Bursa Malaysia - KLCI Weekly Technical Analysis Review 22-26 Sept

Weekly wrap of KLCI::
The FBM KLCI index lost 2.61 points or 0.14% on Friday. The Finance Index fell 0.57% to 17144.77 points, the Properties Index dropped 0.52% to 1496.97 points and the Plantation Index rose 0.03% to 8416.7 points.

 The market traded within a range of 11.13 points between an intra-day high of 1840.37 and a low of 1829.24 during the session. The final trading day of the week saw the KLCI close lower by 1840.50 points.

The local bourse remained in the red for majority of the day, as a sharp overnight drop in Wall Street and on-going geopolitical tensions in the Middle East, rocked investor's appetite for risk. 

Regionally, Asian markets slid, as investors reacted to the U.S. overnight selloff, rumours of a Russian draft law that would allow seizure of foreign assets, possible change of leadership in China's Central Bank and expectations of higher interest rates from the Fed. 

FBMKLCI WEEK’s Performance
Open	1840.01
High	1840.50
Low	1829.24
Close	1840.50
Change(Points)	-8.99
% Change	-0.48%

Market Forecast for week ahead:
Market stood at support level 1836.248, it may rebound next week by taking next support at 1820.

Weekly Technical view on KLCI
Support 1	Support 2	Support 3	Resistance 1	Resistance 2	Resistance 3
1820	1805	1780	1854	1878	1895

Technical indicators:

RSI for this week is 43.83 with CCI at -198.016. Besides, difference line of MACD (2.527) stood below its signal line (7.954).

Economic Factors:

• The ringgit opened higher in the early session on renewed buying interest for the local currency.
• The General Insurance Association of Malaysia (PIAM) expects the 2015 Budget to continue focusing on measures to further liberalise and strengthen the nation’s insurance and takaful sector.
• Automotive sector is on neutral mode following the launch of Proton's new compact car Iriz indicating that the sector will perform in line with the overall market in the next 12 months.
• Local Bumiputera firm Madolin Industry Sdn Bhd and Akishige Construction Co Ltd of Japan today inked a memorandum of understanding (MoU) on developing the country's construction industry.
• Malaysia's exports can grow in terms of volume and value once the country implemented the Goods and Services Tax (GST) by April next year.
• Malaysia will be on the right track towards achieving high-income nation status, propelled by science, technology and innovation by 2020.
• Malaysia is well-equipped to withstand another potential global financial crisis, thanks to its balanced economic structure, riding on domestic demand as the growth driver.
• FOOD-based QL Resources Bhd has offered to buy the remaining 73.19% stake in poultry outfit Lay Hong Holdings Bhd for RM3.50 a share. QL is currently the second largest shareholder in Lay Hong with a 26.81 per cent stake or 13.42 million shares.
• Scientex Bhd’s Q4 profit has increased substantially amid the move by the packaging manufacturing group to forge a strategic alliance with Japan’s Futamura Chemical Co Ltd (FCC). Q4 pre-tax profit for the year ended July 31 2014 rose 39.3% to RM56 million from RM40.2 million in the preceding quarter.
• UEM Group Bhd said its property arm UEM Sunrise Bhd’s revised sales target of RM2 billion for this year is achievable given the encouraging response for its projects in Australia and Johor. UEM Group Bhd (UEM), an engineering-based infrastructure and services company, is stepping up its game in all its core businesses in a bid to maintain its strong balance sheet and low net gearing.
• Positive long-term view is maintained on Malaysia Airports Holdings Bhd (MAHB) despite the stock’s lacklustre performance for the past few months due to weak statistics and earnings.

Sector Allocation Chart

SECTOR	CHANGE	%CHANGE	HIGH	LOW
PROPERTIES	8.11	1.27%	668.72	640.35
PLANTATION	12.23	0.82%	18434.9	18259.32
INDUSTRIAL	6.37	0.20%	3213.89	3176.26
CONSUMER	0.06	0.04%	143.9	142.73
MINING	2.18	0.03%	8424.22	8340.04
CONSTRUCTION	-0.08	-0.03%	241.98	240.91
IND-PROD	-0.63	-0.11%	593.42	588.99