Malaysia Stock Market – End of the Day

Regional markets have turned even more cautious on Obama’s Health Plan as this will resulted in higher expenses and thus invite downgrade of sovereign debts.

Asian stocks were modestly higher Tuesday as investors remained on guard over Chinese interest rate policy and digested news that President Barack Obama's tax-cut package had gained enough votes in the Senate.

China's inflation rate surged to 5.1 percent in November amid higher costs for food and utilities. Financial markets are wondering if another interest rate increase is coming following one in October, which was the first since the global economic crisis.

"Since the rate issue is not completely clear, investors are still cautious," Jackson Wong, vice president at Tanrich Securities in Hong Kong, said of the possibility of a further increase in Chinese borrowing costs. (Yahoo)

After 5.00pm, Asian major markets mostly ended slightly higher with Japanese market up by 0.22%, China 0.14%, Hong Kong 0.49% but Singapore finished lower by 0.17%.

At the local front, FBMKLCI opened with gain but tumbled into the red again shortly. The index managed to picked up in the afternoon session and last minute buying pulled it to end above the neutral line at 1,510.58 (+0.79/0.05%). FBMKLCI Pivot Point was 1,509.81 (-1.46) and Total Volume 1,173m (-15m).

Market sentiment progressed in weak tone after a cautious start. The Oscillator again slid all the way down but strong buy during last few minutes pulled it to end at +112.45 lost 192.53 when comparing with its starting point. The Average recorded a loss of 66.19.

Conclusion

Market sentiment lost strength again as the key index continued its volatile pattern. However, plantation counters conquered the center stage after CPO price reported broken through 3,700 and approaching its next barrier around 3,800. Those who have followed SenseCents should have come across a lot of positive CPO news before.

However, analysts said this might be the last lap for plantation counters as some have seen price of CPO is going to peak.

In MSCD, K% (yellow) was recorded as -17.50 (-8.85), D% (red) -55.06 (-0.89) and the Histogram -16.05 (+19.70).

After today’s trade, both key indicators hooked slightly down but the Histogram continued its round bottom forming though remains in the red.

Investors continue to use the cautious strategy while following the footsteps of the bellwether index, FBMKLCI. Regional markets have turned even more cautious on Obama’s Health Plan as this will resulted in higher expenses and thus invite downgrade of sovereign debts.

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.)