FTSE Bursa Malaysia KLCI (.KLSE) ends lower on selling momentum
Bursa Malaysia closed in the red today, influenced by selling in the industrial products and services, as well as consumer products and services sectors.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) ended 3.9 points easier at 1,678.97 compared with Tuesday’s close of 1,682.87.
The index moved between 1,674.13 and 1,683.69 throughout the day.
Shayne Heffernan, CEO and Founder of Heffx said going forward, he expects the local market to ring in a positive tone next week due to the accommodative stance of the Federal Reserve (Fed) and positive performance of regional peers.
“We note that Wall Street has remained cautious the past two days as investors patiently await new signs leading to a potential rate cut by the Fed. Current sentiment in the market indicates the Fed will lower rates by 25 points at the end of July,” he said in a note today.
Mr. Heffernan said Bank Negara Malaysia’s Monetary Policy Committee in looking to sustainable economic expansion, decided to maintain the overnight policy rate at 3.00 per cent.
“This is part of the strategy to ensure domestic economic growth, despite the global trade tension between the US and China. As of now, the local economy, managed to sustain growth in the first quarter of the year.
“The underlying inflation is seen to be stable in the absence of strong demand pressure, a positive indicator for economic growth,” he added.
At close, the broader market was negative, with decliners overtaking advancers 434 to 329, while 446 counters remained unchanged, 639 were untraded and 19 others were suspended.
Among heavyweights, Maybank, Hong Leong Bank and Nestle were flat at RM8.94, RM19.00 and RM148.50 respectively, while Tenaga lost 10 sen each to RM13.74.
Meanwhile, Public Bank rose six sen to RM23.12, as IHH Healthcare and Axiata improved one sen to RM5.81 and RM5.18 respectively.
Of the actives, main market debutant UWC was 58 sen higher at RM1.40, London Biscuits improved seven sen to 23 sen, while KNM, Focus Dynamics and Green Packet declined half-a-sen each to 31 sen, 27 sen and 38.5 sen respectively.
The FBM 70 shrank 57.86 points to 14,842.22, the FBMT 100 Index gave up 31.58 points to 11,713.56 and the FBM Ace declined 18.02 points to 4,607.94.
The FBM Emas Index shed 29.72 points to 11,879.94 and the FBM Emas Shariah Index was 37.74 points weaker at 12,259.43.
Sector-wise, the Industrial Products & Services Index slipped 0.83 of-a-point to 161.46, the Financial Services Index trimmed 11.99 points to 16,767.76 and the Plantation Index declined 9.12 points to 6,959.58.
Total transaction volume was lower at 2.23 billion units worth RM2.02 billion compared with 2.41 billion units worth RM1.72 billion on Tuesday.
Main Market volume narrowed to 1.59 billion shares worth RM1.86 billion from 1.64 billion shares worth RM1.56 billion.
Warrants turnover declined to 353.08 million units valued at RM73.47 million versus 399.46 million units valued at RM85.38 million.
Volume on the ACE Market eased to 286.87 million shares worth RM81.09 million compared to 363.35 million shares worth RM74.69 million on Tuesday.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 1,657.63.
The projected upper bound is: 1,702.07.
The projected lower bound is: 1,657.51.
The projected closing price is: 1,679.79.
A black body occurred (because prices closed lower 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 29 white candles and 21 black candles for a net of 8 white candles.
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 36.2244. This is not an overbought or oversold reading. The last signal was a sell 4 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 58.79. 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 sell 5 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 -14. This is not a topping or bottoming area. The last signal was a sell 5 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 2 period(s) ago.
Rex Takasugi – TD Profile
FTSE BURSA KLCI closed down -3.900 at 1,678.970. Volume was 22% below average (neutral) and Bollinger Bands were 1% 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: 1,681.90 1,645.10 1,681.99
Volatility: 6 9 11
Volume: 107,327,296 118,638,008 125,776,760
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 0.2% below its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 26 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.