Malaysia Market – End of the Day

Asian stocks rose after the U.S. jobless rate dropped and Japanese machinery orders increased, boosting confidence the world’s two largest economies are emerging from recessions. But, enthusiasm was seen faded away in the afternoon session.

At the local front, FBM KLCI opened high but immediately lost steam and fell into red. However, it finally closed at 1,180.00 gained 3.12. Total Volume decreased by 144 mln shares to 870 mln shares.

Market sentiment was cautiously optimistic with the Oscillator crawling in slow pace to end at +324.19 gained 197.96 from the starting. The Average recorded a gain of 197.32.

The Key Indicator (Blue) of the Daily MSO Chart bounced back before falling below the MS50. It is now at +173.27 gained 57.74.

MS20 edged up but MS50 continued to face down.

Conclusion
Market is trading in cautious optimism with investors cheered on US market recovery but scared by analysts’ warning on the overbought situation.


Retailers also didn’t know how to step in as most previously shining stars had lost their shines for weeks. Market played on news-driven counters but mostly opened in high level. Traps can be seen here and there.


As mentioned before, the uptrend showed by MSO remains intact but market sentiment is very volatile. This was shown by the Key Indicator which has been zigzagging up and down for more than two weeks.


Theoretically, market should undergo a sharp correction before it can lure the investors to participate full heartedly. (Constructed and Shared by Smartbiz)