FTSE Bursa Malaysia KLCI (.KLSE) bucks regional trend, CI ends at intraday high

FTSE Bursa Malaysia KLCI (.KLSE) bucks regional trend, CI ends at intraday high

FTSE Bursa Malaysia KLCI (.KLSE) bucks regional trend, CI ends at intraday high

Bursa Malaysia rebounded from earlier losses to close higher today, bucking the downtrend in regional stock markets, spurred by late bargain hunting in selected index-linked counters, dealers said.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.54 points to finish at an intraday high of 1,585.14 compared with 1,580.60 on Tuesday’s close.

The index, which mostly moved in the negative territory throughout the day, dipped to low of 1,573.92 earlier in the morning session.

Public Bank was the biggest contributor to the rise in the composite index with 2.872 points after soaring 42 sen to RM19.56 with 3.03 million shares changing hands.

Other significant contributors were Maxis and Press Metal contributing a combined 3.075 points.

“Market sentiment was weak regionally and the recent selling has made some stocks attractive for accumulation,” a dealer said.

Market breadth was negative with 471 losers and 339 gainers, while 423 counters remained unchanged, 734 were untraded and 18 others suspended.

Turnover was slightly lower at 2.54 billion shares worth RM1.68 billion versus yesterday’s 2.65 billion shares worth RM1.77 billion.

Another dealer said most Asian bourses declined today ahead of the signing of the US-China phase one trade deal.

“Sentiment in the market tumbled after US Treasury Secretary commented that Washington will not remove tariffs on Chinese imports until after the 2020 presidential election.

“This has pushed investors away while they await fresh leads from the signing of the trade pact,” he said.

Regionally, Hong Kong’s Hang Seng Index retreated 0.39% to 28,773.59, Japan’s Nikkei 225 decreased 0.45% to 23,916.58 and Singapore’s Straits Times Index fell 0.41% to 3,256.98.

Of the other heavyweights, Maybank eased five sen to RM8.60, Petronas Chemicals edged down six sen to RM7.03, while both Tenaga and CIMB were flat at RM12.90 and RM5.18, respectively.

Among the actives, Vortex slipped 1.5 sen to 13.5 sen, Yong Tai, Xidelang and London Biscuits eased one sen each to 15 sen, 13 sen and 2.5 sen respectively, but TH Heavy gained two sen to 12 sen.

On the scoreboard, the FBM Emas Index put on 19.97 points to 11,303.17, FBMT 100 Index improved 19.03 points to 11,091.46, and the FBM ACE bagged 9.62 points to 5,560.07.

However, the FBM Emas Shariah Index slid 3.26 points to 11,922.9 while the FBM 70 slipped 27.72 points to 14,186.63.

Sector-wise, the Industrial Products and Services Index inched up 0.93 of-a-point to 153.41, the Financial Services Index rebounded 55.87 points to 15,434.86 but the Plantation Index gave up 35.46 points to 7,566.86.

Main Market volume decreased to 1.61 billion shares worth RM1.50 billion compared with 1.76 billion shares worth RM1.56 billion on Tuesday.

Warrants turnover advanced slightly to 274.18 million units worth RM45.57 million from yesterday’s 254.94 million units worth RM45.22 million.

Volume on the ACE Market increased to 658.01 million shares worth RM126.87 million from 637.78 million shares worth RM168.47 million.

Consumer products and services accounted for 261.64 million shares traded on the Main Market, industrial products and services (215.21 million), construction (166.79 million), technology (180.41 million), SPAC (nil), financial services (28.66 million), property (144.10 million), plantations (112.49 million), REITs (8.81 million), closed/fund (5,700), energy (359.25 million), healthcare (19.18 million), telecommunications and media (20.83 million), transportation and logistics (65.37 million) and utilities (28.73 million).

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1,612.27.

The projected lower bound is: 1,557.27.

The projected closing price is: 1,584.77.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend (which appears to be the case with FTSE BURSA KLCI). It then signifies that the momentum may be shifting from the bears to the bulls.

If the engulfing bullish pattern occurs during an uptrend, it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 27.8122. This is not an overbought or oversold reading. The last signal was a buy 0 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 46.96. 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 65 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 -132.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 4 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 5 period(s) ago.

Rex Takasugi – TD Profile

FTSE BURSA KLCI closed up 4.540 at 1,585.140. Volume was 11% below average (neutral) and Bollinger Bands were 11% narrower than normal.

Open     High      Low     Close     Volume___
1,579.9401,585.1401,573.9201,585.140 84,830,800
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1,594.94 1,590.61 1,613.80
Volatility: 13 11 9
Volume: 85,878,480 92,489,744 107,236,024

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.

Summary

FTSE BURSA KLCI is currently 1.8% below its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into .KLSE (mildly bullish). Our trend forecasting oscillators are currently bullish on .KLSE and have had this outlook for the last 15 periods.

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