Malaysia Stock Market Updates 08 July

Posted: July 8, 2014 in Stock Tips

Market Review for KLCI:
Malaysian stocks
opened slightly higher with FBMKLCI up 1.39 points to 1893.89. Prices opened up then went down due to selling pressure in overall stocks representing KLCI and stood at resistance level of 1892.58. It maintains an upward momentum by crossing previous highs of prices. Malaysia’s Central Bank has set a benchmark to raise interest rates this year spurring a ringgit rally that made the nation’s bonds the region’s top performers. Bank Negara Malaysia will increase borrowing costs to 3.25% from 3% on July 10. The ringgit is in an “oversold” position as the Forex markets have already priced in a hike of 25 basis points in borrowing costs expected at Bank Negara Malaysia’s monetary policy committee meeting on Thursday.

KLCI Day Performance
Open 1893.89
High 1896.23
Low 1891.66
Close 1892.65
Change(Points) 0.150
% Change 0.01%
Volume 1787.1M
Rise 387
Fall 464
Unch 801

Market forecast for KLCI:
Share prices movement formed a spinning top candlestick pattern in red market as sellers dominated buyers. Spinning top formation is found after a prolonged uptrend, it suggests that the bulls may lose interest in the stock and that a reversal may be in the trend.

KLCI LEVELS
Support 1 Support 2 Support 3 Resistance 1 Resistance 2 Resistance 3
1882 1872 1857 1902 1912 1917

Technical indicators:
RSI stood below the centre line at 60.340 with its CCI at 135.812. Difference line of MACD performed at 4.711 above its signal line which performed at 4.282.

Top Gainers Top Losers
Scrip Name CMP %change Scrip Name CMP %change
KLCC 6.58 2.02 GENTING 9.76 -2.4
YTL 1.65 1.23 PETDAG 23.4 -1.51
GENM 4.2 0.72 ASTRO 3.32 -1.48
RHBCAP 8.76 0.69 IHH 4.52 -1.09
HLBANK 13.94 0.58 FGV 4.14 -0.48

Economic Factors:

  • The ringgit went on a rally against the US dollar and other major currencies as expectations mount that overnight policy (OPR) rates will be hiked this week by the central bank. It was quoted at 3.1790/1810 against the currency.
  • The ringgit is in an “oversold” position as the Forex markets have already priced in a hike of 25 basis points in borrowing costs expected at Bank Negara Malaysia’s monetary policy committee meeting on Thursday.
  • Malaysian Rubber mart continued its downtrend for the sixth consecutive day despite Chinese stocks declining to a five-month low.
  • Crude palm oil futures prices on Malaysia Derivatives Exchange closed higher yesterday in anticipation of lower production and inventories.
  • Malaysia’s Central Bank has set a benchmark to raise interest rates this year spurring a ringgit rally that made the nation’s bonds the region’s top performers. Bank Negara Malaysia will increase borrowing costs to 3.25% from 3% on July 10.

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