Market Wrap
Bursa Malaysia ended lower on lackluster trading ahead of the tabling of Budget 2022 tomorrow. The benchmark index, FTSE Bursa Malaysia KLCI (FBMKLCI), declined 16.22 points to its intraday low of 1,566.86 from yesterday’s close of 1,583.08. In fact, the market barometer gapped down 2.0 points at 1,581.08 (despite reaching an intraday high of 1,581.49) earlier in the day. Market breadth was negative with losers outpacing gainers 624 to 422, while 415 counters were unchanged and 832 untraded.
With the weaker closing, TrainYew’s Trading System has reaffirmed its earlier “Negative Signal”. However, the index is still supported above the Bollinger Middle Band at 1,570. A breach of which will probably suggest a further consolidation towards TrainYew’s SuperTrend support of 1,540/35.
Again, while there is no “Negative Signal” is observed on Pick@Stock’s COWI Sentiment Index, failure to see a quick recovery in trading sentiment will lead to further deterioration in the market breath and trigger a “Negative Signal” eventually.
Based on Pick@Stock’s “Today Keywords”, it seems that Banking, Semiconductor, Oil & Gas (O&G), Energy as well as Metal sectors faced strong selling pressure. The strong profit-taking activities among commodity-related players could be owing to a sharp pullback in Crude Oil and other commodities prices from their recent highs.
Besides, the disposal of 10 million shares in Press Metal Aluminum Holdings (PMETAL, 8869) by its major shareholder, Tan Sri Koon Poh Keong has also been suppressing its share price performance. In fact, today’s sell down has triggered another “Negative Signal” and violated TrainYew’s SuperTrend support. Lower supports are seen at RM5.50/40 while resistance is seen at RM5.90.
Having said all negatives, the market, however, saw Property counters performing strongly, as investors have been speculating on potential “goodies” to be given to property sector. Chart-wise, both Eco World Development Group (ECOWLD, 8206) and SP Setia (SPSETIA, 8664) have staged volume breakout and uptrend acceleration today. Their immediate supports are seen at RM0.940 and RM1.40 respectively.
DISCLAIMER:
THIS IS NOT AN ADVICE ON ANY INVESTMENT OR TO TIME THE MARKET. IT IS JUST SHARING FOR EDUCATION PURPOSES. PLEASE NOTE THAT ABOVE ANALYSIS ARE BASED ON BEST AVAILABLE INFORMATION ON PUBLIC PLATFORM. I WILL NOT ACCEPT ANY LIABILITY WHATSOEVER FOR ANY DIRECT OR CONSEQUENTIAL LOSS ARISING FROM ANY USE OF THIS INFORMATION.
Market Wrap
The FBM KLCI opened stronger in the morning and rebounded above 1,590 before ending the day lower at 1,583.08 (-1.12 points). Market breadths worsen with losers outpacing gainers further by 632 to 386, while 420 counters were unchanged and 865 untraded.
Banking was the top performer sector today where AMBANK (1015) and HLFG (1082) were leading ahead by registering 1.48% and 1.42% higher, respectively. No major development was observed. However, the financial services index was on rising trend after rebounding off the 14,651-level. It also seems to be well supported above the 15,684-level a.k.a the middle band of regression line. Should the recovery story persist, the uptrend is likely to continue.
At the same time, it is also observed that Technology and Telecommunications sectors were also showing decent trading interest. Inari Amertron (INARI, 0166) and Redtone Digital (REDTONE, 0032) were the 2 noticeable counters that appeared in Pick@Stock’s “Today Keywords”. Technically speaking, INARI has been trending up within a well-established uptrend channel. The stock could be in the midst of testing its RM4.00-psychological resistance in the near-term. REDTONE, on the other hand, could have staged an uptrend acceleration with a significant surge in trading volume after overcoming its RM0.600-psychological resistance.
On the contrary, Hiap Teck Venture (HIAPTEK, 5072) declined 8 sen (or >12%) to 57 sen, which is marginally above its TrainYew SuperTrend support of RM0.680, with higher than average trading volume. A break below the said support will suggest potential further declines to RM0.535/520.
As for the benchmark FBMKLCI Index, TrainYew’s “Negative Signal” remains intact and the index is likely to continue its consolidation process, say towards ~1,570 or the Bollinger Middle Band. At the same time, Pick@Stock’s COWI Sentiment Index remains flattish but has yet to issue any negative signals.
DISCLAIMER:
THIS IS NOT AN ADVICE ON ANY INVESTMENT OR TO TIME THE MARKET. IT IS JUST SHARING FOR EDUCATION PURPOSES. PLEASE NOTE THAT ABOVE ANALYSIS ARE BASED ON BEST AVAILABLE INFORMATION ON PUBLIC PLATFORM. I WILL NOT ACCEPT ANY LIABILITY WHATSOEVER FOR ANY DIRECT OR CONSEQUENTIAL LOSS ARISING FROM ANY USE OF THIS INFORMATION.