There are opportunities to make from stock market at this time around. However the these opportunities will remain as opportunities unless you purchase the right stocks at the right time ( at the right levels ). If you choose a wrong stock, your stock will probably won't even appreciate a bit even when the Composit Index has appreciated 100 or 200 points.
Fundamentally ( the strenght of Malaysian companies ) , Malaysian stocks do not worth as much they are reflected in the prices now but today, the Malaysian market is no longer about fundamentals but about money flow. Money flow is about how much money is going into our stock market. Foreign investors are still shying away from Malaysian market except for very few solid stocks but Malaysia governmetn is spending a lot to uplift or to sustain the market. Two of the biggest government funds come from the 1Malaysia fund and Valuecap (from EPF). 1Malaysia has allocated 12 billion ringgit for stock iinvestment but todate they have spent less than 4 billion ringgit. That means, this fund has yet to spend their balance of 8 billion ringgit. They are going to spend their money to purchase certain stocks , a very limited list of stocks. When the government funds keep buying local stocks, the market will continue to go up but only certain stocks will appreciate significantly ( from that limited list ) while the rest will probably go up a bit while many others will remain stagnant.
Fundamentally ( the strenght of Malaysian companies ) , Malaysian stocks do not worth as much they are reflected in the prices now but today, the Malaysian market is no longer about fundamentals but about money flow. Money flow is about how much money is going into our stock market. Foreign investors are still shying away from Malaysian market except for very few solid stocks but Malaysia governmetn is spending a lot to uplift or to sustain the market. Two of the biggest government funds come from the 1Malaysia fund and Valuecap (from EPF). 1Malaysia has allocated 12 billion ringgit for stock iinvestment but todate they have spent less than 4 billion ringgit. That means, this fund has yet to spend their balance of 8 billion ringgit. They are going to spend their money to purchase certain stocks , a very limited list of stocks. When the government funds keep buying local stocks, the market will continue to go up but only certain stocks will appreciate significantly ( from that limited list ) while the rest will probably go up a bit while many others will remain stagnant.
Source(s):
The PM will use government funds to sustain the market at least above the 1000 points otherwise investor ( local and foreigners ) will lose confidence in malaysian stocks and this is very detrimental not only to Malaysian economy but to his own political position as well.
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