Malaysia Stock Market - Sentiment Index

Asian stock markets were mixed Tuesday in choppy trade, after a downgrade of Italy's sovereign-debt rating deepened worries about the euro-zone debt crisis, sending the euro and regional currencies such as the Korean won lower.

Standard & Poor's late Monday cut Italy's rating to A from A-plus, saying that the nation's weak economic growth and fragile government coalition will make it harder to head off the crisis sweeping over the euro zone.

Local sentiment kept subsiding with the Intra-day Oscillator slid to finish at -539.33; lost 466.79 when compares with its starting point. The Average recorded a loss of 369.95.

At the end of the day, %K (Yellow) of MSCD recorded as -194.84 (-31.83), %D (Red) -240.02 (-10.40) and the Histogram +74.78 (-7.40).

Both indicators slid and the Histogram printed yet another shorter bar but remains above the Zero-level.

Conclusion

Market sentiment will have no major improvement even key index rebounded or stabilized from here. This is because market will still be entangled by endless woes from leading markets.

Most analysts advised that it was not time to do bottom fishing yet.

FBMKLCI has fallen off the Lower Bollinger Band after yesterday’s trade and the pulling effect of the Band might give the index some time to breathe. But, as said before, the sustainability is doubtful.

(Morning Flash: Dow Jones edged up 7 points, last night)

Constructed and Written by Smartbiz (Chart of FBMKLCI extracted from ChartNexus)

(Note: Explanation for Intra-Day MSO and MSCD are archived under "Labels" at the lower portion of the sidebar.)