One week lost of RM65 Billion.

The local bourse lost another RM33.76 billion in value today after the FBMKLCI fall below psychologically crucial 1,500-level and its intra-day low fall of 1476.24 almost touching current year low of 1474.38. The current total market capitalisation of Bursa Malaysia is about RM1.27 trillion. From last Monday, the market capitalization has reduced by RM65 Billion.

FMBKLCI within one month have fall to almost the year’s low from the year’s high.

For two straight day volume traded was twice the average 60 days volume with long and wide body hammer candles. This suggested that the market fall heavily in early trading of the day before buying mainly done by quasi government bodies an attempt to prop-up the market.

Noting that all short and intermediate MAs are negatively slopping and the 20d MA is trying to cross over the 50 MA from above any attempt for market recovery is a hard sell.

With all the external negative factors affecting the local bourse, the index need to stabilize. The market is currently at the strong support level of 1475-1480. The immediate resistance is at 1540 the 50% fibo retracement (FR).