Sentiment Index - Malaysia Stock Market

Constructed and Written by Smartbiz

Asian shares ended mostly higher Tuesday after the U.S. holiday-shopping season got off to a strong start and on optimism European officials are moving toward closer fiscal union to resolve the Continent's debt crisis as a meeting of euro-zone finance ministers was set to begin.

"We are still a long way from any real solution (to Europe's debt woes), a fact that investors are only too aware of," said Jason Hughes at IG Markets Singapore. "Having felt the disappointment from politicians failing to deliver on so many occasions recently, we will need to see more concrete and exact details before we believe we are seeing the light at the end of the tunnel." (WSJ)

Market Sentiment
Local sentiment boosted by strong gain from US market started in high tone with the oscillator surged over 2,000 points Tuesday morning. But, sentiment gradually retreated due to lack of confidence even the key index made a gain of more than 26 points at one time. However, market still ended in positive tone with 471 gainers and 273 losers, total volume reduced to 1.305 mln shares. It is noted that the bidding enthusiasm on low-liners has slowly emerged.

At the end of the day, the Intraday Oscillator slid to finish at +576.04; lost 1,494.39 when compares with its opening point. The Average recorded a gain of 818.89.

In MSCD, %K (Yellow) of MSCD computed as -155.45 (+177.09), %D (Red) -77.58 (+71.74) and the Histogram -133.17 (+13.82).

Technical Analysis
After today’s trade, both indicators in MSCD hooked up but still stayed in the negative zone. The Histogram printed a shorter bar and is in the round-bottoming process.

MSCD indicates that sentiment is improving and this should be due to gradual accumulation of low-liners by punters. However, so long as both indicators stay in the red and %K remains underneath %D, market sentiment still considered as unstable.

The key index, FBMKLCI, has some improvement but is still lingering below 20-Day Moving Average.

FBMACE has formed its support line, downswing should be limited.

Day Pick
KWANTAS (impressive earning report)

Latest News
The Dow Jones Industrial Average rose 32.62 points, or 0.3%, to 11555.63, on Tuesday. The advance came a day after the blue-chip index rallied 291 points.

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