Weekly Chart Update for KLCI/ S&P500/ STI

For the past 8 weeks we saw global stock markets tumbled and rebounded like nobody's business.The coronavirus pandemic has forced many countries to shut down economic activities and put everyone at home to prevent the contraction of the deadly disease. To date, the virus has infected more than 2 million of population across 200 countries with death toll more than 150,000. 

By March 23rd, the US Dow Jones Industrial Average tumbled 35%, Singapore STI lost 32% , while Malaysia KLCI lost 25% to 1200. Now many are wondering if the KLCI will reach 1200 again and unfortunately no one can give a clue on that. My objective to re-open my blog is to offer my two cents of opinion to help Malaysian investors to navigate through this turbulence time. 

Let us recap the stock market performance for the past one week:

The S&P 500:  
 
The S&P 500 gained 86pts or 3.1% for the week at 2874. The index has crossed above the 2780 neckline and it is currently short term bullish at above 20 day MA but below the 200 day MA. The tech sector has performed well during the pandemic as the lock down has force people to go digital. The Nasdaq however has crossed above its 200 day MA and it's now above both the 20 day and 200 day MA. Markets were encouraged by Gilead's remdesivir anti-viral treatment that pushed up stocks this week. Next week support is seen at 2825, resistance 2925.


KLCI:
 
The KLCI gained 50pts or 3.7% for the week at 1407, it has crossed the 1400 psychological level. The index is currently short term bullish at above the 20 day MA but below the 200 day MA. KLCI was trying to fill the gap down occurred on March 13th which was at 1419. The stock market sentiments have improved as Malaysia has reported 69 new covid-19 cases which is the lowest since the movement control order (MCO) came into force on Mar 18. Next week support 1380, resistance 1425.


 STI:

The STI gained 43pts or 1.7% for the week at 2614. The index is currently short term bullish at above the 20 day MA but below the 200 day MA. While the covid-19 new cases has become the highest in Southeast Asia but the Singapore's non-oil domestic exports (NODX) unexpectedly surged 17.6% yoy in March 2020, accelerating from an upwardly revised 3.1% gain in February. It was the second straight month of increase in NODX, and the strongest since October 2017. Sales of non-electronics products jumped (20.5% vs 3.2% in February), along with non-monetary gold (242.5%); specialised machinery (54.2%), and pharmaceuticals (48.6%). Also, sales of electronics went up faster (5.8% vs 2.5%), including parts of ICs (60.1%); disk media products (50.6%), and ICs (6.7%). Next week support is seen at 2575, resistance 2675.