Malaysia Market – End of the Day

Most Asian equity markets ended lower Thursday on the U.S. Federal Reserve's grim view of the economy, with shares in Japan also hurt by concerns a stronger yen would hurt exporters' competitiveness. But selling pressure was moderate and some analysts said they are hopeful recent data from several parts of the world point toward an economic recovery.

But, Federal Reserve officials, who see possible signs of “stabilization” in the U.S. economy, signaled they’re not convinced those improvements, will persist. Policy makers, meeting April 28-29 in Washington, saw “significant downside risks” to the outlook for the economy, with the global financial system still “vulnerable to further shocks,” minutes of the session released yesterday said.

At closing, Japan market was down 0.86%, Hong Kong 1.58% and Singapore 2.57%.

On Bursa Malaysia, the benchmark Kuala Lumpur Composite Index (KLCI) hit yet another new high in the early trade but again fell into red in the afternoon session. The Index ended at 1,035.56 lost 7.07 pts or 0.68%. Total Volume decreased by 384 mln shares to 1,488 mln shares.

The robust sentiment at the starting of the market quickly faded away as investors quickly took profit amid the surging index. The Intra-Day Oscillator slid till the end of the day and recorded an average loss of 25.61 pts, today.

The Key Indicator (Blue) of the Daily MSO Chart hooked up but still remains in the red. This is an indication that overall buying strength is still weak though Index is hiking. The Indicator gained 401.38 pts to -129.45. The Indicator shows mild improvement in market sentiment. Market base is still in shape as the 20MAV remains in the uptrend channel though softer after today’s trade.

InsiderAsia said, “Investors have turned a little more skittish in recent days following the almost uninterrupted rally that began in early March. Few are going so far as pronouncing the rally over, at least not at the moment. Thus, we have not yet witnessed any big and sustained selling pressure on stocks. That itself may suggest that investor confidence remains, by and large, intact.

However, many are increasingly, taking a more cautious stance. Investors are sitting back a little awaiting further leads before making the next move. So far, the latest data does appear to support the view that the global recession is abating.” It added. (Constructed and shared by Smartbiz)