Malaysia Market – End of the Day

Asian stocks advanced as faster economic growth in China and an improvement in U.S. manufacturing gauges fueled optimism the global economy is recovering. US Dow Jones surged by 256 points last night.

“This upward trend will continue for some time, as economic indicators have confirmed the economy is recovering,” said Harvey Chang, a SinoPac Securities Investment Trust Co. fund manager who helps oversee about $1.5 billion. “There’s plenty of money in the market.”

FBM KLCI surged as high as 1,120.41 but followed its Asian peers retreated and ended lower at 1,108.88 gained 11.64. Total Volume increased another 302 mln shares to 1,666 mln shares.

Market sentiment though had a splendid starting but faded away fast as profit taking was seen across the board. The Intra-Day Oscillator lost a hefty 3,380.43 points to end at +328.27. The Average recorded a gain of 1,441.49 due to the huge starting point.

The Key Indicator (Blue) of the Daily MSO Chart shot higher and cut the 50MAV, this time. It is now staying at +478.88 gained another 280.96. 20MAV climbed to positive zone at +21.48. 50MAV continued sinking caused by previous weaknesses of the Oscillator.

Conclusion
Today, both FBM KLCI and FBM100 all recorded double-digits gains but small-cap and penny stocks all faded away from yesterday’s glory. Unlike the old KLCI, Bursah has designed something that only reflected their favorites but not the overall market.

Based on the MSO Chart, market has built up a very strong base and hard to be wiped off in few instances. Today’s scenario is just “panic” profit taking after an unexpected huge gain. (Constructed and shared by Smartbiz)