Markets all over the world rebounded last week after moving into a bullish trend correction in the last two weeks. A month ago, the Europe market, bench marked by the FBMKLCI breaks out from a correction when the index was at 1,200 points and went as high as 1231.49 points before pulling back to test the Bollinger Bands’ middle band. Then it rebounded from this middle band, which is a 20-day moving average to settle at 1230.09 points on October 8. The FBMKLI increased 28.2 points or 2.3% since last month. The market is currently testing an immediate resistance level at 1,230 points.
Daily FBMKLCI Chart
Trading volume was disappointing as it only increased slightly in this last week when the market rallies after the rebound. The average daily trading volume last week was 750 million shares and the previous week’s average was 662 million. Average daily trading volume below 1billion shares are considered weak. The market was slightly bullish because of positive leads locally and internationally. Locally, industrial production and export numbers were growing on-month and jobless rate fell. World Bank confidence about having a positive GDP in year 2010 and increasing foreign participation in the local equity market boost confidence further.
While properties can make you a lot of money; they are often the source of many problems as well. Thousands of property investors have found this out the hard way. Instead of generating income, the property is generating them endless problems: tenants problems, vacancy problems, maintenance problems, broken promises by the developer and perhaps the worst problem of all, uncompleted and abandoned properties.
So yes, property investment is a tricky business. To be successful in it, there are numerous factors that one must consider. One obvious factor is the financial aspect: the price, down payment, financing, interest rate, etc.
As adviser, we always spend hours reading materials – bullish and bearish stuffs, each day that force us to think outside our comfortprofessional investors from all over the world. Everyone is entitled to his or her own views and we can always be bullish or bearish on lots of things. zones plus we talk frequently to other
On the global economy, let’s try to be as realistic as possible here without all the hype. Almost everyone I spoke with said that, in general, the global economy is stabilization and growth is resuming in some places especially in the Asia region. That’s really good news. What is our thought about the V-shaped recovery in the US economy?
Is the right time of rising interest in property stocks a sign that the worst in the economy and the local property market is behind us? A number of research houses and property analysts are beginning to think so.
For one, looking into 2010, local research unit banker research institute believes that inflation or asset reflation could gradually emerge as a catalyst for the greater local stock market performance, given the existence of ample liquidity with prolonged low interest rates, prospects of a further weakening in the US dollar as well as rising commodity prices.
Under such circumstances, it points out that sectors that could benefit are oil and gas, plantation and property. According to the research unit, this is particularly true for the local property market, which it sees as being in the early stages of a recovery cycle and likely to gain further strength in 2010, given the ample liquidity, prolonged low interest rates, rising consumer confidence and a recovering economy. According to banker research, this is reflected in improving developers’ property sales since 2Q09, thanks to their aggressive marketing strategies (such as the 5-95 scheme) and improving property demand.