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.