Technical rebound expected

Daily FBM KLCI chart as at June 19, 2019

The market was bearish in the past one week on falling commodities prices especially crude oil and directionless markets performances in the region. However, the FBM KLCI staged a rebound last Friday and this indicates some support.

The FBM KLCI declined 0.8 per cent in a week to 1,669.45 points last Friday.

Trading volume increased significantly last week but more retail activity. The average daily trading volume has increased to 3.2 billion shares last week from 2.7 billion shares the week before. The average daily trading value fell to RM1.9 billion from RM2 billion. This indicates more lower-capped stocks, which are favoured by the retail market, were being traded.

The retail market was net buyer while both local and foreign institutions were net sellers. Net buy from local retail was RM57.9 million. Net sells from local and foreign institutions were RM51.0 million and RM6.9 million respectively.

In the FBM KLCI, decliners outpaced gainers two to one. The top three gainers were Press Metal Dialog Group Bhd (3.9 per cent in a week to RM3.51), Genting Malaysia Bhd (2.1 per cent to RM3.36) and Maxis Bhd (1.2 per cent to RM5.70).

The top three decliners were Petronas Chemicals Group Bhd (7.2 per cent to RM7.81), Axiata Group Bhd (1.9 per cent to RM5.08) and Malaysia Airports Holdings Bhd (1.8 per cent to RM8.60).

Market indices performances in Asia were mixed. In Europe, most major markets indices closed lower. The UK’s FTSE100 index was firm while the US Dow Jones Industrial Average pulled back to close marginally lower after climbing to historical highs.

The US dollar has slightly strengthened against major currencies. The US dollar Index slightly declined to 97.1 points from 96.7 points

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