Malaysia Market – End of the Day

This morning, Asian shares fell on concerns of uncertain outlook of the global economy. Japan's Nikkei stock average shed 2.44 percent to hit its lowest close since May 1, with exporters such as Sony Corp sinking in losses. Worries about the impact of the virus on Japan's economy also gave investors an excuse to take profits. Japan reported a 10 fold spread of swine flu to 130 contaminates within 48 hours. However, both Hong Kong and Singapore markets turned their tables at the afternoon session and ended in positive zone. Hong Kong market finished 1.38% higher and Singapore 1.74%

Shares on the Bursa Malaysia opened sharply lower at the beginning of the new week. The KL Composite Index fell as much as 14 points in the early hours of trading while the number of losing stocks overwhelmed gaining ones. Loss in heavyweights, especially banking counters, kept the key index in negative territory throughout the day. Investors also took a cautious stance due to the earnings season now. However, this afternoon, sentiment followed other Asian peers gradually improved. The KLCI regained some of its earlier losses to close Monday marginally lower. The Index closed at 1,012.01 lost 2.20 pts. Total Volume decreased by 370 mln shares to 1,697 mln shares.

Today, the Intra-day Oscillator recorded an average loss of 1,689.48 pts. The oscillator stayed in red whole day but sentiment improved slightly in the afternoon session.

The Key Indicator (Blue) of the Daily MSO Chart fell deeper. The Indicator recorded another loss of 861.85 pts to -969.15. But the 20MAV halted exactly on the support line of its uptrend channel.

Tomorrow will be a crucial day for the MSO Charts to make an announcement. If the 20MAV fell off the support line, then the indication is market sentiment has fallen into a short term bearish mood. It will take a longer time for buyers to return to market even though KLCI remains above the 1,000 level. We will take a closer look on the Intra-Day Oscillator. The oscillator must stay in positive zone tomorrow. (Constructed and shared by Smartbiz)