FTSE Bursa Malaysia KLCI (.KLSE) ends higher driven by economic stimulus
Bursa Malaysia main index, the FTSE Bursa Malaysia KLCI (FBM KLCI) ended on a high driven by the economic stimulus package announced by the interim Prime Minister, Tun Dr Mahathir Mohamad today.
At the close, the index strengthens 10.40 points to 1,505.59 compared with yesterday’s close of 1,495.19.
Throughout the day, the FBM KLCI moved between 1,494.94 to 1,508.27.
However, on the broader market; losers trounced gainers 622 to 264, while 400 counters were unchanged, 755 untraded and 70 others suspended.
Turnover declined to 3.51 billion shares worth RM2.66 billion compared with 3.86 billion shares worth RM3.07 billion.
An analyst said while heavyweight stocks listed on the FBM KLCI has the steady backing of institutional investors, the latest announcement on the much-awaited RM20 billion economic stimulus package is expected to push several indexes including consumer products, plantation as well as transportation and logistics up.
“This shows that despite the political situation surrounding the nation today, putting the economy on the correct footing is the main agenda of the interim Prime Minister as long as he holds office,” she said.
On the technical forefront, the KLCI index is expected to be on the uptrend as market resumes for tomorrow.
“The immediate resistance now stands at 1,520 with the support level of 1,490,” she said.
Main Market volume was slightly up to 2.28 billion shares worth RM2.35 billion compared with 2.25 billion shares worth RM2.69 yesterday.
Warrants turnover declined to 455.20 million units worth RM83.09 million compared with 467.90 million units worth RM88.16 million.
Volume on the ACE Market slipped to 776.48 million units worth RM225.51 million from Wednesday’s 847.89 million units worth RM287.31 million.
Consumer products and services accounted for 503.59 million shares traded on the Main Market, industrial products and services (258.21 million), construction (112.31 million), technology (446.82 million), SPAC (nil), financial services (57.86 million), property (127.10 million), plantations (54.20 million), REITs (11.10 million), closed/fund (20,800), energy (547.77 million), healthcare (34.28 million), telecommunications and media (53.88 million), transportation and logistics (47.02 million), and utilities (30.28 million).
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 1,555.86.
The projected upper bound is: 1,538.90.
The projected lower bound is: 1,469.73.
The projected closing price is: 1,504.31.
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 24 white candles and 26 black candles for a net of 2 black candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 33.7159. This is not an overbought or oversold reading. The last signal was a buy 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 35.83. This is not a topping or bottoming area. However, the RSI just crossed above 30 from a bottoming formation. This is a bullish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 0 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 -96. This is not a topping or bottoming area. The last signal was a buy 0 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 sell 3 period(s) ago.
Rex Takasugi – TD Profile
FTSE BURSA KLCI closed up 10.400 at 1,505.590. Volume was 22% above average (neutral) and Bollinger Bands were 20% 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: 1,521.07 1,566.43 1,600.24
Volatility: 18 14 10
Volume: 136,829,808 118,518,608 112,984,008
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 5.9% 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 23 periods.