Malaysia Market – End of the Day

Asian markets stocks hit a new year high on Tuesday, rising to levels last seen before the Lehman Brothers collapse, and world stocks in general headed towards a new 2009 peak. Investors have been bolstered this week by a number of factors including the weekend decision by G20 finance ministers to keep economic stimuli in place, renewed M&A and a slower decline in U.S. job losses.

At the local front, FBM KLCI made a breach in the 1,200 level to finish at 1,202.07 gained 11.68 or 0.98%. Total Volume increased by 83 mln to 791 mln.

Market sentiment started in robust mood but faded away fast after the opening bell. However, sentiment picked up before closing after seeing KLCI breaking through the 1,200 level. The Oscillator surged and cut its Average and ended at +229.67 lost 323.59 from the starting point. The Average recorded a gain of 81.08.

The Key Indicator (Blue) of the Daily MSO Chart moved into positive zone and prepared to cut MS50. The Indicator is now at +62.73 gained 84.17.

MS20 eked slightly lower and remained in red but MS50 continued to move higher.

Conclusion
Though KLCI kept on recording new highs but overall market sentiment was not really motivated. Small-caps as well as penny stocks mostly succumbed to profit taking after slight gains.

Anyway, MSO is still in good shape indicating the mini rally will continue with intra-day correction from time to time. Tomorrow might see KLCI under mild correction and penny stocks will follow suit. But, this is also a chance to nib on selective counters.

Stock to watch: Bornoil (0.345) S/0.340-0.335 R/0.355-0.370 Buy on dip. (Constructed and Shared by Smartbiz)