FTSE Bursa Malaysia KLCI (.KLSE) ends morning session on positive note
Bursa Malaysia ended the morning session on a positive note and on expectations of an interest rates cut by the European Central Bank (ECB) and the US Federal Reserve.
The US Federal Open Market Committee has scheduled a two-day meeting on July 30-31, while the ECB meets on July 25.
At 12.30pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 1.51 points to 1656.91 after having closed at 1,655.40 yesterday.
The benchmark index, which opened 0.67 point lower at 1,654.73, moved between 1,654.02 and 1,657.67 throughout the morning session.
Gainers outpaced losers 349 to 302, while 403 counters were unchanged, 834 untraded and 16 others suspended.
Turnover amounted to 1.45 billion shares worth RM835.63 million.
Shayne Heffernan, CEO and Founder of Heffx said the probability of a 25 basis points cut (by the Fed) had already been factored into most equities markets.
“European stocks were also higher yesterday with the ECB’s plan to cut rates by 10 basis points this Thursday. We are seeing investors responding well to these decisions,” the Shayne Heffernan said.
He also said higher crude oil prices due to heightened tensions in the middle east would also lend support to the market.
Of the heavyweights, Maybank was flat at RM8.82 and Public Bank fell two sen to RM22.86, but Tenaga rose eight sen to RM13.82 and PetChem was two sen higher at RM7.72.
For the most actives, Green Packet gained two sen to 52.5 sen, while its warrant inched up half-a-sen to 13 sen, but Vsolar was one sen lower at 22 sen.
The FBM Emas Index increased 11.03 points to 11,781.41, the FBMT 100 Index added 8.75 points to 11,606.19 and the FBM Emas Shariah Index was 23.57 points higher at 12,180.73.
The FBM Ace rose 7.05 points to 4,710.38 and the FBM 70 inched up 3.61 points to 14,895.56.
Sector-wise, the Financial Services Index fell 16.81 points to 16,517.02, the Plantation Index advanced 27.99 points to 6,812.83 and the Industrial Products & Services Index gained 0.5 point to 156.20.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 1,679.10.
The projected lower bound is: 1,633.13.
The projected closing price is: 1,656.11.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 36.4474. This is not an overbought or oversold reading. The last signal was a buy 1 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 43.89. 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 14 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 -91. 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 11 period(s) ago.
Rex Takasugi – TD Profile
FTSE BURSA KLCI closed up 0.270 at 1,655.670. Volume was 0% below average (neutral) and Bollinger Bands were 21% narrower 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: 1,664.47 1,649.83 1,675.80
Volatility: 7 9 11
Volume: 95,562,400 115,601,344 123,663,384
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 1.2% below its 200-period moving average and is in an downward trend. Volatility is low 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 bearish on .KLSE and have had this outlook for the last 4 periods.