KLCI Technical Analysis - 31 March, 2015

Market Review for KLCI

• The FBM KLCI index gained 8.46 points or 0.47% on Monday.

• Finance Index increased 0.30% to 16128.35 points, Properties Index up 0.06% to 1311.71 points and Plantation Index down 0.52% to 7743.63 points. 

• Market traded within a range of 10.74 points between an intra-day high of 1825.76 and a low of 1815.02 during the session.

Market Forecast for KLCI

Share prices on Bursa Malaysia opened higher with active buying throughout
the day. It did not put much impact on the movement as it only compensated the
bearish activity of last weekend's 2 sessions.

Technical Indicators

• RSI stood below the center line at 59.803 with its CCI at 97.185.

• Difference line of MACD performed at 5.147 crossed its signal line which performed at 2.891.

Economic Factors

• Disruption of oil routes due to tensions in West Asia with Saudi Arabia sending war planes into Yemen in clashes with Iran would be positive to the local stock exchange. Overall, FBM KLCI, which showed relative strength to settle above its multi-month resistance level of 1,800, should continue its winning streak on the back of a stronger oil and currency movements.FBM KLCI weekly ended with gains 9.72 points to 1,813.37 from 1,803.65.

• The Malaysian Automotive Association (MAA) said the depreciation of the ringgit will play a more significant role in determining car prices in the future, than the implementation of Goods & Services Tax (GST) in April.

• The Ministry of Finance, in its capacity as the 100% shareholder of 1Malaysia Development Bhd (1MDB), has created a special task force to help ensure the successful implementation of the company's strategic review.

• Mercury Industries Bhd, a paints products manufacturer, is planning to buy a 70% stake in construction outfit Paramount Bounty Sdn Bhd for RM42 million, marking its entry into the construction industry.

• AmMetLife Insurance Bhd is looking to achieve a compound annual growth rate of 24% over the next four years to help the company break into the top five of the country's life insurance companies by 2019.

• Major shareholder Amin Halim Rasip is enticing Integrax Bhd shareholders to hold off making a decision on accepting Tenaga Nasional Bhd's RM3.25 offer, with a promised RM1.2 billion voluntary general offer to be launched by himself and "other business entrepreneurs".

• AirAsia X Bhd, whose shareholders approved its RM395 million rights issue last Friday, is confident of achieving improvements this year despite the widened net loss last year and the QZ8501 incident early this year.

• Berjaya Corp Bhd, which acquired a 10.53% stake in REDtone International Bhd last Friday, has launched a takeover bid for the telecommunication company at 80 sen per share.

• Faber Group Bhd, which received shareholders' nod for the change of name to UEM Edgenta Bhd last Friday, believes new business entities Opus Group Bhd and Projek Penyelenggaraan Lebuhraya Bhd (Propel) will help mitigate the challenging outlook for its hospital support services (HSS) division.

• The ringgit is expected to be volatile against the US dollar this week amid the upbeat outlook for Malaysia's economic fundamentals versus favourable sentiment skewed towards US economy.

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