FTSE Bursa Malaysia KLCI (.KLSE) retreats on profit taking

FTSE Bursa Malaysia KLCI (.KLSE) retreats on profit taking

FTSE Bursa Malaysia KLCI (.KLSE) retreats on profit taking

Bursa Malaysia retreated from its recent gains to open lower this morning due to profit-taking activities following Wall Street’s weak overnight performance.

At 9.02 am, key index FTSE Bursa Malaysia KLCI (FBM KLCI) fell 9.49 points to 1,378.3 from 1,387.79 at Wednesday’s close.

The key index opened 5.83 points easier at 1,381.96.

There were 103 gainers 164 losers, while 173 counters were unchanged, 1,464 untraded and 19 others suspended.

Turnover stood at 166.65 million worth RM47.45 million.

Malacca Securities Sdn Bhd said after making decent headway over the past two sessions, the key index is again near the toppish zone, which could limit further gains over the near-term.

As it is, the slower growth on the Malaysian economy is still unfolding which might trigger quick profit-taking as investors turned their attention to the upcoming slew of economic data, the research firm said.

“We see Wall Street’s overnight negative performance to also permeate to the local market and see a pullback as volatility returns to the fore.

“Nevertheless, we reckon that the 1,340 level plays key support over the near term, while any surprise upsides may see gains capping at the 1,400 psychological level,” it said in a note today.

As for the lower liners and broader market shares, Malacca Securities anticipated the near-term outlook was still largely indifferent with the lack of catalysts.

“Consequently, we think that further near-term upsides could be tempered by bouts of selling activities as retail players would be quick to lock-in their profits,” it added.

Among heavyweights, Maybank eased four sen to RM7.60, Tenaga trimmed six sen to RM12.18, Public Bank lost eight sen to RM15.76, IHH Healthcare slipped one sen to RM5.22, and Petronas Chemicals erased 18 sen to RM5.24.

CIMB added one sen to RM3.57 while Maxis was flat at RM5.30.

Of the actives, Xidelang bagged 1.5 sen to 8.5 sen, Hibiscus edged down 1.5 sen to 46 sen, while both Hubline and Metronic were flat at five sen and 2.5 sen respectively.

On the index board, the FBM Emas Index was 50.32 points lower at 9,559.18, the FBM Emas Shariah Index fell 64.78 points to 10,581.62, while the FBMT 100 Index declined 51.48 points to 9,453.93.

The FBM 70 shed 5.09 points to 11,305.98 and the FBM Ace lost 6.04 points to 4,301.75.

Sector-wise, the Industrial Products and Services Index inched down 1.13 points to 114.24, the Financial Services Index contracted 36.43 points to 12,381.27 while the Plantation Index depreciated 63.85 points to 6,222.78.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 1,461.90.

The projected lower bound is: 1,308.65.

The projected closing price is: 1,385.28.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 85.5793. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 3 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 54.75. 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 17 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 123.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 4 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 15 period(s) ago.

Rex Takasugi – TD Profile

FTSE BURSA KLCI closed up 0.770 at 1,388.560. Volume was 71% below average (consolidating) and Bollinger Bands were 4% narrower than normal.

Open High Low Close Volume___
1,381.9601,390.1401,378.3001,388.560 44,185,700
Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1,363.49 1,414.21 1,552.46
Volatility: 17 36 20
Volume: 123,163,632 185,895,824 127,514,528

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 10.6% below its 200-period moving average and is in an upward 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 into .KLSE (mildly bullish). Our trend forecasting oscillators are currently bullish on .KLSE and have had this outlook for the last 5 periods.

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