Sentiment Index - Malaysia Stock Market

Constructed and Written by Smartbiz

Major Asian stock markets stuck mostly to narrow ranges Friday, with investors cautious ahead of this weekend's crucial meetings to find a solution to Europe's debt crisis.

"Investors will anxiously await any fresh headlines regarding Europe," said Credit Agricole strategists, while adding that "more clarity is needed before markets embark on a new direction." (WSJ)

Market Sentiment
Local sentiment lost strength from strong opening but picked up after the break. The Intra-day Oscillator crawled from negative zone to end at +122.90; lost 426.42 when compares with its starting point. The Average recorded a gain of 50.84.

At the end of the day, %K (Yellow) of MSCD computed as +152.83 (-18.54), %D (Red) +86.11 (-2.82) and the Histogram +136.76 (-17.51).

Both indicators edged slight lower. The Histogram printed another shorter bar to form a round topping.

Conclusion
Local sentiment followed regional markets treading water amidst uncertainty of the European debt crisis.

Next week, investor will know the solution of the debt crisis to be announced by the heads of both France and Germany. Whether the announcement will lift or weigh on global financial market is no one’s knowledge. Meanwhile, MSCD says market sentiment is vulnerable with downside bias.

Key Index

(Chart posted with courtesy of ChartNexus)

FBMKLCI plunged 70 points late in the afternoon session due to wrong trades keyed by a broker. As reported, counters affected were KLK, DiGi and PPB. However, the index managed to close at 1,438.83 briefly above the 30EMA.

The index is progressing in a downside pattern. Its next support is the 20SMA which is around 1,405 now.

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