Hot money is flow out from FBM KLCI but supported by EPF money
This few day we had see FBM KLCI dip in beginning of trading and re-start trading after lunch. The index always dip in high vol in this 2 period and slowly recover at the end of trading. Hot money flow out from share market usually will zip zap the share up down so that they move is covered and sometime they also mark up the share to flow out depend on the current situation.
However base on current news, to mark up the share may likely to be hard but they know government will support the share to give a wrong picture about Malaysia economic to us so hot money may use this to take some profit before in flow again into share market when the price is slow.
I think hot money will flow in again into share market after the bad news been cold off, FBM KLCI will be the best place because Malaysia did not do anything to stop the hot money from entering Malaysia. Because of this, next year FBM KLCI may likely to fly sky high together in the same time general election.
3 comments:
Good time to buy some blue chips to get xmas gift :)
Hi,
What is your opinion on the likely timeframe the index will start to move up again? End of year or next year at the minimum?
regards
Hi Ivan and hkloon,
For me I think any bad news flow out from Euro and Korean that cause the market to dip will be a good opportunity to buy in into blue chips.
Next year March may likely to be General Election and by that time hot money may also already flow in so I think Dec will be a good month to buy blue chips especially petronas share because any FBM KLCI dip petronas share will suddenly go higher to support the index.
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