FTSE Bursa Malaysia KLCI (.KLSE) bucks regional trend to close higher

FTSE Bursa Malaysia KLCI (.KLSE) bucks regional trend to close higher

FTSE Bursa Malaysia KLCI (.KLSE) bucks regional trend to close higher

Bursa Malaysia closed higher Wednesday, bucking the trend of its regional peers, boosted by positive investors sentiment following several announcements made by the government to address the economic slowdown in the country.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 13.36 points to 1,443.83 from Tuesday’s close of 1,430.47.

Bargain hunting in key index stocks and rebound in the oil price have supported the market, dealers said.

After opening 0.88 of-a-point higher at 1,431.35 this morning, the local index moved between 1,428.59 and 1,454.00 throughout the day.

On the broader market, gainers outpaced losers 510 to 397, with 353 counters unchanged, 746 untraded and 17 others suspended.

Turnover increased to 4.47 billion shares worth RM2.86 billion from 4.41 billion shares worth RM3.20 billion recorded yesterday.

Prime Minister Tan Sri Muhyiddin Yassin today said that the government would form an economic action council, made up of senior ministers, the central bank governor and various experts, to tackle the economic risks and review the government’s finances.

He also mentioned that the RM20 billion stimulus package announced by the previous government would be reviewed to see if it should be increased.

Meanwhile, Datuk Dr Mohd Khairuddin Aman Razali who clocked in as the Minister of Primary Industries today said the country aimed to end the dispute with India which had restricted its purchase of crude palm oil.

Commenting on this, AxiCorp chief market strategist Stephen Innes said all commodity markets are moving in tandem with crude oil including palm oil.

“For the longer term, the market would stay depressed so long as Russia and Saudi Arabia continue to be at war on production cuts.

“Taking advantage from this current situation, China is reportedly considering increasing the state oil reserves,” he told Bernama.

Brent crude oil is currently trading at US$36.71 per barrel, down by 1.37% from yesterday.

Among heavyweights, the gainers were led by PetChem, which jumped 37 sen to RM4.72, MISC improved 48 sen to RM7.50, Sime Darby Plantation was up by 16 sen to RM4.61, while Dialog Group was 17 sen higher at RM3.25.

These counters contributed a combined 12.91 points to the gains in the composite index.

Of the actives, energy counters dominated the market, with Sapura Energy and Bumi Armada putting on half-a-sen each to 11.5 sen and 18 sen respectively, while Velesto Energy was 1.5 sen higher at 18.5 sen.

On the index board, the FBM Emas Index increased 94.24 points to 10,080.38, the FBM 70 added 135.03 points to 12,072.98 and the FBM Emas Shariah Index jumped 176.12 points to 10,718.51.

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 1,531.81.

The projected upper bound is: 1,482.77.

The projected lower bound is: 1,398.01.

The projected closing price is: 1,440.39.

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 21 white candles and 29 black candles for a net of 8 black candles.

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 19.1787. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 11 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 32.61. This is not a topping or bottoming area. However, the RSI just crossed above 30 from a bottoming formation. This is a bullish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 0 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 -119.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 5 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 12 period(s) ago.

Rex Takasugi – TD Profile

FTSE BURSA KLCI closed up 13.360 at 1,443.830. Volume was 63% above average (neutral) and Bollinger Bands were 110% wider than normal.

Open     High      Low     Close     Volume___
1,431.3501,454.0001,428.5901,443.830 195,734,000
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1,469.64 1,541.63 1,593.60
Volatility: 28 18 12
Volume: 202,290,608 141,169,552 116,478,584

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 9.4% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of .KLSE at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .KLSE and have had this outlook for the last 32 periods.

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