Bursa on a bull run: index to breach 1,900 level but ringgit back to 4.00 to US$January 9, 2018
The monthly charts tracking the FTSE KLCI index have not seen any signs of a bear market and this may be an indication that the local bourse may be on a bull run.
But today, the ringgit fell sharply against the US dollar to reach the RM4.00 against one dollar.
The KLCI may even breach the 1,900 points level this year, after rising sharply last week to break the much awaited 1,800 mark.
“KLCI’s bullish projection for 2018 will be the attempt to break the 1,900 resistance which will most likely lead to the formation of a mini cup for a further breakout if the economy keeps on progressing.
“Unless the index breaks below 1,710, our original bullish outlook will switch to ‘neutral’ as it would mean more time is needed for consolidation,” said online financial magazine Seeking Alpha.
In the eyes of foreign analysts, the stock market is seen moving towards bullish with two important factors — China’s One Belt One Road (OBOR) initiative and the KL-Singapore High-Speed Rail (HSR) project — that will propel it to greater heights.
OBOR will benefit Malaysia economically in terms of infrastructure, said Investing Haven, an online investor site.
Malaysia’s improved connectivity, social facilities, better living standards and abundant business opportunities are also signs of a return in business confidence.
In December, the stock market finished higher in back-to-back sessions, resting just below the 1,780-point only to breach the 1,800 mark last Thursday.
With the global forecast for Asian markets suggesting a mild upside thanks to a price hike from oil, European markets that are flat or mixed, and a confident US market breaching the 25,000 on the Dow Jones, there’s good news for Asian markets.