Posted by: Financial Sith Lord | January 16, 2011

Bursa Malaysia Pre-CNY Outlook

The Bursa Malaysia’s FBMKLCI has been going almost side ways for the past week, with an average increase of slightly more than 6 points for the entire week. Trade volumes has gained its momentum by attracting more than RM 1billion daily. The index recorded its new high in 5 years to 1,572.21 points on 7 January 2011, but dipped at the start of week 2 in January.

Cheap stocks continued to be the favourites amongst investors, and this should remain so for many weeks to come, as numerous big-named corporation’s price are below the RM 1.00 mark. Let’s face the fact, heavy priced stocks are favourites amongst institutional investors and fund managers, whilst the cheap stocks are favourites of punters, speculators and retail investors. These investors of the masses are the ones creating volumes exceeding the RM 1 billion mark daily.. Or at least being major contributors to it..

The mild bull run may continue right up to pre-Chinese New Year celebration, which is on the 2nd week of February 2011, with occasional profit taking days here and there. I anticipate the market will tone down about 1 week before that for profit taking purposes.. Thus, the possibility of the index creating new highs? Yes, it is possible and very most likely. But what worries me is the pattern that is emerging from the charts.

Prior to the recent new 5-year high recorded on the 7 January 2011, the index tipped the charts on 1 November 2008, recording a high of 1,516.22. The 12 months after that date saw the index dipping almost 670 points, creating the worst market draught after the 9/11 aftermath. From then on, it took almost 2 years for the market to recover to its current state. A worrying fact that has yet to re-materialise.

For the punters and speculators, we may have the flexibility and courage to rake in small profits here and there but the big institutional players are set for some damage.. Thus, if you have money to invest, its worth learning on how to invest yourself rather than leaving it up to your unit trust fund managers, and the time to do it is NOW!! Exception for those geniuses that can study and absorb self investing methods like a big sponge, it would normally take you 6-8 months to get accustomed to trading yourself.

Real Estate investments are still unstable with a cocktail of speculative hooligans spoiling the local property market. Banks are less likely to offer high payouts on medium to long term deposits, thus Fixed Deposits are just a waist of time. Government linked funds such as ASN and ASB will continue to give out above industry-standard ROIs of 8-9% annually. So for those of you with feint hearts, this would be the option of choice. Just switch your investment there and enjoy the fruits. For those with steel stomachs, you can enjoy both worlds.. ASN/ASB + punting the Bursa Malaysia.

Until that moment arrives, there’s still some room left for profits.. Both for institutional and retail investors. I think its time for us to really master the Equity Options and Futures markets, but with what is currently available in Malaysia, can you actually call it a Market?

What say you?



  1. dear blogger, where did you earn your masters degree? degree and which PUBLIC company with 15b investment were you CEO of?

    • Royal Holloway, London and ISMA Centre, Reading. The Company is Treamenant Capital Berhad, and I was the COO and not the CEO. Why o’ my nameless commentator?

  2. your claims are so overwhelming..would love to see those cert from UL you claim to have here.. just the cert and I shall bother you no more. There’s only one mention of treamenant in http://www.. its a netfirm site like talents unlimited

    • Dear Goering, though your intentions may be good but I would have to politely decline your request of proving myself to you. There’s nothing overwhelming about what I have or gained as only my family and I know what hell I had to go through to achieve what I have today. Your intrusion (as I may call it) insults me, as you didn’t even have the courtesy to reveal your name or your background, and yet you scrutinize every word that I pen down. Its another story if you are a client of mine, but even my previous and existing high-net-worth clients don’t put me under a microscope like you do. Your use of dynamic e-mail shows your insincerity.

      To my other weblog followers, if you want to be respected, you should give some respect to people. This life is karma. God will make you go through what forbearances you put on to others. With this, I close this chapter.

  3. greetings, no insults intended. I’m in fact trying to defend you after someone (your relative) showed me this blog to poke fun at you. He says you even have an alternate Indonesian name but online, I shall leave it at that if its too disturbing for you to disclose all these information. Maybe it’s part of your secret financial world which I know none of.

    In my defense, I didn’t scrutinize everything you penned down. I simply asked you to reaffirm it with a simple scan of a cert which you probably hang in your office for public viewing anyways (if you have it of course). Even you can’t deny the amount of BS floating around the web nowadays.

    this will be my final visit/comment here.

    • Relatives that are either envious, not-understanding, pain in the ass or neck, or just simply ignorant are rampant in any family circle. I have no qualms in proving my papers but I do not display them on my office wall, like many other primate-like relatives. If you’d care to give me your full name and real email address, I’d be happy to provide you the proof. My education was never financed by my rich relatives nor the government. Its solely financed by myself, through working and studying at the same time. It was hell for me, but somehow I managed to pull through. I gave up precious times with my still young family (at that time) and slogged in the office up till wee hours of the morning, just to pull my education through. As you can see, that’s why I somehow took offence at first, but after knowing the reason behind your query, I understand.

      Fortunately for me, these institutions that I enrolled into, provided me some leverage and flexibility of external programs, designed for people like me, thus I still could work, provide for my family, and the same time ensure my future through education. Yes, it took longer than usual for me to complete them, but hey, I pulled through.

      So, my defence-lawyer-to-be Goering, I apologize should my earlier comment grazed your feelings. Hope you understand my stand point.

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