Some had been concerned with the lack of volume in the local market.
Without volume, it means that there is not much buying interest.
And without the buying interest, how high can the stock market go?
On Star Biz on Saturday Whither stock market?
- Of volumes and liquidity
A dealer who has been trading the Malaysian market over the last 10 years says it is getting increasingly difficult to do so. He adds that foreign transactions have been insignificant. Over the last two weeks, locals made up some 80% of the volumes.
“Yes, you see 1 billion volumes being transacted in the last two weeks, but there’s no real liquidity in the market. Retailers are definitely not in. They are actually very few participants in the market. It is just the institutions that are supporting the market,” the dealer says.
On this note too, he says foreigners do not view Malaysia as an attractive market.
“They cannot short our market because it goes up very easily. Under the FBM 30 index, the top 5 stocks already make up some 50% of weightage. Once these stocks move, the index goes up, hence there is no opportunity to short. And for the foreigners to buy now, there is no upside. Hence what do they do? Exit the market of course,” says the dealer.
Firstly, who the dealer? Dealer from which company?
Anyway, this unknown dealer does have a point or two.
- ......... but there’s no real liquidity in the market. Retailers are definitely not in. They are actually very few participants in the market. It is just the institutions that are supporting the market,”
Is this point valid?
Is there a lack of volume?
If so... is the retailers not in the market?
Why?
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13 comments:
this is why i think the new CI is a bad idea.. no volatility.. hence u can't trade/short easily
Did you tell this to Yus babe?
ps: me always believe that it's a freaking bad idea that Bursa is a listed entity. sorry but this is my goofy view. :p2
well i cant complain since im making money out of it :P
For sure you can't complain. You be a silly water fish if you do. :p2
Some say that this is why things won't get better bacause every exercise is done from a monetary pespective.
of course.. we're talking about capitalism here.. everything is about money
Hmm... everything about money?
Yeah... come to think about it.. money can buy tons of fish...
And no money no love?
But can money buy happiness?
err.. i thought we're just talking about the stock mkt..
sorry
Aren't we? lol
Some say the 'right frame of mind' is most important when one trade/invest.
Ever find it difficult to make the right decision or the logical decision when one is feeling .... err.... 'pissed'?
:P
ps: I know not what I am talking about.
this is why i try to be emotionally detached when it comes to the mkt
(easier said than done though)
hehe
Yeah... someone mentioned once that extra hormone is bad for the stock market. You reckon there's any truth in it?
go rls those extra hormones
Yo dude.
once bitten twice shy. It's very hard for local retailers to pitch against institutions and syndicate.
Considering the lack of breath and width of bursa listing, it will soon be a show of EPF, LTH etc.
If u milk the cow too much, i wonder whether the cow will strike back.. :p
Maybe later bursa might change th tagline to
"come out and play, opps.. invest"
eh? did the fish bite back?
:P
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