Those, who follow political development, are probably surprised that the stock market chose to react negatively on the news of 1MDB in default. After all, we lost billions of ringgit and yet there was hardly a crime in sight. Our Prime Minister has urged the nation to move on. Until now, hopeful....
From Malaysiakini
Signs of nervousness were felt last week when it was announced that 1MDB will not pay for the US$50.3 million debt payment in bonds on billions of dollars guaranteed by an Abu Dhabi state-owned sovereign wealth fund International Petroleum Investment Corporation (IPIC). USD-MYR rebounded to 3.94. Will it breach the resistance from the horizontal line at 3.95 as well as the downtrend line, RR at 4.00-4.01. We will wait & see.
Chart 1: USD-MYR's 4-hourly chart as at April 26, 2016_2.45pm (Source: Investing.com)
As at 3.15pm, our FBMKLCI was down 20 points. If FBMKLCI were to break below the 1690 level (breaching the support of the 20 & 30-week EMA lines), the recent market rally will likely have ended.
Chart 2: FBMKLCI's weekly chart as at April 26, 2016_2.45pm (Source: Investing.com)
Be careful out there!
http://nexttrade.blogspot.my/2016/04/1mdb-in-default-are-you-surprised.html
