Malaysia Stock Market – End of the Day

Anyway, based on MSCD, the bullish convergence signal is still there though sustainability is in doubt. Market sentiment is so volatile that MSCD has failed to gauge in absolute term now.

Asian markets were flat Tuesday as traders followed a dip on Wall Street while the dollar rose against the yen on hopes Japan will announce fresh monetary easing steps to boost the economy.

Japanese shares jumped 1.47 percent before closing after Bank of Japan's surprise announcement of a zero-interest rate policy. (Yahoo)

After 5.00pm, Japanese market gained 1.47% but Hong Kong lost 0.44% and Singapore 0.10% whereas, Chinese market closed for holiday.

At the local front, FBMKLCI jumped about 9 points in early hour as DiGi rebounded from yesterday’s last minute sells down. The index stayed almost at the same level for the rest of the session and finished near its day-high at 1,472.19 (+9.92/0.68%). FBMKLCI Average (Pivot Point) was 1,470.48 (+4.00) and total volume 985m (-384m).

Market lost steam from yesterday’s robust sentiment instead progressed from bad to worst. The Oscillator zigzagged downhill for the whole session but last minute buying pulled it off low to finish at -219.27 lost 177.87; when compared with its starting point. The Average recorded a loss of 311.35.

Conclusion

According to papers, FBMKLCI yesterday’s last minute tumble was due to sell down of the shares of DiGi. DiGi closed down RM3.58 to RM21 with 161,000 shares done in the absence of any negative news. However, it rebounded this morning.

It is unarguable that the sudden weakening of the key index in yesterday would have exerted some impact on today’s trading. Investor sentiment was seen started in soft path and progressed from bad to worst. This is yet another evidence of how vulnerable it is the bellwether index that Malaysian market has been bonded to and was greatly relied on.

In MSCD, K% (12EMA, yellow) recorded as +3.96 (-57.31), D% (26EMA, red) -9.95 (-24.12) and the Histogram +13.92 (-33.19).

After today’s trade, K% hooked down sharply but stayed above D% and the Histogram casts a shorter positive bar.

It is hard to understand that buying strength on low liners could retreat so extensively today despite of the significant gain of the key index. The bearish sentiment should be partly affected by the weak regional market but it is supposed not to be. The only explanation is the higher the index the more worry investors have.

Anyway, based on MSCD, the bullish convergence signal is still there though sustainability is in doubt. Market sentiment is so volatile that MSCD has failed to gauge in absolute term now.

Constructed and Written by Smartbiz (Click on chart to view)

(Note: You can read the explanation for Intra-Day MSO and MSCD from the achieves under heading "Labels" at the lower portion of the sidebar.)