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.

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.

Singapore Stock Market: STI Technical Analysis & Forecast

Market Review for STI: Straits Times Index (STI) opened 0.3 per cent higher with STI advancing 9.12 points to 3,368.29, as gold prices stemmed a slump. STI ended 2.1 points or 0.06% lower to 3371.40. STI came off from its intra-day peak of 3375.97 and low of 3360.12.Singapore stocks inched up at midday on lack of direction and interest.

Singapore’s inflation rate remained in negative territory in June, although it inched up to -0.3 per cent from -0.4 per cent in May due to larger increases in the costs of services, food and private road transport. Singapore's annual consumer prices fell for the eighth straight month in June, an outcome that could give the central bank room to ease policy if economic growth disappoints.

STI Day Performance
Open	3371.12
High	3375.97
Low	3360.12
Close	3356.4
Change(Points)	-2.80
% Change	-0.08%
Volume	2292.0 M
Rise	187
Fall	230
Unch	390

Market forecast for STI: Straits Times Index is expected to take sideways in next rading sessions. It has its resistance level at 3387, if it breaks this level it might go further up.

STI LEVELS
Support 1	Support 2	Support 3	Resistance 1	Resistance 2	Resistance 3
3345	3288	3247	3387	3437	3473

Technical Indicators: RSI is slightly above center line at 53.841 and CCI is at 94.946. Difference line of MACD performed at 2.257 below its signal line which performed at -6.699.

Top Gainers			Top Losers
Scrip Name	CMP	%change	Scrip Name	CMP	%change
FUXING CHINA	0.55	25	HSI25600MBEPW150730	0.082	-26.79
STARLAND	0.18	21.62	EASTERN	0.168	-25.33
RAFFLES UNITED	0.171	13.25	OCBC BK MBEPW151103	0.091	-22.22
CEFC INTL	0.28	12	HSI26400MBEPW150730	0.193	-16.09
LOTTVISION LTD1	0.405	10.96	REGAL INTL	0.22	-15.38

Important Factor for today:-

• Falling Chinese stock markets and the Greek debt crisis have raised concern about demand, while the Iranian nuclear deal could lead to higher oil exports from the Islamic Republic.
• Oil product inventories surged to their highest since at least 1999, signs that markets are struggling with a supply glut that could prompt refineries in the region to cut rates.
• US home resales rose in June to their highest level in nearly 8-1/2 years, a sign of pent-up demand that should buoy the housing market recovery and likely keep the Federal Reserve on track to raise interest rates later this year.
• European Economic and Monetary Affairs Commissioner Pierre Moscovici said creditor institutions were seeking to conclude talks with Greece on a third bailout in the second half of August.
• apan's economy is expected to expand at a slower pace in the second quarter than projected a month ago in the face of weak consumer spending and exports.
• China stocks rose sharply on Thursday, with the Shanghai Composite index up for the sixth consecutive session, led by blue chips, after the government reaffirmed its support for the market.
• European bonds rallied after Greece's parliament approved a second set of creditor-imposed reforms.
• Greek Prime Minister Alexis Tsipras on Thursday pledged his government would never allow banks to seize the primary residences of Greeks as parliament prepared to vote on a bill that toughens rules on foreclosures.
• South Korea's economy slowed in the second quarter, with consumer spending stifled by an outbreak of Middle East Respiratory Syndrome (Mers) and exports failing to lift from a lengthening slump.
• Oil prices were mixed in Asia on Thursday, with WTI stuck below US$50 a barrel after a rise in US stockpiles added to concerns over a supply glut, analysts said.
• Gold's fallen out of favor with investors as the Federal Reserve prepares to increase borrowing costs, boosting the dollar.
• Ringgit fell the most in more than two weeks as a decline in commodity prices erodes the outlook for Malaysia’s export earnings.
• Oil prices fell on Wednesday after US government data showed higher crude stockpiles, adding to concerns about a global supply glut.

Bursa Malaysia (KLSE): KLCI Technical Analysis Report

Market Review for KLCI: The KLCI extended its losses at midday, closing lower at 1712.30 points amid overnight weaker performance in US market on heightened risk that Greece may exit the Eurozone. Local sentiment continued to be dented by the decline in Malaysian ringgit.

The FBM KLCI index lost 4.75 points or 0.28% on Tuesday. Finance Index fell 0.39% to 15393.32 points, Properties Index dropped 0.35% to 1206.9 points and Plantation Index rose 0.29% to 7441.79 points. The market traded within a range of 9.39 points between an intra-day high of 1718.03 and a low of 1708.64 during the session.

Market forecast for KLCI: The FBM KLCI index can trade range bound in between 1730 to 1706 in coming trading session as the investors are still cautious about the Greece exit from Euro zone which can lead to a negative market condition.

Technical indicators: RSI stood below the center line at 40.488 with its CCI at -82.338. Difference line of MACD performed at -11.277 below its signal line which performed at -14.088.

GLOBAL FACTORS AND WORLD INDICES:

• Asian markets mostly recovered on Tuesday from the previous day's Greece-fuelled sell-off, but Shanghai sank again as analysts warned government measures to staunch a recent rout will likely not be enough.
• Eurozone leaders will hold an emergency summit in Brussels on Tuesday to discuss the fallout from Greek voters' defiant "No" to further austerity measures, with the country's Prime Minister Alexis Tsipras set to unveil new proposals for talks
• Hong Kong equities retreated 1.03 per cent, extending the previous day's losses and tracking another sell-off in mainland markets, with Chinese firms listed in the city tumbling.
• China's benchmark Shanghai stock index closed down 1.29 per cent on Tuesday, narrowing earlier losses but still ending the day lower despite recent government efforts to boost the market, dealers said.
• Greece's full-blown debt crisis and Puerto Rico's unfolding one have dominated headlines all week, but some of the biggest US investors have China at the top of their worry lists.
• A Malaysian task force has ordered a freeze on six bank accounts believed linked to a money trail that allegedly showed funds from a state investment company ending up in Prime Minister Najib Razak's personal accounts
• Crude oil prices steadied on Tuesday, after posting one of their biggest selloffs this year in the previous session over Greece's rejection of debt bailout terms and China's ongoing stock market woes.
• Tokyo stocks rose 1.31 per cent on Tuesday, clawing back some of the previous day's losses fuelled by Greece's austerity vote, which analysts said was overdone.

Bursa Malaysia: Weekly Technical Trading Analysis and Forecast for week ahead

Weekly wrap of KLCI: The week started with opening 7.13 points positive, performed with buying sentiments in the beginning and maintained a mixed movement throughout and ended in a positive note. 

The FBM KLCI index gained 16.50 points or 0.89% on Friday. The Finance Index increased 0.65% to 16422.79 points, the Properties Index up 0.21% to 1337.95 points and the Plantation Index rose 1.11% to 7749.53 points. The market traded within a range of 12.87 points between an intra-day high of 1862.58 and a low of 1849.71 during the session.
The KLCI ended the week on a positive note, closing at 1862.58 points. The performance of our benchmark index was in line with overnight gains in US market as positive corporate earnings and rise in crude oil prices overshadowed the weaker performance in US new home sales data in March.
FBM KLCI Week's Performance
Open: 1862.58
High: 1862.58
Low: 1849.71
Close: 1862.58
Change (Points): 16.72
% Change: 0.90%
Market Forecast for week ahead: Market is moving by taking correction on weekly basis it is forcasted to be on positive note next week. As Malaysian government expecting economy to grow between 4.5% and 5.5% this year on the back of strong economic fundamentals. And if Malaysia achieved its fiscal target for 2015, it would be a record of six consecutive years of fiscal deficits.
Weekly Technical view on KLCI
Support 1: 1832
Support 2: 1815
Support 3: 1789
Resistance 1: 1856
Resistance 2: 1880
Resistance 3: 1890
Technical indicators: RSI for this week is 60.649 with CCI at 129.338. Besides, difference line of MACD 8.942 and crossed its signal line -1.022.
ECONOMIC FACTORS:

• Bank Negara governor Tan Sri Zeti Akhtar Aziz said any changes in Malaysia's monetary policy will be based on domestic consideration while stressing that the economy is still staying on a steady growth path. It is anticipated that the central bank may start to cut the overnight policy rate by 25 to 50 basis points.
• Interest rates hike by the United States Federal Reserve (Fed) must happen this year as the uncertainty on the timing of the hike is causing volatility in regional markets.
• The ringgit’s decline is more influenced by non-economic factors and an over-reliance on oil and gas revenue, as well as political issues.
• Moody’s Investors Service today assigned a definitive A3 senior unsecured rating to the US dollar trust certificates (sukuk) issued by Malaysia Sovereign Sukuk Bhd, a special purpose vehicle established by the Malaysian government.An aggregate interest of over US$9 billion (RM32.67 billion) drawn from the issuance of Malaysia's US$1.5 billion sukuk recently signalled foreign investors' confidence in the country's long-term economy fundamentals, a treasury official said.
• Bank of America Merrill Lynch (BofAML) expects Bank Negara Malaysia (BNM) to cut the overnight policy rate (OPR) by 25bps in the second half of the year, due to weaker consumer spending, investments and exports that would lead to significantly slower growth.

Bursa Malaysia Weekly Technical Analysis

Weekly wrap of KLCI: The week started with a higher note The FBM KLCI index lost 5.08 points or 0.27% on Friday. Finance Index fell 0.58% to 16325.86 points, Properties Index up 0.15% to 1322.98 points and Plantation Index down 0.30% to 7794.55 points. Market traded within a range of 8.49 points between an intra-day high of 1849.78 and a low of 1841.29 during the session.

The KLCI extended its losing streak after closing lower at 1844.31 points. The overnight gains in U.S. markets failed to lift our local bourse as absence of positive lead in domestic market weighed on market sentiment.
Market Forecast for week ahead: The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to continue its upside momentum and trade within a narrow range of 1,840 to 1,850 points next week, driven by favourable external factors. The momentum would be driven by positive global macro data, reduced geopolitical tension in Iran and broad stimulus from the European Central Bank as well as The People’s Bank of China.
The local equities market ended the first quarter of 2015 firmer on hopes that China would adopt further stimulus measures to bolster growth, supported by reduced Iran-Greece geopolitical tension.
Technical indicators: RSI for this week is 57.544 with CCI at 131.204. Besides, difference line of MACD 2.889 and crossed its signal line 5.784.
ECONOMIC FACTORS:

• The ringgit ended sharply higher against the US dollar in tandem with most emerging Asian currencies on expectation that the US Federal Reserve would postpone increasing interest rates. It rose for a third week as a rally in crude helped shield the region’s only major oil- exporter from bets the U.S. will raise interest rates.
• Shell Malaysia has started construction of the largest upstream oil and gas (O&G) laboratory in Sarawak for deepwater exploration and production activities. It will be operational by end-2016.
• Asian shares advanced close to recent highs on Friday, and were on track for weekly gains, while the dollar gave up some of its overnight rise.
• Employees Provident Fund recorded total annual contribution of RM57.2 billion last year.
• Malaysia’s Industrial Production Index (IPI) grew 5.2 per cent in February 2015 compared with the same month a year ago, driven by growth in the indices of manufacturing, mining and electricity components.
• Malaysia’s crude palm oil stocks (CPO) stocks fell by 4.5 per cent to 907,555 tonnes at end-March 2015 against 950,362 tonnes recorded in the previous month.
• Tenaga Nasional Bhd (TNB) shares on Bursa Malaysia rose this morning on news of an expected increase in electricity demand, moving forward.
• Homegrown condom manufacturer, Karex Bhd shares’ on Bursa Malaysia rose in early trade after the company announced that it is eyeing two to three acquisitions this year.
• Newly established companies or existing companies that expand operations into less developed areas will be eligible for 100 per cent income tax exemption for up to 15 years.

Singapore & Malaysia Stocks: Daily Technical Report 4-March

Market Review for STI: Singapore share prices opened lower with the STI down 1.44 points to 3,420.67.Singapore shares rose after new data showed China's services sector grew modestly in February as new orders rose at their quickest pace in three months.
 Market forecast for STI: Still STI is not in one trend we may expect it will move in the range of 3388 to 3456
Technical Indicators: RSI is at 51 and CCI is at 24.
Important Factor for today:-

• It may be the most expensive city in the world for expatriates but Singapore is also once again the top city in Asia for this group when it comes to quality of life.
• China Oilfield Technology Services Group will be delisted after the loss-making company failed to meet regulatory requirements for removal from the SGX watch-list.
• Private equity funds worldwide sold a record US$456 billion ($621 billion) worth of investments last year, 67% more than in 2013, driven by a handful of mega deals and buoyant IPO markets in 1H2014
•  CIMB Research believes listed property developers' stock prices should sustain its growth going forward, if asset recycling activities start to occur via a trade sale, divestment to private funds, or to Singapore REITS.
• Sete Brasil is looking for a solution with its lenders and shareholders with options ranging from restructuring debt to a full write-off, according to Upstream, the global Oil & Gas news source.
• CNA Group announced a proposed placement of some 119 million new shares priced at S$0.0335 each that could rise up to S$3.79 million in net proceeds.
• Blumont Group on Tuesday said that it has obtained in-principle approval from the Singapore Exchange for the proposed placement of 100 million new shares priced at S$0.01705 each that could rise up to S$1.67 million in net proceeds.

Market Review for KLCI:
The FBM KLCI index gained 4.29 points or 0.24% on Wednesday. Finance Index increased 0.01% to 16103.45 points, Properties Index up 0.01% to 1326.84 points and Plantation Index rose 0.19% to 7988.44 points. Market traded within a range of 6.87 points between an intra-day high of 1826.05 and a low of 1819.18 during the session.
Market Review for KLCI: The FBM KLCI index gained 4.29 points or 0.24% on Wednesday. Finance Index increased 0.01% to 16103.45 points, Properties Index up 0.01% to 1326.84 points and Plantation Index rose 0.19% to 7988.44 points. Market traded within a range of 6.87 points between an intra-day high of 1826.05 and a low of 1819.18 during the session.
The KLCI extended yesterday’s gains by ending 4.29 points higher at 1825.54, despite the lower overnight close on Wall Street due to slight decline in February's auto sales. The gain in our benchmark index was underpinned by buying in heavyweight counters, led by YTL Corp.
Market forecast for KLCI: Higher closing of today’s trading session indicating market could be bullish by maintaining volume. Still there is a resistance to break 1830.
Technical indicators: RSI stood below the center line at 64.559 with its CCI at 121.129 Difference line of MACD performed at 12.305 above its signal line which performed at 12.444.
ECONOMIC FACTORS:

• Malaysia is on track to reach high income status in five years due to skillful economic management amidst an uneven global recovery, says the International Monetary Fund. Robust domestic demand supported by sound macro-financial policies is driving strong, non-inflationary growth in the face of uncertain external conditions and declining commodity prices.
• Shares of Mega First Corporation Bhd (MFCB) is bound to reach its highest since 1995 after it signed a shareholders agreement with Laos' Electricite du Laos (EDL) and two other parties to develop Don Sahong hydropower project.
• Foreign funds took profit on Malaysian equities on Tuesday with net selling at RM162.30mil after two days of net buying. foreign funds bought RM545.8mil of Malaysian equities but sold RM708.1mil.
• 4Q earnings for 2014 were uninspiring despite more corporates meeting its earnings expectations.
• Malaysia's sovereign rating is unlikely to see a downgrade, despite a possible widening in the deficit due to lower oil revenues and high household debt because of its strong fundamentals.
• The Malaysia Competition Commission (MyCC) has imposed a total financial penalty of RM247,730 on 15 infringing enterprises in relation to a price fixing agreement between 24 enterprises who are members of the Sibu Confectionery and Bakery Association (SCBA).
• The Securities Commission Malaysia (SC), the Monetary Authority of Singapore (MAS), the Securities and Exchange Commission (SEC), Thailand and the Singapore Exchange (SGX) have signed a memorandum of understanding (MoU) to establish a Streamlined Review Framework for the Asean Common Prospectus.
• Ni Hsin Resources Bhd will proceed with its investment in loss making Helios Photovoltaic Sdn Bhd, confident that it will become a major revenue and profit contributor to the group in the future.
• CIMB Group Holdings Bhd and Mitsubishi Corp yesterday launched the Asean Industrial Growth Fund (AIGF LP) to channel Japanese corporates looking to invest in mid-tier Asean companies.
• Malaysia's exports likely increased 3.0 per cent in January from a year earlier while the pace of import growth probably slowed to 2.0 per cent.