1350 points? You bet!
Underscoring that foreign funds had been driving the bull run in Malaysian bourse of late, Oriental Daily News reminds readers that the globally mobile hot money is a double-edged sword. It acts like what the Chinese proverb says: "Water floats vessel as much as sinking it".
The editorial does not foresee the foreign funds to make a re-entry soon after their retreat. As such, it concludes that the 13-year record high of 1283.47 points on the KLCI may well be the highest point for in 2007 if market sentiments did not improve.
And here's the stinger:
Politicians who were confident with the stock market before this -- to the extent of boosting the composite index would reach a certain record high with fixed numbers -- must now regret saying what was said.The drastic slide in the stock market may even cause rumour mills on the pending general elections to slow down their grinds.
之前對股市信心滿滿的政治人物，甚至放話股市可創下多少點新高者如今肯定悔不當初。股市大幅度下跌，關于大選即將舉行的謠言，或許會略為平息也未可知！
Get the drift?
Comments
Quote Standard & Poor:
"We see sharp falls in the higher beta exchanges such as Malaysia, which had in any case been outperforming and whose own valuations were reaching levels where risk versus upside was heightened,"
--Standard & Poor Equity Research latest report--
Posted by: Freddy![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
|
March 1, 2007 07:49 AM
Jeff,
Don't you find it suspicious that with the recent run up in the KLSE a lot of companies are suddenly reporting "huge" profits?
I wonder what actually happened in 2006 for many of them to report their "record" profits.
Did consumers spend more in 2006? Or is it due to the increase in fuel prices? Can an increase in fuel price improve your profits (unless you are dealing in oil)? These companies must really "know" something others didn't!
Posted by: JacknJill![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
|
March 1, 2007 08:51 AM
The recent run-up in the KLSE had no fundamentals. The foreign players played our market because they saw that they can double their earnings as the ringgit was also rising vis-a-vis the dollar.
The sharp fall is thus expected as there will be no buying support when a big foreign player decides to leave. Local funds are just waiting to cash out too so my advise to all is stay away from this market.
Also another BIG minus point for KLSE is short-selling is now possible.
I am not betting Jeff, but looks like it is going to go below 1000 points.
Posted by: JacknJill![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
|
March 1, 2007 09:07 AM