FTSE Bursa Malaysia KLCI (.KLSE) higher on Bandar Malaysia revival

FTSE Bursa Malaysia KLCI (.KLSE) higher on Bandar Malaysia revival

FTSE Bursa Malaysia KLCI (.KLSE) higher on Bandar Malaysia revival

Bursa Malaysia closed at its intraday high today, riding a wave of optimism on the revival of the Bandar Malaysia project, analyst said.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 0.48 per cent or 7.60 points to 1,576.95 compared with Monday’s close of 1,569.35.

The benchmark index, which opened at 1,571.87, moved between 1,564.25 and 1,576.95 throughout the day.

Market breadth, however, was on the borderline, with losers slightly surpassing gainers 416 to 407, while 394 counters were unchanged, 781 untraded and 16 others suspended.

Turnover amounted to 2.34 billion shares worth RM1.99 billion.

Online equity broker Rakuten Trade Sdn Bhd head of research Kenny Yee said the signing ceremony of the project today signalled a good start for the infrastructure sector as spillover will also be seen in the financial and construction sectors.

“The revival of the project, with an estimated gross development value (GDV) of RM140 billion, will boost investors’ confidence, and building such a mega project needs the support of other services to co-exist in the ecosystem,” he told Bernama.

Prime Minister Tun Dr Mahathir Mohamad today witnessed the signing ceremony of the agreement to develop Bandar Malaysia between IWH CREC Sdn Bhd (IWH-CREC) and TRX City Sdn Bhd (TRXC).

TRXC is a wholly-owned subsidiary of the Minister of Finance (Incorporated), while IWH-CREC is a consortium comprising Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corp (M) Sdn Bhd (CRECM).

Ekovest Bhd, which emerged as the most active counter, will be among the beneficiaries of the project as it shares a common shareholder with IWH, namely Tan Sri Lim Kang Ho. Ekovest’s share price, however, shed 2.5 sen to 86 sen, while Iskandar Waterfront City Bhd fell four sen to 98 sen.

Sector-wise, the Financial Services Index advanced 42.47 points to 15,277.28, the Plantation Index gained 36.50 points to 7,542.57, while the Industrial Products and Services Index lost 0.18 of-a-point to 152.47.

Main Market volume marginally declined to 1.58 billion shares valued at RM1.86 billion compared with 1.59 billion shares worth RM1.60 billion on Monday.

Warrants turnover rose to 335.14 million units worth RM60.58 million compared with 309.44 million units valued at RM54.21 million yesterday.

Meanwhile, volume on the ACE Market advanced to 423.02 million valued at RM126.60 million compared with 387.94 million worth RM101.86 million previously.

Technical Indicators

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 1,586.23.

The projected upper bound is: 1,597.16.

The projected lower bound is: 1,557.46.

The projected closing price is: 1,577.31.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 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 67.0575. This is not an overbought or oversold reading. The last signal was a buy 9 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 50.34. 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 46 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 74. This is not a topping or bottoming area. The last signal was a buy 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 buy 2 period(s) ago.

Rex Takasugi – TD Profile

FTSE BURSA KLCI closed up 7.600 at 1,576.950. Volume was 1% above average (neutral) and Bollinger Bands were 2% narrower than normal.

Open     High      Low     Close     Volume___
1,571.8701,576.9501,564.2501,576.950 105,202,000
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1,566.54 1,580.38 1,622.03
Volatility: 5 8 9
Volume: 95,295,344 95,696,496 110,802,536

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 2.8% below its 200-period moving average and is in an downward 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 bearish on .KLSE and have had this outlook for the last 12 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

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