Malaysia Market – End of the Day

Asian stocks fell for the first time in 12 days as lower commodity prices and disappointing profit reports raised concern that the rally had made equities expensive relative to earnings prospects. Hong Kong and China markets were most hit and fell by 3 to 5%.

FBM KLCI continued its downside swing from this morning and fell as deep as 1,156.36 in the afternoon session. However, the Index edged higher to end at 1,164.48 after seeing other Asian bourses recouped some losses. The Index lost 7.90, today. Total Volume increased by 179 mln shares to 1,302 mln shares.

Market sentiment, followed KLCI, was seen deteriorating in the afternoon session. The Intra-Day Oscillator fell as deep as -1,366.41 but managed to finish off its low at -1,059.53 lost 1,309.24 from the starting. The Average recorded a loss of 487.29.

The Key Indicator (Blue) of the Daily MSO Chart hooked sharply down to +177.84 lost 171.87 representing a fall of 49% from yesterday’s +349.71.

Both 20MAV and 50MAV moved slightly down.

Conclusion
So, the cautiousness applied by retailers for days has been proven to be a vigilant act after today’s sharp fall. Those who sidelined and didn’t chase on higher prices are winners.

For Asian markets, today’s fall can be considered as a “Mini Crash” as major bourses all fell by more than 2% at a time. China halted to trade after falling 5%.

In view of today’s drastic fall, tomorrow should be yet another sad day. Market has been deemed for a correction long before and the anticipated stop cock would be seen around 1,120-1,130.

The MSO didn’t show much change as today is just the first instance of panic selling. So long as both 20MAV and 50MAV remain in the plus zone, again, correction will be short-lived. (Constructed and Shared by Smartbiz)