FTSE Bursa Malaysia KLCI (.KLSE) negative news flow dampening investor appetite

FTSE Bursa Malaysia KLCI (.KLSE) negative news flow dampening investor appetite

FTSE Bursa Malaysia KLCI (.KLSE) negative news flow dampening investor appetite

Share prices continued their downward momentum on Bursa Malaysia this morning with trading remaining lacklustre.

At 9.15am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) was 5.48 points easier at 1,615.42, after opening 3.23 points weaker at 1,617.67.

On the broader market, decliners outpaced gainers 200 to 112, while 200 counters remained unchanged, 1,384 untraded and 19 others suspended.

Turnover stood at 264.46 million shares worth RM118.53 million.

In a research note today, Shayne Heffernan, CEO and Founder of Heffx said negative news flow had dampened investor appetite, although the Malaysian equities market could be ripe for bargain hunting in the near-term.

“Technically, we expect the FBM KLCI to range between 1,610 and 1,640 today. Downside supports are at 1,615 and 1,600,” it added.

Of the heavyweights, Petronas Chemicals added one sen to RM8.93, TNB gained four sen to RM12.10, IHH Healthcare rose two sen to RM5.55, Maybank trimmed 16 sen to RM8.84, Public Bank fell four sen to RM22.56 and CIMB eased three sen to RM5.02.

Of the actives, Orion IXL increased one sen to 18 sen, Macpie inched up half-a-sen to 17.5 sen, Vivocom and Bumi Armada were flat at two sen and 19 sen respectively, while Sapura Energy declined one sen to 31.5 sen and Netx shed half-a-sen to 1.5 sen.

The FBM Emas Index depreciated 36.57 points to 11,435.01, the FBMT 100 Index went down 36.89 points to 11,267.52 and the FBM Ace Index fell by 16.61 points to 4,582.48.

The FBM Emas Shariah Index shaved off 20.17 points to 11,665.65, and the FBM 70 depreciated 41.06 points to 14,265.62.

Sector-wise, the Plantation Index rose 31.64 points at 7,257.58, the Financial Services Index gave up 111.70 points to 16,575.62, and the Industrial Products and Services Index eased 0.40 of-a-point to 167.36.

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 1,669.72.

The projected upper bound is: 1,641.55.

The projected lower bound is: 1,594.97.

The projected closing price is: 1,618.26.

Candlesticks

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 21 white candles and 29 black candles for a net of 8 black candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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 30.7226. This is not an overbought or oversold reading. The last signal was a buy 11 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 31.36. 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 12 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 -177.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 3 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 1 period(s) ago.

Rex Takasugi – TD Profile

FTSE BURSA KLCI closed down -1.170 at 1,619.730. Volume was 22% above average (neutral) and Bollinger Bands were 26% narrower than normal.

Open High Low Close Volume___
1,617.6701,620.5501,609.8301,619.730 142,401,696

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 1,632.34 1,671.29 1,713.24
Volatility: 7 9 11
Volume: 97,538,152 114,783,928 127,443,336

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 5.5% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume out of .KLSE (mildly bearish). Our trend forecasting oscillators are currently bearish on .KLSE and have had this outlook for the last 30 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.

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