Sentiment Index - Malaysia Stock Market

Constructed and Written by Smartbiz

Asian stock markets joined in a global rally Thursday as investors welcomed Wednesday's move by major central banks to slash dollar credit costs in Europe and a monetary-policy easing in China.

The gains followed big leaps in U.S. and European stocks on Wednesday, when the U.S. Federal Reserve, and the central banks of the U.K., the euro zone, Canada, Japan and Switzerland announced Wednesday that they had agreed to reduce the cost of offering dollar financing through swap arrangements. (WSJ)

Market Sentiment
Local sentiment started in strong mood with the Oscillator surged over 3,000 points just 20 minutes after the opening. However, sentiment receded again despite of the sharp gains exhibited by both local and regional indexes. At the break, Hang Seng Index surged by over 5% and FBMKLCI over 1% but the Oscillator slid from 3,000 to around 1,000 points.

In the afternoon session, sentiment further deteriorated as the key index though broke through but failed to sustain above the 1,500 psychological level. The Intraday Oscillator eventually finished at +870.72; lost 2,342.76 when compares with its opening point. The Average recorded a gain of 1,352.38 due to robust opening.

In MSCD, %K (Yellow) computed as +109.22 (+225.95), %D (Red) +40.32 (+105.00) and the Histogram -79.79 (+31.17).

Technical Analysis
After today’s trade, both indicators in MSCD surged pass the zero level and %K cut %D from underneath decisively. The Histogram printed yet another shorter bar and its round-bottoming process almost completed.

The strong performance of global markets has boosted investor sentiment but participation was unexcited as volume increased insignificantly. This might due to the prevailing cautiousness since the peak of last rally as well as the long school holiday. However, the firmness shown by the MSCD indicates that sentiment has reversed from consolidation. Retailer will jump into the bandwagon very soon.

FBMKLCI printed a “Tomb” yesterday indicating a decelerated momentum. The gap formed by the last two sessions will serve as support if the index would retreat. FBMACE capped by its 20MA but uptrend remains intact.

Day Pick
ASTINO (good earning report)

Latest News
The Dow Jones Industrial Average shed 25.65 points, or 0.2%, to 12,020.03. Blue-chip stocks snapped a three-day winning streak as investors regrouped following the biggest one-day advance since March 2009 and awaited a key jobs report.

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