Bursa Malaysia- FBM KLCI will bullish movement in coming week, test the level of 1705

Weekly Wrap of KLCI

The week started with bearish sentiments and traded range bound thorough the week and ended on a positive note on Friday. The FBM KLCI index gained 33.27 points or 2.04% on Friday. The FBM KLCI index lost 5.14 points or 0.31% on Friday. The Finance Index fell 0.26% to 13986.46 points, the Properties Index up 0.46% to 1128.18 points and the Plantation Index down 0.82% to 7924.58 points. The market traded within a range of 11.39 points with a high of 1685.23 and a low of 1673.84. Free Trial Signals for next Week

The KLCI extended its mid-day losses by ending lower at 1674.88 points amid overnight losses in US market. The downtrend in our benchmark index was dragged down by losses in heavyweight counters such as IOI Corp and Genting Bhd. 

Market Forecast for week ahead:

The KLIC index is expecting it to continue its bullish movement in coming week on the back of the expectation of the potential rebound in the Crude Oil price, however the market can take resistance at the level of 1685 and the crossover of this level can lead to a bullish movement in near term and after that the market can test the level of 1705.

Technical indicators:

RSI for this week is 50.809 with CCI at 12.421. Besides, difference line of MACD -10.266.

Global factors and World Indices

• The rally in Asia stocks fizzled out Friday, as a renewed weakening in the price of oil dampened sentiment and safe haven assets such as the yen received a boost.
• Tokyo stocks closed down sharply on Friday, as a stronger yen dented exporters and another fall in oil prices hammered commodity and energy shares.The benchmark Nikkei 225 index at the Tokyo Stock Exchange fell 1.42 per cent, or 229.63 points.
• China stocks slipped on Friday in line with a broader correction across global equity markets, but posted solid gains on the week.Shanghai Composite Index ended down 0.1 per cent at 2,860.02 points.
• Hong Kong stocks tracked global markets lower on Friday as energy shares pulled back after an oil price rally paused.The Hang Seng index fell 0.4 per cent for the day, to 19,285.
• American's expectations for the economy declined in February to a three-month low as optimism propelled by job growth and cheaper gasoline at the start of the year faded. A monthly measure tracking the economic outlook dropped to 42.5 from a January reading of 4
• China's central bank will inject 10 billion yuan (S$2.15 billion) into the money markets through seven-day reverse bond repurchase agreements .This will bring the total net drain from the market this week to 455 billion yuan, the most in three years.
• The yen was broadly firmer early on Friday, having hit a fresh 2-1/2 year high on the euro thanks in part to renewed demand for the safe-haven Japanese currency as Wall Street snapped a three-day rally.
• The number of people who filed for unemployment assistance in the U.S. last week fell to a 12-week low, remaining in territory usually associated with a firming labor market.
• Minutes from the European Central Bank's January policy meeting revealed that members were unanimous in concluding that the monetary policy stance needs to be reviewed and possibly reconsidered in March to secure a return of inflation rates towards levels below, but close to, 2%.
• Gold fell for the first time in three days as investors weighed losses in financial markets and crude oil against the outlook for the U.S. Economy
• Oil futures fell in Asian trade on Friday as a record build in US crude stocks stoked concerns about global oversupply, outweighing moves by oil producers including Saudi Arabia and Russia to cap oil output.
• US crude inventories rose by 2.1 million barrels last week, to a peak of 504.1 million barrels, the third week of record highs in the past month, data from the US government's Energy Information Administration (EIA).

STATISTICS

• China's vehicle sales rose 7.72 % in January year-on-year to US$2.5 million.The China Association of Automobile Manufacturers said last month that it expects vehicle sales to grow 6 per cent in 2016, quickening from the 4.7 percent rise last year.
• Singapore's domestic wholesale trade shrank by 15.9 per cent year-on-year in the fourth quarter of 2015, partly due to lower prices of petroleum and chemical products.
• Singapore's overall domestic wholesale trade would have registered a 13.8 per cent increase.
• Confidence at Japanese manufacturers remained largely subdued in February and the mood was seen deteriorating over the coming three months, a Reuters poll showed, highlighting concerns about slowing global growth and turbulent markets.
• South Korea's producer prices in January fell 3.3 per cent in January from a year ago, the Bank of Korea said, the slowest decline since December 2014.
• Japan’s all industries activity index fell more-than-expected last month,to a seasonally adjusted -0.9%, from -1.1% in the preceding month whose figure was revised down from -1.0%.U.S. gasoline inventories rose more-than-expected in the last quarter,it rose to a seasonally adjusted annual rate of 3.036M, from 1.258M in the preceding quarter.
• U.S. crude oil inventories rose less-than-expected last month,it rose to a seasonally adjusted annual rate of 2.147M, from -0.754M in the preceding month.
• The euro zone’s current account fell less-than-expected last month,current account fell to a seasonally adjusted 25.5B, from 26.9B in the preceding month whose figure was revised up from 26.4B.