FTSE Bursa Malaysia KLCI (.KLSE) partially recovers as traders take inventory of coverage measures
The FBM KLCI retraced most of its losses after diving 26 factors to a low of 1,456.08 within the morning session.
At 12.30pm, the index bounced greater to only 7.65 factors within the crimson at 1,474.99 as traders took within the coverage measures undertaken by international central banks to arrest the damaging influence of the Covid-19 outbreak.
Regionally, monetary markets stabilised on hopes that simulus measures introduced in China and Japan and anticipated rate of interest cuts in key economies such because the US and Australia would mitigate the slowdown in financial development.
In Malaysia, strong buying and selling quantity available on the market continued with 2.78 billion shares traded with a worth of RM1.77bil. Nonetheless, a bearish temper clearly dominated the session with 706 declining counters to 241 gainers and 287 unchanged.
A handful of heavyweight counters was seen liable for a lot of the losses on Bursa Malaysia’s benchmark index.
Among the many main laggards, CIMB fell 14 sen to RM4.68, Petronas Chemical substances dropped 16 sen to RM5.24, Digi shed 9 sen to RM4.07, Sime Darby Plantation slid 14 sen to RM4.82 and Axiata misplaced 10 sen to RM4.08.
A uncommon silver lining was Tenaga Nasional, which bucked the development with a powerful advance of 50 sen to RM12.60.
In the meantime, brewers continued to be the goal of promoting as traders thought-about their prospects within the wake of the brand new authorities administration.
Carlsberg dropped RM2.84 to RM29 whereas Heineken slid RM2.32 to RM23.18.
Oil markets rebounded strongly from multi-year lows on expectations that deeper Opec provide cuts and stimulus from central banks might assist to shore up demand for the commodity.
WTI crude jumped US$1.41 to US$46.14 a barrel and Brent crude rose US$1.73 to US$51.40 a barrel.
On the foreign exchange market, the ringgit strengthened in opposition to key currencies amid hopes that rate of interest cuts within the US might assist to alleviate stress on the rising foreign money.
The native foreign money rose 0.25% in opposition to the US greenback to 4.2000, 0.3% in opposition to the pound sterling to five.3844 and 0.1% in opposition to the Singapore greenback to three.0201.
Total, the bias in costs is: Downwards.
Observe: this chart exhibits extraordinary worth motion to the draw back.
By the best way, costs are weak to a correction in direction of 1,548.69.
The projected higher sure is: 1,498.76.
The projected decrease sure is: 1,429.83.
The projected closing worth is: 1,464.30.
A black physique occurred (as a result of costs closed decrease than they opened).
Through the previous 10 bars, there have been 5 white candles and 5 black candles. Through the previous 50 bars, there have been 22 white candles and 28 black candles for a internet of 6 black candles.
Momentum is a common time period used to explain the pace at which costs transfer over a given time interval. Typically, modifications in momentum are likely to result in modifications in costs. This professional exhibits the present values of 4 fashionable momentum indicators.
One methodology of deciphering the Stochastic Oscillator is in search of overbought areas (above 80) and oversold areas (beneath 20). The Stochastic Oscillator is 31.0074. This isn’t an overbought or oversold studying. The final sign was a purchase Four interval(s) in the past.
Relative Power Index (RSI)
The RSI exhibits overbought (above 70) and oversold (beneath 30) areas. The present worth of the RSI is 26.54. That is the place it often bottoms. The RSI often types tops and bottoms earlier than the underlying safety. A purchase or promote sign is generated when the RSI strikes out of an overbought/oversold space. The final sign was a purchase 2 interval(s) in the past.
Commodity Channel Index (CCI)
The CCI exhibits overbought (above 100) and oversold (beneath -100) areas. The present worth of the CCI is -143.That is an oversold studying. Nonetheless, a sign isn’t generated till the indicator crosses above -100. The final sign was a purchase 2 interval(s) in the past.
The Shifting Common Convergence/Divergence indicator (MACD) offers indicators when it crosses its 9 interval sign line. The final sign was a promote 5 interval(s) in the past.
Rex Takasugi – TD Profile
FTSE BURSA KLCI closed down -15.700 at 1,466.940. Quantity was 103% above common (impartial) and Bollinger Bands have been 62% wider than regular.
Open Excessive Low Shut Volume___
Brief Time period: Impartial
Intermediate Time period: Bearish
Lengthy Time period: Bearish
Shifting Averages: 10-period 50-period 200-period
Shut: 1,507.87 1,561.90 1,598.62
Volatility: 19 14 11
Quantity: 174,100,560 124,729,856 114,088,792
Brief-term merchants ought to pay nearer consideration to purchase/promote arrows whereas intermediate/long-term merchants ought to place higher emphasis on the Bullish or Bearish development mirrored within the decrease ribbon.
FTSE BURSA KLCI is presently 8.2% beneath its 200-period shifting common and is in an downward development. Volatility is extraordinarily excessive when in comparison with the typical volatility during the last 10 intervals. There’s a good risk that volatility will lower and costs will stabilize within the close to time period. Our quantity indicators mirror quantity flowing into and out of .KLSE at a comparatively equal tempo (impartial). Our development forecasting oscillators are presently bearish on .KLSE and have had this outlook for the final 25 intervals. Our momentum oscillator is presently indicating that .KLSE is presently in an oversold situation. The safety worth has set a brand new 14-period low whereas our momentum oscillator has not. It is a bullish divergence.
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