FTSE Bursa Malaysia KLCI (.KLSE) closes flat, techs under pressure after Apple caution

FTSE Bursa Malaysia KLCI (.KLSE) closes flat, techs under pressure after Apple caution

FTSE Bursa Malaysia KLCI (.KLSE) closes flat, techs under pressure after Apple caution

Tech and semiconductor-related stocks came under pressure, in line with key Asian markets, after Apple Inc’s warning that it was unable to meet its March quarter sales forecast due to the Covid-19 coronavirus.

The FBM KLCI was more resilient unlike recent days thanks to a better showing by banks, except Maybank, a recovery by Tenaga and some oil stocks.

At 5pm, the KLCI was down 0.04 point at 1,537.08. Turnover was 2.78 billion shares valued at RM2.05bil. Decliners led advancers more than two to one or 598 losers to 254 and 384 counters unchanged.

Reuters reported China’s blue-chip stocks ended lower after Apple warned that it was unlikely to meet its March quarter sales forecast as the Covid-19 coronavirus slowed production and weakened demand in China.

The blue-chip CSI300 index closed 0.5% lower, with its financial sector sub-index shedding 1%. The Shanghai Composite index was flat at 2,984.97.

Japan’s Nikkei 225 fell 1.4%, Hong Kong’s Hang Seng Index 1.54%, Taiwan’s Taiex 0.97%, South Korea’s Kospi 1.48% and Singapore’s STI 0.54% lower.

At Bursa, Maxis extended its decline, falling 13 sen to RM5.35 and erasing 1.81 points, Axiata was flat at RM4.33 and Digi edged up one sen to RM4.41.

Crude palm oil for third month delivery fell RM12 to RM2,637 per tonne.

KL Kepong fell 60 sen to RM23.14 after its disappointing results and wiped out 1.13 points from the index, Sime Plantation shedtwo sen to RM5.19, IOI Corp was flat at RM4.50, PPB Group edged up four sen to RM18.70.

Tenaga snapped its recent selling pressure, gaining 10 sen to RM12.60 and adding 1.01 points. Genting added eight sen to RM5.52 while GentingM was flat at RM3.01. MAHB gained two sen to RM7.02.

Among the banks, Hong Leong Bank rose 14 sen to RM15.30, Public Bank eight sen to RM17.70, CIMB four sen to RM4.96, RHB Bank three sen to RM5.70, AmBank two sen to RM3.91 but HLFG lost eight sen to RM16.02 and Maybank shed two sen to RM8.47.

Technical Indicators

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 1,571.21.

The projected upper bound is: 1,566.04.

The projected lower bound is: 1,507.06.

The projected closing price is: 1,536.55.

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 25 white candles and 25 black candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

An on-neck line occurred. This is a bearish pattern where prices should move lower when the white candlestick’s (i.e., the most recent) low is penetrated.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 24.1457. This is not an overbought or oversold reading. The last signal was a sell 5 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 39.77. 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 10 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 -61. This is not a topping or bottoming area. The last signal was a buy 10 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 buy 5 period(s) ago.

Rex Takasugi – TD Profile

FTSE BURSA KLCI closed down -0.040 at 1,537.080. Volume was 3% below average (neutral) and Bollinger Bands were 7% wider than normal.

Open     High      Low     Close     Volume___
1,536.5101,537.8701,532.8901,537.080 100,882,096
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1,543.91 1,573.87 1,604.56
Volatility: 10 12 10
Volume: 122,894,464 109,363,056 110,974,792

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 4.2% 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 16 periods.

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