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FBM KLCI is on the run.

The local Malaysian stock market closed at 9-year all time high on the 8th Nov 2010 at 1,519.84.

Analysts said the uptrend were the in flows of short-term capital/funds. The main sector that was performing is the plantations; the continuous climb of crude palm oil prices. Palm oil closed at a 27-month high since July 2008. (with the current floods in Malaysia crude palm oil prices will remain high)

Another factor that help in the uptrend is the QE2 (quantity easing two) measures taken by US to give their economy a "turbo-boast". This will continue and should trigger another round of a flight of capitals into Asia as the Asian economy remains intact.

Another key point of interest is the ringgit that is traded against the USD at RM 3.0935, a weakening dollar from the QE2 should point and create interest in investment demands for commodities and properties as an "insurance" or a safeguard against inflation.

Sentiment in KLCI is playing a “catch-up” and is bullish in the short-term. A caution, is how the inflows of capital will play out! Can it be sustained?

Have a great time at predicting the local stock market...

Tj