Which Sector To Invest In Malaysia Equity Market 2013?

elections-in-malaysia

The Malaysia Upcoming Election continues to haunt the Malaysia Equity Market again bringing the FBMKLCI down to its knees to the lowest 1597 points over the past 3 weeks. Will the current election risk factor bring the FBMKLCI to a deeper market correction? Looking at our Trend Following applied onto the FBMKLCI Weekly Chart Analysis, the FBMKLCI is currently supporting at its crucial support line (red line) 1617 points. The FBMKLCI have been in a market correction ever since early January 2013 and have been trading at a weak sentiment up to date.  At this current scenario we will put the FBMKLCI at a  50-50 chances of either going for a deeper market correction or a market rebound from its  crucial support level 1617 points (red line). Shall the market eventually breaks below its crucial support level 1617 points (red line) next week we will see a deeper market correction ahead of the election like what happened in Year 2008 and Year 2011. Shall the market sentiment improve next week we will see the FBMKLCI be well supported at its crucial support and going for a market rebound. But however a market rally is yet to be seen yet and most likely will happen after the election.

FBMKLCI 1

The Best Bull Run Sector over the past 10 years!

CONSUMER

The Malaysia Consumer Sector known as the “Safe Heaven” have been on a bull run for the past 10 years ever since Year 2003 we have seen a Long Term Trend Formation in the Consumer Sector.  Consumer Stocks that we have been covering a buy call over the years such as NESTLE, CARLSBG, HUPSENG, UMW, PADINI, PWROOT, ZHULIAN and many more have been on a healthy rally over the years bringing majority of them to reach their fundamental target price value.  Now that the Consumer Stocks are getting expensive and majority have reached their fundamental target price value, will the Consumer Sector still the “Safe Heaven” for the investors?  As beautiful as their trend shows we believe that in the market “what goes up must come down” eventually and it will just be about the timing.  Will these consumer stocks start paying record high dividend before going for a bonus issue or share split in the near future?  Year 2012 was a year Consumer Sector are still on a buy call from us. Year 2013 we are putting a sell call on these so called “Safe Heaven” which is the Consumer Sector.

Year 2009 – (Glove Makers Sector Bull Run)

Year 2010-2012 – (Consumer Sector Bull Run)

Year 2013 – (Which Sector Will Begin The Bull Run?)

Malaysia Properties Sector Outlook 2013

PROPERTY

The properties sector in Malaysia is one of the least covered topic over the years by analyst due to its short term volatility. No doubt that ever since 1997 after the Asian Financial Crisis and Property Bubble Burst the Malaysia Properties Sector Index have been in a Long Term Bearish Downtrend for 16 years! In Year 2007 we have seen a 1 year rally in the properties sector before the U.S Sub Prime Crisis hits the world. Ever since Year 2009 til Year 2013 we have seen the Properties Sector Index been in a Long Term Trend Formation. Will Year 2013 be a year for the Properties Sector in Malaysia to perform? With the properties sector in Malaysia booming in price and development, what are the Trending Property Stocks to look into in Year 2013?

Stay updated for our next post on “Spotting for profitable trend and ride on it in the properties sector!”

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(Founder of Trend Traders Network, Equity Market Investor/Trader, Trend Follower, Financial Speaker)

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