FTSE Bursa Malaysia KLCI (.KLSE) ends lower in line with global markets on rising geopolitical tensions

FTSE Bursa Malaysia KLCI (.KLSE) ends lower in line with global markets on rising geopolitical tensions

FTSE Bursa Malaysia KLCI (.KLSE) ends lower in line with global markets on rising geopolitical tensions

Bursa Malaysia ended lower today in line with global markets following rising tensions in the Middle East between Washington and Tehran.

At the close, the FTSE Bursa Malaysia KLCI (FBM KLCI) was down 1.36 per cent or 21.94 points to 1,589.10 compared with yesterday’s close of 1,611.04.

On the broader market, losers outpaced gainers 883 to 171 while 284 counters were unchanged, 599 untraded and 13 others suspended.

Volume meanwhile increased to 3.86 billion shares worth RM2.22 billion compared with 2.98 billion shares worth RM1.79 billion yesterday.

An analyst said the local market performance tracked the overnight losses on Wall Street which was down 119.70 points while Japan’s Nikkei fell 370.96 points or 1.57% today following retaliation by Iran towards the United States.

She added that the local bourse will remain volatile in the near term as investors await US President Donald Trump’s address to the country later today on the latest developments in the Middle East.

“If the US retaliates in any way, the local bourse will continue to face pressure despite a prediction of a rise in oil price. However, the index will not fall more than 30 points as foreign equity holding is only about 35% while the rest is controlled by government institutions.

“In addition, top composite index weighted stocks are also linked to the government,” she said.

On the technical front, she said, for the remaining trading sessions this week, the index was expected to trade between 1,588 and 1,605, if the tensions between the two nations remained high.

On heavyweights, Maybank declined 11 sen to RM8.54, Public Bank fell 52 sen to RM19.60, TNB shed eight sen to RM12.98 while Petronas Chemicals was down 10 sen to RM7.47.

For the top losers, consumer counters led the losses with Nestle shedding RM1.30 to RM146.20, Dutch Lady declined RM1.00 to RM48 and F&N dropped 70 sen to RM33.70.

As tensions remain high, gold retailers emerged the top gainers for the day with Poh Kong gaining 16.5 sen to 70.5 sen, up 30%, while Tomei added 12.5 sen to 59.5 sen.

On the overall index, FBM Emas Index was down 152.28 points to 11,305.66 and the FBM Emas Shariah Index was 138.78 points lower at 11,950.26.

The FBMT 100 Index weakened 144.52 points to 11,107.80, the FBM 70 slid 147.96 points to 14,160.80 while the FBM Ace erased 73.79 points to 5,380.65.

Sector-wise, the Industrial Products and Services Index slid 1.83 points to 154.57, the Financial Services Index reduced 260.57 points to 15,452.84 and the Plantation Index dipped 116.87 points to 7,640.66.

Main Market volume increased to 2.73 billion units worth RM1.97 billion compared with 2.20 billion units worth RM1.57 billion yesterday.

Warrants turnover rose to 387.75 million units worth RM65.01 million from 233.36 million units valued at RM42.18 million on Tuesday.

Volume on the ACE Market, meanwhile, expanded to 741.04 million shares worth RM188.93 million against yesterday’s 643.12 million shares worth RM179.49 million.

Technical Indicators

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 1,593.76.

The projected upper bound is: 1,618.17.

The projected lower bound is: 1,560.79.

The projected closing price is: 1,589.48.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

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 42.3957. This is not an overbought or oversold reading. The last signal was a sell 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 48.13. 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 60 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 -102.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 8 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 0 period(s) ago.

Rex Takasugi – TD Profile

FTSE BURSA KLCI closed down -21.940 at 1,589.100. Volume was 3% below average (neutral) and Bollinger Bands were 42% wider than normal.

Open     High      Low     Close     Volume___
1,604.0601,604.0601,587.4301,589.100 93,682,000
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1,603.46 1,590.91 1,616.08
Volatility: 17 11 10
Volume: 73,512,744 96,396,360 107,488,176

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 1.7% below its 200-period moving average and is in an upward 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 moderate flows of volume into .KLSE (mildly bullish). Our trend forecasting oscillators are currently bullish on .KLSE and have had this outlook for the last 10 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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