Mid Day Market Update: KLCI Inched Lower Tracking Regional Markets

Bursa Malaysia ended the Tuesday morning trading session in negative territory, FBM KLCI shrank 5.46 points to 1,496.61 from Monday’s closing of 1,502.07. The main index was dragged down by selling weak regional market sentiment.

The barometer index opened 0.74 of a point weaker at 1,501.33, and moved between 1,496.04 and 1,503.0 throughout the morning session. Wall Street inched lower overnight as profit-taking activities set in.

Meanwhile, the market breadth was negative with decliners outpaced gainers 589 to 205, while 353 counters were unchanged.

Trading volume was recorded at 1.68 billion units with value of RM781.68 million.

The top 2 gainers were consumer staples counters namely, Heineken Malaysia and Carlsberg.

Some of the heavyweights that dragged the index are Dutch Lady, Hong Leong Financial Group, Tenaga and Petron Malaysia.

WTI Crude :  Falling Strongly Below The 200-Day SMA Line

RHB Research has maintained “short” positions on WTI Crude.

After struggling to rebound further from the 200-day average line, the WTI Crude fell strongly below the average line to close USD4.73 weaker at USD93.89 – the lowest close since 25 February. After opening weaker at USD98.46 and briefly touching the USD98.65 high, the commodity then fell sharply throughout the session as it hit the USD92.42 low before bouncing mildly at the close – slightly above the USD93.67 immediate support. The long black body candlestick breaching the long-term average line signals the continuation of the downwards movement that is expected to persist below the 200-day average line in the coming sessions. It is expected the next two support levels of USD93.67 and USD90.56 to be broken in the medium-term outlook. As such, the research house is sticking to its bearish bias.

COMEX Gold:  Bullish Momentum Continues

Whilst for this previous gold futures, RHB Research is maintaining “long” positions.

The COMEX Gold continued to move higher yesterday on the back of strong momentum, rising USD5.90 to settle at USD1,787.70. The commodity began Monday’s session at USD1,782.50 and initially fell to the day’s low of USD1,774.30. However, strong demand during the US session lifted it towards the day’s high of USD1,792.50 before the close. The latest session saw the commodity print a fresh “higher high” bullish pattern. Riding on strong momentum, the bulls are looking to cross above the 50-day SMA line. If it is able to cross above this threshold, or reclaim the USD1,800-pt resistance, this should strengthen the bullish setup and boost the commodity further. In the event profit-taking occurs, the COMEX Gold may retrace towards the USD1,750 support. The RSI is trending higher in tandem with the price chart, showing that bullish momentum is still in play. Hence, no change to the positive bias for now.

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