Malaysian stocks entered bull territory as glove makers extended their record rally.

The FTSE Bursa Malaysia KLCI Index closed 1.1% higher on Friday, extending its gain from a low in March to 21%. The country is home to the world’s biggest glove makers Top Glove Corp. and Hartalega Holdings Bhd., which have surged in recent weeks due to rising demand for protective equipment during the global coronavirus pandemic.

https://www.bloomberg.com/news/articles/202...a&sref=bZ8VXc8U

It seems bursa is detached from companies performance and the economy. This bullrun is largely pushed by retail investors and fuelled by SMF.

Believe many use cash surplus from loan moratorium to chase the uptrend. How long this bull run could last may be known sooner than expected.

This post has been edited by icemanfx: May 29 2020, 07:50 PM

BULL RUN, UP UP UP

As many use surplus cash from loan moratorium to invest in stock market, could expect more buying until September. However, price crash tend to be sooner than most expected.

This post has been edited by icemanfx: May 30 2020, 03:32 AM

The Malaysian economy is about to feel the full brunt of the coronavirus pandemic.

After posting its slowest growth since the global financial crisis, the economy is set to slip into a recession in the next four to six months, the country’s top statistician said.

https://www.bloomberg.com/news/articles/202...s?sref=bZ8VXc8U

This post has been edited by icemanfx: May 30 2020, 07:49 PM

Typical trend chasing.

When the market is hot; any news, reason or rumour is a cause for price rise.

By the time average Joe hear the rumour, is about time to sell.

When the market is in bull run, almost every sector will be up one after another.

Trend chasing is one powerful movement could cause any price to rise exponentially.

This post has been edited by icemanfx: May 31 2020, 08:56 PM

Ventilator is limited to hospital use. license will be given to more companies in due course.

China has commissioned thousands of face masks production line in a short period of time, will similarly repeat the same for gloves factory. when these new gloves factory are in production, latex price will rise and squeeze gloves margin from both sides

This post has been edited by icemanfx: Jun 1 2020, 06:58 PM

Share margin finance and surplus cash from loan moratorium.

This post has been edited by icemanfx: Jun 1 2020, 08:02 PM

Let's wait and see.

This post has been edited by icemanfx: Jun 1 2020, 10:01 PM

tariff is unlikely to deter china from producing and exporting rubber gloves.

Gold fingers

Nothing rise in straight line. in every bull run, there are numerous pull back, profit taking, etc. if the bull is energized, will charge further until exhausted.

Implying the business model is to ride the wave to make money from shareholders rather than from operation.

This post has been edited by icemanfx: Jun 2 2020, 11:35 AM

those who did this early may have made >$1m, many will for the next shot to the moon.

This post has been edited by icemanfx: Jun 2 2020, 01:18 PM

In the short term, the market is on random walk.

This post has been edited by icemanfx: Jun 2 2020, 06:39 PM

In the short term, the market is on random walk. when herd behaviour overtake economic fundamental, herd sentiment determine the direction until over the cliff or slaughterhouse.

Nothing goes up in straight line, there is always price correction, profit taking, fall back, etc. many are addicted and more are waiting to jump in; if new money is available, there will be another charge to new nigh until exhausted.

When price up swing again, more people will jump in.

Malaysia will double online settlement limits this year as the rush of small investors into stocks helped push the market into bull territory.

The Securities Commission will allow up to 100,000 ringgit ($23,500) daily online settlement in the second half, from the current limit of 30,000 to 50,000 ringgit, Executive Chairman Syed Zaid Albar said in an emailed response to questions.

The benchmark FTSE Bursa Malaysia KLCI Index has risen more than 20% from a low in March, led mainly by glove makers, with trading volume hitting a record 11 billion shares. Individual investors are finding more time to flock into stocks from their homes amid a nationwide lockdown, spurred on by relatively cheap stocks amid low interest rates.

Such investors opened 54% more accounts from January to April compared with the same period in 2019, according to Muhamad Umar Swift, chief executive officer of Bursa Malaysia Bhd. They were also more active, with the daily trading value surging 65% in April from a year ago, he added.

While foreign funds pulled $3.2 billion from Malaysian stocks this year, local individual investors have poured in 4.03 billion ringgit, Muhamad said. The KLCI index surged 2.1% on Wednesday to the highest close since February as banking stocks surged.

https://www.bloomberg.com/

UUU/BBB

This post has been edited by icemanfx: Jun 4 2020, 10:15 AM

Those were on sidelines and new joiners will jump in to push to new high.

This post has been edited by icemanfx: Jun 4 2020, 11:00 AM