Malaysia Stock Market – End of the Day

Market sentiment is very volatile with buyer and seller engaged in a tough push and pull. However, nobody can deny that low-liners have come to center stage and musical chair started to roll.

Asian stock markets mostly fell Friday after a jump in U.S. unemployment claims provided more evidence of an anemic recovery in the world's biggest economy.

Adding to the gloom was a lower reading on business activity in the 16 countries that use the euro and news that Ireland's economy shrank 1.2 percent in the second quarter. (Yahoo)

After 5.00pm, regional markets ended mixed with marginal gains and losses except that Japanese market was down by 0.99%.

At the local front, FBMKLCI fell more than 12 points immediately after opening. However, the index managed to recoup some losses and maintain its position around that level for the rest of the session. The index finished off low at 1,451.19 (-6.89/0.47%). FBMKLCI Average (Pivot Point) was 1,450.17 (-7.43). Total volume was 1,726m (+727m).

Market sentiment fluctuated up and down in high volume with the oscillator returned to the black at 11:11 am but slid into the red again after the break. However, last hour buying pulled it to finish in positive zone at +421.81 gained 894.59, when compared with its starting point. The Average recorded a loss of 117.61.

At day's end, 12EMA (yellow) of MSCD fell to -68.15 (-8.99), 26EMA (red) to -43.81 (-5.91) and the Histogram to -24.34 (-3.08).

Conclusion

Today’s panic selling after the opening bell was well absorbed. But buying was mostly concentrated on 3rd liners and oil and gas counters. Penny Stocks, which have been depressed for a long time, dominated the whole market just after a one-day breather. Total volume surprisingly exceeded one billion shares before the break - something has not been seen for at least a year.

The exciting scenario came sooner than anticipated.

However, buying spree was fast receded as vigilant investors swiftly taking profit. Losers overwhelmed gainer immediately after the break. The branching of the optimism and pessimism is more discerning today.

At the end of the day, all indicators in MSCD fell slightly deeper with 12EMA remained under 26EMA – A sign of bearish divergence.

Market sentiment is very volatile with buyer and seller engaged in a tough push and pull. However, nobody can deny that low-liners have come to center stage and musical chair started to roll.

Constructed and Written by Smartbiz
(Click on chart to view)

(Note: You can read the explanation for Intra-Day MSO and MSCD from the achieves under heading "Labels" at the lower portion of the sidebar.)