KUALA LUMPUR, Jan 28 (Bernama) -- Bursa Malaysia snapped its five-day winning streak to close lower on Wednesday, as investors took profit following a cumulative gain of 4.25 per cent over the past five sessions, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 14.76 points or 0.83 per cent to 1,756.49 from Tuesday’s close of 1,771.25. The market bellwether opened 1.46 points lower at 1,769.79, marking the day’s high, and hit a low of 1,750.05 during the mid-afternoon session. Market breadth was negative with losers trouncing gainers 876 to 384, while 525 counters were unchanged, 964 untraded and 94 suspended. Turnover improved to 3.65 billion units worth RM4.41 billion from Tuesday's 3.58 billion units worth RM4.46 billion.
A forex report by AmBank said that it expects the USD/MYR to trade a tighter range of 3.968 to 4.078 on shorter trading days due to Hari Raya holidays, gridlock formation in oil prices and depreciation pressure on CNY.
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Last week, USD/MYR broke key supports of 50- and 100-day MA to close below 4.00 level.
It was impressive follow a rather downtrend after the Brexit but the pair has rebounded strongly after that. The currency pair was the second best performing currency with a 2.30% gain against US dollar due to declining 1-month volatility, reduced expectation of higher US
rates and declining cross SGD/MYR below psychological level of 3.00.
This week, we envisage the pair to trade in a tighter range of 3.968 to 4.078 on shorter
trading days due to Hari Raya holidays, gridlock formation in oil prices and depreciation pressure on CNY.
Chart wise, RSI continued to head south, and along with widening MACD gap, it suggests that the currency pair is likely to be range bound trading. Uptick in 50- day MA crossing above 100-day MA at 4.0456 points to a possibility that the USD/MYR to trade on strengthening bias.
(Source: AmBank FX Weekly report)
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