Sentiment Index - Malaysia Stock Market

Constructed and Written by Smartbiz

Asian stocks weakened Monday, although some Japanese exporters got a lift after Tokyo intervened in the foreign-exchange market to send the yen sharply lower.

"With more questions than answers, markets will be hungry for further details over coming weeks, and until then, it is difficult to see risk appetite stretching too far," Credit Agricole strategists said.

"The firewall to protect countries such as Italy and Spain may still be insufficient, given that the use of the European Central Bank to provide unlimited support has been ruled out," they said. (WSJ)

Market Sentiment
Local sentiment progressed in weaker notes today with the Intra-day Oscillator soaked in the red most of the time. However, last hour support pulled it to end in the black at +320.47; gained 79.88 when compares with its opening point. The Average recorded a loss of 61.66.

At the end of the day, %K (Yellow) of MSCD computed as +417.51 (-87.09), %D (Red) +262.74 (-25.96) and the Histogram +151.14 (+0.91).

Both indicators hooked slightly down and the Histogram printed a slightly longer bar in the positive zone.

Conclusion
Market sentiment succumbed to profit taking progressed in weaker notes today. Total volume decreased by about 41% when compared with the last session.

In MSCD, %K failed to make a new high but hooked slightly lower after today’s trade. As evident by the declining volume, investor has turned cautious and mostly opted to sidelines. %K would fall to test its support line soon but will manage to stay in the positive zone while waiting for new stimulus.

Key Index

(Chart posted with courtesy of ChartNexus)

FBMKLCI added another 10 points to finish at 1,491.89; just about 8 points to the 1,500 psychological level. Based on charts, the index has enough momentum to test the psychological level but sustainability is in doubt as most indicators have moved into the overbought area.

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