Malaysia Market – End of the Day

Asian stocks hit a 10-month peak on Friday, with Hong Kong vaulting back to levels last seen before the collapse of Lehman Brothers as investors rushed into equities following upbeat corporate earnings around the world.

But gains were limited and higher-yielding currencies lost ground as some investors moved to book profits on the run-up this week, with some technical signals flashing warning signs that the risky asset surge may be due for a reversal

FBM KLCI moved sideways for the whole session but ended higher at 1,155.88 gained 3.73. Total Volume increased marginally by 5 mln shares to 1,039 mln shares.

Market sentiment put up a strong show at the opening bell but enthusiasm quickly faded away with the Intra-Day Oscillator almost flat, whole day. But last minute buying pulled it higher to finish at +381.47 lost a hefty 822.69 from the starting. The Average recorded a gain of 349.44.

The Key Indicator (Blue) of the Daily MSO Chart hooked up to +219.89 gained 94.42. The Indicator edged up 75% from its low recorded yesterday at +125.47.

Both 20MAV and 50MAV edged up and stayed in positive zone.

Conclusion
There is a Chinese saying: Grasp too hard, it might die; too loose, it will fly. This is the present psychological state of retailers. When the Index moves higher they scare it might fall, they sideline. When the Index moves sideways, they sell.

After today’s trade, the MSO returns in optimistic tone with the Key Indicator swings up 75% higher from yesterday’s record. It is a strong sign that shows retailers have regained confidence in the market but volume still not impressive.

The fragile confidence built might be again broken by external factor. US market was deemed to undergo an imminent correction after climbing straight for eight sessions and corporate reports seemed not as favor as before. (Constructed and Shared by Smartbiz)