Sentiment Index - Malaysian Stock Market

Constructed and Written by Smartbiz

Asian equity markets rose sharply Monday on signs European leaders are making progress on a plan to contain the euro-zone debt crisis and as data pointed to an improvement in Chinese manufacturing activity.

"Decision day is Wednesday, when we will get the crucial details on how the European Financial Stability Facility resources will be deployed, how Greece's debt restructuring will be structured, and how much further capital European banks will need," said Sue Trinh at RBC Capital Markets. (WSJ)

Market Sentiment
Local sentiment motivated by regional gains progressed in high note most of the times. The Intra-day Oscillator slid slightly to end at +966.39; lost 85.39 when compares with its starting point. The Average recorded a gain of 953.95.

At the end of the day, %K (Yellow) of MSCD computed as +276.04 (+123.31), %D (Red) +150.41 (+64.31) and the Histogram +134.55 (-2.23).

Both indicators hooked up but the Histogram continued to print another shorter bar.

Conclusion
Local sentiment turned optimistic on hope of solution to the Debt Crisis. However, cautiousness remains as volume decreased to 1.2 billion. Investors are waiting for detail of the solution to be announced on Wednesday. The Histogram in MSCD shows confidence hasn’t returned to market in full yet.

Key Index

(Chart posted with courtesy of ChartNexus)

Tough FBMKLCI opened with a 24 points jump but finished with only a slightly over 11 points gain. As a result, a “tomb” was printed in its Daily Chart. Technically, a tomb predicted a weaker market ahead.

However, 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.)

NEWS FLASH (Bursah)

PLB net profit increased to RM3.52 million in the fourth quarter ended Aug 31, 2011 from RM2.07 million a year ago.

BDB net profit increased to RM5.84 million in the third quarter ended Sept 30, 2011 from RM2.11 million a year ago.