Malaysia Market – End of the Day

Asian stocks slid after a further deterioration in U.S. consumer confidence cast doubts about the pace of the global economic recovery and soured appetite for risky assets. Even after data released on Monday showed Japan's economy became the third G7 country after Germany and France to pull out of recession.

In the afternoon session, China market, again, led other Asian bourses fell deeper. The giant plummeted by 5.79%, Hong Kong followed suit fell by 3.80% and Singapore 2.78%.

At the local front, FBM KLCI couldn’t find a way to escape also slid deeper. However, the Index was resilient to close at 1,169.05 lost 19.52or 1.64%. Total Volume decreased by 28 mln shares to 1,022 mln shares.

Market sentiment was extremely bad after seeing China market tumbled more than 5% again in the afternoon. The Oscillator ended at -1,503.52 lost 726.66 from the starting. The Average recorded a hefty loss of 1,067.01.

The Key Indicator (Blue) of the Daily MSO Chart sank into red to -87.97 lost 252.87. Both MS20 and MS50 are facing down now but still in the black.

Conclusion

So, is this the ‘Day’ that we are long waiting for?

It is still hard to make any conclusion as we have been making mistakes in the past to gauge the major correction of the Malaysia market. This morning, analysts were still talking about 1,200 point for this week.

If you look at today’s KLCI Real-Time Chart, you will agree that KLCI has shown its strength by not sliding straight but moved flattish most of the time. This is what we call resilience.
Anyway, the MSO didn’t tell lies. Market base has been softened long ago and now is the time for it to prove it is indestructible. If MS50 fell into red, then, it has made a verdict – market is in bearish term – its will take longer time to recover.
The MS50 is now at +31.88.
Still remember CIMB research house’s advice? September month is a winter month, normally for share market.(Constructed and Shared by Smartbiz)