FTSE Bursa Malaysia KLCI (.KLSE) gains ground on improved sentiment

FTSE Bursa Malaysia KLCI (.KLSE) gains ground on improved sentiment

FTSE Bursa Malaysia KLCI (.KLSE) gains ground on improved sentiment

The FBM KLCI continues to gain ground Monday as market sentiments were boosted by the US-Mexico deal to avert a tariff war and optimism for a rate cut by the US Federal Reserve.

At closing, the benchmark index rose 6.14 points, or 0.37% to 1,655.47. The market traded within a range of 4.15 points between an intra-day high of 1,656.0 and a low of 1,651.85 during the session.

Turnover stood at 2.28 billion shares valued at RM1.79bil. Market breadth was positive with 613 gainers as compared to 276 losers while 350 counters unchanged.

In today’s session, 16 of the KLCI-component stocks were traded higher, nine counters fell while the remaining closed unchanged.

Dealers said the positive global market environment helped key Asian stock indices to march on and local bourse was playing catching up after the recent bout of weakness.

On Bursa Malaysia, Fraser & Neave jumped 54 sen to 34.82, Apex Healthcare rose 26 sen to RM8.48 and Malaysia Airports Holdings added 24 sen to RM7.86.

Ekovest, which was the most actively traded counter, added six sen to 85 sen with 162 million shares traded. Bumi Armada added 0.5 sen to 21 sen with 99.7 million shares done and Iskandar Waterfront rose 10.5 sen to 94 sen with 77.7 million shares exchanged hands.

Among the banks, Maybank added five sen to RM9.04, Public Bank rose eight sen to RM23.50, Hong Leong Bank gained 22 sen to RM19.22 while RHB Bank added 10 sen to RM5.85.

Elsewhere in the region, Japan’s Nikkei closed at a two-week high on Monday after U.S. President Donald Trump withdrew a threat to impose tariffs on Mexican imports. The benchmark Nikkei rose 1.2% to 21,134.42 points, its highest close since May 28.

Hong Kong’s Hang Seng index ended up 2.3% at 27,578.64 points, after marking its best session since Dec. 3, 2018. The China Enterprises Index gained 1.9% to 10,526.92 points.

The blue-chip CSI300 index rose 1.3%, to 3,610.74, while the Shanghai Composite Index gained 0.9% to 2,852.13.

South Korea’s Kospi closed up 27.16 points, or 1.31%, at 2,099.49, marking the biggest daily percentage gain since April 29.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1,677.96.

The projected lower bound is: 1,633.23.

The projected closing price is: 1,655.60.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 25 white candles and 25 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 79.6906. This is not an overbought or oversold reading. The last signal was a sell 0 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 63.46. 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 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 103.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 14 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 buy 7 period(s) ago.

Rex Takasugi – TD Profile

FTSE BURSA KLCI closed up 6.140 at 1,655.470. Volume was 19% below average (neutral) and Bollinger Bands were 49% wider than normal.

Open High Low Close Volume___
1,651.9301,656.0001,651.8501,655.470 95,900,496

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 1,632.94 1,629.39 1,696.29
Volatility: 9 9 11
Volume: 136,502,240 115,574,344 127,553,976

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 2.4% 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 4 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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