FBMKLCI - Malaysia BULLeh

Let's kick start the April post with participation statistics for our FBMKLCI. Let's focus at the foreign funds.

Bursa Malaysia Trading Participant Statistic for the Past 8 Weeks [1]

For the month of February and March, foreign funds had been in net buy position, RM433.2 Mil and RM6,081 Mil for respectively. for the past 2 months, the foreign funds had been actively trading in our FBMKLCI. We can also track the daily participation statistics through this link. If the foreign funds are coming in, meaning to say our MYR will be stronger and stronger.

The reason being, if the foreign funds want to invest in Malaysia, first, they will take their currency and exchange it to MYR in order to invest in Malaysia. So when the MYR's demand is getting higher and the supply is still the same, that's when we see the MYR getting stronger. With the weekly chart, there is a huge bearish engulfing. So i expect the MYR to get further stronger and might breach 3.80.

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USD/MYR Weekly Chart[2]

When we talk about the macroeconomics, we cannot forget the Brent Crude Oil Chart. But talking about Brent Crude Oil, we must not forget that the Organization of Petroleum Exporting Countries (OPEC) will be having their meeting on 17 April 2016[4]. Let's hope there are some good news from the OPEC which will further boost up the oil price.

Brent Crude Oil Weekly Chart[3]

Now thats on macroeconomics, let's focus on our FBMKLCI. Notice the SMA50 and SMA200? The SMA50 had golden crossed over SMA200. So, technically the bear market had ended. So after bear, is the bull coming? For me, let's monitor for another 2 to 4 weeks to double confirm whether the bull market is really alive or not. 

FBMKLCI Daily Chart

If the foreign funds keep coming in to invest in Malaysia, we will see our RM getting stronger due to the higher demand. If OPEC announces a good news (production freeze or production cut), with a confirmation of uptrend from our FBMKLCI after SMA50 cross over SMA200, i can say that the BULL is coming to our Malaysia and MALAYSIA BULLeh~

Let's Ride the Wind and Gainvest

Gainvestor 10sai

2 April 2016
2.35pm

Sources:
[1]: http://www.malaysiastock.biz/Market-Statistic.aspx?m=2016

[2]: USD/MYR Chart: http://www.investing.com/currencies/usd-myr-chart

[3]: Brent Crude Oil: http://www.investing.com/commodities/brent-oil-streaming-chart

[4]: http://money.cnn.com/2016/03/16/investing/crude-oil-opec-meeting-production/