KLCI soars to a 13-year high

KUALA LUMPUR: It's a bullish start to the Year of the Boar on Bursa Malaysia.

The Kuala Lumpur Composite Index (KLCI) soared to a 13-year high Wednesday as investors returned in force after the festive holiday to lift the benchmark 16.13 points to 1,278.22.

The broad-based rally also pushed the combined value of all stocks on the bourse to above RM1 trillion.

Two months ago, the combined value of all stocks was around RM870bil.

The buoyant stock market has been a key ingredient in the build-up of the "feel good" economic data in recent weeks, such as record manufacturing approvals of RM46bil last year and total trade exceeding RM1 trillion last year.

The bullish market has lifted shares of brokerage firms as investors believe that these companies will benefit the most from the sharp increase in trading activity.

"The buoyant mood in the market is driving up prices," a dealer at a local brokerage said, adding that retail participation in the market was growing, as reflected by the sharp increase in trading volume in recent weeks.

Total turnover hit 4.7 billion shares Wednesday, a new high.

The previous record volume was 3.54 billion shares last Thursday.

Penny stocks and low-priced warrants saw brisk trading - an indication of retail participation - with the top 10 most active counters clocking a combined volume of more than one billion shares.

The buying frenzy saw rising stocks overwhelming decliners by 975 to 131 with 101 counters unchanged.

Bursa Malaysia Bhd shares gained 50 sen to a new high of RM12.10. The exchange operator derives the bulk of its income from clearing fees on share trading activities.

Analysts expect that the rising corporate earnings and improved outlook on the economy will help support stocks valuations on the local bourse.

They said the KLCI was now within striking distance of its all-time closing high of 1,314 points set on Jan 5, 1994.

The KLCI's best historical level was 1,332 points hit on the same day.

Also Wednesday, Malayan Banking Bhd - the nation's biggest bank - posted a 24% increase in net profit in the second quarter ending Dec 31.

Top companies like Malaysia Airlines System Bhd and Telekom Malaysia Bhd are expected to release their results by the end of this month.

somehow i don't think is sustainable

well.. if KLSE thinks its too high.. then they will do corrections to bring the index down...

i think thats what they did lasttime...

"Bulls make money, bears make money, but pigs just get slaughtered!"

Old stock market saying.

I think it is appropriate at this time.

Dreamer

Actually i feel tat correction has ocurred numerous times for this month. But to the current situation, the correction has overwhelmed by the buying support of the foreign n retail buyers. Example, look at today morning how market fall n climb back. The word "unsustainable" is suit to the profit-taking. The morning profit taking have been overwrited by the incoming buyers.
Btw, look at last friday oso.

I agree wif some of u all tat market will fall. But tat is not any precious information given as u all shuld say when it will fall.

This post has been edited by SImPle PLan: Feb 22 2007, 02:48 PM

Nobody can predict correctly when it will fall or when it will rise unless you are the one whom manipulated the stock, even hedge fund that manipulate iris previously also burn their finger as well.

But for sure for long run share price can't run away its fundamental issues, that's the certainty.

KLCI closed 1.70 lower today at 1276.52

sorry abit off topic here, does Malaysia allow Hedge funds companies to be setup here? I mean I've not seen 'local' hedge funds company..are those overseas's?

There is no domestic hedge fund but there are plenty of hedge fund from overseas that currently moving the market.

I think this CI go up for general election in Malaysia

KLCI up 6.95 and closed at 1283.47

i agree is that alot to do with hedge fund running the game in malaysia...i wonder how long will this go...

I think, when this section always got over 100 or 1000(actually means many, depends) members viewing... Something like when you talked to your 10 friends. 9 out of them are actually playing shares, perhaps. Or when you go to a hawker center, or pasar malam. The people there also talking about shares. By that time, I would immediately sell all my shares... ><"

This post has been edited by edifgrto: Feb 23 2007, 07:21 PM

hopefully the CI will hit 1500 by midyear.

KLCI dropped 10.60 today and ended the day at 1272.87

This post has been edited by David83: Feb 26 2007, 07:04 PM

hehehe, you everyday coming to here to report the result, eh?!
Anyway, thank you!

I dun really like today's market. Though, I know tomorrow, the newspaper would say that this is healthy and CI adjusted to its originally position and etc. But as far as I can see, perhaps me really stupid that to hope it keeps on increasing everyday. My soldiers today drop the most 0.15, increased the most is only 0.005(it is only 1 green, and the less are all red-red coloured)... T.T

If one day can drop 50 point, then it mean BREAKOUT! 10 point is normal adjustment to filter the contra player! But 50 -100 point a day mean major big investors are cash out!

if looks carefully, the top ten counter for the loser are all big boys MBB TM ...

also the market cool down a bit from 4b to 2b volume

I have been watching this SPB... 2 days just increasing, hopefully tomorrow it would drop 1.00(really fat-hope, i think. ). Then baru me can buy man...

This post has been edited by edifgrto: Feb 26 2007, 11:26 PM

KLCI dropped 35.79 today and closed at 1237.08

That's a huge drop. It dropped 50 points plus at 4 to 4.30pm