The index will be trapped in the old downtrend channel again once the index closed below the trendline. And, breaking the 1,474 level is just a matter of time by then.
Tokyo shares led Asia stock markets lower, with the main index dropping 11% amid widespread worries about the possibility of a nuclear catastrophe. An afternoon bounce brought them back from a bottom more than 14% down.
Japanese stocks were pressured by news of another explosion at the Fukushima Daiichi nuclear power plant, this time at its No. 4 reactor. This was shortly after radiation levels rose sharply as the No. 2 reactor suffered an explosion following damage to its suppression pool. Japan's prime minister Naoto Kan said there's a high risk of elevated levels of radiation from the crippled reactors, and urged people within 30 kilometers of the plant to stay indoors.
"Foreign investors are rushing to sell nuclear-power-plant-related stocks," said Masayoshi Yano, senior market analyst at Meiwa Securities. "There is no sense of calmness to examine the health of the Japanese economy as a whole."
In China, "there is panic selling in A-share market as investors are fretting over the reactor leaks in Japan, and further downside is likely to depend on whether the leaks in Japan can be placed under control," said Tang Yonggang, an analyst from Hong Yuan Securities. (WSJ)
At closing, Japanese market lost by 10.55%, China 1.38%, Hong Kong 2.86%, Singapore 2.63% and Malaysia 0.75%.
FBMKLCI
FBMKLCI tumbled and retested the 1,474 level again after seeing Japanese market lost more than 14%. However, Malaysia Market was resilient and the critical 1,474 level was firmly held. The index ended at 1,484.14 (-11.21/0.75%). Total Volume was 1452m (+650m), gainer 126 and loser 812. (FBMKLCI Chart extracted from Jupiter)
Market Sentiment
Market sentiment was shocked by the sudden fall of the key index with the Oscillator free fell to as deep as 2,527 points. Sentiment only stabilized after the break as most Asian markets recovered slightly from heavy losses. The Oscillator ended at -2,220.60; lost 2,057.97 when compares with its starting point. The Average recorded a loss of 1,750.64.
After closing, %K Line (yellow) of MSCD recorded as -506.51 (-226.12), %D Line (red) -426.25 (-105.99) and the Histogram +0.59 (-20.21). Both indicators hooked sharply down and the Histogram contracted to near the zero level.
Conclusion
Our market could not be spared from the effect of the devastating earthquake happened in Japan. However, Malaysia market is the least affected bourses with losses of less than 1% when compares with others.
FBMKLCI rebounded before touching the critical 1,474 level and finished just above the previous downtrend channel. Look like the resistance trendline of the channel has now become a temporary support. The index will be trapped in the old downtrend channel again once the index closed below the trendline. And, breaking the 1,474 level is just a matter of time by then. (Chart extracted from ChartNexus)
Need not to say, overall market sentiment was badly hurt and retailers would take a long time to return to market even key index has shown its resilience. The increasing volume during the bad market is evident that retailers were cutting their holdings to trim losses.
Tokyo shares led Asia stock markets lower, with the main index dropping 11% amid widespread worries about the possibility of a nuclear catastrophe. An afternoon bounce brought them back from a bottom more than 14% down.
Japanese stocks were pressured by news of another explosion at the Fukushima Daiichi nuclear power plant, this time at its No. 4 reactor. This was shortly after radiation levels rose sharply as the No. 2 reactor suffered an explosion following damage to its suppression pool. Japan's prime minister Naoto Kan said there's a high risk of elevated levels of radiation from the crippled reactors, and urged people within 30 kilometers of the plant to stay indoors.
"Foreign investors are rushing to sell nuclear-power-plant-related stocks," said Masayoshi Yano, senior market analyst at Meiwa Securities. "There is no sense of calmness to examine the health of the Japanese economy as a whole."
In China, "there is panic selling in A-share market as investors are fretting over the reactor leaks in Japan, and further downside is likely to depend on whether the leaks in Japan can be placed under control," said Tang Yonggang, an analyst from Hong Yuan Securities. (WSJ)
At closing, Japanese market lost by 10.55%, China 1.38%, Hong Kong 2.86%, Singapore 2.63% and Malaysia 0.75%.
FBMKLCI 
FBMKLCI tumbled and retested the 1,474 level again after seeing Japanese market lost more than 14%. However, Malaysia Market was resilient and the critical 1,474 level was firmly held. The index ended at 1,484.14 (-11.21/0.75%). Total Volume was 1452m (+650m), gainer 126 and loser 812. (FBMKLCI Chart extracted from Jupiter)Market Sentiment
Market sentiment was shocked by the sudden fall of the key index with the Oscillator free fell to as deep as 2,527 points. Sentiment only stabilized after the break as most Asian markets recovered slightly from heavy losses. The Oscillator ended at -2,220.60; lost 2,057.97 when compares with its starting point. The Average recorded a loss of 1,750.64.After closing, %K Line (yellow) of MSCD recorded as -506.51 (-226.12), %D Line (red) -426.25 (-105.99) and the Histogram +0.59 (-20.21). Both indicators hooked sharply down and the Histogram contracted to near the zero level.
Conclusion
Our market could not be spared from the effect of the devastating earthquake happened in Japan. However, Malaysia market is the least affected bourses with losses of less than 1% when compares with others.
FBMKLCI rebounded before touching the critical 1,474 level and finished just above the previous downtrend channel. Look like the resistance trendline of the channel has now become a temporary support. The index will be trapped in the old downtrend channel again once the index closed below the trendline. And, breaking the 1,474 level is just a matter of time by then. (Chart extracted from ChartNexus) Need not to say, overall market sentiment was badly hurt and retailers would take a long time to return to market even key index has shown its resilience. The increasing volume during the bad market is evident that retailers were cutting their holdings to trim losses.
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.)
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