Sunday, July 27, 2008

KLSE Likely On Sideways

The international oil price retraced by more than 15% in the past two weeks. The market rebounded initially with a heavy dump in oil palm stocks for fear that the declining oil price might impact adversely the implicit value of palm oil as a substitute source of energy.

However, Bursa rebounded on the strong lead of Dow Jones in the middle of last week, taking CI to recover the earlier loss.

But the market strongly speculates that the world oil price may go for a technical rebound in the week to come. As such, Bursa may face build-up of pressure.

The market is fundamentally divided on Bursa's likely trends in the coming week.

Optimists are of the opinion that the outlook is promising as the market ushers in pre-budget run.

Pessimists feel that the overall confidence of the market is still in the doldrums. In the absence of strong lead, the trading may remain quiet.

In any event, Bursa stands a good chance to be on sideways.

Have a good trading week!
The above picture is by courtesy of Liong ( ).

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