Friday, April 20, 2018

Market rally taking attention away from politics

The picture above came from NST but despite touching on investors confidence, strong corporate earnings and economic background, and foreign fund inflow, their report headline was rather hesitant and subdued yesterday: Malaysian stock market remains attractive to foreign investors

Malaysia Digest hit a better note with the headline: Malaysia Stocks At An All-Time High Ahead Of Elections. They highlighted on the big fuzz over the US threat of a trade war against China, extract below:
Economic growth of 5.9 per cent last year, which was the fastest pace since 2014, was also achieved through the strengthening of private and government investments.

“We’ve got an election coming up and actually the economic data for Malaysia has been quite good recently. Things like exports have been strong and relatively insulated from a potential trade war.

“Five years ago it was like a dirty word but now there’s more investor interest,” Jim McCafferty, head of Asia excluding Japan equity research at Nomura Holdings Inc. said in an interview in Hong Kong.
Bloomberg, whose been hinting of foreign investor interest on April 10th, is now practically screaming rally: Malaysia Stocks Hit Record as Foreigners Buy Ahead of Elections.

Before any shallow pro-Tun claim Bloomberg taking dedak, some are already making claims it is on on expectation of the return of Mahathir and his bevy of big wig market riggers. Then it is not dedak but carrot.

Underground talk is saying his backers of gambling taukehs are trying to sway Chinese voters using illegal gambling. Quite sure, no names need mentioning as it is as easy as ABC to figure it out.

This blog sensed there is a pre-election run with a possibility of post election rally (read back: Stock market to rise on expectation of a BN win) and it is not political campaigning as it is backed by materials from analysts (read: More analysts bullish for a BN win).

More analyst comment to share:
6 April 2018:

Nomura Global Market Research.

"Nomura predicts that BN wins the upcoming general election with an equal or higher number of parliamentary seats than the currently held 132 (out of 222) without losing any more state governments than the three already lost (Selangor, Penang and Kelantan). The BN could even recapture two-thirds of parliament from the current 59%. We continue to expect Prime Minister Najib Razak to remain in office, which should bode well for the medium-term fiscal consolidation agenda and support the sovereign’s credit rating."
BN can't afford to give dedak to Nomura. The converse is more possible.

A prolific stock market player had long tipped that the Malaysia stock market is due for a recovery because of several reasons:
One being many undervalued non-property stock with good earnings are trading below their NTA.

Secondly Securities Commission is headed by baiyi jagah whose behaving more as a policeman than a developing the capital market, and

Thirdly and it is meant for MACC, there are many corrupt officers in SC are blocking and holding up on the listing of companies, submissions for raising capital and various corporate exercises unless they are paid kickbacks!!!

If everyone is glued to politics, then they are wasting the opportunity to buy those cheap undervalued stocks. There is a long list to go after.

The stock market revival had even attracted BN Strategic Communication Deputy Director to comment:
The Bursa Malaysia index has closed at an all-time record high today.

Malaysia is still the world's longest bull market and at 1895 points, we are more than double the 800 points level it was when Dato' Sri Najib first became PM in April 2009.

The renewed trading activity on our stock exchange is also driven by several analysts reports in the past week from Nomura, HSBC, CIMB and RHB that are predicting victory for BN in the upcoming elections.

All 4 banks say that BN continuing to run the country will be good for the country in terms of the economy.

The PM had also announced a bunch of incentives and policy changes during the Invest Malaysia event back in February with the sole aim of reviving the dynamism of our stock market.

"Our Securities Commission and Bursa Malaysia, as well as our central bank and the Ministry of Finance, have continuously introduced and supported measures to further increase the dynamism of our capital market. Towards this objective, I can assure you that we can expect the introduction of further measures in the near future."

This also includes an upcoming trading link with Singapore.

The stock market seems to be more dynamic and exciting currently where many small caps and mid-cap stocks are also experiencing rises in their prices.

Eric See-To.
Dunno about you but some reporters just reluctant to do the beat on politics and rather stay at the office to monitor the stocks they got as tip.

Don't blame them. Politics is getting rather predictable. If you have been following politics for sometime, it is just a cycle or more precisely, recycling the same darn spin, slanders and fake news, and shallow rhetorics without substantive policy debate.

Malaysians are yearning for open debate like in the US and UK. Actually, it is pointless of having one because it will be a circus. Even the mighty Mahathir will play to the gallery than being specifics. Judging from fews PCs, he has to keep getting cue from DAP.

Malaysians are politically immature in their political discussion and myopic understanding of public policies. It is similar to public understanding of the annual budget speech. They are only concern of what affected them personally than what is good for the country.

Ah well ...then just play the stock market.

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