Friday, April 24, 2009

Confirmation Of A Mini Bull Run For Bursa Stocks

Well, this will be short and sweet. Readers will be familiar that I have said that this will be a 3 steps forward, 2 steps back kind of rally. Then somebody threw something into the barbecue pit yesterday when they announced the removal of the 30% ruling for foreign companies. If I had not been that clear before, it is a substantive impetus for the KLCI. Prior to that, I was looking for a stop-start rally that could bring the KLCI to a year's high of 1,100 - but the high may only be reached towards the end of the year. Now, with the additional impetus, it has elevated Malaysian stocks into a different valuation platform. I can assure you that over the next 3 days, there will be a huge truckload of highly favourable strategy reports on Malaysian economy and Malaysian stocks. Imagine being used to a hose that has people stepping on it all the time, the water trickles in in spurts. The fresh developments is a bit like replacing that with a metal pipe. The flow on effects will be enormous. I am comfortable that the CI will surge past 1,020 within days. I have also revised the high for the CI this year from 1,100 to 1,180. Expect a premium being accorded to Malaysian stocks, compared to other emerging markets in the coming weeks and months. Cheers!

p/s photos: Kelly Lin


solomon said...

Agreed, it is also well strategised with next week financial sector liberisation. I just hope there is no flip flop in policies if pressured again.

Dali, what is the Malaysian and HK growth stock that could be favoured in hyper inflation scenario? Why aren't you not bullish on our neighbours, Singapore and Indo. Kindly share yr thought.

Daro Rupiawan said...

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plas said...

when the recession strike,many things is still 'expensive'.I notice that price of computer,food keep going up.nothing really come down except that the px of stock had fallen to rock bottom.surely,this cannot remain for long and it's abt time,the level will come back with panic buy.