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Thursday, February 17, 2011

Malaysia Stock Market – End of the Day

Though all indicators have signaled an initial stage of an uptrend but the last minute push before today’s closing is quite alarming. Investor should make sure that the index has climbed firmly up before putting new bets.

Chinese and Hong Kong stocks ended higher after a roller-coaster ride Thursday, driven by hopes for solid economic growth. Property developers fell after Chinese authorities announced fresh restrictions on home purchases in Beijing.

"To an extent, it doesn't really matter what [China's rate of growth is]. At the end of the day, it's better than anywhere else. Usually inflation is bad for equities, but the fact that they've moved quickly to raise interest rates, I think, is being taken positively," said Andrew Sullivan, director for institutional sales at OSK Securities. (WSJ)

At closing, Japanese market up by 0.26%, China 0.10%, Hong Kong 0.63% but Singapore down 0.38%.

At the local front, FBMKLCI climbed higher and finished the morning session with more than 6 points gain. But, the index retreated after the break and last minute selling pushed it to end near the neutral line at 1,508.56 (+2.25/0.15%). Total Volume was 1,737m (-141m). (FBMKLCI Chart extracted from Jupiter)

Overall market sentiment progressed from good to bad with the Oscillator opened with gains but sliding all the way down to end at -944.86, lost 1,225.36 when compares with its starting point. The Average recorded a loss of 421.28.

Conclusion

Today, FBMKLCI’s strong performance was tripped amid unstable regional performance. The index merely closed with gains of 2.25 points. Overall market sentiment was worse than yesterday. Investors see no assurance from the gains made by the key index for the past few sessions.

Though all indicators have signaled an initial stage of an uptrend but the last minute push before today’s closing is quite alarming. Investor should make sure that the index has climbed firmly up before putting new bets.

The charts would be able to give a clearer picture tomorrow, meantime, the 100-Day SMA has turned from resistance into support and others remain unchanged. (Chart extracted from 188OMS)

In the MSCD, K% Line (yellow) recorded as -371.06 (-9.13), D% Line (red) -242.86 (-14.28) and the Histogram -94.24 (-8.49).

After today’s trade, both key indicators were flattish but the Histogram printed yet another longer negative bar. Technically, overall market sentiment has stabilized but investors will remain cautious. Those high-rise low-liners will see selling persist on T+3 due date.

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.)

3 comments:

mapsscom said...

WHY IS THE LAST PUSH QUITE ALARMING?
is it not natural that it is supported?that the low of 1490.44 had stabilise n its time to accumulate?today[fri.18]the klci shoots to 1517+.[by noon]ahead of the GDP announcement.
AGAIN,WHY THE ALARMING PUSH?
p.s.forgive me coz of the capital letters.

Smartbiz said...

maapsscom, sorry, if there is any confusion in my post. The last push that I have mentioned is the last minute selling of index-link counters which pushed the index down by about 2 points before yesterday’s closing (Please look at the FBMKLCI daily chart).
Anyway, today’s index performance proves that I was over worried.
Thanks for your attention. - smartbiz

mapsscom said...

thank you very much.