Sentiment Index - Malaysia Stock Market

Constructed and Written by Smartbiz

Asian stock markets ended mostly lower Tuesday amid concerns over whether newly formed governments in Italy and Greece can contain their debt crisis as Spanish and Italian government-bond yields climbed.

"People are very skittish," said Macquarie Private Wealth investment adviser James Rosenberg in Sydney. "Europe will remain volatile for a quite some time and you are seeing a lot of caution, which is reflected in the low share market volumes." (WSJ)

Market Sentiment
Local sentiment took a breather with seller overwhelmed buyer today. The Intraday Oscillator was seen zigzagging in the red to finish off low at -831.55; gained 136.77 when compares with its opening point. The Average recorded a loss of 1,049.76.

At the end of the day, %K (Yellow) of MSCD computed as +218.65 (-230.54), %D (Red) +200.67 (-100.07) and the Histogram +51.59 (-8.49).

Both indicators hooked down and the Histogram printed a shorter bar in the positive area.

Conclusion
Market sentiment succumbed to profit taking with volume increased to the vicinity of 3 billion shares. Low liners continued to rotating its musical chair from one to another. However, prices were seen moving swiftly from low to high and high to low.

In MSCD, %K failed to record a new high but hooked sharply lower after today’s trade. The fact that the indicator has fallen sharply amidst higher volume indicates the upswing momentum was decelerated by heavy profit taking. Market sentiment might start to consolidate from this point.

However, no one should deny that the musical chair will continue to roll until major issue emerges. The question is: which counter?

The latest news said U.S. stock futures slumped (-108), adding to losses seen in the previous session, as renewed worries about euro-zone sovereign debt and disappointing results from Wal-Mart led to unease among investors ahead of a flurry of economic news.

Day Pick
SBCCORP (impressive earning)

Key Index

(Chart posted with courtesy of ChartNexus)

FBMKLCI traded in tight range in minimal losses of 1.65 points today. Based on chart, the Index will move sideways with the 20MA as next meaningful support.

FBMACE lost 68.72 points and printed a black candle. ACE Market should take a breather from this point and the index has exposed itself to its 20MA around 4,118.

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