Malaysia Stock Market – End of the Day

However, given the benefit of doubts to the index which is just 0.12 points away from 1,500 and barring any unforeseeable circumstances, market should be better next week. In fact, the Year-End window dressing hasn’t started yet.


World stock markets moved in tight ranges Friday amid encouraging news about the U.S. economy and indications Chinese policymakers are reluctant to raise interest rates.

China, meanwhile, is trying to control its fast-growing economy and douse rising inflation, which has led to speculation it may follow a recent increase in bank reserve requirements with another interest rate hike.

"Although I cannot say that a reserve requirement ratio increase might mean no interest rate rise, the central bank will not use both tools at the same time," Zhou Xiaochuan, governor of the People's Bank of China, said in a speech Thursday at Peking University, Hong Kong's South China Morning Post reported Friday. (Yahoo)

After 5.00pm, Asian major markets ended mixed with Japanese and Chinese markets both down by 0.07% and 0.15% respectively but Singapore up 0.17% and Hong Kong 0.20%.

At the local front, FBMKLCI started in negative tone but swiftly reversed to positive territory and traded with gains for the rest of the session. Unfortunately, the index did break through the 1,500 level but failed to sustain and ended at 1,499.88 (+2.36/0.16%). FBMKLCI Pivot Point was 1,498.63 (-1.41) and Total Volume 1,139m (-136m).

Market sentiment started with modest enthusiasm but slowly faded away after seeing FBMKLCI failed to stay above the psychological level. However, strong buy during last few minutes pulled the Oscillator to end at +248.85 lost 90.67 when comparing with its starting point. The Average recorded a gain of 210.51.

Conclusion

Today is a warily day as all eyes were on the movement of FBMKLCI. Market turned slow after seeing FBMKLCI failed to surpass the 1,500 level. The last trading day of the week also prevents investor to take any forward position. However, overall market performance is still plausible as buying returned to market gradually and pulled the index to the vicinity of the psychological level.

In MSCD, K% (yellow) was recorded as -90.07 (+54.63), D% (red) -88.55 (+23.93) and the Histogram -3.28 (+0.44).

After today’s trade, both key indicators hooked up slightly and K% Line almost touches D% Line. The Histogram printed its second short negative bar.

Technically, market sentiment is still in a bearish mode though has shown some improvement today. The plausible performance was motivated by the key index which did return to the psychological level during the session though not sustainable. However, given the benefit of doubts to the index which is just 0.12 points away from 1,500 and barring any unforeseeable circumstances, market should be better next week. In fact, the Year-End window dressing hasn’t started yet.


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.)