDP results weigh
The FBM KLCI retreated 0.55% today to erase early gains, following weaker-than-expected GDP growth data for Malaysia in the fourth quarter of 2019.
The benchmark index rose to a high of 1,555.66 points today, before retreating from noon onwards to close 8.54 points lower at 1,542.94 as banking stocks dragged.
Earlier today, Bank Negara Malaysia announced that Malaysia’s 4Q19 GDP growth came in at 3.6% — the lowest in 10 years and lower than market consensus — bringing full-year 2019 growth to 4.3%.
BNM governor Datuk Nor Shamsiah Mohd Yunus told a press briefing that the central bank has “ample room” for rate cut, after a 25-basis-point cut in January.
Across Bursa Malaysia, 419 counters posted gains versus 405 decliners while 417 counters traded unchanged. Trading volume stood at 2.81 billion shares valued at RM2.78 billion.
Gainers were led by Fraser & Neave Holdings Bhd, Kumpulan Powernet Bhd and Scientex Bhd. Decliners were led by Hong Leong Bank Bhd, Public Bank Bhd and Chin Teck Plantations Bhd.
Elsewhere in Asia, China’s SSE Composite Index rose 0.87% — its sixth consecutive trading day of gains — as concerns about the coronavirus outbreak abated.
Similarly, Hong Kong’s Hang Seng Index rose 0.87%, while Japan’s Nikkei 225 climbed 0.74% and Singapore’s Strait Times Index rose 1.39%.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 1,572.22.
The projected upper bound is: 1,572.26.
The projected lower bound is: 1,512.87.
The projected closing price is: 1,542.56.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 55.1288. This is not an overbought or oversold reading. The last signal was a sell 1 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 41.15. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 6 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -15. This is not a topping or bottoming area. The last signal was a buy 6 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 1 period(s) ago.
Rex Takasugi – TD Profile
FTSE BURSA KLCI closed down -8.540 at 1,542.940. Volume was 78% above average (neutral) and Bollinger Bands were 43% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1,541.57 1,575.86 1,606.32
Volatility: 13 12 10
Volume: 157,221,216 109,386,312 111,350,104
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FTSE BURSA KLCI is currently 3.9% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of .KLSE (mildly bearish). Our trend forecasting oscillators are currently bearish on .KLSE and have had this outlook for the last 12 periods.