FTSE Bursa Malaysia KLCI (.KLSE) recoups earlier losses to end marginally higher

FTSE Bursa Malaysia KLCI (.KLSE) recoups earlier losses to end marginally higher

FTSE Bursa Malaysia KLCI (.KLSE) recoups earlier losses to end marginally higher

Bursa Malaysia recouped earlier losses to close marginally higher today, backed by improved buying sentiment in both Shariah and conventional mid-sized capitalisation stocks.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) ended 0.29 of-a-point higher at 1,679.26 compared with yesterday’s close of 1,678.97.

The index moved between 1,674.70 and 1,681.78 throughout the day.

Phillip Capital Management Asia-Pacific senior vice-president (Investment) Datuk Dr Nazri Khan Adam Khan said on a technical perspective, the FBM KLCI’s upside development since May could still be extended.

“Market outlook is still bullish, given that the 20-day moving average line has crossed above the 50-day moving average line.

“In line with the ongoing market strength whereby the 14-day relative strength index indicator hovers above 50 points, we also detected a positive divergence development in the moving average convergence divergence indicator,” he told Bernama. 

He added that the immediate support is currently seen at 1,658 points, and the next support is pegged at the meaningful 1,600-point support mark with 1,700-point mark remaining a strong resistance.

At the close, the broader market was positive, with advancers trouncing decliners 501 to 329, while 421 counters remained unchanged, 597 were untraded and 19 others suspended.

Among heavyweights, Maybank and CIMB were up by one sen to RM8.95 and RM5.34 respectively while IHH Healthcare, Axiata and Nestle were all flat at RM5.81, RM5.18 and RM148.50 respectively.

Of the actives, KNM improved four sen to 35 sen, Bumi Armada improved two sen to 23.5 sen, UWC and My E.G rose three sen to RM1.43 and RM1.49 respectively.

The FBM Emas Index added 12.94 points to 11,892,89 and the FBMT 100 Index was up 5.84 points to 11,719.4.

The FBM Emas Shariah Index gained 20.34 points to 12,279.77, the FBM 70 improved 23.08 points to 14,865.3 and the FBM Ace increased 59.11 points to 4,667.05.

Sector-wise, the Financial Services Index eased 4.08 points to 16,763.68, the Industrial Products and Services Index declined 0.02 of-a-point to 161.44 and the Plantation Index shed 19.9 points to 6,939.68.

Total transaction volume was higher at 3.18 billion units worth RM2.21 billion compared with 2.23 billion units worth RM2.02 billion yesterday.

Main Market volume rose to 2.40 billion shares worth RM2.01 billion from 1.59 billion shares worth RM1.86 billion yesterday.

Warrants turnover increased to 416.52 million units valued at RM90.52 million against 353.08 million units valued at RM73.47 million previously.

Volume on the ACE Market expanded to 355.22 million shares worth RM105.27 million from 286.87 million shares worth RM81.09 million yesterday.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 1,657.92.

The projected upper bound is: 1,702.37.

The projected lower bound is: 1,657.89.

The projected closing price is: 1,680.13.

Candlesticks

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 29 white candles and 21 black candles for a net of 8 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 44.4048. This is not an overbought or oversold reading. 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 58.96. 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 sell 6 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 -19. This is not a topping or bottoming area. The last signal was a sell 6 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 3 period(s) ago.

Rex Takasugi – TD Profile

FTSE BURSA KLCI closed up 0.290 at 1,679.260. Volume was 22% below average (neutral) and Bollinger Bands were 9% narrower than normal.

Open High Low Close Volume___
1,681.2201,681.7801,674.7001,679.260 88,647,400

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

Moving Averages: 10-period     50-period     200-period
Close: 1,682.56 1,645.97 1,681.36
Volatility: 6 9 11
Volume: 103,971,456 117,928,208 125,468,200

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 0.1% below its 200-period moving average and is in an upward trend. Volatility is low 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 27 periods.

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