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Market Daily Report: Bursa Malaysia Closes Higher On BNM’s OPR Decision, Wall Street Gains

KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
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Weekly Investment Term #8

Today, we are going to look at one of the technical indicator commonly used by financial analysts.... RELATIVE STRENGTH INDEX (RSI) Some people feel that technical indicator cannot be used alone while others follow the chart and pattern religiously. Generally, Relative Strength Index (RSI) is a momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset.  The formula is pretty easy for one to remember: RSI = 100 - 100/(1+RS*),  where RS* = average of x days up of shares when market close/ average of x days down of shares when market close The best way to look at the relative strength index is by plotting a graph.... As you can see, the RSI ranges from 0 to 100....an asset is generally deemed to be overbought when the RSI approaches the 70 level (overvalued) while when it dropped to 30, it is viewed as oversold and therefore undervalued. It is im...
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Weekly Investment Term #5

I'm not a believer of technical analysis but I heard a lot of people in the investment industry look at the technical analysis and try to understand the trend and behaviour of the stock moving forward by looking at the chart.  Well, I'm no expert to it but if you are interested, here is one term that you should understand: Trade Volume Index (TVI) .  A technical indicator that measures the amount of money flowing in and out of an asset. Unlike many technical indicators, the TVI is generally created using intraday price data. The underlying assumption of this indicator is that there is buying pressure when the price trades near the asking price and selling pressure when it trades near the bid. The TVI is actually very similar to the on balance volume indicator but it takes the volume attributable to every trade instead of just the closing volume.  Generally, TVI helps investors to identify which security is being accumulated (buy) and which are being di...
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