Bursa Malaysia: KLCI Technical Analysis for 25 Aug & Market Forecast

Market Review for KLCI:

The FBM KLCI index gained 31.80 points or 2.08% on Tuesday. Finance Index increased 1.02% to 13815.29 points, Properties Index dropped 0.18% to 1072.84 points and Plantation Index down 0.13% to 6706.97 points. market traded within a range of 64.74 points between an intra-day high of 1568.42 and a low of 1503.68 during the session.

The KLCI rebounded from yesterday’s losses by ending higher at 1563.94 points despite overnight losses in Wall Street on deep fears about China's economic slowdown. Our local bourse advanced on bargain hunting.

FBMKLCI Day Performance

Open:1515.73

High: 1568.42

Low: 1503.68

Close: 1563.94

Change(Points): +31.80

% Change: +2.08%

Volume: 2,784.4

Rise: 381

Fall: 487

Unch: 935

Market forecast for KLCI:

KLCI is expected to trade with positive sentiments as technically it have shown bullish engulfing pattern and it have also crossed the immediate resistance at 1555 however,the internal political issue can keep the investor sentiments cautious.

KLCI COUNTER SPECIFIC NEWS :

• Malaysian Resources Corp Bhd's (MRCB) net profit for the second quarter ended June 30, 2015 almost halved to RM60.10 million from RM118.53 million a year ago due to higher expenses and lower profit from operations.
• Uzma Bhd ( Financial Dashboard) rose 3.16% early today after the company reported 2Q core net profit of RM11.9 million bringing 1H15 core net profit to RM25.1 million.
• Plantations-to-motoring conglomerate Sime Darby Bhd said it is weighing options to strengthen its balance sheet after its acquisition of New Britain Palm Oil (NBPO).
• Boustead Holdings Bhd's second quarter net profit ended June 30, 2015 dropped 25% to RM50.8 million, from RM67.7 million a year ago, largely due to the decline in its palm products and fuel-trading revenue.
• Malaysian Pacific Industries Bhd (MPI) ( Financial Dashboard) fell in early today amidst thin trade after AffinHwang Capital Research downgraded MPI to Sell at RM6.42 with a lower target price of RM4.31 (from RM6.24) and said MPI reported a stronger-than-expected set of FY15 earnings.
• Real estate investment firm Pelaburan Hartanah Bhd (PHB) is buying a parcel of commercial land measuring 10.8 acres in Kuala Terengganu for RM106 million to embark on a mixed development project.
• Felda Global Ventures Holdings Bhd’s (FGV) second quarter net profit ended June 30 2015 was down by half on higher cost of sales and lower earnings mainly from palm related segments.

GLOBAL FACTORS AND WORLD INDICES:

• Asian shares tumbled today after a big decline in Chinese stocks sparked a global equities rout and increased the fear over the future outlook of the world economy. Shanghai stocks tumbled 6.41 per cent at the open, in line with the decline of previous day.
•  Hong Kong stocks fell 0.67 % in early trade Tuesday, in line with fall in all other gobal indexes.Index fall by 142.86 points to 21,108.71 in opening deals.
• China's major stock indexes further dropped by 6% in early trade on Tuesday, continuing the decline of Monday that made Chinese exchanges suffer and destablised the world financial market around the world. This was the biggest loss that China saw after the Global financial crises 2008.
• Australian shares rebounded on Tuesday as investor took the advantage of beaten down bank stocks, on the next day where the market has seen the biggest drop in over the 6 years. S&P/ASX 200 i.e., 4.1% drop.
• European stocks rebounded at opening on Tuesday despite of fall in Chinese indexes. Europe’s various indexes saw recovering the previous day fall, London's FTSE-100 rose by 1.3 per cent, Frankfurt rose by 1 1.74 per cent and Paris's CAC-40 opened the day up 1.7 per cent.
• US 10-year Treasury yields declined below 2 per cent. This was seen for the first time since April, as high sell-off in stocks and commodities encouraged investor to go for the safest fixed-income assets. US government securities increased consecutively on fourth day between the concern over slowing growth in China and destabilisng the economy all over the world and has also led to delay in increase in US ineterst rate by the Federal Reserve.
• Gold was traded below a 7 week high on Tuesday as equity markets regained from continous fall also US Dollar rebounded after a high sell-off during past few trading sesisons due to fear over meltdown of Chinese economy.
• Oil declined and was traded near 6 year low after equities market and commodities saw huge selloff.