FBM KLCI May Likely To Move Sideways This Week

Now a lot of people is talking about property bubble and Foreign investor in a same time is buying into Malaysia blue chip only. Foreign investor already not going to make factory in Malaysia and they just want to make money fast by investing into share market.

With now Malaysia ringgit at 13 months high again USD sure Malaysia product will not cheap selling in US and ours palm oil earning will be low so it is not good for developing country to had a very high exchange rate. China and Singapore are smart country and they did not aloud they money value go too high compare USD.

Foreign investor is very smart they just target buy into blue chip and also share that have high EPF holding so for this type of share price to drop will be unlikely because government need to support the share index to show Malaysia economic is growing. Since beginning of June RM value is getting higher again USD so if foreign investor investing into Malaysia by that time and continues buying till now, they will already make a huge profit. Earning in share price and exchange rate. For us only inflation all thing price go up and we will harder to buy house.

With the housing price going up sure GDP will be good by year end but will share index hits 1,500 level will much depend on foreign investor power. This week will be Hari Raya so FBM KLCI likely yo go sideways till next week. I did not think FBM KLCI will drop in near term.