Malaysian shares seen taking cue from US market, oil gains
By Chong Jin Hun / theedgemarkets.com | February 4, 2015 : 7:33 AM MYT
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KUALA LUMPUR (Feb 4): Malaysian shares may take the cue from overnight gains in US stocks as crude oil prices rose further.
Firmer crude oil prices may also support the ringgit as the commodity constitutes a crucial component of the Malaysian economy.
Last Friday (Jan 30), the FBM KLCI closed lower at 1,781.26 points. The local stock market was closed for holidays last Monday and yesterday.
Yesterday, the ringgit strengthened to 3.6115 against the US dollar. This compared to 3.6337 a day earlier.
Today, Reuters reported that U.S. stocks jumped more than 1 percent on Tuesday, led by energy shares as oil prices extended their recent rally, while higher-than-expected January car sales also bolstered the advance.
The Dow Jones Industrial Average rose 305.36 points, or 1.76 percent, to 17,666.4, the S&P 500 gained 29.18 points, or 1.44 percent, to 2,050.03 and the Nasdaq Composite added 51.05 points, or 1.09 percent, to 4,727.74.
U.S. crude oil prices rose 7 percent to settle at $53.05 . Brent and U.S. oil prices have risen roughly 19 percent since Wednesday's close. The S&P 500 energy index climbed 2.8 percent.
Despite the rise in crude oil prices, Malaysian liquified natural gas (LNG) exports will be closely watched in the near term.
Bank of America Merrill Lynch economist Chua Hak Bin said LNG prices could fall by some 50% by the middle of this year.
"Liquefied natural gas prices track oil prices, with a four to six-month lag.
"A 50% decline in LNG prices could shave the (Malaysian) current account surplus by about 2.5% to 3% of GDP, putting the risk of a current account deficit within striking distance," Chua wrote in a note.
Friday was the real test for Systech....Everything down...all red and it was standing at 36.5 sen...Today index jumped 30 points...so the sentiment is bullish...Systech is expected to start the engine soon...as the quarter report is getting closer and closer to be released...
Eduspec is already running up the ladder today...another Ace counter...so it means rotational play now...those lagging are moving up...Systech already taking a rest...now going to move soon...lets wait and see...
I'm so sad. My fbmklci-hb & fbmklci-he drop so much. This year I had loss RM35000, plan to quit market already. Share market is for the rich ppl to play after all.
Based on my observation...Friday was the worst day....all counters going down....the screen were red in color...oil was $US 44 the lowest... Systech was under heavy selling...but it survived...the selling was really scary...no volume...no buyers...only sellers...yet it survived at 36.5 sen...Nobody wanted to sell..This mean Systech was very strongly supported at 36.5 sen. So I predicted 37 sen is a very good buy because you can never buy at a lowest price right? If you queue...you might miss the boat if it went up to 37.5 then 38 etc...So it is always good to grab it at sellers price...lock in and continue you ride with the uptrend...
@林俊松 rm35000 is exactly how many %? I don't agree the share market is for rich people. As long as you're discipline and not chasing price, you should be alright.
As for future and index counter like FBM, it's too unpredictable and the best way is stay out, it's more like a betting for me.
@林俊松 Treat money lost as a 'practical' lesson fee. Learn from it and evaluate what went wrong so that you do not make the same mistake in future. You will be ok. Cheers.
@kha8008 Yes, that why I told you when you decided at that price...just buy...no emotion. If it turn against you, you sell. If it go up, you ride on the trend. Price always go up and down...that is perfectly normal....but most important the underlining trend is uptrend...not down trend...QR report is expected to be good....profit is good means shares price will jump...UMA twice...must be a good share.
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the_strokes88
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Posted by the_strokes88 > 2015-02-02 14:53 | Report Abuse
will down..till support