Persistent buying pushed FTSE Bursa Malaysia KLCI (.KLSE) to close higher

Persistent buying pushed FTSE Bursa Malaysia KLCI (.KLSE) to close higher

Persistent buying pushed FTSE Bursa Malaysia KLCI (.KLSE) to close higher

Persistent buying pushed Bursa Malaysia to close higher, led by Malaysia Airports which jumped 58 sen to RM8.51 and Tenaga which increased 28 sen to RM13.28 today.

The momentum came after upbeat comments on the US-China trade talks, which will resume before the upcoming G20 summit in Osaka, Japan on June 28-29.

US President Donald Trump tweeted yesterday that he was going to resume discussions with Chinese President Xi Jinping on their trade talks.

The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) went up by 0.83 per cent or 13.78 points to finish at 1,666.54 compared with yesterday’s close of 1,652.76.

The barometer index that opened 1.81 points higher at 1,654.57 this morning hovered between 1,652.58 and 1,666.90 throughout the day.

On the scoreboard, gainers trumped losers 474 to 330, while 405 counters were unchanged, 658 untraded and 20 others suspended.

Turnover increased to 2.42 billion units valued at RM2.34 billion from 2.03 billion units worth RM1.72 billion recorded yesterday.

Phillip Capital Management said the global stocks markets have been on an upward trend since yesterday as a result of recent comments made by Trump, who hinted prospects of a trade deal with China.

“We also believe the local market strength was also stimulated by European Central Bank (ECB) president Draghi’s suggestion that the ECB would provide more monetary policy stimulus if economic conditions deteriorate and the ECB’s ability to meet the inflation mandate is threatened,” its Asia-Pacific senior vice president (investment) Datuk Nazri Khan Adam Khan said.

On Trump’s tweets, Nazri said the market would continue to improve in the coming week as the summit edges closer.

Back home, Top Glove, which will be expanding its nitrile rubber gloves production, saw its shares go up by three sen to RM4.90, while AirAsia, which bagged the World’s Best award in the Skytrax World Airline Awards 2019, added one sen to RM2.76.

Among heavyweights, Maybank rose one sen to RM8.94, Public Bank went up by six sen to RM23.10 while Hong Leong fell 30 sen to RM18.96.

As for the active stocks, Ekovest added half-a-sen to 84.5 sen and Iskandar Waterfront advanced nine sen to RM1.10.

Mestron Holdings, a steel pole manufacturing company, which made its first appearance as a publicly listed company in the local bourse’s Ace Market yesterday, shed half-a-sen to 16 sen.

The FBM Emas Index rose 82.25 points to 11,698.71, the FBMT 100 Index increased 81.75 points to 11,553.20 and the FBM Emas Shariah Index soared 109.75 points to 12,008.66.

 The FBM 70 added 47.48 points to 14,340.88 but the FBM Ace went down 30.21 points to 4,323.31.

Sector-wise, the Financial Services Index fell 6.06 points to 16,677.56 and the Plantation Index improved 112.48 points to 7,054.49, while the Industrial Products and Services Index edged up 0.30 point to 160.27.

Main Market volume appreciated to 1.52 billion shares worth RM2.10 billion from 946.01 million shares valued at RM1.41 billion recorded yesterday.

Warrants turnover rose to 592.46 million units worth RM135.87 million versus 472.21 million units valued at RM119.00 million.

Volume on the ACE Market depreciated to 308.13 million shares worth RM96.69 million against yesterday’s 609.66 million shares valued at RM181.86 million.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 1,689.66.

The projected lower bound is: 1,644.36.

The projected closing price is: 1,667.01.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 26 white candles and 24 black candles for a net of 2 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 71.7297. This is not an overbought or oversold reading. The last signal was a buy 1 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 65.40. 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 21 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 155.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. 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 buy 14 period(s) ago.

Rex Takasugi – TD Profile

FTSE BURSA KLCI closed up 13.780 at 1,666.540. Volume was 3% below average (neutral) and Bollinger Bands were 46% wider than normal.

Open High Low Close Volume___
1,654.5701,666.9001,652.5801,666.540 113,170,096

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

Moving Averages: 10-period 50-period 200-period
Close: 1,649.09 1,630.58 1,691.37
Volatility: 9 9 11
Volume: 96,350,464 114,722,616 126,786,648

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 1.5% 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 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 11 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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