Here the latest list of 30 component stocks in FTSE Bursa Malaysia. It’s very much influence to our KLCI index. And, you will have a better market view if you know these companies’ stock performance very well.
British American Tobacco (Malaysia)
Axiata Group Bhd
Malaysia Marine and Heavy Engineering Holdings Bhd
PETRONAS Chemicals Group Bhd
Kuala Lumpur Kepong
Sime Darby Bhd
Yesterday, 9th July 2011 would be a history day in Malaysia. It’d been to be the global headline as supporter of Bersih 2.0 can be found not only in Malaysia, but also other country like Melbourne, Thailand, Taiwan and etc.
KLCI closed at a new high of 1595 with reduced volume last Friday. Apparently, the index was pushed up by institutional investors near the closing period. On the other hand, we can see that the volume traded decreased as the retail investors are worried about the outcome of the Bersih 2.0 rally.
Most of us still can remember the year 1997 economy crisis which hit whole Asian countries. Those countries that major affected are South Korea, Malaysia, Indonesia, Hong Kong, Laos and Philippines. At that time, we can see that all these countries currencies dropped to a lower level against the US dollars.
During that year, the economies of Southeast Asia were the main attraction for foreign investors due to its high interest rate. We observed that the hot money pumped into these regions various sector such as properties, stocks and so on. The growth domestic product rate was 8 – 10 % for these countries.
There’s no doubt that it was a strong market rally for quite sometimes. For the past 3 days, we can observe that the stock market drop due to having healthy correction to its uptrend. Will the correction continue tomorrow? The probability is not that high as it’s already drop to the level where it’s great time for trader to initiate ‘LONG’ position.
Last Friday 21st Jan 2011 market closing at 1543 after dropping 24.5pts. Previously, many analysts and financial experts hope that the correction can drag the index towards the 1550 – 1540 levels as it will help to garner enough strength to break through the 1600 level. So, I think it’s time for the index hit next target which is breaking through the 1600 level.
The FKLI is consolidating around the 1570 level this week and it will separate the bulls and bears, with 1565 and 1575 as next major breakout point next week. So, it’s not encouraged for those who plan to have ‘SHORT’ position for long-term. In the other words, it’s also not advisable for those who plan to initiate ‘LONG’ position at this moment unless you want to take a risky step.
However, if you still unconscious then you can try to take risk by initiating ‘LONG’ position as I am in the positive view that the current market will not be easy to initiate short position. No matter what, once you initiate your ‘LONG’ position then you should remain holding the position and riding on the trend.