The Malaysia inventory market on Monday snapped the two-day slide through which it had slipped virtually 6 factors or 0.4 %. The Kuala Lumpur Composite Index now sits simply above the 1,455-point plateau and it might decide up steam on Tuesday.
At 9.13am, the FBM KLCI opened at 1455.04.
RHB Retail Analysis, in a observe at present (Sept 12), mentioned the FKLI consolidated close to the 50-day SMA line yesterday, recouping all its intraday losses to shut 1.50 pts greater at 1,435 pts – in constructive territory.
The index began off greater at 1,437 pts, and fell to the intraday low at 1,430.50 pts. Within the afternoon, it rebounded strongly to shut barely beneath the opening degree, but greater than the earlier shut.
The late shopping for strain suggests sideways consolidation close to the 50-day SMA line and 1,430 pts assist, with a possible draw back motion.
The weak RSI at 46% adverse territory signifies a weakening momentum. Any upcoming rebound is predicted to be restricted – presumably reaching the 1,450 pts resistance.
So long as the index futures stays beneath the stop-loss level, the bearish bias persists.
Merchants ought to maintain on to the brief positions initiated at 1,447.50 pts, or 17 Aug’s shut. To minimise the buying and selling dangers, the stop-loss threshold is positioned at 1,468.50 pts.
The closest assist is marked at 1,430 pts, adopted by 1,400 pts. Conversely, the closest resistance stays at 1,450 pts, adopted by 1,468.50 pts, or the excessive of 1 Aug.
Maybank Funding Financial institution (Maybank IB) mentioned the FBMKLCI Index began the week stronger following late shopping for that helped recoup earlier losses.
This was in tandem with higher efficiency throughout the regional equities markets on Monday.
At day’s finish, the benchmark FBMKLCI index eked out 0.09pts of features, or 0.01%, to 1,455.04, led by advances in PETGAS, MISC, DIALOG and CDB.
Market breadth remained adverse as losers outnumbered gainers by 609 to 295. A complete of two.79b shares valued at MYR1.63b modified fingers.
Promoting strain stays in each development and property names whereas cut price searching emerged in expertise shares.
The general shopping for curiosity stays selective.
Technically, Maybank IB expects the FBMKLCI Index to vary between 1,445pts and 1,460pts at present, with helps at 1,440pts and 1,413pts.
Malacca Securities (MSSB) mentioned the FBMKLCI (+0.01%) ended flat amid a combined regional efficiency.
On the broader market, the Property sector (-0.89%) fell as traders are cautious over the uncertainty in China’s property sector. Whereas the main sector was the Expertise sector (+0.27%) which rebounded after heavy profit-taking final week.
Total, the FBMKLCI traded flat as traders have been assessing the midterm overview of the twelfth Malaysia Plan. In the meantime, Wall Road gained momentum regardless of heading into a number of key financial information equivalent to CPI, PPI and retail gross sales.
Nonetheless, do observe that the FOMC assembly can be held subsequent week and merchants might keep cautious forward of the occasion. Nearer to house, MSSB thinks the native bourse might carry out on a constructive observe after Economic system Minister Rafizi Ramli elaborated additional on the twelfth Malaysia Plan on nationwide TV station, reiterating that the federal government can be focussing on 5 high-growth excessive worth sectors (HGHV), whereas the shopping for curiosity might spillover from Wall Road as nicely.
Commodities sensible, the Brent crude oil maintained its agency buying and selling tone above the USD90/bbl degree, whereas the CPO costs remains to be buying and selling beneath the RM3,800/MT degree.
Sector focus: Below the 12MP, the 5 HGHV sectors, specifically the (i) renewable power, (ii) expertise and digital, (iii) electrical and electronics, (iv) agriculture and agro-based, and (v) uncommon earth industries can be in focus.
MSSB believes traders might look into these areas for buying and selling alternatives over the close to time period.
The FBMKLCI ended flat after forming a bearish candle on Friday. In the meantime, the technical readings on the important thing index have been combined with the MACD Histogram prolonged one other adverse bar, however the RSI remains to be hovering above 50. The resistance is positioned round 1,465-1,470, whereas the assist is ready round 1,430-1,440.