Malaysia Stock Market – End of the Day

In conclusion, though the index might move higher but its stubbornness does not stand in good stead for market sentiment. Again, the high velocity with no meaningful correction will burden the investment willingness as before.

Asian stock markets kicked off a new week of trading in good spirits, encouraged by an improvement in U.S. economic indicators and higher metal prices.

An increase in U.S. corporate spending and a big jump in orders for manufactured goods, both reported Friday, boosted Wall Street and allowed investors to shake off several days of doldrums.

But gold was trading near a record high after briefly touching $1,300 an ounce, with strong demand for the safe-haven metal suggesting underlying doubt about the economic recovery. Other precious metals including silver and copper also rose. (Yahoo)

After 5.00pm, Japanese market gained 1.39%, China 1.41%, Hong Kong 1.00% and Singapore 0.67%.

At the local front, FBMKLCI staged higher and higher as US market gained nearly 200 points last Friday. The index finished slightly off high at 1,464.71 (+13.52/0.93%). FBMKLCI Average (Pivot Point) was 1,462.73 (+12.56). Total volume was 1,156m (-570m).

Market sentiment opened in strong mode but gradually lost steam again. However, last minute buying pulled it to finish at +495.95 lost 309.46, when compared with its starting point. The Average recorded a gain of 413.57.

Conclusion

Today, FBMKLCI made a strong return after the week-end holiday and filled up the gap (1,451-1,458) which was left by the last two sessions. Obviously, the gap is not a strong barrier to deter investors from coming back to market after the recent correction. Investor’s confidence returned after the strong regional performance.

The resilience of the index will enable it to march forward again.

At day's end, in MSCD, 12EMA (yellow) of MSCD moved up to +5.94 (+74.09), 26EMA (red) to -9.94 (+33.89) and the Histogram to +15.88 (+40.19).

12EMA cut 26EMA from beneath and returned to the black again. The Histogram casts its first positive bar after two negative sessions.

As 12EMA is just marginally higher than 26EMA, the reversal cannot be confirmed at this stage.

In conclusion, though the index might move higher but its stubbornness does not stand in good stead for market sentiment. Again, the high velocity with no meaningful correction will burden the investment willingness as before.

The shrinking volume serves as yet another evidence of market cautiousness.

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.)