The Irrational Market (Part 2)

Despite negative economic data / news, Malaysia’s FBMKLCI continues its climb, breaching its historical high price-to-earnings PE of 18x.
  

It was not the fundamentals that drove the increase in the index but for the inflow of foreign funds resulting from a delay in US rate hikes as well as negative yield global environment.

Deep inside, there are inherent problems associated with Malaysia. Slowing economy, rising unemployment, rising household debt & non-performing loans, etc. 
What happen next: wait for May, when most ListCos will report their Q1 results. Expect to see a deepening crisis in the making….

DISCLAIMER: THIS SITE IS FOR INFORMATION AND ILLUSTRATIVE PURPOSES ONLY AND DOES NOT PURPORT TO SHOW ACTUAL RESULTS. IT IS NOT, AND SHOULD NOT BE REGARDED AS INVESTMENT ADVICE OR AS A RECOMMENDATION REGARDING ANY PARTICULAR SECURITY OR COURSE OF ACTION. SOURCES USED IN THIS SITE HAVE NOT BEEN INDEPENDENTLY VERIFIED FOR ACCURACY. YOU SHOULD SEEK INDEPENDENT AND PROFESSIONAL INVESTMENT ADVICE IN REGARD TO YOUR INVESTMENT DECISIONS. THE AUTHOR MAY HOLD POSITIONS IN THE SECURITIES MENTIONED ABOVE.

Author: Ken Utau

Data Scientist, Markets Analyst and Food Lover

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s