Not Another Bursa Malaysia Yearly Stock Market Prediction

fbm-klci-chart With just 4 trading days to go will there be any chance  FBM KLCI will end 2009  with a BANG? That is a funny question.

First  EPF and PNB, by last week already done window dressing (that been said in the news).  Secondly, there is no sign of KLCI breaking out from the narrow sideway mode. I still expect some very minor window dressing across wide majority of stocks, though. Nothing to be excited  about it. See FBM KLCI chart on the left (click to enlarge)

5% real property gains tax (RPGT) will now only be applicable to properties that are sold within five years of their purchase. In reaction to this news, Property Index on the last trading day displayed  a bullish hook up bar, which could continue for more days ahead.  I find it funny when media call it a 'Christmas gift' . 

malaysia-property-index-chartSure, it was a good move but imposing something and then taking it back it 2 months later (for a miscalculated move in the first place - think so) is hardly  a 'gift'.  Due to earlier RPGT announced in Malaysia budget 2010, Properties Index already start to 'correct'. By now,  Property Index already retraced to 38% Fibonacci retracement since the run up from October 2008. The good thing is, that create a more comfortable entry level to buy property stocks. (see KLSE Properties Index chart below : click to enlarge)

On Khazanah  Nasional reducing it stakes, I find this could be  a factor how the composite index will unfold early 2010. Especially when we don't have 'fresh lead'.

Well, it is a good move for Khazanah to sell down some of it's stakes to increase market liquidity and attracting foreign fund.  Somehow, with the disposed shares ended in EPF's hand could just diminish  the objective. Sure, EPF can create move trading activities out of the stocks rather than in Khazanah's hand. But then, that is not helping in easing the perception that there is a deliberate 'push and maintain' to the composite index.

Some market analysts suggest not to add up positions this week, but I think it is  a good idea to do that. Do that before the fund manager back in the market after a one month trading itch.

Click Khazanah Nasional (pdf) to download 31 Oct investments holding structure