KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
Just yesterday, we were talking about a good day for FBM KLCI, where the index rose 3.61 points to close at 1842.17.
Well, some analyst will look at the drop for today to 1829.91 (a drop of 12 pts) is a technical correction after consecutive gains for the past 3 days.
But with the anticipation that Organisation of Petroleum Exporting Countries (OPEC) member nations would not cut output to support prices, it's best that investors be careful in their trade in FBM KLCI. There are some who expect the rebound in oil price in December because of the winter in the northern hemisphere.
The decline today was mainly due to the blue chips counter like Tenaga, Telekom etc.
Regionally, the markets were mixed with Japan's Nikkei and and Hong Kong's Hang Seng decline while South Korea's Rospi rose for about 0.06%.
Here are some of the concerns that investors should take note of:
1) How the oil prices will move in the coming months with the OPEC not cutting output to support prices??
2) More stimulus in China and Europe? And how this will affect the market moving forward.
Market dropped again today. How far do you think it will drop to?
ReplyDeleteHi Jayce, my take on this is that the drop will probably continue for a while for O&G but with some positive sentiments in the United States and more stimulus plan from countries like China, Japan, Europe, things should improve. Of course, it's easy to fall into the trap of going in too early as there's a feeling that FBM KLCI is trading at a slighly higher price than our regional peers. But as mentioned in my most recent post on Profitability Ratios, I believe one should focus at the fundamentals of the stock, the business model of the company. Anyway good luck!
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