Malaysia Market – End of the Day

Asian markets took a breather after Japan reported a weaker Auto market. Dealer started to feel global markets have gone too quick and too far in one direction. At closing, Japan market eked out 0.20%, Hong Kong down 1.74% and Singapore tumbled by 3.22%.

The KL Composite Index opened on a stronger footing, rising as high as 1,034.4 points in the early hours of trading. At noon, the benchmark index then slipped into the red. Sentiment was affected by the sudden drop of the Singapore market. KLCI finished slightly lower at 1,025.50 lost 1.28 pts. However, total volume remained heavy to 3,850 million shares increased by 493 million shares from Friday. Second liners and penny stocks remained active.

Though market sentiment reversed sharply this afternoon but the Intra-day Oscillator still recorded an average gain of 2,620.26 pts due to strong performance in the morning session. The Key Indicator (Blue) of the Daily MSO Chart punched higher to 1,579.27 gained 323.35 pts.

While the bandwagon is riding along every street some analysts are warning stock markets may be due for a pullback, given that corporate results remain weak, as seen by the steep loss announced by Toyota Motor Corp. They started to say markets might be rising too much and too fast while any recovery in the global economy is unlikely to be swift.

"It seems that money inflows in Asia have started to slow down and there is profit taking around the region. I believe the market could see its half-year peak before the end of May," said Steve Cheng, associate director at Shenyin Wanguo.

In local front, CIMB technical analysts said, “. . . A major peak could take place in the next few weeks, followed by a long-overdue sharp correction. Our concern is the daily technical indicators which are extremely overbought. Daily RSI is above 80 for most Asian equity indexes. A pullback of Asian markets is long overdue and could happen when one least expects it.”

The MSO Chart is still robust and volume keeps on hiking. The decision is yours. (Constructed and shared by Smartbiz)