FTSE Bursa Malaysia KLCI (.KLSE) in red at close after two days of gains
Bursa Malaysia closed in the red, as investors pushed a pause button after recording gains for the past two days with sentiment turning negative on increased Covid-19 deaths and infected cases in emerging economies.
At 5pm, key index FTSE Bursa Malaysia KLCI (FBM KLCI) erased 8.53 points or 0.62% to 1,361.39 from 1,369.92 at Tuesday’s close.
The index opened 3.46 points weaker at 1,366.46 and moved between 1,358.20 and 1,367.16 throughout the day.
Market breadth was negative with losers thumping gainers 617 to 316, while 318 counters were unchanged, 669 untraded and 20 others suspended.
Turnover decreased to 5.36 billion shares worth RM2.66 billion from 6.60 billion shares worth RM3.36 billion at yesterday’s close.
The daily death toll from Covid-19 in the United States surpassed 1,800 as of Tuesday, which marked a new global high for the number of deaths linked to the pandemic in a single day.
Covid-19 fears resulted in the Dow Jones Industrial Index slipping 0.12% to 22,653.86, S&P 500 falling 0.16% to 2,659.41, while Nasdaq Composite slipping 0.33% to 7,887.26.
On the local front, the closure of six plantation areas in Sabah – Tawau, Lahad Datu, Kinabatangan, Kunak, Semporna and Kalabakan – caused losses for the plantation companies.
Sime Darby Plantation declined 29 sen to RM4.76, KLK erased 56 sen to RM20.70 and PPB gave up 42 sen to RM16.26. Altogether, they contributed 5.817 points to the losses in composite index.
Sabah is Malaysia’s largest palm oil-producing state, accounting for 25% of the total production volume last year.
Prolonged shutdown is a lost social-economic opportunity, as a commodity like palm oil is one of the few sectors that can keep the economic momentum of the state running in the current downturn, plantation associations said.
Of the heavyweights, Maybank rose four sen to RM7.87, IHH added two sen to RM5.14, while Tenaga shed 26 sen to RM11.94 and Public Bank was eight sen weaker at RM15.82.
Among top gainers, Shangri-La jumped 29 sen to RM4.59, Rapid added 28 sen to RM6.08 and Allianz-Pa gained 20 sen to RM12.80.
Meanwhile, the most active counters were dominated by construction and energy stocks.
Ekovest up 1.5 sen to 46 sen, Gamuda-We improved 2.5 sen to 14.5 sen and Hibiscus Petroleum was three sen easier at 50.5 sen.
On the index board, the FBM Emas Index depreciated 66.44 points to 9,411.27, the FBMT 100 Index decreased 61.06 points to 9,306.71 and the FBM Emas Shariah Index erased 80.10 points to 10,322.45.
The FBM 70 gave up 83.71 points to 11,000.49 and the FBM ACE contracted 147.23 points to 4,085.67.
Sector-wise, the Financial Services Index slipped 17.83 points to 12,398.47, the Industrial Products and Services Index eased 0.11 of-a-point to 109.22, and the Plantation Index was 176.05 points weaker at 6,175.76.
Main Market volume narrowed to 3.99 billion shares valued at RM2.43 billion from 4.63 billion shares valued at RM3.02 billion on Tuesday.
Warrants turnover fell to 329.02 million units worth RM65.62 million versus 479.01 million units worth RM103.88 million.
Volume on the ACE Market decreased to 1.04 billion shares valued at RM161.31 million from 1.49 billion shares valued at RM236.29 million.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 1,434.07.
The projected lower bound is: 1,281.14.
The projected closing price is: 1,357.61.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black 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 86.5175. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 5 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 49.20. 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 11 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 120.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 13 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 buy 9 period(s) ago.
Rex Takasugi – TD Profile
FTSE BURSA KLCI closed down -8.530 at 1,361.390. Volume was 2% below average (neutral) and Bollinger Bands were 51% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1,340.82 1,434.07 1,561.58
Volatility: 23 36 20
Volume: 173,626,912 194,863,760 128,269,360
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 12.8% below its 200-period moving average and is in an downward 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 bearish on .KLSE and have had this outlook for the last 52 periods.