Bursa Malaysia : KLCI Technical Reports for Week Ahead

Weekly wrap of KLCI: This week the FBM KLCI index given a range bound movement and traded between the resistance level of 1595 and support level of 1550, on weekly basis the index have made a high of 1594.68 and low of 1557.1 and ended with a weekly loss of -1.38%.  

FBMKLCI Week's Performance
Open	1563.65
High	1583.38
Low	1557.01
Close	1574.67
Change (Points)	-22.15
% Change	-1.38%

On Friday the KLCI ended flat with 2.74 points lower and closed at 1574.67 points amid overnight losses in US market. The performance of our local bourse was in line with our regional peers on concern that global growth is slowing. On sectoral basis The Finance Index fell 0.77% to 14132.32 points, Properties Index dropped 0.51% to 1103.5 points and Plantation Index rose 0.28% to 6869.39 points in the last trading day of the week. The market traded within a range of 26.37 points between an intra-day high of 1583.38 and a low of 1557.01 during the session on Friday.

Market Forecast for week ahead: The KLCI index is expected to take sideways trend next week as the investors sentiments are still defensive about the market condition which can bound the index to give some good movement, however if it breaks the support of 1550 then it can drop further and can reach to the level of 1500 and extend the last three weeks heavy sell down. 

Support 1	Support 2	Support 3	Resistance 1	Resistance 2	Resistance 3
1550	1500	1465	1595	1630	1672

 Technical indicators: RSI for this week is 21.893 with CCI at -200.639. Besides, difference line of MACD -44.093 performed below its signal line -27.451.

Global factors and World Indices

• Ringgit weakened to a 17-year low and led declines in Asia as falling oil prices worsened Malaysia's export outlook amid an emerging-market selloff. The currency has slumped 8.2 per cent this month in the worst developing-nation performance after Russia's ruble. Figures due Friday may show a further decline in Malaysia's foreign-exchange reserves, reducing the central bank's ability to stem the ringgit's descent.
• Malaysia's attorney-general has formed a new task force to investigate state fund 1MDB but it excludes the country's anti-corruption body.
• China's yuan was broadly unchanged on Friday and looked to close out the week on a flat note as the central bank sought to stabilise the currency and calm financial markets after its shock devaluation last week.
• Tokyo's benchmark stock index dropped 2.98 per cent on Friday, piling on its fourth day of losses as fears about the health of the global economy pounded equity markets. Nikkei 225 at the Tokyo Stock Exchange tumbled 597.69 points to finish at 19,435.83, its lowest close in just over three months.
• Asian stocks tumbled, extending the worst week for global equities in nine months, as a gauge of Chinese manufacturing plunged to the lowest since 2009. Gold extended gains.
• Ringgit weakened to a 17-year low and led declines in Asia as falling oil prices worsened Malaysia's export outlook amid an emerging-market selloff. The currency has slumped 8.2 per cent this month in the worst developing-nation performance after Russia's ruble. Figures due Friday may show a further decline in Malaysia's foreign-exchange reserves, reducing the central bank's ability to stem the ringgit's descent.
• Federal Reserve officials planning to lift interest rates as soon as September have been encouraged by solid US jobs growth, but inflation holds the key to how far the Fed can go in moving rates away from zero.
• Markit's flash composite Purchasing Managers' Index (PMI), which tracks manufacturing and services activity that accounts for more than two-thirds of the economy, inched up to 54.0 from 53.7 in July. Stronger-than-expected growth among manufacturers helped Germany's private sector expand at a faster rate in August, suggesting Europe's largest economy is on track for a solid third quarter.
• Euro zone business growth unexpectedly accelerated this month as steeper price cutting drove an increase in new orders and led to firms building up a bigger backlog of work, a survey showed on Friday.
• Gold for immediate delivery climbed 1.4 per cent to US$1,168.39 an ounce, the highest level since July 7, before trading at US$1,163.36 by 12:22 pm in Singapore, according to Bloomberg generic pricing. The metal has surged 4.3 per cent this week and is set for the biggest such gain since January.
• Oil prices resumed their downward trend on Friday pulled lower by weaker global stock markets and a sharp contraction in China's manufacturing activity, with the US benchmark on track for its longest weekly losing streak since 1986.