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.
Stock traders are becoming increasingly bullish and complacent, as evidenced by a new all-time high for the CBOE SKEW Index (.SKEW.US) . While many market commentators suggest this rise indicates heightened concerns about a potential Black Swan event , the reality may be more concerning from a contrarian perspective. Understanding the SKEW Index The SKEW Index measures the divergence between two groups of traders: Consensus Majority: Traders with a bullish market outlook. Super-Bearish Minority: Traders anticipating extreme downside risks, such as a market crash. When the SKEW rises, it reflects a growing gap between these two perspectives. However, this gap can widen in two ways: Increased Bearishness: The minority becomes more concerned about a crash, while the majority remains steady. Increased Bullishness: The majority becomes less concerned about risks, while the minority maintains its bearish stance. What the Current SKEW Indicates Recent data suggests the latter scenario: t...