Bursa Malaysia went through turbulent trading days last week, sending CI to new low. Judging from the scenarios both at the national front and internationally, the volatility is likely to be carried over to this week.
The local political scene in the past week took the whole nation for a rollercoaster ride. The nerve-racking ups and downs not only sent Malaysians into a state of confusion, they also swept across Bursa to take a dive in response to the uncertainty. Now there is consensus in the market that the worst is far from over.
The low trading sentiment last week, coupled with thin volume, is projected to send Bursa to fresh low in the absence of any foreseeable positive developments. The market sees the testing of CI 1000 as imminent.
At the international level, the surge to US$146 per barrel in oil price adds fuel to the flames, giving the inflation added pressure. A monetary tightening is now viewed as taking one step closer to knocking on the central banks' doors, adding more negative outlook to the already fragile sentiment.
I wish you all the best in the week ahead!
Balasubramaniam's 2 contradictory SDs not only took the nation for a rollercoaster ride, they also sent CI of Bursa Malaysia to take a dive in response.