Sunday, January 11, 2009

KLSE - Set To Go To A New High

Foreign funds are anticipated to flow back in the coming week to Bursa Malaysia, paving the way for the CI to rise to a three-month high. This run is likely to be built on the run-up to the Lunar New Year and the installation of Obama Barrack as the new president of U.S. The market may have found new impetus to take off.

The governments worldwide are taking concerted efforts to revive the global depressed economic condition, thus shedding a light of hope on the globe. With the world under the lead of the Federal Reserve trending towards a zero-rate environment, the global liquidity flow may escalate in tandem with the ultra-loose monetary condition, giving a much needed push to the market.

Added to this, Obama continues to instil confidence in the investors. The charisma of the president-elect has given the world market optimism that the meltdown might be diverted in due course.

As such, despite the flooding of negative news, Dow Jones Industrial Average is least likely to be expected to slip further down. It may move within a tight range, waiting for the next uptrend movement.

Last week, Bursa Malaysia rebounded on the external positive sentiment and the rising commodity prices. But caution yourself against heavy profit-taking. Short-term trading would be the strategy in the week to come.

The oil price may be on the fall next week in the wake of the worsening economic condition in U.S. Falling below $U.S.40 looks likely to be the immediate target. However, if the tense situation at Gaza subsides, then the oil price is vulnerable to further dip. This is not going to augur well for the oil palm stocks.

The picture shows Datuk Bridget Lai, CEO of Alliance Bank Malaysia.


Daniel said...

Tony,where did you get the news that foreign fund is expected to flow back to Malaysia?The market sentiment is weak,even if Obama takes over the Oval Office he makes things right immediately.There are just too many loopholes and misdoings going on.This is the worst economy crisis in decades.
Well Tony,I'll be back to Sibu for Chinese New Year.Are you holding a open house?Can I drop by for a visit?Haha

Tony Hii said...

An era of zero-rate is looming large. This is going to free up funds for much greater liquidity flow. i don't know for sure how effective is Obamanomics going to be, but it may boost market confidence. 2009 is certainly going to be a lousy year with much depression ahead. You are most welcome back to Sibu for the Lunar New Year. Please drop in Premier Hotel for some freshly brewed coffee.

Anonymous said...

The markets have no confidence is in Obama. Lose all your money if you wish, but don't encourage others to do so. Since when does socialism cause markets to rise? Can you point to one example? The day after the election, S&P futures opened at 1002.50. Today they are at 874.25. If there us confidence in Obama, why are they down 125+ points since then?

Not retarded ...

Tony Hii said...

Thank you for your valid points. But Obama seems to be the only booster now, other than the zero-rate monetary loosening.