FTSE Bursa Malaysia KLCI (.KLSE) ends on firm note

FTSE Bursa Malaysia KLCI (.KLSE) ends on firm note

FTSE Bursa Malaysia KLCI (.KLSE) ends on firm note

Bursa Malaysia ended on a firm note today, supported by buying in heavyweight stocks amid positive market sentiment following Bank Negara Malaysia’s (BNM) move to cut the Overnight Policy Rate (OPR).

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 11.31 points to 1,489.95 from Tuesday’s close of 1,478.64.

After opening 0.31 point easier at 1,478.33 this morning, the benchmark index moved between 1,474.95 and 1,491.07 throughout the day.

On the broader market, losers edged out gainers 464 to 431, with 338 counters unchanged, 765 untraded and 18 others suspended.

Turnover shrank to 2.99 billion shares worth RM2.37 billion from 3.08 billion shares worth RM2.49 billion on Tuesday.

A dealer said the local bourse opened easier but rebounded thereafter and remained steady throughout the trading day due to buying in heavyweight stocks, particularly the financial and telecommunication stocks.

Yesterday BNM announced a 25-basis point rate cut, the second for this year, to cushion the economy from any associated risk arising from the coronavirus outbreak, a move in line with dovish measures undertaken by several central banks across the globe.

This had contributed to the positive performance on the local bourse, the dealer noted.

Sector-wise, the Industrial Products and Services Index expanded 2.93 points to 135.27, the Financial Services Index surged 137.22 points to 14,450.54 and the Plantation Index improved 2.23 points to 6,752.28.

Main Market volume slipped to 1.70 billion shares worth RM2.14 billion from 2.0 billion shares worth RM2.24 billion on Tuesday.

Warrants turnover expanded to 382.36 million units valued at RM64.34 million compared with 365.49 million units worth RM64.87 million yesterday.

Volume on the ACE Market rose to 911.09 million shares worth RM173.08 million versus 712.21 million shares worth RM178.55 million on Tuesday.

Consumer products and services accounted for 339.23 million shares traded on the Main Market, industrial products and services (190.97 million), construction (122.43 million), technology (174.93 million), SPAC (nil), financial services (65.95 million), property (239.63 million), plantations (46.61 million), REITs (14.05 million), closed/fund (41,000), energy (282.84 million), healthcare (83.35 million), telecommunications and media (27.05 million), transportation and logistics (30.83 million), and utilities (80.17 million).

Technical Indicators

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 1,544.80.

The projected upper bound is: 1,522.31.

The projected lower bound is: 1,452.78.

The projected closing price is: 1,487.55.

Candlesticks

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 22 white candles and 28 black candles for a net of 6 black 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 42.8899. This is not an overbought or oversold reading. The last signal was a buy 6 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 37.75. 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 1 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 -65. This is not a topping or bottoming area. The last signal was a buy 0 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 7 period(s) ago.

Rex Takasugi – TD Profile

FTSE BURSA KLCI closed up 11.310 at 1,489.950. Volume was 60% above average (neutral) and Bollinger Bands were 74% wider than normal.

Open     High      Low     Close     Volume___
1,478.3301,491.0701,474.9501,489.950 185,113,600
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1,497.61 1,557.15 1,597.32
Volatility: 21 14 11
Volume: 190,369,424 126,926,104 114,712,904

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 6.7% 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 27 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.