FTSE Bursa Malaysia KLCI (.KLSE) closes higher but down 15% in 1Q, battered by Covid-19
Bursa Malaysia’s FBM KLCI ended Tuesday, the first quarter of 2020, on a downbeat note as the Covid-19 ravaged global and Asian markets, which was worse than the 2008 Global Financial Crisis.
At 5pm, the KLCI was up 22.01 points or 1.66% to 1,350.89. Year-to-date, the KLCI is down 14.97%, despite last week’s rally ahead of the RM250bil stimulus package to offset the severe impact from the coronavirus.
Turnover was 3.52 billion shares valued at RM2.87bil. There were 708 gainers, 185 losers and 288 counters unchanged.
Billions of ringgit had been wiped out from the local stock market as foreign funds fled. The regulators’ move to halt short selling activities helped somewhat to steady the market.
The ringgit fell to 4.315 against the US dollar from 4.091 at Dec 31,2019.
Reuters reported world stocks looked set to close their worst quarter since 2008 on a brighter note, as strong Chinese factory data held out hope for an economic revival even as much of the rest of the world shut down to fight the coronavirus.
Stocks have rallied since the start of last week but remain down more than 20% for the quarter. European shares have had an even worst time, suffering their worst three months since 1987.
Among the banks, Maybank rose 14 sen to RM7.45 and added 2.42 points to the KLCI, CIMB advanced nine sen to RM3.60 and Public Bank eight sen to RM15.90 while Hong Leong Bank advanced four sen to RM13.46. RHB Bank shed 10 sen to RM4.69.
Tenaga Nasional gained 22 sen to RM12.02 and pushed the KLCI up nearly two points. MISC added four sen to RM7.44, Genting 25 sen higher at RM3.75 and GentingM seven sen to RM2.01.
Petronas Chemicals climbed 30 sen to RM5.05 and it was the biggest mover, driving the index up 3.78 points. Petronas Dagangan jumped RM1.04 to RM21.16 while Petronas Gas was unchanged at RM15.40. Dialog edged up two sen to RM3.04.
Sime Darby Plantation rose 29 sen to RM4.94 and boosted the KLCI by 3.18 points. KL Kepong ws up 66 sen to RM20.76. IOI Corp rose 13 sen to RM4 and PPB Group two sen to RM16.42.
Maxis lost 15 sen to RM5.35, Digi five sen to RM4.35 but Axiata gained six sen to RM3.28.
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 1,430.92.
The projected upper bound is: 1,420.54.
The projected lower bound is: 1,271.72.
The projected closing price is: 1,346.13.
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 21 white candles and 29 black candles for a net of 8 black candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 84.6500. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 7 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 45.78. 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 5 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 64. This is not a topping or bottoming area. The last signal was a buy 7 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 3 period(s) ago.
Rex Takasugi – TD Profile
FTSE BURSA KLCI closed up 22.010 at 1,350.890. Volume was 76% above average (neutral) and Bollinger Bands were 204% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1,298.85 1,461.22 1,570.87
Volatility: 51 35 20
Volume: 240,159,936 192,434,592 126,585,848
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.
FTSE BURSA KLCI is currently 14.0% 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 46 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.