Sentiment Index - Malaysia Stock Market

Constructed and Written by Smartbiz

Asian stocks ended mostly higher Friday, with banks supporting market gains in Sydney and Hong Kong, as hopes rose for strong results from the key U.S. jobs report due for release later in the global day.

"The outlook remains bullish, given both the bumper ADP payroll survey reading and also the fact that wider U.S. economic data is underlining the theme of recovery," said strategists at IG Markets. (WSJ)

Market Sentiment
Local sentiment opened in lower key with the Oscillator recorded at +217 points after 35 minutes of trading. Sentiment retreated into negative tone at the break as key index followed regional markets fell into the red.

After the break, the Oscillator continued to slide due to the volatile key index. The Intraday Oscillator eventually finished at +117.56; lost 156.91 when compares with its opening point. The Average recorded a loss of 241.75.

In MSCD, %K (Yellow) computed as +55.24 (-53.98), %D (Red) +19.42 (-20.90) and the Histogram -56.66 (+23.12).

After today’s trade, both indicators in MSCD fell slightly but the Histogram continued to print another shorter bar.

Technical Analysis
Local sentiment took a breather after three positive sessions. Profit taking also prevailed after the key index failed to sustain above the 1,500 psychological level. However, buying support remained as evident by broad-base nibbling during last hour trading.

The one-day weakness didn’t hurt the firmness shown by MSCD.

FBMKLCI moved sideways but remains above the gap. The index will make another attempt to break its 200MA which is around 1,504 in next sessions. The successful breakthrough will expose it to the next resistance around 1,510.

FBMACE moved sideways and hasn’t accumulating enough momentum yet.

Day Pick
GLOMAC (impressive earnings report)

Latest News
Dow Jones industrial average was down just 0.61 points, or 0.01% as concerns about Europe's debt crisis took over in the afternoon.

The US unemployment rate fell last month to its lowest level in more than two and a half years as employers stepped up hiring in response to the slowly improving economy.

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