Archive for January, 2012
1. Bank Negara has announced a slew of liberalisation
measures regarding the use and conversion of
foreign exchange, in line with its efforts to enhance
competitiveness and develop the domestic financial
markets. Under the new ruling, which comes into
effect from today, licensed onshore banks are
allowed to trade foreign currency against another
foreign currency with a resident. This means a
resident is allowed to buy and sell foreign currency
against another foreign currency for any purpose,
The US Stock Trader’s Almanac has predicted that a strong first month often leads to a year of gains, and a weak closing in the 1st mth of trading wud lead to a year of losses. Interestingly enough, according to this same US market almanac, since 1930, the calendar year has followed January’s lead 60 out of the last 83-times for US stock market.
Do this almanac has the predictive power to forecast another good year finishing ? Let’s turn our attention to our KLSE market.
You may ask the same question for our KLSE market – How do KLSE fare for the year end closing shud the January mth closes with a gain/loss ? Our KLSE has closed positive year end for 18 times for every January mth positive closing for the 34 years dating back to 1978.
Compared to the US market, US did better, scoring an better average of 72% compared to our KLSE of 53%.
This mean there slightly a 50:50 chance for the KLSE market if we wud close either higher or lower than 1530 level (ie. 30 Dec 2011). See table. (more…)