Asean markets are approaching resistance says CLSA

SINGAPORE (April 15): According analysts at CLSA, the 20% gains that the Jakarta Composite Index (JCI), Philippine Stock Exchange Index (PSEi) and Stock Exchange of Thailand (SET) Index recorded since their March lows represent the initial phase of a new trading range. CLSA warns traders that choppy price swings are likely to take place in the current quarter and through to 3Q2020. During the 1997-1998 Asian Financial Crisis and the global financial crisis, market also experienced relief rallies of more than 20% before

CLSA also monitors the percentage of stocks above their 200-day moving averages which is an indication of market participation, and defines this as market breadth. The higher the number of stocks in a given exchange that are above their moving averages, the greater the participation. As at Apr 15, CLSA’s readings of stocks above their moving a.verage sit at 10%, 10.5%, 10%, 5.3% and 6.7% for the KLCI, JCI, PSEi, SET, and STI respectively. These readings suggest very limited market participation.

 

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