FTSE Bursa Malaysia KLCI (.KLSE) sinks as selling in global equities accelerates
Bursa Malaysia tracked the performance of the major markets lower amid the escalating threat of the Covid-19 outbreak.
At the end of the morning session, 887 counters on the local stock exchange were in the red versus 134 in positive territory and 173 unchanged. Trading volume was 2.21 billion shares valued at RM1.42bil.
At 12.30pm, the FBM KLCI was down 20.06 points to 1,423.77. Twenty-seven of its 30 counters were on the slide.
The index’s top three heavyweights dragged, comprising Maybank down 10 sen to RM8.29, Tenaga Nasional falling 22 sen to RM12.40 and Public Bank skidding 32 sen to RM16.48.
The top actives list on Bursa was dominated by small caps seeing strong selling pressure.
Bumi Armada fell one sen to 17 sen, JAKS resouces dove 13 sen to 92 sen and Hibiscus Petroleum slid 2.5 sen to 41 sen.
Global equities were hammered down for a second time this week as the spread of Covid-19 prompted the World Health Organization to declare the outbreak a global pandemic.
Travel restrictions announced by the US that suspended travel from 26 European countries into the country triggered a sharp fall in Dow Jones futures, which had overnight slid an eye-watering 5% to leave the market firmly in bear territory.
Australia’s ASX200 meanwhile fell over 7% earlier in the day before retracing to a loss of about 5.5% at the time of writing.
Japan’s and South Korea’s benchmark indices were each down about 4.5%.
The threat of the pandemic on the global economy sent oil prices tumbling yet again. WTI crude dropped US$1.26 to US$31.72 a barrel and Brent crude shed US$1.45 to US$34.34 a barrel.
On the forex market, the ringgit was sold down 0.3% against the US dollar to 4.2500, 0.3% against the pound sterling to 5.4468 and was unchanged against the Singapore dollar at 3.0355.
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 1,528.19.
The projected upper bound is: 1,458.19.
The projected lower bound is: 1,373.90.
The projected closing price is: 1,416.04.
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 21 white candles and 29 black candles for a net of 8 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 20.6585. This is not an overbought or oversold reading. The last signal was a buy 0 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 28.41. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 1 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 -140.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 6 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 sell 13 period(s) ago.
Rex Takasugi – TD Profile
FTSE BURSA KLCI closed down -24.400 at 1,419.430. Volume was 91% above average (neutral) and Bollinger Bands were 120% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1,461.02 1,538.25 1,592.68
Volatility: 28 18 12
Volume: 212,215,024 143,734,656 117,125,088
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 10.9% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 33 periods. Our momentum oscillator is currently indicating that .KLSE is currently in an oversold condition. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.