Foreign institutional investors' buying support of key heavyweights like Telekom Malaysia Bhd, Sime Darby Bhd and IOI Corp Bhd propelled the KLCI to a new all-time historical high of 1,467.78 on Friday. The KLCI closed at 1,466.67 points, posting a day-on-day gain of 31.29 points, or 2.18 per cent.
Dow Jones Industrial Average declined steeply on the same market day, after data showing that US unemployment has increased to a two-year high and also a decline in its manufacturing sector, bolstering speculation that a recession is a likely possibility this year.
As a result, we can expect Wall Street to beg and plea for more Fed cut this month. And this should have some positive spill-over effect on our market in the coming two weeks.
Plantation and steel-producer stocks are expected to carry the bullish momentum into the second week of the year. How far will the market go before they consolidate is anyone's guess. For now, sticking with the commodity stock appears to be the most sensible approach.
Dow Jones Industrial Average declined steeply on the same market day, after data showing that US unemployment has increased to a two-year high and also a decline in its manufacturing sector, bolstering speculation that a recession is a likely possibility this year.
As a result, we can expect Wall Street to beg and plea for more Fed cut this month. And this should have some positive spill-over effect on our market in the coming two weeks.
Plantation and steel-producer stocks are expected to carry the bullish momentum into the second week of the year. How far will the market go before they consolidate is anyone's guess. For now, sticking with the commodity stock appears to be the most sensible approach.
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