Bulls in control of the market in the short term
Prathab V | 10 Aug 2018 00:30
Bursa Malaysia market’s benchmark index FBMKLCI seems to be sailing pretty steadily since July 9, rising over 143 points or 8.6% to close at 1804.73 on Aug 8.
Interestingly, after the 14th General Election (GE14), fear of the unknown and uncertainty caused the FBMKLCI to slowly dip from 1845.03 on May 22 to 1665.68 on June 26. This is drop of 196.2 points or a decline of 10.6%.
It appears that, in the short term at least, the bulls are in control of the market, pushing the performance of the FBMKLCI to test new levels.
This growth must surely bring cheer to the investor community, who are looking for some positive news despite the array of troubling revelations by the new Pakatan Harapan government with regards to various scandals such as the 1Malaysia Development Bhd (1MDB) saga, Goods and Services Tax (GST) refund issues and costs of various mega infrastructure projects.
What is interesting is that, as of Aug 8, the FBMKLCI breached the 200-day simple moving average (SMA) for the first time since Dec 14 last year, when it closed at 1759.
Download and read the latest issue of Focus Malaysia here: