FTSE Bursa Malaysia KLCI (.KLSE) pulls back in line with regional retreat

FTSE Bursa Malaysia KLCI (.KLSE) pulls back in line with regional retreat

FTSE Bursa Malaysia KLCI (.KLSE) pulls back in line with regional retreat

Bursa Malaysia ended the day in the red on Tuesday line with the weak performance of its regional peers as losses in selected heavyweights continued to weigh on the local index.

At 5pm, the benchmark FBM KLCI shed 1.55 points to 1,587.33 amid a weak broader market. The index opened 0.41 point higher at 1,589.29 this morning.

Dealers said the local bourse which tracked the performance of key Asian markets, was weighed down by selected heavyweight. In addition, concerns about a new strain of coronavirus in China sent a ripple of risk aversion through markets.

In the broader market, decliners outnumbered gainers 509 to 383, while 371 counters remained unchanged. Turnover stood at 2.65 billion shares worth RM1.93bil.

In today’s session, 13 of the KLCI-component stocks were traded lower, 12 counters advanced while the remaining five closed unchanged.

On Bursa Malaysia, glovemakers dominated the gainers’ list following news that the coronavirus outbreak in China might lead to increased demand.

Top Glove, the world’s largest rubber glove producer, jumped 29 sen to RM5.11, Hartalega climbed 25 sen to RM5.80 while Kossan gained 24 sen to RM4.47. Supermax rose 14 sen to RM1.45.

The decliners included British American Tobacco, Aeon Credit and Hong Leong Financial Group.

Among the banks, Maybank and Public Bank closed unchanged at RM8.60 and RM19.48 respectively. CIMB rose one sen to RM5.13 while Hong Leong Bank closed six sen lower at RM16.84.

Reuters reported that China shares fell to their two-week lows and the yuan headed for its worst day in five-months. The Shanghai Composite Index ended down 1.4%, hitting its lowest point so far this year, while the blue-chip CSI300 dropped 1.7% to a two-week low.

Hong Kong’s Hang Seng fell 2.8% to 27,985.33, South Korea’s Kospi declined 0.68%, to 2,247.2 while Japan’s Nikkei shed 0.9%, or 218.95 points to 23,864.56.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1,614.57.

The projected lower bound is: 1,559.19.

The projected closing price is: 1,586.88.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 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 76.6257. This is not an overbought or oversold reading. The last signal was a buy 4 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 47.96. 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 69 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 -41. This is not a topping or bottoming area. 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 9 period(s) ago.

Rex Takasugi – TD Profile

FTSE BURSA KLCI closed down -1.550 at 1,587.330. Volume was 20% above average (neutral) and Bollinger Bands were 18% narrower than normal.

Open     High      Low     Close     Volume___
1,589.2901,592.5901,587.1001,587.330 113,059,904
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1,588.66 1,589.23 1,612.69
Volatility: 10 11 9
Volume: 96,386,624 92,470,232 107,465,744

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 1.6% 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 19 periods.

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