Somebody got it right called it as a relief rally. There was a huge buying panic when the stock market opened on Monday. A little bit of today too. That basically because the local fund managers were panic and afraid of being under-perform the index if the stay in cash. They sold down a lot of stocks prior to GE. Their game plan was to buy at lower price. It's turnout that they were forced to buy even at higher prices pre-GE. Smart money? My ass, smart money. A super high volume spike is not sustainable.
Long term fundamentals are deteriorating. A few reasons:
1. The foreign funds begin to get worry actually. Credit Suisse for example sounded cautious
Those reforms now seem in doubt, Credit Suisse said in a report on Monday, although Najib is expected to push ahead with $444 billion Economic Transformation Programme aimed at boosting private investment and doubling per capita incomes by 2020.If there is no follow through buying by foreign funds, who will be the next buyer?
2. Stretched balance sheet