Malaysia Stock Market – End of the Day

The fact that FBMKLCI didn’t close below its previous low 1,497 is a plus for tomorrow’s market. However, if the index didn’t return above the 1,500 level tomorrow then market would be subdued by selling for some times.

Asian stock markets were mixed in subdued trading Thursday as investors clung to the sidelines amid concerns about Europe's sovereign debt problems.

"A holiday mood is in the market right now," said Jackson Wong, vice president at Tanrich Securities. "There's no major news so the market is on the weak side because there's a lot of uncertainty still out there."

Wong said sentiment was still overshadowed by Europe's debt crisis, including the news Wednesday that Moody's may downgrade Spain's public debt. "Anything happening over there will send a wave across the globe," he said. (Yahoo)

After 5.00pm, Asian major markets ended mixed with Japanese and Singapore market closed almost flat but Chinese market down by 0.46% and Hong Kong 1.33%.

At the local front, FBMKLCI tumbled into the red immediately after the morning bell. The index slid below the 1,500 level shortly and stayed underneath the psychological level for the rest of the day. On the contrary, there was no last minute manipulation today and the index ended at 1,497.52 (-11.58/0.77%). FBMKLCI Pivot Point was 1,500.03 (-9.33) and Total Volume 1,275m (+157m).

Market sentiment progressed from bad to worse with the Oscillator sliding all the way down with no return. The oscillator ended at -616.81 lost 474.25 when comparing with its starting point. The Average recorded a loss of 629.99.

Conclusion

Eventually, our bellwether index, FBMKLCI, fell below the 1,500 level today as regional weaknesses continued to weigh on our market. However, there was no apparent panic selling as investor believed market would be back once external woe was cleared. Instead, the lime light started to shift to Oil and Gas counters such as KNM, Kencana, and SAAG…

In MSCD, K% (yellow) was recorded as -144.70 (-88.20), D% (red) -112.48 (-41.42) and the Histogram +9.57 (+9.41).

After today’s trade, both key indicators hooked down sharply and K% Line fell below D% Line. The Histogram returned to negative territory and printed a new negative bar again.

Technically, market sentiment is confirmed has been reversed into bearish mode but it should be a temporary scenario. The fact that FBMKLCI didn’t close below its previous low 1,497 is a plus for tomorrow’s market. However, if the index didn’t return above the 1,500 level tomorrow then market would be subdued by selling for some times.

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.)