FTSE Bursa Malaysia KLCI (.KLSE) ends lower dragged by losses in banking stocks
Bursa Malaysia ended lower today, dragged by losses in selected heavyweights led by banking stocks, with the local benchmark index declining by 0.59 per cent.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 9.35 points to 1,577.98 from yesterday’s close of 1,587.33.
After opening 2.69 points weaker at 1,584.64 this morning, the market bellwether moved between 1,576.90 and 1,595.38 throughout the day.
The overall market breadth on Bursa Malaysia was negative with losers outpacing gainers 509 to 397, while 362 counters remained unchanged, 718 were untraded and 38 others suspended.
Turnover increased to 3.07 billion shares worth RM2.57 billion from 2.65 billion shares worth RM1.93 billion on Tuesday.
A dealer said Bank Negara Malaysia’s Monetary Policy Committee had decided to reduce the overnight policy rate (OPR) to 2.75 per cent from 3.0 per cent as a pre-emptive measure to secure improving growth trajectory amid price stability.
“While this is good news for domestic households, lower OPR will also translate into cheaper borrowing costs therefore affecting banks’ profitability,” he added.
Among the heavyweights on Bursa Malaysia, Maybank eased five sen to RM8.55, Public Bank declined 46 sen to RM19.02 and CIMB Group lost 10 sen to RM5.03.
Other heavyweights, Tenaga was flat at RM12.88 and Petronas Chemicals decreased three sen to RM6.96.
Sector-wise, the Industrial Products and Services Index inched up 0.42 of-a-point to 152.86, the Financial Services Index fell 210.43 points to 15,114.96 and the Plantation Index lost 35.03 points to 7,484.73.
Main Market volume increased to 1.87 billion shares worth RM2.28 billion from 1.68 billion shares worth RM1.72 billion yesterday.
Warrants turnover increased to 399.21 million units worth RM66.19 million from 379.57 million units worth RM69.09 million.
Volume on the ACE Market swelled to 804.99 million shares worth RM220.44 million from 592.87 million shares worth RM133.08 million.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 1,605.35.
The projected lower bound is: 1,549.40.
The projected closing price is: 1,577.38.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.
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 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 48.2466. This is not an overbought or oversold reading. The last signal was a buy 5 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 43.74. 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 70 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 -84. This is not a topping or bottoming area. The last signal was a buy 4 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 10 period(s) ago.
Rex Takasugi – TD Profile
FTSE BURSA KLCI closed down -9.350 at 1,577.980. Volume was 79% above average (neutral) and Bollinger Bands were 18% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1,587.55 1,588.62 1,612.36
Volatility: 7 11 9
Volume: 103,995,272 94,109,408 107,582,344
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 2.1% 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 20 periods.
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