Finding market driving news to write these days had been a fairly difficult task especially when political topics tend to dominate most of the content in local daily newspaper. So bad that even the business section has dedicated 1 whole page on political bickering and how the investment community is getting tired of things. On the corporate front news flow on corporate events had been dry and boring to say the least. Malaysian corporates are now in hibernation mode with almost no sensational news. Good news are kept in the closet waiting for improved sentiments whilst bad news seems to be largely created for the purpose of selling off, we expect.
KLCI this week is pretty much disconnected with other stock markets (regional, US and Europe) . Whilst most of them were down, Malaysia's KLCI was up by +23.33 (+2.0%). Some might ask: So, is it a rebound (stock market to go up)?? In actual fact, we can't really tell .... perhaps what held us back from investing is perhaps the razor thin volume. To put things in perspective, we are most delighted the stock market closed surpassed the 1,080 pts (good sign) but we are not entirely convinced given the poor volume of market participation rate (bad sign). So the next question is: Would it come down or go up next week?????
Our best guess is that it has 70% chance of going down, with 25% chance of remaining flat and 5% chance of going up. We think it might go up on the basis that regional markets could rebound after heavy selling this week and KLCI will just take lead from regional momentum. So, overall this week is still not a window week for us to buy, in fact we are adopting a wait and see approach at the mean time.
Recommendations: It is time to look at the market now, but remain on the sideline to wait for any buy indicators, Oppotunities might come or it might not. Be careful of false start, we advise to keep your ears on the ground for good political developments.
KLCI this week is pretty much disconnected with other stock markets (regional, US and Europe) . Whilst most of them were down, Malaysia's KLCI was up by +23.33 (+2.0%). Some might ask: So, is it a rebound (stock market to go up)?? In actual fact, we can't really tell .... perhaps what held us back from investing is perhaps the razor thin volume. To put things in perspective, we are most delighted the stock market closed surpassed the 1,080 pts (good sign) but we are not entirely convinced given the poor volume of market participation rate (bad sign). So the next question is: Would it come down or go up next week?????
Our best guess is that it has 70% chance of going down, with 25% chance of remaining flat and 5% chance of going up. We think it might go up on the basis that regional markets could rebound after heavy selling this week and KLCI will just take lead from regional momentum. So, overall this week is still not a window week for us to buy, in fact we are adopting a wait and see approach at the mean time.
Recommendations: It is time to look at the market now, but remain on the sideline to wait for any buy indicators, Oppotunities might come or it might not. Be careful of false start, we advise to keep your ears on the ground for good political developments.
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