FTSE Bursa Malaysia KLCI (.KLSE) down, Bursa healthcare index rises the most

FTSE Bursa Malaysia KLCI (.KLSE) down, Bursa healthcare index rises the most

FTSE Bursa Malaysia KLCI (.KLSE) down, Bursa healthcare index rises the most

The FBM KLCI closed down 1.47 points or 0.1% at 1,356.03 today, while rubber glove manufacturers’ share price gained, following global updates on the rising number of Covid-19 pandemic cases and higher death toll from the outbreak. 

At 5pm, the KLCI closed down at 1,356.03, after erasing gains in the final trading hour. During the day, the KLCI had fallen to its intraday low at 1,352.78, before rising to its intraday high at 1,359.68.

Rubber glove manufacturers’ share price rise had partly helped Bursa Malaysia’s healthcare index become the top gainer among Bursa indices. Among rubber glove manufacturers, Top Glove Corp Bhd’s share price closed up 17 sen or 2.62% at RM6.67. Top Glove had earlier today risen to its all-time high at RM6.83.

Bursa’s healthcare index, which tracks share prices of rubber glove manufacturers, pharmaceutical companies and hospital operators ended up 20.65 points or 1.55% at 1,349.01.

Pharmaniaga Bhd’s share price added nine sen or 5.84% to RM1.63, while IHH Healthcare Bhd rose two sen or 0.39% to RM5.11.

Across Bursa, 3.12 billion shares worth RM1.51 billion were traded. There were 307 gainers and 497 decliners, as the stock market also took cue from the Organization of the Petroleum Exporting Countries and its allies including Russia — a group known as OPEC+’s agreement to reduce crude oil output and support prices of the commodity.  

“After a tortuous series of meetings, the OPEC+ group finally announced a 9.7 million barrels per day (bpd) production cut. US, China and Brazil will add another 3.7 million bpd of cuts, while G20 nations are expected to chip in with an additional 1.3 million bpd of cuts. 

While the production cut headline looks impressive, details are not forthcoming and there are widespread concerns over compliance to the production cuts,” UOB Group markets strategy head Heng Koon How and markets strategist Quek Ser Leang wrote in a note today.

“The intensifying Covid-19 outbreak is expected (to) trigger a deep global recession in 1H20 and will likely result in an unprecedented drop in global energy demand. The EIA (US Energy Information Administration) has warned that global energy surplus could jump in excess of 15 million bpd by April 2020. As such, we maintain our negative outlook for Brent crude oil. At most, the latest OPEC+ production cut may put a near term floor in Brent crude oil at around USD 25/bbl, but it will not change the dire demand-supply dynamics in the coming quarters,” they said.

Reuters reported more than 1.8 million people have been reported to be infected by the novel coronavirus globally and 113,849 have died, according to a Reuters tally. Infections have been reported in more than 210 countries and territories, since the first cases were identified in China in December 2019, it said.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 1,457.63.

The projected lower bound is: 1,303.87.

The projected closing price is: 1,380.75.

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 26 white candles and 24 black candles for a net of 2 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 3 rising windows in the last 50 candles–this makes the current rising window even more bullish.

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 74.5387. This is not an overbought or oversold reading. The last signal was a sell 2 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 53.85. 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 16 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 134.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 3 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 14 period(s) ago.

Rex Takasugi – TD Profile

FTSE BURSA KLCI closed up 12.150 at 1,383.810. Volume was 71% below average (consolidating) and Bollinger Bands were 19% wider than normal.

Open     High      Low     Close     Volume___
1,375.6201,384.5601,375.1201,383.810 44,453,200
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1,357.33 1,417.42 1,553.86
Volatility: 16 36 20
Volume: 122,006,624 185,670,048 127,305,208

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 gapped up today (bullish) on light volume. Possibility of a Common Gap which usually coincides with a lack of interest in the security. Common Gaps are fairly irrelevent for forecasting purposes. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
FTSE BURSA KLCI is currently 10.9% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 4 periods.

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