Will KLCI in Bullish Movement by Potential Rebound in Crude Oil Price?

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 Finance Index increased 1.56% to 13882.41 points, the Properties Index up 1.24% to 1111.47 points and the Plantation Index rose 4.51% to 7916.2 points. The market traded within a range of 36.18 with a high of 1667.80 and a low of 1631.62 during the session. 3 Days Free Trial Signals

The KLCI surged and closed higher at 1667.80 points amid overnight gains in US market after oil prices rose for the third consecutive day. The performance of our local bourse was in tandem with most of our regional peers following the Bank of Japan unexpectedly eased monetary policy further by introducing a negative interest rate policy. 

Market Forecast for week ahead:

The KLCI 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 1675 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 1700.

Technical indicators:

RSI for this week is 49.312 with CCI at -35.876. Besides, difference line of MACD -14.041.

Global factors and World Indices

• Asian shares jumped on Friday and the yen swooned after the Bank of Japan stunned markets by adopting negative interest rates in its boldest step yet to reinflate the long-languishing economy.
• The yen fell across the board and sovereign bonds rallied after Japan's central bank said it would charge 0.1 per cent for excess reserves parked with the institution, an aggressive policy pioneered by the European Central Bank.
• China stocks rose more than 3 per cent on Friday, recovering losses at the end of a tumultuous week, having recorded their worst month since the global financial crisis.The CSI300 index of the largest listed companies in Shanghai and Shenzhen ended up 3.2 per cent.
• Hong Kong stocks rallied Friday, ending a volatile month on a high, after Japan announced a surprise negative interest rate policy, effectively charging banks to store their cash in a bid to kickstart lending in the country.The Hang Seng Index rose 2.54 per cent, or 487.28 points, to close at 19,683.11.
• Japan's Nikkei share index whipsawed after the announcement before ending up 2.8 percent, to mark a 3.3 percent weekly gain, while the benchmark 10-year JGB yield touched an all-time low of 0.090 percent.
• Australian shares ended 0.6 per cent higher on Friday in see-saw trade, after the Bank of Japan unexpectedly slashed its benchmark interest rate below zero and a rebound in Chinese stocks.The S&P/ASX 200 index rose 29.34 points at the close of trade .
• Bank lending in Singapore fell in December from the previous month, reflecting a contraction in business loans.Loans through the domestic banking unit - which essentially captures lending in all currencies but mainly reflects Singapore-dollar lending - stood at S$600 billion last month, down 0.7 per cent .
• The Bank of Japan on Friday adopted a negative interest rate policy to spur lending and help drive inflation towards its two-percent target.The -0.1 per cent interest rate introduced by the BoJ means that banks parking their money with the central bank are actually charged for doing so.
• The dollar rallied over 1% to one-month highs against the yen on Friday, after the Bank of Japan surprised markets by announcing a negative interest rate policy.
• Gold slid lower on Friday, as investors locked in profits from the precious metal’s recent climb to one-and-a-half month highs and as the stronger U.S. dollar weighed
• Oil extended a recent rally in Asia on Friday, boosted by weakness in the dollar and Russia saying it could meet the Opec producers' group for talks on possible output cuts to ease a painful supply glut.