27,375 Days...

Malaysia Market Outlook: KLCI, Small-Cap, Ringgit vs USD

“Tell me what is more beautiful; How the moon lets the sun shine throughout the day, or the way the sun lets the moon glummer at night.”

I spend the long weekend at a condo near Tanjung Aru. While reflecting, I notice I indulge myself too much in the future. At times it causes me a little excitement, yet another causes me anxiety about the unforeseen future.

Again and again, I fail to live the present moment. To see life as it is and as it unfolds. After all, the average human lifespan is around 27,375 days. and I spend worrying about the future 70% of the time; I would have missed out on living a great life. - great is self define.

Malaysia Market Outlook

1: The low valuations of stocks (meaning Quality stocks are trading at a discount) in Bursa Malaysia and a relatively steady economic outlook should see continuous foreign funds gravitating into Malaysia in the second half of 2022,

Bursa Malaysia Index.

Malaysia's Small-cap

Both Malaysia Blue Chip and small-cap stocks are on the one-year’s sideway move. However, as I mentioned in the previous post, Most foreign investors have already been out of the Malaysian market since 2020, when the pandemic started. Therefore we won’t expect the market the make another deep correction (move lower) as the is no more selling pressure.

2. Weak ringgit might also be an incentive for foreign funds to look at Malaysia.

Ringgit Vs. USD: 5 years symmetrical triangle.

If the upper trendline is breached, we shall see to move to measured moved RM5.20 per USD 1

Conclusion: I personally see the Malaysia market particularly the small-cap are cheap in terms of valuation. Technically, the market is holding nicely regardless of the Geopolitical events (Russia Ukraine war), Supply chain disruption (Mostly caused by Shanghai lockdown), and inflation.

If foreign investors start to flow in their capital, it can positively impact Malaysian stocks.

If you like this kind of no-hype, mission focus analysis, please consider signing up for the free newsletters.