The chart above showed KLCI for 2 weeks.
Based on Daily Trading Participants data, the local institutions are the only net buyers from 24/08/2015 until 27/08/2015.
This shows that there is a very huge buying support by local institutions within last week, however, the selling by local institutions is also high. Therefore, it is quite obvious that the KLCI is "artificially" supported!
Although the crude oil price rose to USD 48 per barrel (as at today), KLCI doesn't seem quite optimistic for the last quarter of year 2015. A lot shared that it will be a "bull trap" for the temporary hike of KLCI within this few weeks. It will be like the calm before the storm.
From my opinion, this is mainly due to the politics scandals & the weakening of MYR which lost investor's confidence towards Bursa Malaysia.
There is a lot of sharing that US market is a bubble & definitely will burst some day, that will be the time where investors will head back to Asia market, where the time bear market ends in KLCI
However, I would like to say that investors will not necessary choose Malaysia as their investment choice unless the issues mentioned can be solved by that time.
As a conclusion, my view towards KLCI market is not that optimistic at this moment.
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