Ahmad Faiz Besah

Tools for measuring the strength of capital: Trading volume and MACD indicators. Divergence is the best way to measure the strength of capital, and MACD divergence is also the best tool for analyzing buying and selling points.

1. The surge in other global stock markets has attracted funds. Many of these markets are still at low levels, while the Malaysian stock market has already risen to a relatively high level. Funds tend to prioritize markets that are still at the bottom range. 2. The Malaysian stock market has a limited capital capacity of around 2 trillion, making it difficult for global funds to allocate assets. Additionally, institutional funds are mostly concentrated in large cap stocks, making it difficult to adjust portfolios. The only option is to shift their focus.

✅1. Due to the Federal Reserve's interest rate cuts, global funds are increasing their investment in Asian markets. ✅2. Due to favorable policy announcements from China, funds are being drawn into China's related stock markets.

When the U.S. begins to cut interest rates, it typically indicates a shift in monetary policy towards easing, aimed at stimulating economic growth or countering an economic slowdown. This change in policy can significantly impact global financial markets, including the Malaysian stock market. To understand this better, let's consider some current hot topics in the Malaysian market. Firstly, a U.S. rate cut often leads to a weaker U.S. dollar, which may cause the Malaysian ringgit to appreciate against it. This situation can be advantageous for import-oriented businesses , especially those that rely on importing raw materials, as their cost pressures may be alleviated. For instance, Malaysia's construction industry has been recovering recently due to government initiatives pushing various infrastructure projects. If the U.S. dollar depreciates, the cost of importing raw materials will decline, enabling construction companies to manage their costs more effectively. Moreover...