Bursa Malaysia: Stock Market Review for KLCI 5th Jan

The benchmark FTSE Bursa Malaysia KLCI declined 16.15 points to 1,736.62 after moving between 1,734.51 and 1,759.15 throughout the day. Shares on Bursa Malaysia closed lower today on selling of finance counters. Banking stocks stole the focus in today’s trading in light of the new base rate (BR) mechanism implementation by Bank Negara Malaysia from Jan 2, 2015.

Losers outpaced gainers by 502 to 271 while 966 counters were unchanged. Turnover stood at 1468.2 million. Finance Index fell 175.801 points to 15,486.14, Plantation Index declined 40.4 points to 7,770.55 and Industrial Index eased 15.17 points to 3,141.57.

FBMKLCI Day Performance

Open: 1758.43

High: 1759.15

Low: 1734.51

Close: 1736.62

Change (in Points): -16.15

%Change: -0.92

Volume: 1468.2 M

Rise: 271

Fall: 502

Unch: 966

Market forecast for KLCI: The market is gloomy and trend is down. It is now anticipated that after breaking previous low of 1752.77, it will likely to move till 1720 or may cross.

Technical indicators: RSI stood below the center line at 43.489 with its CCI at 24.265. Difference line of MACD performed at -8.075 below its signal line which performed at -13.788.

KLCI LEVELS

Support 1: 1720

Support 2: 1700

Support 3: 1670

Resistance 1: 1748

Resistance 2: 1765

Resistance 3: 1790

ECONOMIC FACTORS:

• The construction sector is overweight on strong prospects, mainly backed by the RM73 billion Klang Valley Mass Rapid Transit (MRT) and other mega public infrastructure projects.
• Businesses in Malaysia will focus on improving their sales force effectiveness in facing the challenging global economy,Business owners are rethinking their sales strategies, sales processes, reward plans, training and other aspects, to improve their businesses.
• The Ministry of International Trade and Industries (MITI) is optimistic of this year's trade outlook despite the local currency weakening and declining crude oil price.
• The ringgit opened lower against the US dollar today as the greenback continued to strengthen against other major currencies.
• Short-term interbank rates are expected to remain stable today on Bank Negara Malaysia (BNM)’s intervention to absorb excess liquidity from the financial system.
• Gold futures contracts on Bursa Malaysia Derivatives closed lower today impacted by the weakening of the ringgit against the US dollar.
• Puncak Niaga Holdings Berhad (PNHB) will be voting on the Selangor state government's plan to takeover PNHB in an extraordinary general meeting (EGM) on Wednesday.P elaburan Hartanah Nasional Bhd (PHNB) is now wholly owned by Permodalan Nasional Bhd (PNB) after PNB acquired the remaining 30 per cent stake from Malayan Banking Bhd (Maybank) last month.
• Bamboo product manufacturer Kanger International Bhd plans to raise up to RM100 million via a redeemable convertibles notes (RCN) programme for expansion into property investment and management.