Sentiment Index - Malaysia Stock Market

Constructed and Written by Smartbiz

Asian stocks ended mostly lower Tuesday as sentiment faltered after data showed China's manufacturing activity slowed and fresh euro-zone debt concerns emerged, weighing on growth-sensitive resources plays around the region.

China's official Purchasing Managers Index unexpectedly fell to 50.4 in October from 51.2 in September, indicating tight monetary policy and weakening export demand have started to affect manufacturing sector growth.

Investors got another jolt late Monday from reports Greece's government would hold a referendum on the newly minted aid package, and would also hold a vote of confidence on the government. (WSJ)

Market Sentiment
Local sentiment turned more skeptics in the afternoon session as European stock tumble after Greece announced bailout referendum. The Intra-day Oscillator opened with loss of more than 650 points and sank deeper to end at -1,015.37; lost 362.15 when compares with its opening point. The Average recorded a loss of 723.71.

At the end of the day, %K (Yellow) of MSCD computed as +241.99 (-175.52), %D (Red) +189.63 (-73.09) and the Histogram +131.40 (-19.76).

Both indicators fell deeper and %K sank below the support. The Histogram printed a shorter bar after two positive sessions.

Conclusion
Market sentiment turned pessimistic on news that both S&P Future and European stock opened with deep losses. However, selling was mild as total volume reduced to 1.18 billion from as high as 1.87 billion days before.

In MSCD, %K fell below its support but remains 241 points above the zero level. The fall was so steep that it might continue its downswing to test the zero level soon. However, the odds of falling deep below the level are quite slim as market sentiment has been somewhat solidified after a series of positive news from both local and foreign.

Key Index

(Chart posted with courtesy of ChartNexus)

FBMKLCI rested exactly on its uptrend support after losing more than 16 points from yesterday’s closing. The unexpected U-Turn was due to the sharp fall of European market after Greece announced bailout referendum.

Based on charts, the upward strength has been hurt after today’s sell-down. However, the fact that the index finished on the uptrend line is evident that investor hasn’t given out completely. The index might not be spared from external disturbance but should be able to find a strong support at the 20SMA. Its immediate support is 1,465 now but vulnerable.

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