Bursa Malaysia

The local market performance was an odd to regional markets. The sell signals in the last few bars were negated since it could not pierced the low of the signal bar. Today morning bar crossed over the support line to enter a bearish zone.

CPO

Prices on the shaded area has moved above 1st BB and 5MA but only the third candle has been pierced on the high ie for buy by the 4th candle indicating a buy signal. 

 

KLCI futures

Similar to the mother index

Eurozone Financial Mess

• First we have Greece, last week Ireland..next could be Portugal….PIG
• And then could be..Spain…PIGS
• What next…

New York Times: November 27, 2010-They Are Not Like Ireland. Really.

• 
  

• Now, attention has turned to other economies in the 16-member monetary union that are also burdened with high levels of debt, stagnant growth and rigid, overpriced labor markets. At the top of the list are Portugal and Spain.

To quell the anxiety and speculation, Europe’s leaders and its top thinkers have argued for the better part of this year that other countries would not follow in Greece and Ireland’s path.

Given their past statements, however, they may not sound all that convincing.

“Italy is absolutely not in the same situation as Greece.” Jean-Claude Trichet, head of the European Central Bank, April 9

“What the Portuguese government wants the world to know is simpler: Portugal is not Greece.”The Economist magazine, April 22

“Portugal, Spain, Ireland or Italy are not in the same situation as Greece. And Belgium less yet.”Guy Quaden, governor of the National Bank of Belgium, May 7

“ ‘ Ireland is no Greece’ confirms latest economic forecast.”Ernst and Young, in its Economic Eye Summer Forecast, June 2010

"Greece is not Ireland; it doesn’t have banking stability problems.”George Papaconstantinou, finance minister of Greece, Nov. 8

“Our economy is very different from that of Greece or Ireland because our financial sector has benefited by the supervision and regulation of the Bank of Spain, which was missing in Ireland.” Elena Salgado, the Spanish finance minister in an interview in the British newspaper The Independent, Nov. 25

Bank failures in Ireland had “nothing to do with Portugal.” Ángel Gurría, secretary general of the Organization for Economic Cooperation and Development, in Bloomberg News, Nov. 22

“Portugal does not need any help, it is in a very different situation to Ireland.” Herman Van Rompuy, the president of the European Council, Nov. 23

Share prices on Bursa Malaysia was on bullish path amid of downturn in global equity market(refer here). Despite the high index level, the overall daily traded volume remained low. It is widely belief that current market participations are local institutions and a few of day traders, not many retail and foreign investors. In other words, current institutional investors consist of such government link funds…EPF, PNB, Khazanah, Tabung Haji.

How long can they last. I believe if there is no major setback in US and European markets, the locally driven equity market will not be inflicted.

With FBM KLCI going for 1450, last Friday high at 1415.28 is at 1.618 fibo extension of previous swing high to low in May. Therefore possibility of price correction.