Mid Day Market Update: KLCI Lower Dragged by Bearish Sentiment

Dragged by profit-taking of selected heavyweights and bearish market sentiment, Bursa Malaysia closed the Monday morning trading session in negative territory i.e. the FBM KLCI ceded 8.43 points to 1,493.12 from last Friday’s closing of 1,501.55.

On the broader market, decliners outpaced gainers 435 to 233, while 381 counters were unchanged.

Trading volume registered at 1.07 billion units with value of RM585.53 million.

The top 5 gainers were PANAMY, DKSH, F&N, THETA and CHINHIN.

Whilst decliners were MPI, PPB, KESM, HEXTECH.

WTI Crude :  Selling Pressure Pauses

RHB Research has continued to maintain “short” positions on WTI Crude.

The WTI Crude paused its selling pressure last Friday as it attempted to move higher during the intraday session before retracing sharply to close USD0.47 higher at USD89.01. The commodity started lower at USD88.46 and, after falling to the USD88.10 session low, it reversed its momentum – propelling towards the USD88.64 day high before selling pressure kicked in again. Strong profit-taking was seen dragging the black gold lower to close slightly above the opening level. The small white body candlestick with long upper shadow indicates that sentiment remains bearish – follow-through negative momentum should be testing the next support at USD86, followed by the USD81.90 point. Coupled with the RSI indicator trending lower, no reversal signal is seen in the coming sessions yet. As such, the research house is keeping to its bearish bias for now.

COMEX Gold: Slipping Below The USD1,800 Psychological Level

Meanwhile, RHB Research is maintaining “long” positions on COMEX Gold.

The COMEX Gold experienced strong profit-taking on Friday, retreating USD15.70 from the previous session to settle at USD1,791.20. It started the session with positive sentiment, gapping up to open at USD1,807.70. After hitting the day’s high of USD1,811.60, it saw strong selling pressure and pulled back to the day’s low of USD1,780.20 before the close. Based on the price action, the USD1,812 level has become the immediate resistance. The commodity has to break past the immediate threshold to resume upside movement. In the coming sessions, it may consolidate below the resistance level, and retest the USD1,770 immediate support. It is observed that the 20-day SMA line is trending higher – this is enhancing the bullish setup and will provide a strong downside support. For now, the research house is holding on to its positive bias.

Previous articleMITI: Geopolitics, advent of new tech causes shortfall of semi semiconductor chips supply
Next articleFGV And Partners To Invest RM4.5 Billion In Large Scale Dairy Farming Project

LEAVE A REPLY

Please enter your comment!
Please enter your name here