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2010-05-25

Market might revisit 801.27 and possibly 626.50 in the longer term-From Maybank Investment Bank

Note from The Edge
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.

"We advise clients to sell and step aside for the next few months, as we believe that the market might revisit 801.27 and possibly 626.50 in the longer term," he said in a note Tuesday.

Wow better keep money in Gold!

But when this big fund said FBM KLCI might revisit 801.27, will it want us retail investor to panic selling all our fund? Sometime found vary hard to understand the share market.

5 comments:

Ivan May 25, 2010 at 2:15 PM  

Bro Durian,

I x think mkt can send back to 800 level as back previously. The reason is becasue:
a) our CI is build by 30 components and gov are well support

b) Gov stake in above stock almost 70-80% compare with the ciris before , mid 2008.

many believe the CI is falling down, and yet. . that is good chance to buy some cheap stock from fundamental point :D

i will in if they is any oppournity and ... i expect once DJIA & Europe rebound green for 2 days, our mkt will follow. gd luck.

East Point Trading May 25, 2010 at 3:00 PM  

Hi Ivan

Yap you are right, FBM KLCI is only build by 30 components not by 100 components during 2008.

But this news from the edge will surely cause some panic selling by today.

Ivan May 25, 2010 at 4:07 PM  

Bro,
soemtime i really not sure whether how true was our local analysis target the fair value for CI?

when mkt is bull, green for few days, all adjust to higher high ; and vice versa?

Fundamental analaysis mostly doing the analysis base on the company PE, DIV , GROWTH RATE, profit, ROi, ROE. . . and all of this are derive base on market situation?

in this case, so what is the purpose we need to have analysis in the market? anyone also can be our own analsyis?

turn on paper, aiyo . .mkt so bad . red red 5 days . . ok . .market will go down .. isn't?

no offense ya. .

East Point Trading May 26, 2010 at 7:54 AM  

Hi Ivan

Share market is a business, they are a lot of people live with this business so when it is a business, it mean dollar and sen.

They need profit from market so news and they report about analysis is they business tool. They can make a lot of target price and most of the time is wrong and they can adjust it time by time for they own good.

However share market need to up and down to make profit so we need to walk along with they flow and that's the hard part.

Ivan May 26, 2010 at 9:33 AM  

Thanks bro . Let us ride on the trend. Is a baer trend. Not sure when is good time to buy. DJIA rebound -250 to less than -100. . .show a good sign? not sure whether the DJIA mkt can sustain or not? msia mkt will holiday on friday- investor may sideaway...shall i buy now?

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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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