Malaysia Market – End of the Day

Stock markets around the region mostly succumbed to profit-taking activities today. North Korea again fired short-range missiles after yesterday’s nuclear test also weighed on markets.

But Lee Kyoung-su, an analyst at Taurus Investment & Securities said, "As was the case with the nuclear test yesterday, news of yet another North Korean missile launch would have a relatively short-lived impact on markets. This will actually offer opportunities to buyers to pick up stocks at lower prices,"

"Market participants are more concerned with macroeconomic factors, such as a batch of data from the United States due out this week. More falls are expected if the data proves to be disappointing," added the Seoul-based analyst.

Japan market was down by 0.39%, Hong Kong 0.76% and Singapore 1.26%.

Malaysian shares closed down 0.14 percent Tuesday after the government said the economy is expected to shrink by more than forecast this year. The market was also hit by losses in plantation stocks and profit-taking on heavyweights. Sentiment was upbeat but changed markedly after lunch. The Kuala Lumpur Composite Index (KLCI) finished slightly lower at 1,051.63 lost 1.51 points. Total Volume reduced by 102 mln shares to 927 mln shares when compares with yesterday’s break.

Market sentiment turned bearish this afternoon from bullish. The Intra-Day Oscillator fell into red but recorded an average gain of 15.90 pts, today.

The Key Indicator (Blue) of the Daily MSO Chart hooked down cutting the 20MAV. The Indicator is now at +328.73 lost 279.89 pts.

The 20MAV edged slightly higher and remained in the uptrend channel. Market sentiment is still good but shows some fatigue signs due to the subdued volume. The decreasing volume will pull down the 20MAV.

“History tells us the bear market isn’t over,” Andrew Lee, an analyst at Maybank Investment said in a report today. The rally has “pushed valuations to the point where growth expectations have reached implausible levels. A profit recession has just begun.”He expects the key stock index to fall to 990 by year-end.

It is good to listen to some controversial analysis. This will keep us in alert all the time. (Constructed and shared by Smartbiz)