Chart 1: FBMFLG's weekly chart as at Nov 14, 2011_12.30am (Source: Quickcharts)
The next weakest stocks are those listed on the ACE Board. They are represented by FBMACE index, which is now testing its intermediate downtrend line at 4290. Finally, the 2nd & 3rd liners listed on the Main Board which are neither classified as TOP100 nor categorized as fledgling stocks are grouped together as Small Cap stocks. The performance of the Small Cap stocks is represented by FBMSCAP, which may test its intermediate downtrend line at 12000 over the next few days. See Chart 2 & 3 below.
Chart 2: FBMACE's weekly chart as at Nov 14, 2011_12.30am (Source: Quickcharts)
Chart 3: FBMSCAP's weekly chart as at Nov 14, 2011_12.30am (Source: Quickcharts)
Our stock market is now at a stage where the weaker the stocks, the more they could rally. Would these 2nd & 3rd liners commence on a bull run like the Second Board Rally of 1996? Who knows. The Exchange has tried to discourage such rampant speculation but the market is ignoring its warning. Queries on Unusual Market Activity (UMA) elicit standard replies which only serve to embolden the speculators.
6 comments:
I wonder why Bursa did not classified Harvest as designated.......pure syndicate play
Hi Alex ,
I quite dissapointed with our klse trend now. All those 'rubbish'counters rally so fast but those 'good fundamental' counters move like turtle and some are stagnant or even dropping. Is our market a place for investment or for gambling ?
I think its better to invest in SGX now rather than bursa Malaysia.
Hi luckystock2
This 2nd & 3rd liners rally serves two purposes. The first one is purely speculative & that's bad because many players would get hurt after the play is over. We feel sad for these players when their losses begin to pile up. However, they have themselves to be blamed.
The second purpose is to act a release valve. Imagine all those stocks that the "investors" were stuck with for the past 10 years. Now is the time for them to recover some of their fund. More often, they would sell too early but that's the name of the game. Nobody knows how high these stocks will go, except the operators.
Hi Peter
You got your wish. Harvest has just been designated. If you wish to buy the stock, you must have funds in your account. If you wish to sell, you must ready stock in your account.
The whole idea is to derail the speculative train in order to make it harder for the operator to suck in retailers into the stock. The stock may still rise after a bout of correction.
Hi Alex:
Our market is meant for he dare-devils only not the weak-hearted ppl. If u r not gamblers better chicken out early least u get hurt badly.
my 18 years of days in the same industry as u tell me this day will come, anyway the syndicate already knows it will come, that's why the vol yesterday is so fierce. Moreover these big boys have their eyes + ears in Bursa.- their cost is damm cheap, even limit down for a few times, THEY STILL MAKE
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