Sentiment Index - Malaysia Stock Market

Constructed and Written by Smartbiz

Asian stock markets ended broadly lower Wednesday and the euro dropped as a rise in European sovereign bond yields Tuesday triggered fresh concerns over the euro-zone debt crisis, erasing early gains stemming from better-than-expected U.S. retail sales data Tuesday.

Cash continued to flow out of European government debt Tuesday, triggered by a less-than-stellar auction of Spanish treasury bills, pushing yields on Italian bonds above the key psychological 7% again and hitting even fiscally strong Northern European nations, such as triple-A-rated France, Austria, the Netherlands and Finland. (WSJ)

Market Sentiment
Local sentiment opened in high notes but followed regional markets lost steam shortly. The Intraday Oscillator slid into the red but finish off low at -634.21; lost 2,056.13 when compares with its opening point. The Average recorded a loss of 355.50.

At the end of the day, %K (Yellow) of MSCD computed as +130.35 (-88.31), %D (Red) +159.45 (-41.21) and the Histogram +35.74 (-16.21).

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

Conclusion
Market sentiment hit by lingering troubles in Europe today with volume decreased by 46.83% to 2.03 billion shares. However, market interest still centered on low liners but cautiousness prevailed.

In MSCD, %K continued its downswing and the Histogram almost finished its round topping process. Based on chart, there is high tendency that %K will sink into the red again since it has failed to record a new high in three attempts. This time, market will take longer time to consolidate. More losers will be seen when market is consolidating.

Again, no one should deny that the musical chair will continue to roll for some times.

The latest news said Europe's debt troubles on Tuesday spilled over to top-rated nations that had been largely untouched by the crisis—including Austria, the Netherlands, Finland and France—in an ominous sign for European policy makers.

Day Pick
MALTON (impressive earning)

Key Index

(Chart posted with courtesy of ChartNexus)

FBMKLCI was seen waving up and down today but finished almost unchanged. The Index has more downside bias now with the Mid-Bollinger Band (1,470) as immediate support. Its next support is 1,450.

The downside movement of the key index will affect the ACE Market as well.

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