Asian stocks fell for the first time in six days after Japanese machinery orders and U.S. consumer credit slumped.


?People see a drop in U.S. consumer borrowing as an indication personal income and consumer spending in the region is not on a solid uptrend,? said Mitsushige Akino, who oversees $450 million in Tokyo at Ichiyoshi Investment Management Co. ?That concern is reducing risk tolerance.? (Bloomberg)


At the local front, FBM KLCI tumbled and soaked in red for the whole session. The Index finished off low at 1,332.93, lost 12.16 or 0.90%. Daily FBMKLCI Average was 1,335.60, lost 9.15. Total Volume increased by 144 mln to 1,278 mln.


Market sentiment was unexpectedly bad compared with previous sessions. The Oscillator fell deep in the red for the whole session and only last minute buying pulled it higher to end at 732.88 lost 333.47 from the starting point. The Average recorded a loss of 820.12.


At day?s end, MS5(Blue) of the Daily MSO fell sharply to -87.52, lost 185.53. MS10 fell to -15.78 and MS20, to -10.67.


Conclusion

(Click on charts for viewing)



Finally, market surrendered to the continuous selling pressure and retreated with full house. Market has been ripe for correction long ago. The intra-day Oscillator, at one time, fell as deep as 1,047, today, accompanied by high volume. Investors acted seriously to the correction by unloading heavily.

In the MSO, all indicators fell sharply into red after today?s trade. The scenario is so bad that MS20 failed to sustain above the positive zone but dipped into red. This signals that market will take longer time to resume its robust posture as before.