Tuesday, January 15, 2008
Naive & Vulnerable
If you check out the last 30 minutes of yesterday's market in Bursa, you will find that it broke below 1500 for a while but was artificially lifted to close above 1500. Hmmm... , powers to be think they can manipulate the market's direction and sentiment?!! How naive and silly. The market is bigger than all of us. If we can "control" the market, why did we correct to below 500 in 1997/98 and spent a few years below 800?
Or is it that the people dishing out strategies to state funds think that the rest of investors are silly enough to believe that coming back above 1500 is a credible technical signal. Are investors that gullible? Maybe some are, but most are not. If you guys are trying to do a financial engineering, please be smarter la. This smacks of some guys playing with their Game Boy console. When the global equity scene is bleak, you don't try to counter the wave. If things were calmer, maybe you can lift the index and generate some plays in certain stocks to create a vibrant mood. When overall equation is not conducive, go and play also no one follow la.
Decoupling? What decoupling? Last I heard, the US is still Malaysia's biggest trading partner.
How dumb do you think investors are in Malaysia? Of course it does not hurt the guys planning all this as its the state funds which suffer. Just looking at the market for the past few days, with the exception of palm oil, there has not been genuine buying or follow through. But I did see the Maybank covered warrants going limit up, conveniently before Maybank shifted to fourth gear. This is insider buying if ever there was one. Please, SC and Bursa, please just go through all buyers who bought more than RM50,000 worth of Maybank covered warrants one or two days before the jump, and bring them to court. I know we have never done this before, but if you are always talking about maturing into a first class financial center: this needs to be done. Haul them up, and see if they or their relatives are part of any state funds or fund management companies, ask them why they bought. At least scare the shit out of them. Do we have the political will to do so, or will SC and the Bursa risk stepping on many rich and influential toes?
Who cares what I think.... or what the people think... and that's the real problem with our country.