FTSE Bursa Malaysia KLCI (.KLSE) strengthens at close amid COVID-19 slowdown

FTSE Bursa Malaysia KLCI (.KLSE) strengthens at close amid COVID-19 slowdown

FTSE Bursa Malaysia KLCI (.KLSE) strengthens at close amid COVID-19 slowdown

Bursa Malaysia, along with its Asian peers, ended higher on Tuesday amid optimism that the COVID-19 death toll and new cases are slowing down in several major economies.

At 5 pm, key index FTSE Bursa Malaysia KLCI (FBM KLCI) rose 28.23 points or 2.10 per cent to 1,369.92 from 1,341.69 recorded at Monday’s close.

The index opened 13.82 points firmer at 1,355.51 and fluctuated between 1,352.63 and 1,369.92 throughout the day.

On the scoreboard, gainers thumped losers 900 to 134, while 279 counters were unchanged, 608 untraded and 21 others suspended.

Turnover increased to 6.60 billion shares worth RM3.36 billion from 5.98 billion shares worth RM2.60 billion yesterday.

Stock markets in the United States rallied on hopes that the coronavirus outbreak is slowing down, signaling an economic recovery.

The Dow Jones Index soared 7.73 per cent to 22,679.99, Nasdaq gained 7.33 per cent to 7,913.24 and S&P advanced 7.03 per cent to 2,663.68. 

Around Asia, Hong Kong’s Hang Seng Index rose 2.12 per cent to 24,253.29, Japan’s benchmark Nikkei index improved 2.01 per cent to 18,950.18 and Singapore’s Straits Times Index was 3.99 per cent higher at 2,569.22.

On the local bourse, persistent buying emerged since the morning session and trading volume continued to grow at the close.

Among the heavyweight counters, Maybank increased 18 sen to RM7.83, Tenaga gained 10 sen to RM12.20, IHH added nine sen to RM5.12 and Maxis added 29 sen to RM5.41. Altogether, these counters contributed 10.24 points to the composite index.

Meanwhile, Petronas-linked companies also emerged as a contributor to the index’s rise today, following the national oil and gas company’s new oil discovery in operations offshore US Gulf Of Mexico.

Shares of PetDag jumped 86 sen to RM20.96 and PetGas picked up 10 sen to RM15.40, but PetChem was flat at RM4.78.

Riding on the higher crude oil price were the plantation stocks. Sime Darby Plantation rose 40 sen to RM5.05, IOI Corp was up six sen at RM3.93, KLK climbed 60 sen to RM21.26 and PPB was 36 sen higher at RM16.68.

Meanwhile, the most active counters list continued to be dominated by energy-linked stocks ahead of the Organisation of Petroleum Exporting Countries (Opec) meeting.

Sapura Energy inched up half-a-sen to 11 sen, Hibiscus Energy rose 2.5 sen to 51.5 sen and Bumi Armada was one sen better at 18 sen.

On the index board, the FBM Emas Index appreciated 202.52 points to 9,477.71, the FBMT 100 Index increased 190.59 points to 9,367.77 and the FBM Emas Shariah Index expanded 260.51 points to 10,402.56.

The FBM 70 lifted 215.44 points to 11,084.20 and the FBM ACE advanced 262.77 points to 4,232.90.

Sector-wise, the Financial Services Index rose 172.00 points to 12,416.30, the Industrial Products and Services Index edged up 3.39 points to 109.33 and the Plantation Index was 219.16 points stronger at 6,351.81.

Main Market volume widened to 4.63 billion shares valued at RM3.02 billion from 4.56 billion shares valued at RM2.36 billion recorded on Monday.

Warrants turnover rose to 479.01 million units worth RM103.88 million versus 391.84 million units worth RM94.73 million yesterday.

Volume on the ACE Market increased to 1.49 billion shares valued at RM236.29 million compared with yesterday’s 1.02 billion shares valued at RM152.38 million.

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

The projected upper bound is: 1,442.73.

The projected lower bound is: 1,289.84.

The projected closing price is: 1,366.29.

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

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend.

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 74.0406. This is not an overbought or oversold reading. The last signal was a sell 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 50.71. 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 10 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 111.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 12 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 8 period(s) ago.

Rex Takasugi – TD Profile

FTSE BURSA KLCI closed up 28.230 at 1,369.920. Volume was 21% above average (neutral) and Bollinger Bands were 75% wider than normal.

Open     High      Low     Close     Volume___
1,355.5101,369.9201,352.6301,369.920 182,160,608
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1,337.13 1,437.85 1,563.15
Volatility: 26 36 20
Volume: 179,557,728 195,341,584 128,204,440

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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
FTSE BURSA KLCI is currently 12.4% 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 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 51 periods.

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