Once every for or five years, Malaysian stock market would stage a rally in anticipation of the general election. The rally could be a mini one or a huge one just like what’s happening now. The daily transaction volume was on plunging mode towards the end of last year, 2007, but suddenly the daily volume sprang to life with the year of rat (2008). The KLCI (Kuala Lumpur Composite Index) is currently inches away from the 1,500 – a level that would put 1993 Super Bull Run to shame.
Traditionally every New Year would start with a bang and if the Chinese New Year is about one or two months away, chances are the pre-Chinese New Year rally could be smiling at stocks investors (though there were minor exceptions). This year could spells double bonus as the pre-Election rally may add more sweet mandarin oranges to you, never mind the Prime Minister still has yet to get his inspiration. Another mini bonus is the rally in crude palm oil (CPO) prices.
In fact it’s not that difficult to push up the KLCI considering the government could “invoke” 15.9% of the Composite Index movement by snapping TMT (TENAGA, MAYBANK and TELEKOM) stocks. Malayan Banking Berhad (KLSE: MAYBANK, stock-code 1155), Tenaga Nasional Berhad (KLSE: TENAGA, stock-code 5347) and Telekom Malaysia Berhad (KLSE: TM, stock-code 4863) each influences 5.8 percent, 5.3 percent and 4.8 percent respectively of the overall KLCI.
- Why you shouldn’t invest on Brokers’ Stocks for now
- Forget about TMT stocks, here come the Replacements
January 9th, 2008 by financetwitter
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Comments
Hi Stocktube, Happy, Happy New Year. Any advise on what type of shares to invest this year ? Plantation counters too late to enter ?
hello rusty,
happy new year to you too … with the pre cny & election rally, the short term strategy is definitely political-linked counters …
but please monitor other stocks that have taken the back seat as rotational sector (property? financial?) could be coming back …
happy investing …
cheers …
Everybody knows CNY & Election rally has started.
Plantation counters in CI now accounts for 20% of CI. That is why very easy to push up CI now compared to last time.