Monday, March 23, 2009

Will UMNO General Assembly Help The Equity Market ?

This week we are entering a weeks of UMNO general assembly. The share market won't react much and will sustain during this weeks or might be hovering around 850 levels (+,- 30 points).

When there is an assembly the share market will react quietly usually. That is about the UMNO. After they gone through the whole thing, the new president of UMNO will take over and then he will become our new prime minister.

Here is one of the most important thing that we need to remind that in Malaysia political history, there's never been a coming to be Prime Minister been hated so much by most of their citizen or their people. This is a new level of political situation in Malaysia. How the new political scenario will affect our current Malaysian share market performance? After this UMNO general assembly, there will be some changing in the current government portfolio (some will be kick out and the new one will be sworn in)

Datuk Seri Najib bin Tun Razak will be our Malaysia 5th Prime Minister. He will be playing a very important role as a new prime minister and a finance minister to determine whether Malaysia will stay on course to fight current world financial crisis.

His support from all over the Malaysian people are very low right now. His wife seems to be in charge. These few weeks the newspaper all over Malaysia keep on showing her face most of the time.

Let us talk about the Malaysian share market. A check on some of the charts begins to show some positive reaction for certain counters. One of the counter is KNM Group Berhad. I like this counter but I cannot fall in love with this counter. Certain thing we need to understand and emphasized that the current share market performance is still very weak.

There is nothing out there for the share market to react positively. A buy now on KNM Group Berhad would mean a commitment for us to see the share prices to move in order for us to make profit. But how much? Will KNM have the strength to move on and climb to a new level? It is quite hard to say right now.

An indicator has appeared to call us to accumulate but the indicator appears on a situation where by the share market still have a lot of uncertainties. Basically buying a share is not only been determine by only one indicator but it must depends on many indicators, reading, current situation and the world financial crisis.


Anonymous said...

Is KNM one of the political share???

Jackie Lee said...

Not really a political share, but it is a good buy.

At RM 0.40 still cheap. How far it will climb, I'm not very sure.