Well the coming holidays do have a bearing but the weak sentiments around the major markets seems to be influencing KLSE.
"Asian Markets sell off on Bernanke remarks"
Reuters) - Hawkish comments by U.S. Federal Reserve Chairman Ben Bernanke and weakness in China's factory activity rattled Asian markets on Thursday, sending stock prices down, the U.S. dollar to three-year highs, and Japanese government bond yields to their highest in a year.
Stock and bond markets took their cue from the drop in U.S. equities and Treasuries after Bernanke's remarks at a Congressional hearing sparked worries of an earlier than expected reduction in U.S. monetary stimulus.
A weak manufacturing survey from China added to concerns about a delayed recovery in the world's second-largest economy and furthered those losses, dragging MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS down 2.1 percent.
Be the first to like this.
36 comment(s).Last comment by midastouch 2013-05-27 10:18
If you are using your own money than there is no cause for concern. Shut your computer down and enjoy your holidays. Things will be back to normal middle of next week. If you are on margin trading, bite the bullet and cut your loss.
Topix is not slump!!!! Insteas.....sudah naik too much and at auto bun speed!!!! I think it's realistic to expect Topix coming down ! I think the downtrun is still at early stage....more too comes!
well... even playing using own money , we should cut loss as we do not know if the stock we bought drop till what price . and if recover to the price we bought , need to wait how long ? better cut loss n dont to over confident as market not control by only ourself but many players
reading back the fed hearing, it looks like stimulus efforts r to continue but MAY scale down as early as june, depends on certain criteria not specified, suggeste by few senior officers. believe investors r magnifying the "may" thing. note U. S properties market is improving marginally till date. smoking gun or... ? let's watch closely for U. S performance today and tomorrow
" Fed's Mixed Message: The Federal Reserve sent a "garbled message" about the fate of its QE3 program on Wednesday. First, Chairman Ben Bernanke endorsed ongoing stimulus efforts while testifying at a congressional hearing, though he did reveal the central bank could begin to slow down bond-buying in its "next few meetings," labor market conditions permitting. Then, just hours later, April meeting minutes revealed some Fed officials were hoping to pare down the program as early as June. Markets spiked, and then tumbled as a result of the information, illustrating "the communications challenge facing the Fed as it ponders the next steps for its historic stimulus efforts," the Washington Post reports. Now that the dust has settled, some analysts are predicting the slowdown — which, Bernanke noted was different than a complete wind-down of the program, since the Fed could always raise purchases if the economic outlook worsens — will begin in a few months, most likely around September."
Ben Bernanke's statement was made public last night and when I read the papers this morning, what really struck me was his statement that the Fed's current monetary policy is providing significant benefits and that "a premature tightening of monetary policy could lead interest rates to rise temporarily but would also carry a substantial risk of slowing or ending the economic recovery and causing inflation to fall further."
How do you think we should interpret Ben Bernanke's statement?
There is not going to be any change in the Fed's monetary policy, not until unemployment falls meaningfully and inflation is where they want it to be. So, the environment of low interest rates will persist and this bodes well for the stock market.
Now, with the declines in the stock market yesterday, is the bear back? Well, is it? Naturally, no one knows.
What I know and would like to remind everyone about is that prices do not go up or down in a straight line. They climb a wall of worries and go down a river of hope. The uptrend is still pretty much intact and pull backs are only normal. Today is another pull back and the worries are China's weaker data and, apparently, Ben Bernanke's statement.
With lower prices, now, we see better value. Of course, this is assuming that there are no material changes which will adversely affect our investments. If the fundamentals are unchanged, a good investment at a lower price offers greater value for money. Then, look at the technicals. If these are benign, we should be buying on weakness.
In a nutshell, if the fundamentals remain good and if the technicals are benign, pull backs are buying opportunities.
So, what should we do? Prepare a list of the stocks we are interested in. Determine what are the prices we would like to buy at as well as the reasons backing those decisions. Remember, if we cannot convince ourselves why we are buying at a certain price, we really don't have a good reason to be buying.
It is very important to have a trading plan and follow it rigidly. Do your homework before you invest. No short cut, only hard work will help you to make money in stock market.
World stocks will end their run as in the past when US interest rates begin to climb. Funds will move into US market and abandoning other markets to support the US economy. The question is when? Can it be the first Q of 2014 or sooner?
This is what we need to look out for. The moment funds go back to US as a result of higher interest, local market will suffer from foreigner pull out. Index stocks will be hit badly.
so far, judging from 1YTD data, major markets have been seen buying on dip, rather than staying sideline or switch to other instrument. given current EU, China economy status, looks unlikely the global economy can walk away from stimulus anytime soon.
note on Friday both dji and nikkei both ended green, while other markets mostly in red.
close range bouncing until further clarity/catalyst arise :)
Yes, it is. Just look at Malaysia vs Us dollar. Whenever high decline of klse, USD went up vs Msia ringgit. Similarly the opposite. Pull out to change back ringgit to dollar
All the stockbroking firms will tell you it is 80/20.That is what Pareto said long time ago for other matters. It now applies to the market. 80% of the players in our market are institutional investors. Only 20% are retail investors like you and me.The shareholders in our local companies range from 1,000 to 21,000. Averaging at about 5,000 for 1,200 counters on the KlSE, we ,the retail investors are keeping a majority of the remisers/dealers in business.A good advice has been given by Midastouch. Study the market and do your homework.At the same time never write off those that have fallen. People fall down only to wake up later. Some companies are waiting to wake up. So look at them too. Enjoy the show while you can.
The ringgit is likely to be lower against the US dollar next week, prompted by a lack of commercial demand for the local unit.
Affin Investment Bank Vice-President and Head of Retail Research Dr Nazri Khan said the minutes of the US Federal Open Market Committee (FOMC) meeting on Wednesday, showed that policy makers are now ready to start tapering off the US central bank’s third round of quantitative easing as early as June.
“We believe the anticipation will dampen sentiment across the region as any scale back of the bonds purchase would limit liquidity flows into Asian emerging assets including Malaysia,” he told Bernama.
Share prices are expected to undergo further profit-taking this week with the benchmark FBM KLCI possibly retreating to the 1760 points support level.
Weak regional sentiment coupled with softer commodities and the declining ringgit would be contributing factors.
Affin Investment Bank Vice-President/Head of Retail Research Dr Nazri Khan said the anticipation will dampen sentiment across the region, as any scale back of the bonds purchase, would limit liquidity flows into Asian emerging assets, including Malaysia.
Japan’s Nikkei index slid 3.05% in early trade on Monday.
On Sunday, Bank of Japan Governor Haruhiko Kuroda said the bank will be vigilant to any signs of overheating of asset prices or excessive risk-taking by financial institutions, adding that there were no signs of that now.
Reuters
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
Report Abuse
Please Sign In to report this post as abuse.
Market Buzz
No result.
Featured Posts
MQ Trader
Introducing MY's First IPO Fund for Sophisticated Investors!
MQ Chat
New Update. Discover investment communities that resonate with your ideas
MQ Trader
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
0:17
New IPO: O&G healthcare service provider, Metro Healthcare Berhad aims to list on the Ace Market!
MQ Trader 1277 views | 9 d ago
0:17
New IPO: Life Water Berhad, a manufacturer of drinking water and carbonated beverages, aims to list on the Main Market!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Posted by midastouch > 2013-05-23 14:59 | Report Abuse
Well the coming holidays do have a bearing but the weak sentiments around the major markets seems to be influencing KLSE. "Asian Markets sell off on Bernanke remarks" Reuters) - Hawkish comments by U.S. Federal Reserve Chairman Ben Bernanke and weakness in China's factory activity rattled Asian markets on Thursday, sending stock prices down, the U.S. dollar to three-year highs, and Japanese government bond yields to their highest in a year. Stock and bond markets took their cue from the drop in U.S. equities and Treasuries after Bernanke's remarks at a Congressional hearing sparked worries of an earlier than expected reduction in U.S. monetary stimulus. A weak manufacturing survey from China added to concerns about a delayed recovery in the world's second-largest economy and furthered those losses, dragging MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS down 2.1 percent.