The one possible reason for the market’s surprise run-up is that money for LANGKAH MERBOK came in via foreign buying up stocks in the market and enable money for the political operation transferred to local hands

The stock market bolos (pierce through) the 1,500 level this morning to hit the morning high of 1,503.9 at 9:15 AM this morning. That was pretty much the hope in the stock market following Fed Reserve easing their choke on the interest rates. 

Brokerage houses getting upbeat for 2024 to not only reasoned the optimism to the rate cut by developed economies, but expressed optimism for fiscal reform, economic restructuring, NIMP 2030 and NETR to boost consumer spending, private and infrastructure investment, and recovery for trade related services and manufacturing. 

Hate to be party pooper but need to remind of the 9 major factors to look at for 2024. For the market, eyes on Fed’s monetary policy, China’s expected comeback, ringgit expected rebound, and lastly fiscal reform and foreign inflows.  

No reason to be overly exuberant based on the surprised outperformance of the local market from the sudden spike in volume in the midst of US market major indices having a rocky new year. 

BNM statistic revealed new government bond issued for 2023 is RM190.9 billion against RM86.8 billion bond repayment making a net increase in debt of RM104.1 billion.

There have been a net inflow of money into the market and volume transaction reached RM4 billion against earlier volume of RM1 to RM2 billion. However there is reason to be cautious and suspect it could be money cleansed for MERBOK MOVE. So it may not be sustainable.

The Edge Weekly cautioned that stocks recording substantially high turnover and chalking up highest price gain are are loss-making small cap companies with zero dividend. So buyers beware.

As at yesterday, market sources claimed that the stock market punters’ attention was for H20 stocks such as Ekovest, WTK, and MRCB. It is as though punters bought into the propaganda that Langkah Dubai will be a success and PN actually succeeded to attract seats to topple Anwar-led Madani Unity Government. 

First and foremost, the companies claimed to be H20 companies are more Tan Sri Lim Kang Ho’s companies and he is close to the Sultan of Johor and to be installed as the new Agong on January 31st. 

Secondly, companies such as MRCB is not Hishamuddin’s, but widely believed to be an UMNO-linked company in which he is far from being in control of UMNO.

All these raised the suspicion that the Mahathir-Daim-Hishamuddin-Hamzah coup d’etat is trying to create a feel good factor for their annointed PMXI. 

Those PAS followers expecting it to be Dr Samsuri will be disappointed. He was drummed up as PM candidate at the Kemaman by-election but he was only DPM choice to PAS states’ Adviser, Mahathir. 

It is not even the rambunctious political operator, Hamzah Zainuddin, but UMNO’s Hishamuddin Hussein Onn.

Prior to the year-end, foreigners were net seller of the Malaysian market and the stucked local funds were waiting to sell also. Suddenly foreign funds went on a buy spree for the new year and locals selling. 

The past week saw the seizure of Ilham Tower and talk of Langkah Dubai. It is said that the money meant to bribe and support the coup d’etat was intercepted in Dubai. 

There is a claim it was RM750 million for MPs but it is physically not feasible to transport such amount of cash. Yesterday a claim went viral that the amount was RM1 billion and meant for a single person.        

The Langkah Dubai has failed. The incoming Agong refused to receive any audience till January 31, current Agong expressed hope for Anwar to finish his term, and Borneo Bloc affirm their commitment for Anwar. 

PN continue to create perception of confidence with new target dates and claim it is just a matter of time. They have not given up and it is a life and death situation for Mahathir, Daim, Hishamuddin and others in fear of their past coming back to haunt them. 

Putting all these political perception and market speculation aside, the one possible reason for the market’s surprise run-up is that money for LANGKAH MERBOK came in via foreign buying up stocks in the market and enable money for the political operation transferred to local hands. 

MACC should move in on brokerage firm to identify the major sellers of stocks with high volumes. That is not so difficult to do isn’t it? 

Source : Thick Brick Blogspot

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