Headline EXPECT MORE MARKET VOLATILITY MediaTitle New Straits Times Date 06 Apr 2020 Language English Circulation 36,278 Readership 108,834 Section Business Times Page No 24 ArticleSize 818 cm² Journalist KALADHER PR Value RM 84,267

CONFLICTING SIGNALS EXPECTMORE MARKET VOLATILITY

HE local stockmarket whipsawedbetween T gains and losses last week,influencedbyop- posing factors as the steepex- ponential growth of Covid-19 in- fections worldwide fuelledsell- ing,but regainedsome lost ground later at the end of the first-quarterwindow-dressing and positive news that ’s official manufacturing purchas- ing managers’ index (PMI) for last month had movedback intoex- pansion mode. Concerns over asurgeinCovid- 19 infections in the United States and Europeasthe global count rose aboveamillion were sub- sequentlyoffset by areboundin global oil pricesonhopes forfur- ther price supportfromChina purchases and news about a meeting by Opec+(an informal alliance of the Organisationof the Petroleum Exporting Coun- triesand non-Opec producers )to end the oil pricewar. Week-on-week, the blue- moreoil beginning this month. payrolls dropped by 701,000last downtrend momentum is easing. chip benchmark FTSE Bursa Oil pricesreceivedaboostafter month, thefirst declinesince KLCI (FBM KLCI) eased atweet from US PresidentDonald September 2010 and closertothe Conclusion 12.44points, or 0.93 percent, to Trump suggested production May2009 financial crisis peak of Conflicting signals flashedon 1,330.65, as falls on AxiataGroup cutscould be on the wayand 800,000,and the unemployment momentum and trend indicators Bhd (-18 sen), IHH Healthcare news reportssaidOpec+ produc- rateroseto4.4 from 3.5per cent. on the FBM KLCI following last Bhd (-24 sen), Hong Leong Fi- erscalledfor ameeting to restore week’s choppytrading sessions nancial Group Bhd (-RM1.06), Di- balance in the oil market. It is Technical Outlook implythatstocks will need to re- gi.ComBhd (-18 sen) and RHB doubtful that SaudiArabia and Trading rangefor the blue-chip build supportand convince in- Bank Bhd (-41 sen) overshadowed Russia will agree to cut as much benchmark index lastweekcon- vestorsofamoresustainable re- gains in Bhd as 10 to 15 million bpdastweeted tractedto35.26 points, compared covery ahead. Givenuncertainty (+22 sen), Sime DarbyBhd (+14 by Trump as even at the lowest with the huge111.89-point range over the severity of the economic sen) and Genting Bhd (+17 sen). end of the range, thataccountsto the previous week,asblue chips damagefromthe pandemic,ex- The averagedailytradedvolume about 47.6 percent of both coun- congestedfollowing their recent pect moredownside volatility. and value lastweekroseto4.32 tries’ collective output as at end selloff to multi-yearlows. Forthe Immediatesupportfor the in- billion shares andRM2.47billion, of lastmonth.Thus, anticipate week,the FBMEmas Index eased dex staysat1,300,with stronger compared withthe 3.6billion volatility in oil and gas stocks this 10.92points,or0.12per cent, to supports at 1,260,then1,241,and shares and RM2.46 billion aver- week and the selling pressurecan 9,175.38,but the FBM Small Cap crucialsupports at 1,219,the 61.8 agethe previous week as trading increase if is Index surged 538.41points, or percent Fibonacci Retracement momentum increasedonlower adamant with itsplan to increase 6.02 percent, to 9,481.25,boosted (FR) of the 801 lowofOctober pricedsmall-cap stocks. production to 12 millionbpd and by strong buying interestinoil 2008 to the1,896 all-time high, The FBM KLCI is expectedto Russia to increase production by and gas related small caps. and the recent pivotlow of 1,207. face selling pressurethis week af- another 300,000 bpd. On technical momentum indi- Immediateoverheadresistance terthe recent window-dressing On the economic data front, cators, note that whilethe daily will be at lastweek’s high of 1,352, rally, underminedbythe pan- Malaysia’strade balance for slowstochastic indicator on the with tougher hurdlesexpected demic and potential weakness in Februaryrose to RM12.6billion FBMKLCIhas risen closerto- from the falling 30-day moving crude oil price.The oil price ral- versus the forecastofRM11bil- wardsthe overbought region, the averagelevel at 1,380,and 1,409, liedonnews from unconfirmed lion, as exports and imports grew weeklyindicator hookedupfor the 23.6 percent FR of the selloff sourcesthat China is taking ad- at astronger pace of 11.8 and11.3 an earlybuy signal in oversold from the July last year highof It is not an vantageofthe cheap pricestore- percent versus forecast0.3 and territory. The14-dayRelative 1,694 to 1,320 low. exaggeration plenish itsreserves. Rumour has 0.1per cent, respectively.This an- Strength Index (RSI) indicator Stocks-wise,telcos Digi.Com it that the countrywill buy nouncement on Fridaywas noth- hadlevelled off inthe neutral andMaxis Bhdshould retrace as therewill be around 80 million to 100 million ing to shout about as concerns ground, but the 14-weekRSI from recent strength due to prof- more downside barrels over ayear. Thatisadrop were building up about the coun- stayed weak with an oversold it-taking interest, while oil and in the oceanifthe International tryplungingintoarecession if reading of 23.74. gas related stocks,such asBumi pressureonprices Energy Agency’s(IEA) prediction the pandemic continuesunabat- On trend indicators, the daily ArmadaBhd,Sapura Energy Bhd, if Saudi Arabia of oil demandfalling by 20 mil- ed.All eyes willbeonChina’s Moving AverageConvergence Di- VelestoEnergyBhd and Wah and Russia lion barrels aday (bpd)turns out consumer and factory pricesfor vergence (MACD) triggerline ex- Seong Corporation Bhd,may to be true. lastmonth that will be released pandedpositively following the continue to attractbargain continuewith IEA predictedsuchapossibility this Friday. It can provide clues previous week’s buysignal, but huntersgiventhe recent rebound their plan to becauseofthe lockdown of about about the impactofthe virus on the weeklyMACDindicator re- inthe globaloil price. three billion people around the demand and supplychains. In- mained bearish as it dipsfurther pump more oil world due to Covid-19.Itisnot an vestorswill be watching forthe south. The -DI and +DI lineson beginning this exaggeration as there will be US Federal Reservemeeting’s the 14-day DirectionalMovement The subject expressed above is based month. moredownside pressureon minutesthat will be released on Index (DMI) trend indicator are purelyontechnical analysis and opin- pricesifSaudi Arabia and Russia Wednesday forcluesonfuture contracting on adeclining ADX ions of the writer.Itisnot aso- continuewith their plan to pump policymeasures after nonfarm line, suggesting the current licitation to buy or sell. VALUATOR

Company(Brand) Mention Tone ROI Group (Axiata Group) 1 0 RM 0 Bumi Armada Berhad (Bumi Armada Berhad) 2 0 RM 0 Bursa - CIMB (Bursa - CIMB) 1 0 RM 0 Bursa Malaysia Berhad (Bursa Malaysia Berhad) 11 0 RM 0 CIMB Investment Bank Berhad (CIMB - Economy News) 2 0 RM 0 Covid- 19 - Malaysia (Covid- 19 - Malaysia) 4 0 RM 0 Sdn Bhd (Digi) 5 0 RM 0 Genting Berhad (Genting Berhad) 2 0 RM 0 Hibiscus Petroleum Berhad (Hibiscus Petroleum - Bumi Armada) 2 0 RM 0 Hibiscus Petroleum Berhad (Hibiscus Petroleum - Sapura Energy) 1 0 RM 0 Hong Leong Financial Group (Hong Leong Financial Group) 2 0 RM 0 IHH Healthcare (IHH Healthcare) 1 0 RM 0 Maxis Berhad (Maxis Berhad) 2 0 RM 0 Ministry of Health (MOH) -SG (Healthcare Industry News - SG) 2 0 RM 0 MyCC-Pricing (MyCC-Pricing) 5 0 RM 0 Oil Price (Oil Price ) 1 0 RM 0 Organization of the Petroleum Exporting Countries (OPEC) 4 0 RM 0 RAM Bursa Malaysia (RAM Bursa Malaysia) 5 0 RM 0 Randstad - Manufacturing (Industry - Manufacturing) 3 0 RM 0 RHB Bank Berhad (RHB Bank Bhd) 4 0 RM 0 Sapura Energy Sdn Bhd (Sapura Energy Sdn Bhd) 1 0 RM 0 SapuraKencana Petroleum Berhad (SapuraKencana Petroleum 1 0 RM 0 Shell Industry News (Shell Industry News) 3 0 RM 0 Berhad (Sime Darby Berhad) 1 0 RM 0 -Malaysia Relations (Singapore-Malaysia Relations - 1 0 RM 0 Star Reacher - Coronavirus (Star Reacher - Coronavirus) 3 0 RM 0 Tenaga Nasional Berhad (TNB) (Tenaga Nasional ) 1 0 RM 0 Velesto Energy Berhad (Velesto Energy Berhad) 1 0 RM 0 Wah Seong Corporation Berhad (Wah Seong Corporation Berhad) 2 0 RM 0