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Writer's pictureHONG WEI GIET

FBMKLCI Weekly Report - 30/3/2019


Technical Analysis

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-FBMKLCI closed monthly position at 1643.630 level on Mar 29, 2019. (Monthly reduction: -56.82 point)

- There is different 17.16 point to meet previous low at 1628.470 level.

- MACD shows bearish sign with buying force.

- RSI shows oversold and it is become intact from Mar 27, 2019 to Mar 29, 2019.

- Market stays alert to international news, inverted interest in T-Bill for 10 years and a old story - US China Trade war. Thus, FBMKLCI traction volume decrease significantly.

- However, there is SMALL signal which shows investor starts to buy shares in Money Flow Index (MFI) on Mar 12, 2019. Stay tuned...... FBMKLCI will try to close gap down on Mar 22, 2019 soon.

Economic Analysis

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- Malaysia leading Economic Index increase significantly in Jan 2019 and the highest in past 6 months.

- It is majorly contributed by housing units approved (+0.7%), real imports of semi-conductors (0.4%) and number of new company registered (+0.1%)

- Based on BNM Monthly Highlights and Statistics in February 2019, we noticed M1 growth rate (-1.37%) is lower than M2 growth rate (-0.09%) with month to month basis.

- It indicated that Malaysia savers still very concern about Malaysia economic growth. They willing to save more than spending so fixed deposit placement increase by RM3,847M and demand deposit decrease by RM2,251M.

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