Malaysia Market – End of the Day

Asian markets were flat today as the region takes a breather from strong gains on yesterday. Japan’s GDP record 4% drop for the first quarter this year but was better than the 4.2% contraction that many economists were predicting. At closing, Japan market eked out 0.59%, Hong Kong down 0.39% and Singapore up 0.39%.

On Bursa Malaysia, the benchmark Kuala Lumpur Composite Index (KLCI) hit a new high due to the buying of key heavyweights, especially finance and plantation stocks. There could be some foreign buying interest in the heavyweights. But the lower liners were on profit taking and consolidation mode. The Index ended at 1,042.63 gained 19.14 pts. Total Volume increased by 118mln shares to 1,872 mln shares.

Due to lack of support from buyers on lower liners, the intra-Day Oscillator contradicted to the benchmark index slid downwards for the whole session. The robust sentiment at the starting of the market quickly faded away as investors suspected the sustainability of the surging index. The oscillator recorded an average gain of 531.25 pts, today.

The Key Indicator (Blue) of the Daily MSO Chart hooked down slightly and remained in red. The Indicator lost 180.45 pts to -530.83.

The 20MAV continued to move higher in the uptrend channel.

Market base is still strong. Tomorrow, retailers, lure by the significant hike of the Index, will follow regional trend to buy into lower liners.

This morning, OSK Research said, “We maintain our firmly bullish view towards the near-term and mid-term outlook for the stock market. The daily RSI closed at the 70 point-level yesterday, which suggests that the room is still open for additional gains. Not only that, both weekly and monthly RSIs are still far from being overbought. ”

“From the current level, an immediate resistance is seen at the 1,038-1,041-area, followed by the 1,064-level. We are eyeing the 200-week MAV line which is now lying at the 1,090 pt-level as the upside target. An initial support is now seen at the upside-gap ranging from the 1,012-1,023-area followed by the 1,000 mark,” it added. (Constructed and shared by Smartbiz)