Monday, January 14, 2008

Healthy Correction??

KLCI ends down 0.6% at 1507.04 in moderate volume of 1.05 billion shares, as profit-taking across a broad range of stocks drags market off intraday and record high of 1524.69. Market breadth ended deeply negative with losers trouncing gainers 630 to 222. The retracement considered healthy for market as corrects overbought position for a number of bluechips and index-linked heavyweights; tip benchmark to consolidate in 1500-1520 range tomorrow. The negative lead from U.S. over the weekend and falls in regional markets today weighed on sentiment but volume traded has shrunk. This correction is quite healthy for the market.

I met with Head of Research StanChart, Dr. Gerard Lyons today and he saids that US might push down the Fed Rate till 3.00% this year, however recession in US is unavoidable.

Stanchart revised downward the Malaysia's GDP from 5.2% to 4.2%.
Inflation revised upward from 2.8% to 4.0% (expectation that Gov. would increase the retail petrol price in the 1 half 08).
Ringgit might up to RM3.23 by March this year.


No comments: