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2010-09-01

FBM KLCI Moving Up Just Like Before 2008 Crisis



















This info roll out in 'The Edge' during end of May when FBM KLCI dip below 1,300:-

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients advised them to remain vigilant of a potential damaging and sustained bear trend in the coming months. He said the euro zone crisis and the Dow Jones and European equity market malaise would persist, and it was best for investors to turn defensive and remain in over 90% cash at least."Recent price movements and global volatility suggest that investors should shy away from the FBM KLCI.

The result is after that FBM KLCI had a super bull run become best market performed in Asia (better that Singapore) Now FBM KLCI index moving up only due to 9 blue chip take turn to go higher and I think government is easy to manipulate the share by using EPF money.

7 comments:

Ivan September 1, 2010 at 1:24 PM  

Gov really easy to manipulate. . .
but wonder once the tsumai - dow drop 200 pts tonight to 9800. .

will ci follow as well?

East Point Trading September 1, 2010 at 1:41 PM  

Hi Ivan

I think FBM KLCI will not drop mach even tonight Dow drop 200pts because FBM KLCI index is base on 30 share only and now most of the retail investor did not jump into share market so not point to drop the share.

Next year may be a general election so government may use share to distribute money to target people for election use too.

I think I miss the bot of money distribution bull run for this time.

Ivan September 1, 2010 at 2:05 PM  

Hi Durian,

Save the bullet and can play somemore when the mkt are red ...

chances still always there. .but wonder with gov maniupulation .. . will it attract more local retail nor FDI to invest with msia?

East Point Trading September 1, 2010 at 5:27 PM  

Now local retail investor is very less in the market and FDI is low in Malaysia but we may have foreign investor investing into property and share market to manipulate it to super high.

As now house price is getting higher so for news generation to buy house is also getting harder. May be one day we will like China situation.

Ivan September 1, 2010 at 6:00 PM  

That is too bad, and I feel the pressure as well.

For house > 300k, I think is a burden for a younger to own a house at age of 30 soon.

For house > 500k for condo, I think is over-prize and is very hard to own by younger at age 30.

anyhow, A sell to B, B sell to C, C sell to A ...so who will be party buy at highest price? EPF? Khazanah? Tabung haji?

Don't forget Epf's money is our's money!

East Point Trading September 1, 2010 at 10:39 PM  

Now Dow just move up 200 point, so if continues go up Malaysia FBM KLCI index may up 10 to 15 again.

For the index to hits back 1,500 may likely to happen. However I fear that government using EPF money to goreng up the market.

Ivan September 1, 2010 at 11:28 PM  

when will gov stop using epf to invest in share mkt? actually is to goreng. . not invest. . .as invest is base on fundamental of a company. ..

once the epf stop. .guess the ci may fall back to 1000 level

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My investment with RM5,000 initial capital have been growing since 2005.I found the stock market appears confusing and complicated, but it is most definitely based on logic "supply and demand". However, the laws of supply and demand as observed in the markets do not behave as one would expect. To be an effective trader, there is a great need to understand how supply and demand can be interpreted under different market conditions and how to take advantage of this Off Market Transactions in KLSE.

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