12 April 2011

KLCI: What the Hell is going on? + Invest Malaysia 2011

Thinking that yesterday's 13points drop is enough? Today, KLCI slumps again for the 2nd day in a row. Are you expecting it? Personally, I don't think most of us can predict the future. But, what I can say is that many investors like me would positioning our money very well, anticipating some good announcements during Invest Malaysia 2011 Conference today and tomorrow. If you're thinking the same way, Good Luck!!!

TheStar picture
Any BAD news?
Excluding foreign news, NO bad news at all in Malaysia. But, investors see the opposite side now - no good news = bad news!

Profit-taking activities set in on Malaysia market beginning this week. If you're not the one who cash out yesterday, you would probably forced to stay on holding until the "tsunami" is over. Money is washing away from the market, flowing overseas (capital outflow by foreign funds). That's why banking stocks, Genting, Petronas Chemicals took a beating today, pulling down KLCI as a result.

Souce: Yahoo! Finance
While many investors are waiting for the goodies during Invest Malaysia 2011 conference, it seems like the party is over without much excitement. First, let's us summarize the announcements made today:
  1. 2nd Capital Market Masterplan (CMP2) to swell the value of the capital market to RM5.8 trillion through greater internalization from RM2 trillion now
    • New dual licensing scheme to make it easier for dealers in the equity market to become licensed to trade in the derivatives market
    • Increasing the number of day traders by almost 3x to enable more dealer representatives to become specialized traders
    • New private retirement scheme is introduced
  2. Listing of Felda Group's sugar business expected in July 2011
  3. In attracting Malaysian professionals to returned, flat 15% income tax rate for 5 years is introduced

What is lacking?
Surprisingly, the Pos Malaysia's stake which is being divested by Khazanah still remained a mystery. Who would be the winner? PM:"The disposal of Pos Malaysia is now in final stage". Maybe due to this news, DRBHicom (the main contender who tipped to win the stake) falls sharply from recent high of RM2.50 to closed RM2.24 today.

Can we turnaround in 2nd-half?
1st-half (today), the impact had undeniably failed. Let's monitor the 2nd-half (tomorrow). As reported by various analysts, tomorrow's session will highlights the Greater Kuala Lumpur related projects. As such, the Mass Rail Transit (MRT) project should take to the stage, and updated on the progress of project. MRCB and Gamuda should be in focus tomorrow. But, would these counters facing the same DRBHicom's fate too?

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