Bursa Malaysia: KLCI Technical Analysis Outlook 22 Dec

Posted: December 22, 2014 in Uncategorized

Market Review for KLCI:
The FBM-KLCI was at 1,742.90 up 26.91 points. There were 572 gainers, 203 losers and 214 counters traded unchanged on the Bursa Malaysia.
FBMKLCI Day Performance
Open: 1723.87                               High: 1746.39                         Low: 1722.67                      Close: 1744.05
Change (in Points): 28.06          %Change: 1.64%                   Volume: 1584.1M
Rise: 695                                        Fall: 203                                  Unch: 1703
Market forecast for KLCI:
Market may rebound this week as MACD showing cross over.
Technical indicators:
RSI stood below the center line at 46.634 with its CCI at -30.762. Difference line of MACD performed at -27.764 below its signal line which performed at -26.911.
KLCI LEVELS
Support 1: 1720                 Support 2: 1700                  Support 3: 1670
Resistance 1: 1748          Resistance 2: 1765           Resistance 3: 1790
ECONOMIC FACTORS:

  • Malaysia’s real gross domestic product (GDP) growth is likely to expand by 5.8 per cent year-on-year (y-o-y) in 2014 and 5% next year.
  • The government may introduce new measures next year to boost its coffers and improve expenditure to meet the 3.0 per cent fiscal deficit target for 2015.
  • Standard and Poor’s (S&P) expects the top 41 banks in the Asia-Pacific region, including three Malaysian banks, to enjoy stable prospects next year even as the slowdown in China remains a hot spot.
  • It’s been a rough year for Bursa Malaysia so far, but things fared better as we approach the second last week of the year. A host of factors, including a sharp sell down in the United States markets, siege in Sydney and the persistent downtrend in crude oil prices last week, hammered investor sentiment across Asia, and Bursa was equally affected.
  • Crude oil prices have dipped to the lowest level since the global crisis. The 50% slump in prices which set in since July was not seen in most of economic forecast reports as most of the noise was focused on locations like Iran, Iraq, Russia and Ukraine and sanctions.
  • The blue-chip benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) gapped down and sold off to a fresh four-month low last week, depressed by heavy falls in emerging markets and oil prices that slumped to fresh five-year lows. Extreme oversold conditions then sparked a technical rebound mid-week as crude oil prices stabilized above a five-year low of US$53.60 (RM186.53) a barrel and the United States Federal Reserve signaled patience in keeping interest rates low.
  • Saudi Arabia’s oil minister defended the Organization of the Petroleum Exporting Countries (Opec) decision to keep output steady despite the biggest market slump in years yesterday, saying current prices would help global economic growth and petroleum demand, while Arab states would escape major damage.
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