Bursa Malaysia- KLCI Technical Review & Market Forecast

Market Review for KLCI:
The FBM KLCI index lost 10.06 points or 0.59% on Tuesday. Finance Index fell 0.65% to 15288.15 points, Properties Index dropped 1.27% to 1213.97 points and Plantation Index down 0.82% to 7318.94 points. The market traded within a range of 13.36 points between an intra-day high of 1713.06 and a low of 1699.70 during the session.
The KLCI continued its losing streak for the fifth day after closing lower at 1699.7 points amid overnight losses in US market after Shanghai Composite Index tumbled 8%. The performance of our local bourse was bogged down by selling in heavy weight counters such as Westports Holdings, MISC and Digi.

KLCI Day Performance
Open	1708.62	% Change	-0.59%
High	1713.06	Volume	2141.5M
Low	1699.70	Rise	197
Close	1699.70	Fall	726
Change(Points)	-10.06	Unch	902

Market forecast for KLCI:
KLCI index can continue to drop on the back of the political concern and the week performance of regional markets, Technically it have crossed its support at 1704 which stating a bearish signal and the next support is at 1698 which is near to today’s closing.

KLCI LEVELS
Support 1	Support 2	Support 3	Resistance 1	Resistance 2	Resistance 3
1698	1684	1671	1719	1738	1752

Technical indicators:RSI stood below the center line at 37.958 with its CCI at -99.964 Difference line of MACD performed at -5.297 below its signal line which performed at -5.405.

Top Gainers			Top Losers
Scrip Name	CMP	%change	Scrip Name	CMP	%change
TEKALA	0.365	30.36	THRIVEN	0.9	-15.09
BTM	0.335	15.52	ASDION	1.33	-10.14
KRETAM	0.46	10.84	PRESBHD	2.29	-7.29
NATWIDE	0.815	10.14	EVERGRN	1.78	-6.32
KAREX	3.59	7.81	CCB	3.12	-6.02

Economic Factors:

• Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) reported a 55% drop in second quarter net profit from a year earlier, on lower income from its oil and gas structure construction unit.
• Oil prices fell towards four-month lows on Tuesday, dropping for a fifth straight session on persistent worries about a global supply glut, while stock market sell-offs on both sides of the Pacific also rattled investor sentiment.
• European shares bounced in early trading on Tuesday after falling in the previous five sessions, with some strong company results and mergers and acquisitions news supporting the market.
• Chinese shares fell on Tuesday, as Beijing scrambled once again to prop up a stock market whose wild gyrations have heightened fears about the financial stability of the world's second biggest economy.
• Gold hovered near its weakest level since early 2010 on Tuesday, reflecting investor hesitation to bid up bullion amid growing expectations of a near-term hike in U.S. interest rates. The Federal Reserve begins a two-day meeting later in the day where policymakers are likely to signal that a rate hike later in the year is certain as the U.S. economy strengthens.
• Dollar firmed on Tuesday as cautious investors covered short positions ahead of the start of a two-day U.S. Federal Reserve meeting and as a continued slump in Chinese equity markets sapped appetite for riskier assets.
• Indonesia will impose a levy on palm oil exports starting on Thursday after weeks of delay, providing as much as 4.5 trillion rupiah this year to state coffers.
• Treasury yields decline for a fifth trading day on Monday, recording the longest losing streak since April 17, as investors seek safe assets during a global stock sell off led by a sharp decline in Chinese markets.

Singapore Stock Market: STI Technical Analysis & Forecast

Market Review for STI: Straits Times Index (STI) opened 0.3 per cent higher with STI advancing 9.12 points to 3,368.29, as gold prices stemmed a slump. STI ended 2.1 points or 0.06% lower to 3371.40. STI came off from its intra-day peak of 3375.97 and low of 3360.12.Singapore stocks inched up at midday on lack of direction and interest.

Singapore’s inflation rate remained in negative territory in June, although it inched up to -0.3 per cent from -0.4 per cent in May due to larger increases in the costs of services, food and private road transport. Singapore's annual consumer prices fell for the eighth straight month in June, an outcome that could give the central bank room to ease policy if economic growth disappoints.

STI Day Performance
Open	3371.12
High	3375.97
Low	3360.12
Close	3356.4
Change(Points)	-2.80
% Change	-0.08%
Volume	2292.0 M
Rise	187
Fall	230
Unch	390

Market forecast for STI: Straits Times Index is expected to take sideways in next rading sessions. It has its resistance level at 3387, if it breaks this level it might go further up.

STI LEVELS
Support 1	Support 2	Support 3	Resistance 1	Resistance 2	Resistance 3
3345	3288	3247	3387	3437	3473

Technical Indicators: RSI is slightly above center line at 53.841 and CCI is at 94.946. Difference line of MACD performed at 2.257 below its signal line which performed at -6.699.

Top Gainers			Top Losers
Scrip Name	CMP	%change	Scrip Name	CMP	%change
FUXING CHINA	0.55	25	HSI25600MBEPW150730	0.082	-26.79
STARLAND	0.18	21.62	EASTERN	0.168	-25.33
RAFFLES UNITED	0.171	13.25	OCBC BK MBEPW151103	0.091	-22.22
CEFC INTL	0.28	12	HSI26400MBEPW150730	0.193	-16.09
LOTTVISION LTD1	0.405	10.96	REGAL INTL	0.22	-15.38

Important Factor for today:-

• Falling Chinese stock markets and the Greek debt crisis have raised concern about demand, while the Iranian nuclear deal could lead to higher oil exports from the Islamic Republic.
• Oil product inventories surged to their highest since at least 1999, signs that markets are struggling with a supply glut that could prompt refineries in the region to cut rates.
• US home resales rose in June to their highest level in nearly 8-1/2 years, a sign of pent-up demand that should buoy the housing market recovery and likely keep the Federal Reserve on track to raise interest rates later this year.
• European Economic and Monetary Affairs Commissioner Pierre Moscovici said creditor institutions were seeking to conclude talks with Greece on a third bailout in the second half of August.
• apan's economy is expected to expand at a slower pace in the second quarter than projected a month ago in the face of weak consumer spending and exports.
• China stocks rose sharply on Thursday, with the Shanghai Composite index up for the sixth consecutive session, led by blue chips, after the government reaffirmed its support for the market.
• European bonds rallied after Greece's parliament approved a second set of creditor-imposed reforms.
• Greek Prime Minister Alexis Tsipras on Thursday pledged his government would never allow banks to seize the primary residences of Greeks as parliament prepared to vote on a bill that toughens rules on foreclosures.
• South Korea's economy slowed in the second quarter, with consumer spending stifled by an outbreak of Middle East Respiratory Syndrome (Mers) and exports failing to lift from a lengthening slump.
• Oil prices were mixed in Asia on Thursday, with WTI stuck below US$50 a barrel after a rise in US stockpiles added to concerns over a supply glut, analysts said.
• Gold's fallen out of favor with investors as the Federal Reserve prepares to increase borrowing costs, boosting the dollar.
• Ringgit fell the most in more than two weeks as a decline in commodity prices erodes the outlook for Malaysia’s export earnings.
• Oil prices fell on Wednesday after US government data showed higher crude stockpiles, adding to concerns about a global supply glut.

Bursa Malaysia (KLSE): KLCI Technical Analysis Report

Market Review for KLCI: The KLCI extended its losses at midday, closing lower at 1712.30 points amid overnight weaker performance in US market on heightened risk that Greece may exit the Eurozone. Local sentiment continued to be dented by the decline in Malaysian ringgit.

The FBM KLCI index lost 4.75 points or 0.28% on Tuesday. Finance Index fell 0.39% to 15393.32 points, Properties Index dropped 0.35% to 1206.9 points and Plantation Index rose 0.29% to 7441.79 points. The market traded within a range of 9.39 points between an intra-day high of 1718.03 and a low of 1708.64 during the session.

Market forecast for KLCI: The FBM KLCI index can trade range bound in between 1730 to 1706 in coming trading session as the investors are still cautious about the Greece exit from Euro zone which can lead to a negative market condition.

Technical indicators: RSI stood below the center line at 40.488 with its CCI at -82.338. Difference line of MACD performed at -11.277 below its signal line which performed at -14.088.

GLOBAL FACTORS AND WORLD INDICES:

• Asian markets mostly recovered on Tuesday from the previous day's Greece-fuelled sell-off, but Shanghai sank again as analysts warned government measures to staunch a recent rout will likely not be enough.
• Eurozone leaders will hold an emergency summit in Brussels on Tuesday to discuss the fallout from Greek voters' defiant "No" to further austerity measures, with the country's Prime Minister Alexis Tsipras set to unveil new proposals for talks
• Hong Kong equities retreated 1.03 per cent, extending the previous day's losses and tracking another sell-off in mainland markets, with Chinese firms listed in the city tumbling.
• China's benchmark Shanghai stock index closed down 1.29 per cent on Tuesday, narrowing earlier losses but still ending the day lower despite recent government efforts to boost the market, dealers said.
• Greece's full-blown debt crisis and Puerto Rico's unfolding one have dominated headlines all week, but some of the biggest US investors have China at the top of their worry lists.
• A Malaysian task force has ordered a freeze on six bank accounts believed linked to a money trail that allegedly showed funds from a state investment company ending up in Prime Minister Najib Razak's personal accounts
• Crude oil prices steadied on Tuesday, after posting one of their biggest selloffs this year in the previous session over Greece's rejection of debt bailout terms and China's ongoing stock market woes.
• Tokyo stocks rose 1.31 per cent on Tuesday, clawing back some of the previous day's losses fuelled by Greece's austerity vote, which analysts said was overdone.