Malaysian Stocks: KLCI Technical Analysis 18th Dec

Posted: December 18, 2014 in Uncategorized

Market Review for KLCI:
Shares on Bursa Malaysia opened higher lifted by buying support in selected blue chips.example
The FBM KLCI index gained 18.05 points or 1.07% on Thursday. Finance Index increased 0.98% to 15129.39 points, Properties Index up 1.43% to 1258.34 points and Plantation Index rose 0.40% to 7428.89 points. Market traded within a range of 16.85 points between an intra-day high of 1704.85 and a low of 1688.00 during the session.
The KLCI rose to close at 1699.95 points today amid the higher overnight close at Wall Street after US stocks recorded its strongest session for this year. Meanwhile, Federal Reserve signals no hurry to raise interest rate which indicates the confidence in US economy.
Market forecast for KLCI:
The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) stood at 1,690.85, up 8.95 points, after opening 6.13 points higher at 1,688.03. For now, the immediate resistance level is seen at 1,695 points. If a decisive breakout arises, we anticipate the next resistance level at 1,725 points.
Technical indicators:
RSI stood below the center line at 33.392 with its CCI at -104.697. Difference line of MACD performed at -33.170 below its signal line which performed at -25.473.
Economic Factors:

  • Inflation moved up slightly in November mostly due to alcohol and tobacco following the hike in excise duties. The Consumer Price Index posted a 3.0 per cent per cent year-on-year growth from 2.8 per cent in October.
  • FBMKLCI:1,698.57(+16.67),INDUSTRIAL:3,068.49(+24.54),CONSUMER PRODUCT: 540.68 (+ 4.02), INDUSTRIAL PRODUCT: 121.85 (+ 1.67), CONSTRUCTION: 270.00 (+ 3.85), TRADING SERVICES: 222.85 (+ 2.97), FINANCE: 15,092.91 (+110.43), PROPERTIES: 1,258.68 (+ 18.06), PLANTATIONS: 7,494.75 (+ 95.09), MINING: 498.50 (+ 8.11) and TECHNOLOGY: 16.25 (+ 0.59).
  • Short-term interbank rates are expected to remain stable today on Bank Negara Malaysia’s intervention to absorb excess liquidity from the financial system.
  • Physical price of gold stood at RM 129.05 per gramme, down 91 sen from RM 129.96 yesterday.
  • The ringgit opened broadly higher against the US dollar and appreciated against other major currencies.
  • The bearish mood in Bursa Malaysia, which has tumbled to its lowest levels in a year, will prevail as long as crude oil prices are unstable. The blue chips could see positive movements before the year ends as they are now trading at attractive levels, driven by window-dressing activities.
  • Petra Energy Bhd (PEB), which provides brown field services for the upstream oil and gas (O&G) industry, is selling its entire 51% stake in Bumi Subsea Sdn Bhd for RM430,912. PEB initially bought the 51% stake on August 27 last year for RM340,000. At the time, it said the acquisition would enable the group to “benefit from the underwater inspection, maintenance and repair segment of the oil and gas industry”.
  • Kossan Rubber Industries Bhd’s wholly-owned subsidiary Ideal Quality Sdn Bhd has bought a 5.3ha vacant freehold industrial land in Kapar, Klang, for RM39 million. In a statement yesterday, the rubber glove maker said the land is for the expansion of its gloves division. Kossan currently has four manufacturing plants producing five billion pieces of gloves per annum at its current 10.11ha site. All the plants are running at full capacities.
  • AirAsia Bhd will deliver solid earnings from the second quarter of next year as the benefit of lower fuel price trickles in.
  • SP Setia reported fourth quarter earnings of RM131 million, a 27 per cent increase quarter-on-quarter and a three per cent rise year-on-year, taking its 2014 financial year earnings to RM406 million.
  • CORE Gulf Organisation of the Petroleum Exporting Countries (Opec) producers signalled this week they are prepared to wait as long as six months to a year to see the market stabilise, quashing hopes for any quick intervention to stop the price rout that took crude to under US$60 (RM209.40) per barrel.
  • Airlines around the world are poised for a US$12 billion (RM41.84 billion) windfall as the global oil crash cuts bills for jet fuel, the biggest expense in an industry that was battered by surging commodity prices last decade.
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