FTSE Bursa Malaysia KLCI (.KLSE) closes lower in line with regional markets

FTSE Bursa Malaysia KLCI (.KLSE) closes lower in line with regional markets

FTSE Bursa Malaysia KLCI (.KLSE) closes lower in line with regional markets

Bursa Malaysia ended lower today, dragged by losses in index-linked heavyweights like Maybank, Tenaga and Petronas Chemicals, in line with the bearish performance of regional markets.

At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 3.54 points to 1,574.44 from yesterday’s close of 1,577.98.

After opening 2.71 points weaker at 1,575.27, the market bellwether moved between 1,571.58 and 1,577.79 throughout the day.

The overall market breadth on Bursa Malaysia was negative with losers outpacing gainers 536 to 294, while 371 counters remained unchanged, 784 were untraded and 37 others were suspended.

Turnover decreased to 2.30 billion shares worth RM1.74 billion from 3.07 billion shares worth RM2.57 billion on Wednesday.

Elsewhere, Hong Kong’s Hang Seng Index declined 1.52 per cent to 27,909.12, Singapore’s Straits Times Index fell 0.58 per cent to 3,235.02 and South Korea’s KOSPI Composite Index was 0.93 per cent lower at 2,246.13.

A dealer said market sentiment was clouded by the prevailing fear that the coronavirus outbreak in China would continue to plague trading activities.

“On the technical front, the FBM KLCI is anticipated to trade between the 1,551 and 1,580 marks in the near-term due to suppressed upward momentum.

“Support levels for the index are at 1,500, 1,515 and 1,551, while the resistance levels are at 1,580, 1,600 and 1,610,” he added.

Among the heavyweights on Bursa Malaysia, Maybank eased four sen to RM8.51, Tenaga lost six sen to RM12.82 and Petronas Chemicals decreased three sen to RM6.93.

Public Bank, however, added 12 sen to RM19.14.

The most active counter was Powerwell, which rose half-a-sen to 29 sen, while DGB Asia and MTouche eased half-a-sen each to 13 sen and 17 sen, respectively.

On the scoreboard, the FBM Emas Index was 20.89 points lower at 11,256.82, the FBM Emas Shariah Index lost 30.38 points to 11,983.31 and the FBMT 100 Index declined 18.83 points to 11,042.47.

The FBM 70 rose by 0.39 points to 14,230.09 and the FBM ACE decreased 13.71 points to 5,624.36.

Sector-wise, the Industrial Products and Services Index inched down 0.38 of-a-point to 152.48, the Financial Services Index fell 16.15 points to 15,098.81 and the Plantation Index lost 30.96 points to 7,453.77.

Main Market volume decreased to 1.14 billion shares worth RM1.48 billion from 1.87 billion shares worth RM2.28 billion yesterday.

Warrants turnover declined to 358.55 million units worth RM64.50 from 399.21 million units worth RM66.19 million.

Volume on the ACE Market was lower at 802.18 million shares worth RM193.99 million from 804.99 million shares worth RM220.44 million.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 1,601.72.

The projected lower bound is: 1,545.75.

The projected closing price is: 1,573.73.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

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.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 27.2163. This is not an overbought or oversold reading. The last signal was a buy 6 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 42.22. 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 71 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 -149.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 11 period(s) ago.

Rex Takasugi – TD Profile

FTSE BURSA KLCI closed down -3.540 at 1,574.440. Volume was 15% above average (neutral) and Bollinger Bands were 12% narrower than normal.

Open     High      Low     Close     Volume___
1,575.2701,577.7901,571.5801,574.440 109,508,304
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1,585.43 1,587.91 1,612.09
Volatility: 6 11 9
Volume: 105,199,256 94,250,336 107,609,800

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 2.3% 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 21 periods.

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