Malaysia Market – End of the Day

Asian stocks mostly increased for an eighth day, led by automakers and technology companies, as a weaker yen boosted the prospects for Japanese export earnings and U.S. housing prices unexpectedly gained.

FBM KLCI showed slower pace today after bouncing back from the negative area. The Index ended almost flat at 1,151.19 gained 2.49. Total Volume decreased by 76 mln shares to 1,034 mln shares.

However, market sentiment turned lively today even though KLCI performed listlessly. The Intra-Day Oscillator was seen climbing its ladder high up till the end of the day. The Oscillator finished at +689.33 gained a hefty 627.01 from the starting. The Average recorded a gain of 332.97.

But, the Key Indicator (Blue) of the Daily MSO Chart continued to fall to +125.47 lost another 221.70. The Indicator has fallen by 77% from its recent peak +551.50.

20MAV hooked further down prepare to cut 50MAV which bounced back after touching the zero level.

Conclusion
InsiderAsia has best described the scenario of the present market. “Indeed, it is interesting to note that latest rally has not been accompanied by very high trading volume, or very broad-based gains. This suggests that many investors are still generally cautious, despite the headline index’ large increase.” It said.

There is a reason for that, one analyst said. Retailers are not participating because they have lost confidence in Bursah and SC alike. They scare that active counters would be served with UMA letters once they participated. Sounds very sarcastic!

Come back to today’s market. Frankly speaking, today’s market has released certain sign of positive in terms of market breath as gainer out beaten loser for the whole session even though KLCI moved softer. Volume also increased impressively during the afternoon session.

But who can explain yesterday afternoon’s sudden fall?

Anyway, we can’t make conclusion just base on one-day show. MSO says market sentiment is still weak and need more good shows to cheer up. Today has a good show, how about tomorrow?

Having said that I have to agree there are still opportunities to make money if one knows how to pick the right counter and right timing to run.

Presently, active and profitable counters are MRCB, Jaks, LionCor, Tebrau, Kinstel and last but not least, Huaan.

Bear in mind that research houses have sent out “Sell” calls on some of these counters. (Constructed and Shared by Smartbiz)