Malaysia Market – End of the Day

Most Asian stock markets closed with positive bias even though the overall sentiment was spoiled by North Korea’s nuclear test. Asian stocks were motivated by higher metal prices and shipping rates in the early trades. There was no significant movement at closing as investors wait for fresh leads. Japan market was up 1.31%, Hong Kong 0.35% and Singapore 0.99%.

Share prices on Bursa Malaysia closed higher today driven by heavyweights such as Genting, TM Bhd and Tenaga Nasional. The Kuala Lumpur Composite Index (KLCI) recorded yet another new high at 1,054.40 but finished slightly lower at 1,053.14 gained 7.88 points or 0.75%. Total Volume increased significantly by 740 mln shares to 2,010 mln shares.

"The market is higher on rotational interest. Even the laggard bluechip counters were moving," said OSK Investment's head of research, Chris Eng.

This time, market sentiment confirmed its bullish move by pushing the Oscillator higher and higher in heavy volume. The increase of 740 mln shares from last Friday is another affirmative action of investors who returned to market to pick up both blue chips and lower liners. The Intra-Day Oscillator recorded a hefty average gain of 1,098.13 pts, today.

The Key Indicator (Blue) of the Daily MSO Chart pointed north sharply cutting both 50MAV and 20MAV. The Indicator is now at +608.62 gains 557.52 pts.

The 20MAV, again, hooked further down and touched the bottom line of the uptrend channel. It is unlikely that the 20MAV will fell off from the channel in the light of today’s strong market performance.

OSK Investment Bank, in a report, said there were more portion of big caps that outperformed market consensus in terms of earnings compared to those that underperformed.

“A closer look at the results season so far reveals that things may not necessarily be all that bleak,” it said.

While it cautioned that the market was fairly valued at current level based on its KLCI target of 1,040 points by year-end, selected oil and gas, steel and construction stocks were likely to benefit from the upcoming announcements on contracts related to the stimulus packages and higher oil prices, it added.

MIMB Investment Bank also said the market's support level is expected to hold at the 1,020 and 1,040 levels while resistance remains at 1,060 and 1,075. (Constructed and shared by Smartbiz)