FTSE Bursa Malaysia KLCI (.KLSE) closes higher as govt unveils RM10 bln special stimulus package

FTSE Bursa Malaysia KLCI (.KLSE) closes higher as govt unveils RM10 bln special stimulus package

FTSE Bursa Malaysia KLCI (.KLSE) closes higher as govt unveils RM10 bln special stimulus package

Bursa Malaysia closed higher on Monday as the government unveiled a special stimulus package worth RM10 billion aimed at small and medium enterprises (SMEs) to soften the impact of the Movement Control Order (MCO) due to the COVID-19 pandemic .

At 5pm, key index FTSE Bursa Malaysia KLCI (FBM KLCI) rose 11.04 points, or 0.83 per cent to close at 1,341.69 from 1,330.65 at Friday’s close.

The index opened 1.96 points firmer at 1,332.61 and hovered between 1,324.43 and 1,343.05 throughout the day.

Market breadth was positive, with gainers thumping losers 738 to 183, while 281 counters were unchanged, 719 untraded and 21 others suspended.

Turnover increased to 5.98 billion shares worth RM2.60 billion from 5.34 billion shares worth RM2.48 billion recorded on Friday.

In announcing the Prihatin Package for SMEs (Additional Measures), Prime Minister Tan Sri Muhyiddin Yassin said the stimulus package was vital for SMEs and micro-businesses which account for two-thirds of the country’s workforce and 40 per cent of the country’s economy.

Commenting on the initiative, Bank Islam chief economist Dr Mohd Afzanizam Abdul Rashid said it would help to alleviate the financial burden of those affected by the MCO.

“The loss of income is the immediate impact, so the government is trying to soften the impact,” he said to Bernama.

He said the measures would result in more online spending via digital platforms and help to stimulate the economy, especially in the banking sector.

“The question now is how these financial aids are being delivered,” he said.

Meanwhile, of the Bursa Malaysia heavyweights, Maybank rose 25 sen to RM7.65, Tenaga added 18 sen to RM12.10, Public Bank improved 20 sen to RM15.90 and IHH was one sen higher at RM5.03.

Petronas Dagangan and Sime Darby Plantation were among the top losers on the local bourse after falling by 40 sen to RM20.10 and 12 sen to RM4.65, respectively.

Top gainers were led by Dutch Lady, which edged up 50 sen to RM43.50, followed by Panasonic Manufacturing Malaysia which increased 32 sen to RM26.98 and United Plantation which was 22 sen higher at RM24.92.

The most active counters list continued to be dominated by energy-linked stocks on speculation that the oil price war between Saudi Arabia and Russia would end.

Hibiscus Energy rose six sen to 51 sen, Sapura Energy ticked up one sen to 10.5 sen while Bumi Armada was one sen better at 17.5 sen.

On the index board, the FBM Emas Index appreciated 99.81 points to 9,275.19, the FBMT 100 Index increased 88.52 points to 9,177.18 and the FBM Emas Shariah Index gained 80.60 points to 10,142.05.

The FBM 70 jumped 158.70 points to 10,868.76 and the FBM Ace advanced 152.82 points to 3,970.13.

Sector-wise, the Financial Services Index expanded 192.31 points to 12,244.30, the Industrial Products and Services Index edged up 0.70 of-a-point to 105.94 but the Plantation Index was 6.99 points weaker at 6,132.65.

Main Market volume narrowed to 4.56 billion shares valued at RM2.36 billion from 4.66 billion shares valued at RM2.33 billion recorded on Friday.

Warrants turnover, however, was higher at 391.84 million units worth RM94.73 million from 296.16 million units worth RM70.81 million last Friday.

Volume on the ACE Market rose to 1.02 billion shares valued at RM152.38 million versus 383.85 million shares valued at RM81.30 million.

Technical Indicators

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 1,412.62.

The projected lower bound is: 1,261.52.

The projected closing price is: 1,337.07.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 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 49.0229. This is not an overbought or oversold reading. The last signal was a sell 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 45.57. 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 9 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 60. This is not a topping or bottoming area. The last signal was a buy 11 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 7 period(s) ago.

Rex Takasugi – TD Profile

FTSE BURSA KLCI closed up 11.040 at 1,341.690. Volume was 0% above average (neutral) and Bollinger Bands were 92% wider than normal.

Open     High      Low     Close     Volume___
1,332.6101,343.0501,324.4301,341.690 150,403,504
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1,329.25 1,441.48 1,564.63
Volatility: 27 36 20
Volume: 181,335,744 195,622,032 127,859,488

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 14.2% 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 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 50 periods.

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