Last week, the KLCI rebounded and closed within seven points of the record high of 1,391 set in June. Liquidity has improved for the overall stock market, if investors have not noticed. Mesdaq counters and the blue chips hogged the limelight as volume leaders but the biggest gainers in terms of percentage returns last week went to the second board counters. One such counter shot up by 50% within the day!
More second board counters have gone up over the past week with higher volumes. The price of the counter that I have bought and held since early this year has gone up by more than 50%. However, in line with the good prognostication obtained and the Yi hexagrams table, its share price still has room for improvement. Once the target is reached, the investment will be disposed of.
With the announcement of one of the main components of the index, Tenaga’s third quarter earnings surge of 175% hitting the newspapers on Saturday, the KLCI would probably breach 1,400 the forthcoming week with higher liquidity. Those who had bought this electricity board’s shares or have longed the index futures last week would have cause to celebrate.
Counters related to the Iskandar Development Region in Johor because of the write up in the Star Bizweek on Saturday may also see a mini rally in their shares prices because of the expected upward revision in land prices. The second board counters with the recent revival of interest in them could also rally with increasing volumes. So would those with other theme plays.
With local participants and foreign funds feeling bullish, and no fear of ‘heavy obstacles’ in the way, expect a mini but broad based rally. Just do not get too greedy and get carried away since it would be a mini rally for most shares. The big ones come later when there is much higher liquidity in the KLSE than current trade values.
Meanwhile enjoy the mini rally and realized gains if your targets are reached.