An uptrend should have a higher High, higher Low. A downtrend should have a lower High, lower Low. We are in range if we are seeing neither of these patterns.
KUALA LUMPUR: Bursa Malaysia ended at an intra-day high today on persistent buying interest in selected heavyweights, particularly in consumer-and finance-related stocks, dealers said.
The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) ended 18.98 points or 1.11% higher at 1,727.36 from 1,708.38 last Friday.
The index opened 1.79 points easier at 1,706.59 and moved between 1,706.21 and 1,727.36 throughout the day.
On the broader market, gainers led decliners 567 to 358, 364 counters were unchanged, 406 untraded and 14 others were suspended.
Volume trimmed to 3.01 billion units, worth RM2.63 billion, against last Friday’s 3.41 billion units worth RM2.63 billion.
Among consumer-related stocks, BAT was the top gainer. It rose RM1.30 to RM49.50 followed by Dutch Lady which increased 26 sen to RM55.66.
Finance stocks, Hong Leong Financial Group rose 36 sen to RM15.66, HCK Capital Group improved 25 sen to RM3.60 and CIMB Group added 24 sen to RM5.46.
FXTM Chief Market Strategist Hussein Sayed said last week was the repricing of interest rates expectations, in which investors across different asset classes were no longer waiting for clarification from the US administration to base their decisions, at least in the short-run.
“The significant rally in US equities and the US dollar last week occurred without any new fresh fiscal signals.
“Infact, President Trump’s speech on Tuesday left many questions unanswered, and still investors reacted as if tax cuts and stimulus plans will be implemented regardless,” he added.
The FBM Emas Index rose 114.57 points to 12,172.16, FBMT100 Index surged 113.49 points to 11,849.8 and the FBM Emas Shariah Index was up 64.36 points at 12,563.13.
The FBM 70 added 71.89 points to 14,100.12 while the FBM Ace was 19.72 points higher at 5,280.8.
Sector-wise, the Industrial Index rose 26.22 points to 3,262.67, Plantation Index gained 13.95 points to 8,108.46 and the Finance Index surged 199.01 points to 15,487.57.
The Malaysian Rubber market ended mostly higher today, taking the queue from the rubber futuresd market on the Tokyo Commodity Exchange (TOCOM) which was prompted by higher crude oil prices.
However, gains were capped by the ringgit’s appreciation against the US dollar which stood at 4.4460 versus the greenback as at 5pm.
Among heavyweights, Maybank was up nine sen at RM8.82, Public Bank, TNB and IHH Healthcare rose six sen each to RM19.94, RM13.68 and RM5.95, respectively, and Sime Darby improved four sen to RM9.14.
Of actives, Dagang Nexchange rose two sen to 41 sen, Borneo Oil was up by half-a-sen to 17.5 sen, Berjaya edged up 1.5 sen to 39.5 sen while Nexgram was flat at 4.5 sen.
Main Market turnover fell to 2.18 billion units, worth RM2.49 billion, versus last Friday’s 2.34 billion units worth RM2.45 billion.
Volume on the ACE Market trimmed to 592.93 million shares, valued at RM105.15 million, from 794.75 million shares, worth RM143.94 million.
Warrants slid to 217.38 million units, worth RM26.92 million, from 259.62 million units, valued at RM36.27 million.
Consumer products accounted for 119.75 million shares traded on the Main Market, industrial products (332.42 million), construction (186.91 million), trade and services (1.02 billion), technology (107.89 million), infrastructure (12.24 million), SPAC (10.8 million), finance (103.39 million), hotels (499,200), properties (235.89 million), plantations (34.71 million), mining (nil), REITs (19.86 million) and closed/fund (34,900).
The physical price of gold as at 5pm stood at RM170.58 per gramme, up 64 sen from RM169.94 at 5pm last Friday. — Bernama
The sentiment appears “bullish” but are we in an uptrend ?
If the graph below is of significance, then it is quite clear that we are still very much in a range. We have yet to see a clear breakout from the range which started since September 2015. The range is evidenced as follows:
- No clear higher High, higher High or lower High, lower Low
- A clear trading price channel of between 1,610 and 1,727
- No significant increase in trading volume throughout the price channel
- Average true range has dropped significantly since Sep 2015 (signaling reduction in volatility)
- Modified MACD signaling high frequency of buy and sell signals
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