Posted by Mat Cendana > 2012-07-02 19:30 | Report Abuse

We missed the European and US rallies of last Friday. After the weekend's intervention, the positive sentiment became diluted. Good analysis - I believe Malaysian traders are waiting to see how these markets go tonight rather than to over-commit themselves and get stuck. There is still optimism here though, as seen in counters like MRCB.

Posted by Stephen Baster > 2012-07-02 20:53 | Report Abuse

yup really weird day at the market. traders too cautious after several months of ups and down. tonight positive performance from euro front should confirm the positive uptrend, hopefully the bull is back tomorrow morning. cheers.

Posted by KC Loh > 2012-07-02 20:59 | Report Abuse

the trending is by local fund managers only. The long term fund managers and index funds are not coming in as highlighted from The Edge Financial paper. They are on sideways whilst waiting for the general election. Chiefly in question is will Najib and BN as a whole survive the GE13!

for small timers like myself, its buying opportunity if we can forecast BN to win. When the big asset managements enter, you will then see your spike in price. our bourse is about 20% lagging behind regionally.

predictively, GE will probably be in the school holidays right after the budget and before the raining season of mid-nov onwards.

Just my 2-sens

Posted by KC Loh > 2012-07-02 21:05 | Report Abuse

i like to add also that although malaysia is 20% lagging behind in the bourse behind our ASEAN counterparts, its is, to me, a overvalue already for those into value investment. the bull here has proven resilient before with a lot of investors and punters hoping to gain ("one last hurrah" mode), so i think the spike in price will happen. But for those who are new, i recommend to be careful and invest in blue chip stocks for now.

All the best

Posted by smartbiz > 2012-07-02 21:40 | Report Abuse

There should be another rally before the budget month. After that, market future largely depends on the GE. Presently, the frying pan is still under heating.

Posted by Mat Cendana > 2012-07-02 23:47 | Report Abuse

I feel the BN will do better in the next GE so I'm thinking of what's the best strategy to try and benefit from this. At the same time, have to also remember that the financial problems in Europe are far from over. At the moment though the markets there have gotten a respite. But based on the various ups and downs, it wouldn't be too surprise should there be some nasty news coming out from there - of Spain and Italy getting into more trouble, for instance.

There are opportunities in BSKL, that's for sure. I have one foot in with some positions which I feel are at least strong enough to hold their ground if not rise when the mood is positive. But I'm keeping more than half of the capital on the sidelines - will only use some of it to accumulate solid counters when there's a correction... companies like Mudajaya, YTL Power, Digi etc.

Posted by smartbiz > 2012-07-03 16:01 | Report Abuse

Everyone is scared to enter the market. The longer the delay of the GE, the bigger will be the harm done.