KLCI Weekly Technical Analysis Report

Weekly wrap of KLCI:
Stock market performance was "disappointing" this week, extending the declines last week, with selling seen by institutional funds in order to declare dividend by year-end. As they are taking profit at this time. If they don't lock in profit, they won't be able to pay dividend by the end of this year.

The situation was made worse after oil and gas counters were badly hit as crude oil price tumbled to its lowest in four years.

The FBM KLCI index lost 2.02 points or 0.11% on Friday. Finance Index increased 0.09% to 16412.72 points, Properties Index dropped 0.61% to 1410.05 points and Plantation Index down 0.33% to 8366.28 points. Market traded within a range of 5.87 points between an intra-day high of 1814.57 and a low of 1808.70 during the session.

The KLCI ended the last trading day of the week on a negative noted by closing lower at 1813.79 points. Market breadth was weaker as the muted sentiment and absence of fresh positive leads dented investor’s risk appetite and on selling by institutional funds, amid weakness on oil and gas-related counters.  

FBMKLCI WEEK’s Performance
Open	1814.30
High	1814.57
Low	1808.70
Close	1813.79
Change(Points)	-10.4

Market Forecast for week ahead:

We could see better trading next week, as market took support at 1800 level.

KLCI LEVELS
Support 1	Support 2	Support 3	Resistance 1	Resistance 2	Resistance 3
11791	1764	1723	1824	1838	1862

Technical indicators:RSI for this week is 42.855 with CCI at -102.797. Besides, difference line of MACD (8.700) stood below its signal line (3.785).

Economic Factors:

• Short-term interbank rates closed stable today on Bank Negara Malaysia's (BNM) intervention to mop up excess liquidity from the financial system.
• SIME Darby Bhd will be satisified with having only a 51% controlling stake in New Britain Palm Oil Ltd (NBPOL), which will allow it to secure control of the latter at the shareholder, board and management levels.
• The Malaysian rubber market closed slightly lower today in tandem with the lower price of the commodity on the Tokyo Commodity Exchange.
• Oil prices are expected to keep sliding well into 2015, held down by weak demand and increased shale production, the International Energy Agency said Friday, as it maintained its full-year forecast for slow global consumption growth.
• The Malaysian economy grew by 5.6% in the third quarter from 6.5% in the Q2.

Sector Allocation Chart

SECTOR	CHANGE	%CHANGE	HIGH	LOW
TECHNOLOGY	-0.08	-0.44	18.16	17.95
IND-PROD	-2.47	-1.82	135.25	132.4
TRAD/SERV	-0.13	-0.05	238.96	238.18
CONSTRUCTN	-2.83	-0.92	307.75	303.59
MINING	-4.06	-0.72	567.4	555.24
CONSUMER	-0.37	-0.06	579.24	576.43
PROPERTIES	-8.69	-0.61	1,418.86	1,409.37
INDUSTRIAL	12.4	0.38	3,296.99	3,271.36
PLANTATION	-27.4	-0.33	8,377.14	8,336.61