Malaysia Market – End of the Day

Asian shares rose on Wednesday to their highest level in more than seven months after a jump in U.S. consumer confidence reinforced expectations the global economy has hit a bottom, even if recovery appears fragile.

"The recovery that we have seen in the market so far has surpassed expectations and it remains to be seen if this trend will continue," said John Mar, co-head of sales trading at Daiwa Securities SMBC Co. in Hong Kong.

At closing, Japan market was up by 1.37%, Hong Kong shot 5.26% higher and Singapore 3.01%.

Shares trading on the Bursa Malaysia were somewhat directionless Wednesday. Price movements for most counters were range bound as investors treaded cautiously ahead of Malaysia's 1Q09 gross domestic product (GDP) numbers. After market, Bank Negara announced a contraction of 6.2 per cent for the first quarter, very much higher than most expected.

The Kuala Lumpur Composite Index (KLCI) recorded yet another new high immediately after the morning bell but sank fast into red. The Index hovering just below the neutral line most of the time and eventually sank deeper to finish at 1,047.68 lost 3.95 points or 0.38%. Total Volume decreased by 150 mln shares to 1,443 mln shares when compares with yesterday.

Market sentiment was depressive even though most Asian bourses staged very strong gains. However, the Intra-Day Oscillator still recorded an average gain of 148.94 pts, today.

The Key Indicator (Blue) of the Daily MSO Chart fell deeper and prepares to cut the 50MAV after the 20MAV. The Indicator is now at +252.27 lost 76.46 pts.

The 20MAV edged 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.

Based on readings from MSO Charts, the conclusion is market sentiment is under consolidation and waiting for fresh lead. The unfavorable GDP figure might depress the sentiment tomorrow morning but will be fast digested. After all, everybody knows economy has not been good for long. Malaysia is not the only country which fell into technical recession. The strong performance of other Asian bourses today will cushion the effect of the recession fears. If US market can chalk up another bright record tonight it will be a plus to the local sentiment. (Constructed and shared by Smartbiz)