Malaysia Market – End of the Day

Regional stock markets extended their falls on Tuesday on continued profit-taking activities. Investors reacted to an overnight decline on Wall Street amid concerns that the two-month long rally may be over-stretched. While there is optimism of a recovery ahead, some recent economic reports also highlight the fact that the global economy is not out of the woods yet.

However, some major bourses such as Hong Kong and Singapore markets managed to return to positive ground before closing. At the end of the day, Japan market was down by 1.62%, Hong Kong up 0.38% and Singapore 0.56%.

Shares on Bursa Malaysia clawed back from their intra-day lows, as buyers came back into the market to load up on blue chip stocks and low liners at cheaper levels towards the closing bell. The benchmark index was in negative territory throughout the day. KLCI fell as much as 12 points to 1,013 in the afternoon, but closed just 2.48 points lower at 1,023.02 points. Total Volume reduced by 1,646 mln shares to 2,204 mln shares indicating most investors still holding tight to their positions.

Market sentiment followed the Index and was poor today. The Intra-day Oscillator recorded an average loss of 1,678.48 pts. However, the oscillator trimmed down losses impressively towards closing and volume also increased notably.

The Key Indicator (Blue) of the Daily MSO Chart hooked down to 1,132.53 lost 446.74 pts but still stays high. As we are unable to draw any trend line for the Key Indicator which is also the 5MAV due to its high oscillation, an attempt has been made to plot a trend channel for the 20MAV. This is because the MSO Chart is akin to our mood which tends to react swiftly to external influences and hard to manage.

From now on, we shall take the 20MAV trend channel as an important gauge to differentiate the bull and the bear. When the 20MAV fell off the channel, we will consider market would be initiating a bear run. This is a significant trial.

Around 9:30pm, U.S. stock-index futures rose as Federal Reserve Chairman Ben S. Bernanke said efforts by banks to raise capital are “encouraging,” overshadowing concern the economy may weaken further.

What anticipation do you have for tomorrow’s market?

Today, the KLCI futures contracts on Bursa Malaysia Derivatives closed 10.5 pts firmer despite a weaker cash market. This is a sign that investors still have confidence in the market. (Constructed and shared by Smartbiz)