Bursa Malaysia: KLCI Weekly Technical Analysis

Posted: April 10, 2015 in Stock Tips

Weekly wrap of KLCI: The week started with a higher note The FBM KLCI index lost 5.08 points or 0.27% on Friday. safe_image (5)Finance Index fell 0.58% to 16325.86 points, Properties Index up 0.15% to 1322.98 points and Plantation Index down 0.30% to 7794.55 points. Market traded within a range of 8.49 points between an intra-day high of 1849.78 and a low of 1841.29 during the session.
The KLCI extended its losing streak after closing lower at 1844.31 points. The overnight gains in U.S. markets failed to lift our local bourse as absence of positive lead in domestic market weighed on market sentiment.
Market Forecast for week ahead: The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to continue its upside momentum and trade within a narrow range of 1,840 to 1,850 points next week, driven by favourable external factors. The momentum would be driven by positive global macro data, reduced geopolitical tension in Iran and broad stimulus from the European Central Bank as well as The People’s Bank of China.
The local equities market ended the first quarter of 2015 firmer on hopes that China would adopt further stimulus measures to bolster growth, supported by reduced Iran-Greece geopolitical tension.
Technical indicators: RSI for this week is 57.544 with CCI at 131.204. Besides, difference line of MACD 2.889 and crossed its signal line 5.784.
ECONOMIC FACTORS:

  • The ringgit ended sharply higher against the US dollar in tandem with most emerging Asian currencies on expectation that the US Federal Reserve would postpone increasing interest rates. It rose for a third week as a rally in crude helped shield the region’s only major oil- exporter from bets the U.S. will raise interest rates.
  • Shell Malaysia has started construction of the largest upstream oil and gas (O&G) laboratory in Sarawak for deepwater exploration and production activities. It will be operational by end-2016.
  • Asian shares advanced close to recent highs on Friday, and were on track for weekly gains, while the dollar gave up some of its overnight rise.
  • Employees Provident Fund recorded total annual contribution of RM57.2 billion last year.
  • Malaysia’s Industrial Production Index (IPI) grew 5.2 per cent in February 2015 compared with the same month a year ago, driven by growth in the indices of manufacturing, mining and electricity components.
  • Malaysia’s crude palm oil stocks (CPO) stocks fell by 4.5 per cent to 907,555 tonnes at end-March 2015 against 950,362 tonnes recorded in the previous month.
  • Tenaga Nasional Bhd (TNB) shares on Bursa Malaysia rose this morning on news of an expected increase in electricity demand, moving forward.
  • Homegrown condom manufacturer, Karex Bhd shares’ on Bursa Malaysia rose in early trade after the company announced that it is eyeing two to three acquisitions this year.
  • Newly established companies or existing companies that expand operations into less developed areas will be eligible for 100 per cent income tax exemption for up to 15 years.
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