Malaysia Market – End of the Day

Asian markets continued their rallies today with Japanese market staged a “Catch-up” play after its long holiday. Asian markets were bolstered by Credit Suisse Group AG report that forward-looking indicators in the US and China showed gains in manufacturing orders over production for the first time in 14 months. Early reports also indicate that the results of the stress test on major US banks will not be as bad as feared even though a number of them will need fresh capital to cover potential loan losses. At closing, Japan market surged 4.55%, Hong Kong 2.28% and Singapore 2.87%.

Shares on the local bourse traded mixed with KLCI recorded yet another new high at 1,037.81 but immediately swung downwards and fell into red in the afternoon session. Most dealers said market sentiment was somewhat affected by the chaos in the Perak State Assembly House as well as the arrest of a lot of protesters. However, investor interest remained buoyant. Trading volume rose to yet another high for the year with 3,357 million shares changing hands.

It is noted that among the 3,357 million shares traded, about 190 million shares were from 2nd Board and 508 million shares were from Mesdaq counters. Obviously, some punters have shifted their battle fields from Main Board counters to Measdaq counters. This is logical as Main Board counters have not much space for manipulation after KLCI surged about 181 points or 21% since March 20.

Meanwhile, Maybank Investment Bank Bhd chief chartist Lee Cheng Hooi said investors would buy on dips to the support areas of 998 and 1,023. He said profit taking on rallies to the resistance areas of 1,030 and 1,043 might cap market gains for now. “Any small dip on the KLCI now represents a very good bargain-hunting opportunity,” Lee said.

Today, the Intra-day Oscillator chalked up an average gain of 2,364.15. Boosting by the hefty gains of the Oscillator, the Key Indicator (Blue) of the Daily MSO Chart shot like an unleash arrow to 1,298.31 with another gain of 465.06 pts. This is another indication that even though Index might slow down but buying on Second liners and Mesdaq counters will still support the market breadth. (Constructed and shared by Smartbiz)