As if taking a cue from a rather flat Wall Street yesterday, there was profit taking at the Bursa Malaysia this morning, taking the Kuala Lumpur Composite Index to an intra-day low of 1,290.08 but this afternoon’s trade saw renewed optimism with strong buying support on selected heavyweights.
Towards the close of the day, there was a typical surge in the market which took the index to 1,306.34 which is a new 13-year high. The market is now sniffing at surpassing the all-time high of 1,332.04 achieved in January 1994.
I know most analysts are saying that the market fundamentals remain strong, the question now is whether there will be a correction soon. Watch out for the foreign funds which may be taking profit in the days, if not weeks, ahead.