FTSE Bursa Malaysia KLCI (.KLSE) slips 0.19% as glove counters fall amid slowdown in Covid-19 infections

FTSE Bursa Malaysia KLCI (.KLSE) slips 0.19% as glove counters fall amid slowdown in Covid-19 infections

FTSE Bursa Malaysia KLCI (.KLSE) slips 0.19% as glove counters fall amid slowdown in Covid-19 infections

he FBM KLCI slid 0.19% on Wednesday, weighed down by glove counters following a declining trend in new cases of Covid-19 infections.

The benchmark index erased early gains to close 2.92 points lower at 1,534.16, dragged by profit-taking in Top Glove Corp Bhd and Hartalega Holdings Bhd.

Trading interest was concentrated on mid- and small-caps, with 2.54 billion shares valued at RM1.95 billion changing hands.

PublicInvest Research analyst Lee Siao Ping said the market trailed yesterday’s movement, when small-cap stocks fell by a larger quantum after broad-based selling.

Lee observed that investors are also cautious “as they await the fourth quarter and full-year financial results later this month”.

Across Bursa Malaysia, decliners marginally led gainers, while 400 counters traded unchanged.

Gainers were led by consumer stocks Carlsberg Brewery (M) Bhd, Dutch Lady Milk Industries Bhd and Fraser & Neave Holdings Bhd. Decliners were led by Panasonic Manufacturing (M) Bhd, Top Glove Corp Bhd and Nestle (M) Bhd.

As China’s virus-hit industrial cities are starting to loosen travel curbs and resume production, its National Health Commission reported the lowest daily rise in new infections since Jan 29, or 1,749 new confirmed cases, Reuters reported.

At press time, the number of global confirmed cases stood at 75,205 with 14,733 cured, while the official death toll stood at 2,012.

Across Asia, markets were generally mixed, as investors digested the lower-than-expected decline in Japan’s trade data and Singapore’s expansionary budget to tackle the virus outbreak.

Japan’s Nikkei 225 rose 0.89%, Singapore’s STI climbed 0.53%, and Hong Kong’s HSI rose 0.46% while China’s Shanghai SSE Index slid 0.32%.

Technical Indicators

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 1,570.15.

The projected upper bound is: 1,562.89.

The projected lower bound is: 1,504.06.

The projected closing price is: 1,533.47.

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 24 white candles and 26 black candles for a net of 2 black candles.

An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend. It then signifies that the momentum may be shifting from the bulls to the bears.

If the engulfing bearish pattern occurs during a downtrend (which appears to be the case with FTSE BURSA KLCI), it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.

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 16.5158. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 6 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 38.56. 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 11 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 -63. This is not a topping or bottoming area. The last signal was a buy 11 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 6 period(s) ago.

Rex Takasugi – TD Profile

FTSE BURSA KLCI closed down -2.920 at 1,534.160. Volume was 3% below average (neutral) and Bollinger Bands were 7% narrower than normal.

Open     High      Low     Close     Volume___
1,539.2201,539.9001,530.8301,534.160 100,665,400
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1,543.65 1,573.18 1,604.05
Volatility: 10 12 10
Volume: 113,725,128 110,021,352 110,857,432

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 4.4% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. 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 17 periods.

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