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Wednesday, October 19, 2011

Sentiment Index - Malaysia Stock Market

Constructed and Written by Smartbiz

Asian markets ended mostly higher Wednesday, tracking U.S. gains Tuesday on optimism over the euro-zone bailout fund ahead of a key summit this weekend, but Apple-related plays lost ground after the company's earnings missed expectations.

But volume around the region was lackluster, and many markets ended off early highs. "In such a thinly traded market, it's hard to feel too enthusiastic about positive market moves, despite some improvement in external factors," said Kazuhiro Takahashi, general manager of investment strategy & research at Daiwa Securities. (WSJ)

Market Sentiment
Buying interest returned to market today after US market made a last minute gain. The Intra-day Oscillator opened with gain of over 2,000 points but gradually lost strength to end at +1,804.69; lost 214.62 when compares with its starting point. The Average recorded a gain of 1,677.81.

At the end of the day, %K (Yellow) of MSCD computed as +353.56 (+240.69), %D (Red) +162.55 (+121.27) and the Histogram +172.24 (+4.69).

Both indicators hooked up sharply. The Histogram printed a slightly longer bar.

Local sentiment was frightened by the steep loss of the US market day before but followed the leading market recovered fast today.

Based on MSCD, market optimism is still sustainable but momentum has been hurt by yesterday’s jittery. Market sentiment will continue to tread water with parameters pointed to the US market.

Key Index
(Chart posted with courtesy of ChartNexus)
FBMKLCI rested above the support line to finish at 1,450; gained more than 10 points, today.

As MACD started to form a round top, the index, so as overall market, should go for consolidation soon.

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

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