FTSE Bursa Malaysia KLCI (.KLSE) closes at day’s low as telcos weigh

FTSE Bursa Malaysia KLCI (.KLSE) closes at day’s low as telcos weigh

FTSE Bursa Malaysia KLCI (.KLSE) closes at day’s low as telcos weigh

Telcos snapped their recent rally on Monday, dragging the FBM KLCI into the red while the recovery in crude palm oil (CPO) prices was unable to lift the plantation heavyweights.

At 5pm, the KLCI was down 6.93 points or 0.43% to 1,588.88. Turnover was 2.53 billion shares valued at RM1.78bil. The broader market was mixed with 408 gainers, 449 losers and 377 counters unchanged.

Meanwhile, Moody’s Investors Service said the credit profile of Malaysia (A3 stable) is supported by its large, diversified and competitive economy, strong medium-term growth prospects compared with similarly rated peers and ample natural resources.

Asean markets and Hong Kong’s Hang Seng Index closed lower but China and Japan stocks closed higher.

China’s blue-chip CSI300 index ended 0.8% higher and the Shanghai Composite Index closed up 0.7% following signs that the economy may be stabilising, and as hopes rose for more stimulus measures to aid growth. The Nikkei share average rose 0.18%.

At Bursa, Maxis fell 10 sen to RM5.60, Axiata nine sen to RM4.51 and erased 1.20 and 1.27 points. Digi shed seven sen to RM4.55 and wiped put 0.84 of a point.

CPO for third month delivery rebounded RM63 to RM2,900 per tonne. Batu Kawan rose 20 sen to RM17.32 and PPB Group four sen to RM18.54 but United Plantations lost 34 sen to RM23.20, KL Kepong 14 sen to RM24.26, IOI Corp and Sime Darby Plantation three sen each to RM4.60 and RM5.28.

Among the banks, Public Bank fell 12 sen to RM19.48 and erased 0.72 of a point, AmBAnk six sen to RM3.88, CIMB four sen to RM5.12, Hong Leong Bank six sen to RM16.90 and CIMB four sen to RM5.12. RHB Bank eked out a one sen gain to RM5.85.

US light crude oil rebounded 28 cents to US$58.82 and Brent climbed 43 cents to US$65.28.

However, Petronas Dagangan lost 60 sen to RM23.20, Petronas Gas 26 sen to RM16.24 and Petronas Chemicals flat at RM7.03 while Dialog was also unchanged at RM3.39.

BAT continued to lose ground falling to a fresh low since end-2002 on weaker prospects. It was the top loser, down RM1 to RM12.70.

Tenaga rose four sen to RM12.94, Sime Darby and Genting one sen lower at RM2.25 and RM6.17 while GentingM was flat at RM3.36.

However, Hartalega and Top Glove ended positive. Hartalega gained five sen to RM5.68 and Top Glove six sen to RM4.82.

Chip related stocks closed higher, with KESM up 50 sen to RM10.80, Pentamaster 33 sen to RM5.06 and Vitrox 25 sen to RM9.32.

The ringgit weakened against the US dollar and Singapore unit but climbed against the pound sterling and euro.

The ringgit fell 0.13% to the US dollar at 4.0600 and shed 0.01% againsts the Singapore unit at 3.0124. It rose 0.74% against the pound to 5.2674 and added 0.25% to the euro at 4.5022.

Spot gold rose US$3.36 to US$1,560.61 per troy ounce.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1,616.16.

The projected lower bound is: 1,560.78.

The projected closing price is: 1,588.47.

Candlesticks

A black body occurred (because prices closed lower 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.

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 76.4991. This is not an overbought or oversold reading. The last signal was a buy 3 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 48.68. 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 68 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 -22. This is not a topping or bottoming area. The last signal was a buy 2 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 8 period(s) ago.

Rex Takasugi – TD Profile

FTSE BURSA KLCI closed down -6.930 at 1,588.880. Volume was 13% below average (neutral) and Bollinger Bands were 17% narrower than normal.

Open     High      Low     Close     Volume___
1,596.3901,596.3901,588.8801,588.880 82,673,104
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1,591.03 1,589.67 1,612.96
Volatility: 11 11 9
Volume: 94,738,576 92,401,176 107,372,920

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 1.5% 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 volume flowing into and out of .KLSE at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .KLSE and have had this outlook for the last 18 periods.

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