A subdued year-end window dressing awaits
Cheah Chor Sooi | 12 Oct 2018 00:30
That the FBM KLCI is trading sideways in a rangebound pattern in recent times is a harbinger of the lack of catalysts to spark an upward momentum necessary for the local bourse to end 2018 with a bang.
Such a trend reinforces the perception that the customary year-end window dressing activity will again be a muted affair as evident in the past two years. The 2017 year-end window dressing rally only started in earnest on Dec 12 when the benchmark index notched up 10.1 points to 1,729.57 (Dec 11: 1,719.47). On the very last trading day on Dec 29, the KLCI surged to a 30-month high of 1,796.81 after climbing 17.71 points from the previous day.
In 2016, the 30-stock KLCI ended trading on a volatile year marred by a massive outflow of foreign funds from emerging markets following the outcome of the US presidential election at 1,641.73 on Dec 30, up 3.8 points from the previous day. Back then, window dressing only began in earnest on Dec 24 from the previous day’s close of 1,617.15.
With so much economic and financial uncertainties lingering both domestically and globally, analysts have thus far played down prospects of any robust window dressing – yet again – for 2018.
Download and read the latest issue of Focus Malaysia here: