Wednesday, July 29, 2009

KLSE Construction Stocks Rally

After a long period of sleeping, finally we can see second line stocks perform wild in KLSE market. Just in doubt, how much gain can delivery to investors. As most of the analyst predicted, after a rally of 30 index stocks, now the bullish come into second liner stocks.
Today, have a conversation with one fund manager. He said market soon have a big adjustment. I am not 100% absorb and agree with him. But certain points I do agree and no objection on his comment, Like : -
a) Blue chip start the rally first usually can not given more gain to others.
b) Need further fresh funds to support the base.
c) Durable commodities should not perform as well as equity market.
d) US dollar did not given a good direction to highlighted the demand
I have no objection on the above points of view. Usually a strong resistance broke by certain stocks. The share price will perform wild and achieve higher than previous. But in these 2 months, hardly see such rally on volume stocks. Its was means funds did not strong enough injected into market. Investors have more choice to select.
Current statu is dangerous but not terrible like last years. The maximum adjustment is about 15% on it. So, holding power strong investors have more chance to win this game. So, well prepare in advance always have a chance to well know the coming move.

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