Posted by: Financial Sith Lord | December 19, 2010

Bursa Malaysia Outlook for end of 2010 – A Sith Lord’s perspective

The 2010 Bursa Malaysia performance has been a rather good one for small to medium scale investors, as the FBMKLCI jumped almost 260 points from 01 Jan 2010’s high of 1,272 points to 10 November 2010’s high of 1,532, that’s 20.44% increase.  Again, the FBMKLCI’s performance is merely an indication of what’s truly happening with the stocks listed on the bourse, not to mention the non-Composite stocks..

However, I noticed that there’s a lackluster of volume (cash inflow) into the market, safe to assume, funds from foreign investors and fund managers. With announcements on various mega projects and its implementations (including Iskandar Region Development) and NERC (Northern Economic Region Corridor), these foreign funds remains skeptical and sidelined throughout 2010, with the exception of short bursts entries during arbitrage situations.

For the rest of 2010 (merely 10 days of trading more to go), local fund managers would have concluded their annual window dressing, thus prices are likely to settle down for profit taking. ASN & ASB funds has more or less concluded their portfolio restructure, and are distributing their dividends to stakeholders from the 20th of December 2010 onwards. What remains are speculative investors and punters. Don’t make a mistake, these funds are rather substantial.

The FBMKLCI is expected to do a mild correction soon to cover its gap created on 2 December 2010, when it leaped leaving a 5 points gap. It has yet to cover it (as the No. 1 rule of technical analysis) until today, but it does show a short-medium term trend to cover it.

For those of you heavily dependent on FBMKLCI’s performance for your stock portfolio, I suggest that you remain sidelined until next year, or at least until it covers the gap. But for those speculators and punters, the Bursa Malaysia still does have some excitement left for us.. I’m not going to disclose what are my portfolio, but I can give some shadow of the industries that I’m focusing on.. Namely Oil & Gas, Telecommunications and Properties.

My portfolio’s performance so far (as at 17 December 2010) is doing rather well.. with an 89.2% increase in portfolio value. That’s rather good considering that I trade from home!!..

Overall, with the Malaysian PM doing its spring cleaning on all GLC companies and closely monitoring its performances, I can easily say that 2011 will be a good year.. Provided (touch wood!!) the Koreans don’t go to war!!.. Next year also promises some stability in the Malaysian political scene, with the removal of several key pests in Parliament. On top of that, there’s going to be the General Election, whispered to be held somewhere in April. If BN continues its hard-work and rigorously capture the hearts of its grass-roots, the April General Election would be a landslide for BN. There’s also possibilities of recapturing fallen states such as Selangor (sand mining scandals, etc), Kedah (BN government’s successful intervention during the recent floods) and Penang (the ongoing public outcry over land issues in the state). Kelantan will still remain under PAS as there are not many trustworthy leaders coming from that State (between existing BN & PAS leaders of the state, I’d trust my life with a Kelantan PAS leader!!.. For now..)..

What say you?..

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Responses

  1. thank you I live in bursa

    • Dear Ali.. Wow.. Never met someone who lives in Bursa. In Malay, the word Bursa means Bourse or Exchange Market. Had I not seen your email address, I would have thought that either you were living in the Malaysian Stocks Exchange itself or your life circulates around the Malaysian Stocks Exchange (being a true Stock Trader!!).. In anyways, its nice that you read my postings.


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