It was a bloodbath day as far as the local benchmark index, FBMKLCI, is concerned. The index fell over 30 points to close below the 1,545/40-support at 1,530.92. Broad market wise, there were only 178 gainers which is a far lower number in contrast to 995 losers. At the same time, there were 327 counters unchanged while 819 counters untraded. The broad base sell-down of the local equity market (especially the heavy weights like banks, telcos, plantations, etc) could be owing to (i) the proposal of one-off “Cukai Makmur” for companies that generate over RM100 million taxable income for FY2022 and (ii) the hike of stamp duty (from 0.10% to 0.15%) and the removal of RM200-ceiling for share purchase.
Chart-wise, FBMKLCI is in the midst of testing TrainYew’s SuperTrend support. A break of which will see lower support coming in at 1,525/20. Despite today’s sell-down, the RSI of FBMKLCI has yet to turn “oversold”. As such, investors should stay cautious until a clear-cut reversal signal is seen. Besides, it is also observed that Pick@Stock’s COWI Sentiment Index has shown a “Bearish Divergence” while it has yet to issue any concrete reversal signals. Nonetheless, the divergence could suggest that general trading sentiment could be turning lacklustre in the near future.
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