Almost continuance 7 trading days FBM KLCI is moving higher and higher. Not only share market, Ringgit value also getting stronger vs USD, (sure exporter did not like this) now a lot of positive news and sometime it make me feel that it is too good to be true.
We know FDI fund still slowly flow out from Malaysia and their place ware replace by EPF fund and also government fund, so soon ours share market money will be control by EPF fund and also government. However this only good because it will make ours share market more stable but it also make ours share market close looped.
Government change FBM KLCI index base on 30 share and use EPF money to support the share to move higher have make a good picture of Malaysia economic, and by this positive news government review the OPR up 0.25% to show that Malaysia economic is in good shape and this also help to give a good image to the government. Due to the OPR up, Malaysia Ringgit value is moving up also. Majority FBM KLCI index share is come from Banking not Manufacture so the index is open to be speculate financially, as long as "Rakyat" keep loading from Bank, refinancing their house to higher value bank record and financial report will be vary positive.
FDI fund moving out from Malaysia and go into Indonesia, Singapore and Vietnam sure have reason. Malaysia ringgit value moving up did not show that we may buy thing more cheaper inside Malaysia market, baby milk powder import into Malaysia did not see the price move lower but it still move higher sure is something may not right so beware when invest in FBM KLCI.