Bursa Malaysia stocks rally to a new record high
Bursa Malaysia shares rallied to a fresh record yesterday by strong investor sentiment and a growing speculation that the US may cut interest rates next week to spur its slowing economy.
The benchmark Kuala Lumpur Composite Index rose 20.1 points, or 1.5 per cent, to closed at 1,398.35.
The weakness in the US dollar was one of the few major reasons of a lot of money is flowing into Asia stock market. The ringgit strengthened to a 10-year high of 3.3480 against the US dollar.
Rising share prices around the region also boosted local sentiment, despite record high crude oil prices and the sluggish performance of US stocks overnight. Hang Seng Index rose 550.73 to 30,405.22 points, Strait Times Index closed at 3,771.55, up 64.41 points. All major regional indices were up except New Zealand and Vietnam’s.
Technical Analysis
Relative Strength Index (RSI) of 68.96 consider reached over bought area. The index also touch upper band of the Bollinger. Next week we will some correction. There are rooms for the index to jump over 1400 points as US might announce interest cut next week.
