Weekly Technical view on KLCI

Weekly Wrap of KLCI

In the entire week the market breath was negative. It closed in the green on Monday followed by four red candles. On the last day of the week market gained little momentum observing little recovery in the counters. US allegations of massive fraud at state investment fund 1MDB wherein US authorities moved to seize more than $1bn (£761m) in assets related to the fund has been the major reason of the market being bearish.

Forecast for week ahead:

The FBMKLCI opened at the level of 1656 on Friday and closed in the red at level of 1657. The trading session on Friday saw a low of 1651; The market traded within a range of 7.86 points between an intra-day high of 1659.76 and a low of 1651.90 during the session.
In the coming week market  could complete its rounding bottom pattern and if it happens it is expected to test the resistance level of 1671 and could go upto the level of 1689. On the other side if the market breaches the support level of 1648 it might go further down to the level of 1638. In the coming days traders would remain cautious regarding the 1MDB issue and would trade accordingly.

Support 1	Support 2	Support 3	Resistance 1	Resistance 2	Resistance 3
1648	1638	1627	1671	1689	1699

 FBMKLCI Week's Performance

Open	1656
High	1659
Low	1651
Close	1657
Change(Points)	-0.12
% Change	-0.01%

Technical indicators:

RSI for this week is 48.954 with CCI at -12.311 Besides, difference line of MACD -8.158.

Counter-Specific News: 

1. The KL118 skyscraper project, also known as Menara Wawasan, is ongoing, said UEM Group Bhd     chairman Tan Sri Ahmad Tajuddin Ali.
2. Dancomech Holdings Bhd, which made its debut on the Main Market of Bursa Malaysia yesterday,     is eyeing sales growth of up to 20% in the next three to five years, pinning its hopes on a recovery       in prices of crude palm oil (CPO) and oil and gas (O&G) going forward.
3. Scomi Engineering Bhd yesterday issued a notice of arbitration against Prasarana Malaysia Bhd to     resolve the dispute between them in relation to the termination of the RM494 million Kuala                 Lumpur monorail fleet expansion project.
4. Petroliam Nasional Bhd (Petronas) awarded a production sharing contract (PSC) to PTTEP HK           Offshore Ltd, KUFPEC Malaysia (SK-410B) Ltd, and Petronas Carigali Sdn Bhd for exploration         Block SK410B at a signing ceremony yesterday.
5. Malayan Banking Bhd (Maybank) expects lower double-digit growth in its credit card billings and     receivables this year as consumers are more prudent on spending. It aims to maintain a 15%                 growth in its credit card base this year.

6.Mercedes-Benz Malaysia Sdn Bhd delivered a record 6,017 cars to customers in the six-month            period ended June 2016, registering a growth of 17% compared with the same period last year.

Bursa Malaysia stock news and signals

Market forecast for KLCI:

The FBMKLCI opened at the level of 1669 on Wednesday and closed in the red at level of 1669. The trading session on Wednesday saw a low of 1664.

The market traded within a range of 5.79 points between an intra-day high of 1669.80 and a low of 1664.01 during the session. Market closed lower than the previous day and in the coming trading session it is expected to breach the resistance level of 1674 and go upto the level of 1684. On the other side if it tests the support level of 1660 it could cross the level and go further down to the level of 1651.

Market Review for KLCI:

The FBM KLCI index lost 0.94 points or 0.06% on Wednesday. The Finance Index increased 0.01% to 14272.57 points, the Properties Index up 0.21% to 1166.7 points and the Plantation Index rose 0.11% to 7601.07 points. The market fluctuated between a high of 1669 and low of 1664 throughout the trading session on Wednesday. The KLCI extended its mid-day losses by ending lower at 1669.61 points, amid overnight mixed performance in Wall Street. Our benchmark index was dragged down by losses in heavyweight counters such as YTL Corp and Maxis. 

Top Losers
Scrip Name	CMP	%change
QUALITY	1.37	-7.43
SGB	0.63	-7.35
TGL	1.3	-7.14
MICROLN	1.4	-6.67
KEN	0.89	-6.32

Top Gainers
Scrip Name	CMP	%change
AISB	0.485	21.25
HARBOUR	1.05	14.13
GESHEN	1.85	8.19
CEPCO	1.65	7.84
SCC	1.97	7.65

TECHNICAL INDICATORS
RSI	Price line above centre line at 61.787
CCI	Above the signal line at 115.252
MACD	Above its signal line showing its cross over at 7.418

KLCI COUNTER SPECIFIC NEWS :

• Alliance Financial Group Bhd (AFG) expects the profitability of its banks to be negatively impacted by the Overnight Policy Rate (OPR) cut by Bank Negara Malaysia but is confident that it will be able to steer through the challenge.
• Bursa Malaysia Bhd is proposing to promote the exchange as a one-stop centre for all secondary fund raising by listed issuers, as it will be the single approving authority for all new issues of securities by Collective Investment Schemes (CIS) post-listing, except for debt securities.
• Kerjaya Prospek Group Bhd’s subsidiary, Kerjaya Prospek (M) Sdn Bhd, has been awarded a RM213.75 million job by Apple 99 Development Sdn Bhd for the main building works of a proposed mixed development project known as “The Apple”.
• Borneo Oil Bhd’s wholly owned subsidiary Borneo Oil and Gas Corp Sdn Bhd’s first phase of gold mining prospect in Bukit Ibam, Pahang, has inferred gold resources of about 60,814 troy ounces (or 1,819.5kg).
• PRG Holdings Bhd and Baycity Park Sdn Bhd will jointly develop a high-quality affordable apartment project, consisting of 650 units priced from RM250,000 to RM450,000 each in Subang Bestari Seksyen U5, Shah Alam, Selangor.

Market forecast for KLCI

Market forecast for KLCI:

The FBMKLCI opened at the level of 1664 on Thursday and closed in the green at level of 1670. The trading session on Friday saw a low of 1662;

The market traded within a range of 8.93 points Market breadth was positive with 401 gainers as compared to 392 losers. Market continued to be bullish as it is currently in the uptrend. It is expected to breach the resistance level of 1675 in the coming days and could reach to the level of 1684.

Market Review for KLCI:

The FBM KLCI index gained 2.44 points or 0.15% on Monday. The Finance Index increased 0.02% to 14254.84 points, the Properties Index up 0.38% to 1164.55 points and the Plantation Index rose 0.47% to 7566.93 points. The market fluctuated between a high of 1671 and low of 1662 throughout the trading session on Monday. The KLCI erased its midday losses by ending higher at 1670.84 points despite mixed performance in Wall Street on last Friday. The performance of our local bourse was lifted by buying interest in heavy weight counters such as Maxis and Axiata. 

Top Losers
Scrip Name	CMP	%change
AFUJIYA	0.43	-10.42
MCEHLDG	0.77	-6.1
WINGTM	1.08	-6.09
SAPIND	0.91	-5.7
AIRPORT	6.11	-5.12

Top Gainers
Scrip Name	CMP	%change
MBWORLD	1.26	11.5
MENANG	0.995	11.17
MBMR	2.43	10.96
PUNCAK	1.09	7.92
FGV	1.67	7.74

              

TECHNICAL INDICATORS
RSI	Price line above centre line at 62.718
CCI	Above the signal line at 135.576
MACD	Above its signal line showing its cross over at 6.206

KLCI COUNTER SPECIFIC NEWS :

• Goodway Integrated Industries Bhd said it was unaware of reasons behind the recent spike in the company’s share price, after being issued an unusual market activity query by Bursa Malaysia last Thursday.
• Oldtown Bhd has allowed G&L Food and Beverage Management Co Ltd to operate and sub-license the territorial rights of its Oldtown White Coffee business in Jiangsu, China.
• Malaysia Airports Holdings Bhd (MAHB) said yesterday it has been receiving regular updates from its Istanbul Sabiha Gokcen International Airport (ISG) on the situation following reports of an attempted military coup in Turkey.
• CIMB Group Holdings Bhd and AMMB Holdings Bhd (AmBank) are the two latest banks which announced that they will be reducing their respective base rates (BR) and base lending rates (BLR) by 20 basis points each following the cut in the Overnight Policy Rate (OPR) last week.
• SKP Resources Bhd, which secured new orders worth an estimated RM500 million a year last Friday, said it will have to discontinue a RM400 million a year contract manufacturing job to manage labour resources.
• Sepang International Circuit Sdn Bhd (SIC) is investing RM1.13 billion on a master plan that will transform the circuit into an integrated, multi-faceted entertainment hub over the next five to seven years.