The surge in trading volume on Bursa Malaysia to 2.5 billion units on May 6, with very positive market participation from retailers and some foreign funds, could see the market extending its gains on May 7.
Jupiter Securities Research head Pong Teng Siew said investors had overcome their earlier hesitation yesterday over the US banks stress tests results. The sentiment was underpinned by the firm crude oil and crude palm oil prices and firm regional markets.
“Regardless of what is going to happen, stock markets are looking forward up to six months ahead,” he said.
Can the party go on? Pong said sellers were not going to keep selling while those looking to buy are growing in numbers. An indicator was the broader market, where advancing counters trounced decliners 666 to106.
Pong said since mid-March, foreign funds had been entering the market, including hedge funds. In the meantime, retail investors were also entering in the market as risk appetite for products with higher risks like equities instead of bonds.
“However, we are worried about the huge volume. Maybe, investors should be cautious and buy when the market quiets down,” he said.
The International Monetary Fund yesterday stated Asian economies faced a long recovery ahead from the global slowdown and forceful fiscal measures are needed to lift the region out of the recession quickly.
Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz said yesterday she expected this year to likely to be a difficult year for most countries as the world enters the third year of this financial crisis, due to a synchronised recession in the advanced economies.
“For most of the emerging economies however, the full effects of the crisis on their domestic economies will be felt this year,” she said.
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