Sentiment Index - Malaysia Stock Market

Constructed and Written by Smartbiz

Asia stocks ended mostly higher Monday amid signs of stability in Europe after Italy picked a new prime minister and passed an austerity budget, with a positive third-quarter economic growth reading boosting sentiment in Japan.

"I think the appointment of technocrat governments in Greece and Italy will appease the bond markets in Europe, and hopefully this week will be the start of something good in equities, although there are still massive risks," said Chris Weston, an institutional trader at IG Markets in Sydney. (WSJ)

Market Sentiment
Local sentiment commenced in strong mood and sustained from profit taking towards closing. The Oscillator finished off high to end at +2,883.55; lost 240.91 when compares with its opening point. The Average recorded a gain of 2,126.46

At the end of the day, %K (Yellow) of MSCD computed as +449.19 (+304.85), %D (Red) +300.73 (+146.11) and the Histogram +60.45 (+22.00).

Both indicators surged higher and the Histogram printed a longer bar in the positive area.

Conclusion
Market sentiment continued its robust performance with total volume increased by 27.41% to 2.84 billion shares.

In MSCD, %K bounced nearer to its previous high after today’s trade. The buying euphoria will continue if the indicator can break through the resistance line; else, this should be the peak of the rally. However, looking at the impressive volume, the odds are still good.

The latest news said U.S. stock futures lost ground, tracking broad declines in Europe, as investors grew cautious over the ability of Italy to push through austerity measures.

Day Pick
MALTON (New business venture)

Key Index

(Chart posted with courtesy of ChartNexus)

FBMKLCI lost strength to close below its opening at 1,478.87. The Index will mostly move sideways with unimpressive changes.

FBMACE moved narrowly higher with volume returned to 0.44 bn from 0.29 bn shares last Friday. Charts show some improvement but cautiousness remains.

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