Asian markets’ sentiment was boosted by the US Fed chairman Bernanke’s comments that policies to revive the credit markets were effective. Major Asian indices were all up in the range of 1 to 3%.Local interest was also buoyed by the peaceful shift in the country’s top leadership with blue chip led the market higher. But KLCI gradually moved downwards to finish at 923.77 after climbing as high as 926.61. Volume decreased slightly to 876 mln shares.
According to a report by Citigroup, the market is pricing in positive political sentiment with anticipation of a leaner and more effective Cabinet, transformation and changes under the new leadership and further liberalisation in selected sectors.
“Investors could be warming up to the idea that (newly appointed Prime Minister) Datuk Seri Najib Razak, coming from a very low base, could easily spring upside surprises,” the foreign research house said.
The Key Indicator (Blue) of the Daily MSO Chart moved with full charges and pointed almost north after today’s market. The Indicator broke its overhead resistance and set a new high to finish at +195.37, gained a hefty 115.68 pts.
It is no doubt that market sentiment is in bullish mood and might stay firm for quite some times. However, profit taking will set in fast once unfavorable effect triggered by external factors. However, the Najib government will give supports to create a ‘feel good’ market. (Click on Chart to view)
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