Sentiment Index - Malaysian Stock Market

Constructed and Written by Smartbiz

Asian stock markets ended mostly higher after Germany and France reached an agreement on supporting European banks, though losses for property and energy companies weighed on Hong Kong, where the Hang Seng index ended little changed. (WSJ)

Market Sentiment
Local sentiment continued to subside even regional markets were mostly traded with gains. But, selling was shallow. The Intra-day Oscillator dipped below the zero level to finish at +74.21; lost 76.82 when compares with its starting point. The Average recorded a gain of 73.58.

At the end of the day, %K (Yellow) of MSCD computed as +16.44 (-16.36), %D (Red) -99.98 (+2.11) and the Histogram +85.38 (+7.76).

Both indicators curved slightly lower but the Histogram printed yet another longer positive bar.

Conclusion
The “feel good” effect of the 2012 Budget is receding fast even global concern has eased a bit. However, selling was not intensive as evident by the low volume of today’s market. Investors were not willing to forgo what they had in hand and prefer to wait for a better tomorrow.

In MSCD, the fell of both indicators didn’t really affect the outlook of the market especially when the Histogram persistently printed its positive bars. Market might be choppy but optimism will continue with cautious nibbling.

Again, one’s holding power is of utmost importance if he were to do fishing now.

Key Index

(Chart posted with courtesy of ChartNexus)

FBMKLCI lost about 3 points and retreated below the 1,400 level today. As the index managed to stay above the 12EMA and the 20MA, it might try to break the 1,400 level again. The reading is also supported by both MACD and Stochastic.

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