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Tuesday, October 25, 2011

Sentiment Index - Malaysia Stock Market

Constructed and Written by Smartbiz

Chinese stocks gained while most other major Asian equity markets slipped Tuesday, although moves were broadly muted ahead of a crucial announcement on how Europe plans to stem its debt crisis.

"I'd say that markets are moving sideways" said Roland Randall, strategist at TD Securities. "These are small moves. ... That tells us that we are lacking the mood to rally ahead of the European Union headlines that we expect to see tomorrow." (WSJ)

Market Sentiment
Local sentiment opened in positive mood but gradually lost steam as key index fell into the red. The Intra-day Oscillator slid to end at -156.56; lost 542.33 when compares with its opening point. The Average recorded a loss of 180.31.

At the end of the day, %K (Yellow) of MSCD computed as +205.85 (-70.19), %D (Red) +125.90 (-24.51) and the Histogram +123.63 (-10.92).

Both indicators hooked downwards and the Histogram printed yet another shorter bar.

Investors mostly choose to sideline waiting for the resolution of the European debt crisis. Volume fell below the one billion level partly also due to the Deepavali holidays.

In MSCD, %K fell and rested exactly on the support line indicates a major decision has to be made by the market in the following session. Failing to stay above this line will see overall market sentiment consolidating in low key again.

Though the Histogram shows a downside bias but good news from Europe will change the scenario. All in all, the future of the market is solely depended on external factor now.

Key Index
(Chart posted with courtesy of ChartNexus)
FBMKLCI finished with gain of nearly 8 points and printed a short “Hammer”. But, other indicators sent out mixed signals to indicate buying was not firm enough to lift the market higher.

As mentioned before, market will pick up slowly so long as the index stays above the downtrend line.

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

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