Sentiment Index - Malaysia Stock Market

Constructed and Written by Smartbiz

Asian shares rallied Thursday after European leaders announced a deal for private holders of Greek bonds to take a voluntary writedown on the debt.

European leaders said early Thursday that private-sector holders of Greek government debt will take a 50% writedown on the value of their bonds, and that the euro zone's financial rescue fund will be increased by as much as five-fold. (WSJ)

Market Sentiment
Local sentiment rallied with the Intra-day Oscillator climbing to end at its day-high at +2,192.68; gained 1,524 when compares with its opening point. The Average recorded a gain of 1,467.54.

At the end of the day, %K (Yellow) of MSCD computed as +399.90 (+194.05), %D (Red) +225.32 (+99.41) and the Histogram +133.82 (+10.19).

Both indicators hooked up sharply and the Histogram printed a longer bar in the positive zone.

Conclusion
News that European countries had made a deal to solve the debt crisis changed the whole scenario of global markets. Among all, Singapore and Hong Kong market advanced by 2.89% and 3.26% respectively. However, local market gained less than 1%.

In MSCD, %K rebounded but failed to make a new high. The Histogram printed an insignificant longer bar.

Market sentiment will continue to rally if %K can make a new high in the near future. Else, sentiment will slip into a consolidating stage due to profit taking.

Key Index

(Chart posted with courtesy of ChartNexus)

FBMKLCI capped by its resistance around 1,475 and finished at 1,470.93. As all indicators have reversed into uptrend pattern, the index will test the resistance again. Its next resistance will be the 100SMA around 1,493 which is a tough barrier.

Based on charts, meanwhile, small caps and ACE counters haven’t made any significant movement yet.

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