KLCI Weekly Analysis

Weekly Wrap KLCI

• The week started with a falling window with drop of 1567.91. It remain slighlty bullish this whole week mixed sentiments. On weekly basis KLCI moved within the range of 1567.91 to 1612.32 and ended the week in a range bound phase, closed 44 points up. 

•  Investors remained cautious as await FED’s monetary policy meeting on next week, which could potentially see interest rate rise in almost a decade.

• The KLCI halted its winning streak and closed lower at 1603.60 points despite overnight gains in US markets following higher oil price, 10.42 points or 0.65% lost on Friday.

• Finance Index fell 1.41% to 14015.9 points, Properties Index up 1.14% to 1136.64 points and Plantation Index down 0.22% to 6890.07 points. 

• Market traded within a range of 9.78 points between an intra-day high of 1612.32 and a low of 1602.54 during the session.

FBM KLCI Week's Performance

Open	1578.5
High	1614.02
Low	1567.91
Close	1603.6
Change (in points)	14.44
% Change	0.91%

Weekly Technical Levels

Support 1	1553
Support 1	1503
Support 1	1448
Resistance 1	1614
Resistance 2	1660
Resistance 3	1700

Market Forecast 

The KLCI index is expected to trade sideways in coming week on the back of cautious investors sentiments which can bound the market to give some good movement. However if it breaks the technical level of 1614 then it can reach to the level of 1640 and trade positive.

Technical Indicators

RSI for this week is 32.001 with CCI at -132.308. Besides, difference line of MACD -51.838 below its signal line at -38.556.

Global factors & World Indices

• The ringgit opened higher against the US dollar today on technical correction. Investors have been covering their short US dollar positions against the ringgit as local note seems to be oversold.

• Malaysia's central bank left interest rates unchanged for a seventh meeting as quickening inflation and a weakening currency reduced scope for the central bank to add stimulus.

• Malaysia and China have agreed to activate the Economic Cooperation Working Group (ECWG), which was established under the Five Year Programme for Economic and Trade Cooperation signed in 2013.

• China's central bank has asked commercial banks to strengthen supervision of foreign-held non-resident accounts (NRA) purchases of foreign exchange in China.

• Inflation in Germany, Europe's biggest economy, stood at just 0.2 per cent in August, data on Friday, amid concerns that prices could begin to fall again in the 19-country eurozone.

• The biggest euro-area banks will put 2.8 billion euros (US$3.2 billion) this year into crisis funds intended to keep taxpayers off the hook for meltdowns in the financial industry.

• China stocks ended a directionless session with mixed performance, as investors awaited more signals for trying to judge the health of the country's economy.

• Singapore Exchange (SGX) retained its status as Derivatives Exchange of the Year and was named Central Counter party of the Year by Asia Risk magazine.SGX's diverse offerings were cited in awarding it the title of derivatives exchange of the year, the market operator announced. This is the second year in a row that SGX has won the title.

• Asian markets were relatively calm Friday at the end of a volatile week, with Shanghai and Hong Kong ticking higher after China unveiled a series of steps to shore up its economy, but fears of a US interest rate hike kept dealers on edge.

• A slump in oil prices is forcing the oil and gas services industry for the first time in 15 years to trim costs in a way that executives say will create a lasting change away from their usual lavish way of doing business.

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