Malaysia Stock Market – End of the Day

Technically, market sentiment is bearish and will accelerate into more weaknesses due to the shrinking volume.

Asian shares fell to their lowest in over a week on Monday, led by a 2 percent slide in Shanghai stocks as thin year-end trading made for exaggerated moves, not helped by mounting tensions on the Korean peninsula.

Despite threats of war by Pyongyang, South Korea on Monday launched live firing drills on a disputed island after an emergency U.N. Security Council meeting failed to agree on how to defuse the crisis. (Yahoo)

After 5.00pm, Asian major markets mostly ended with losses. Japanese market lost 0.85%, China 1.41%, Hong Kong 0.33% and Singapore 0.49%.

At the local front, FBMKLCI tumbled shortly after opening like waterfall pouring down from a cliff. The index lost more than 6 points in less than 10 minutes. The index did attempt to rebel but failed and ended at 1,495.88 (-4.00/0.27%). FBMKLCI Pivot Point was 1,496.39 (-2.24) and Total Volume 1,045m (-94m).

Market sentiment was affected by the weak index and progressed from bad to worse. The Oscillator slid to end at -588.71 lost 632.85 when comparing with its starting point. The Average recorded a loss of 463.36.

Conclusion

Eventually, hope for the key index to return to 1,500 was burst. Due to the poor regional performance, market was unable to accumulate enough strength to return above the psychological level.

It is opine that 1,500 is not a point that resulted a sudden death to the market but just psychological. In fact, 1,474, which is its previous low, will be a critical level that decided the future of the market.

In MSCD, K% (yellow) was recorded as -147.48 (-57.41), D% (red) -116.32 (-27.77) and the Histogram -8.85 (-5.58).

After today’s trade, both key indicators hooked down again and the Histogram printed a longer negative bar.

Technically, market sentiment is bearish and will accelerate into more weaknesses due to the shrinking volume.

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.)