Basically from what I see at this market movement yesterday and today. The market perform very well. If we take a look at yesterday market, eventhough DJIA make some small gain, our market are trying to digest the recently +29.84 points gains with the movement of up and down. (Please refer to the charts 24.07.2008 KL Composite Index movement).
Today the market can be consider strong if we want to compare with the huge losses register by DJIA overnight sharp drop 0f -283.10 points. From the market movement, I would say that next week the market maybe gaining it strenght and post more gains if our current political situation are stable.
Some of the counter perform very well like Ranhill Utilities Berhad. Today the counter close at RM 1.27 per share, a gain of RM +0.305. Recently low that had been register by this counter four days ago is just at RM 0.80 per share. This is what I call a true and pure techinical rebound.
If we examine the Index movement couple with some of the few counters, it is likely there are still many more potential counter to move upwards. (i.e Sunway, Sunrise, IGB and don't left out the AirAsia counters) On your right charts - KL Composite movement for today's.
The Crude Oil prices currently still stay in the negatif zone with the up-side potential still limited. I hope that the Crude Oil prices will break below USD 120.00 per barrel in order to confirm the downtrend movement.
Malaysia's annual inflation rate spiraled to a 27-year high in June after a fuel price hike sent the cost of food and transport soaring. Consumer prices in June rose 7.7 percent compared with the same month in 2007, more than double the 3.8 percent annual inflation rate recorded in May, according to data released late Wednesday by the Statistics Department.
Central Bank Governor Zeti Akhtar Aziz was noncommittal Thursday about whether the sharper-than-expected rise in inflation will prompt the bank to raise its key overnight policy rate -- used by banks to set lending rates -- which has been unchanged at 3.5 percent since 2006.
"We're going to do what is in the best interest of the country," Zeti told reporters, adding that the bank will consider factors such as whether inflation would increase and affect economic growth.
How far the interest will affect us will solely depands on the next Inflation data coming out in August. Many country with higher Inflation Rate could not avoid the increased in their key overnight policy rate set by their banks. What do you think ? Any increase in lending rates will more or less affect the economic growth.
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