Weekly Technical View on KLCI - Bursa Malaysia

The week started bearish with heavy loss with dropping 46.26 points on Tuesday and traded sideways with mixed sentiments throughout the week and made a weekly loss of 23.58 points. On weekly basis KLCI moved within the range of 1660.22 to 1583.63 and ended the week on a negative note, closed lower at 1589.16 points as investors await non-farm report to provide the last major clue on U.S.’s economy before the Federal Reserve next meets. The performance of our local bourse was in tandem with most of our regional peers.

The FBM KLCI index lost 13.59 points or 0.85% on Friday. The Finance Index fell 1.19% to 13924.63 points, the Properties Index up 0.09% to 1107.93 points and the Plantation Index down 0.38% to 6813.29 points. The market traded within a range of 14.71 points between an intra-day high of 1602.32 and a low of 1587.61 during the session.

FBMKLCI Week's Performance
Open	1655.47
High	1660.22
Low	1583.63
Close	1589.16
Change (Points)	-23.58
% Change	-1.46%

Market Forecast for week ahead:

The KLCI index can trade sideways in coming week as the investors sentiments are still cautious which can bound the market to give some good movement, technically if the market breaks the level of 1580 then it can go further down.

Support 1	Support 2	Support 3	Resistance 1	Resistance 2	Resistance 3
1580	1500	1430	1660	1720	1773

Technical indicators:

RSI for this week is 28.764 with CCI at -133.072. Besides, difference line of MACD -50.702 below its signal line at -35.236.

Global factors and world Indices

• Malaysia saw exports in July increase 3.5 per cent from a year earlier as demand for electrical and electronic goods surged, government data showed on Friday.
• Hong Kong shares ended 0.45 per cent lower on Friday, bringing an end to another painful week for the Hang Seng Index, owing to ongoing concerns about the Chinese economy.
• AUTHORITIES in Singapore, Malaysia and Thailand have published a handbook to guide companies that hope to offer securities across borders through a streamlined review framework.
• UOL Group, Yangzijiang Shipbuilding and SATS will replace Jardine Matheson, Jardine Strategic and Olam International as constituents of the Straits Times Index (STI). This comes after the conclusion of the semi-annual review.
• Japanese stocks slipped to seven-month lows, with the Nikkei posting its biggest weekly fall in almost a year and a half with speculators dumping futures while investors stayed risk-averse ahead of the release of a key U.S. jobs report later in the day.
• Swiss consumer prices fell in August by the most in 56 years, the strongest indication yet of the pricing pressure from Switzerland's strong currency and low oil prices.
• Andy Hall, one of the best-known oil traders who's bullish on prices, said the decline in the oil market isn't a repeat of 1998 or 2008. The absence of "extreme contango," which occurs when commodities prices close to delivery are cheaper than those to be delivered at later dates, suggests that "the world, whilst moderately oversupplied, is not awash in oil.
• Gold held declines from a two-day losing streak on Friday, ahead of a crucial US jobs report as traders waited for clues about the timing of a Federal Reserve rate hike.
• Oil prices eased in Asian trade on Friday as investors turned cautious ahead of US jobs data later in the day that is expected to play into the Federal Reserve's decision on the timing of any US rate hike.

SECTOR ALLOCATION

SECTOR	CHANGE	%CHANGE	HIGH	LOW
FINANCE	-167.03	-1.19	14,072.54	13,922.36
TRAD/SERV	-1.28	-0.61	211.08	208.99
INDUSTRIAL	-13.51	-0.44	3,095.28	3,062.33
PLANTATION	-25.96	-0.38	6,823.54	6,790.83
IND-PROD	-0.34	-0.26	132.4	131.53
CONSUMER	-1.21	-0.22	560.24	557.51
PROPERTIES	1.02	0.09	1,111.84	1,103.19
TECHNOLOGY	0.03	0.15	20.13	19.86
CONSTRUCTN	0.87	0.34	254.26	253.15
MINING	12.16	2.56	486.34	474.18