Malaysian Market Surge - FBM KLCI has surpassed 1500!

I  have been following the index the last six months or so and made notes of its rise from 1200 to its current high at 1519. Of course if you followed closely the plantation sector has gradually woken up after being dormant for over two harrowing years for me. As I was looking forward to applying for Petronas IPOs, I cleared three of my plantation counters at great losses, Kwantas at 1.58 (now 1.98), MHC at 1.20 (now 1.78) and Swkplnt at 2.15 (now at 2.50). That was when the index was revolving around 1260. Just as well I keep my Thplnt and Unico as the prices are crawling up due to rising palm oil prices due to increasing  global demand.

The finance stocks have steadily gone up as blue chips like Maybank and CIMB are being snapped up like hot cakes (by foreign fund managers?). Other index-linked stocks such as Axiata and Maxis are holding up though the latter appears to be lethargic since its IPO launching but has managed to give comfortable dividends so far that I find attractive. My TM stock has also recovered from its post-capital 98% repayment days. In fact almost all my stocks, many not index-linked are rising, even my PICORP! I was having a regretful time with PICORP as it was hovering around 0.22 for a long blinking time. I bought this penny stock because of a relative who persuaded me to acquire it at 0.41. Currently it has gone up to 0.33 and am waiting to dispose of it when the calculation is right as I have a ridiculously substantial number! Looks like it has caught once again the investors' radar. Time for me to get off this roller coaster.

On a positive note, I am glad I keep some SIME shares despite friends' advise to dispose of it when it tumbled a few months ago. The reason I kept the shares actually to enable me to express my dissatisfaction by voting in the upcoming AGM. It is just a drop in the ocean  though as the major share holders such as PNB would still have the last say. Anyway now SIME has gone up past 9.00... luckyme!

My construction stocks have also up trended. MRCB has finally surpassed 2.00 and HSL is coming up very fast and am hoping for it to catch up with the former. I made a mistake of buying MMCCORP at 3.23 when it was trying to buy up PLUS, had only I known that its fair value is only 3.07! Fortunately I did not buy a large number. I re bought UEMLAND  at 2.29 after disposing it at 1.70 just before the Dubai Debacle. Honestly I did not know about its proposed buy-up of SUNRISE. The two stocks are rising as a result.

The worrying thing about this index reaching such a high level is its sustainability and would it herald  the need to leave the market while it is still euphoric? Does the low greenbacks have anything to do with the confidence in our market? What about the impression by some analysts that there appear to be a disconnect between the market and the prevalent global macroeconomic data? Are the foreign fund being parked in our so-called emerging market to extract maximum returns? If only we know the nature of this herd mentality which can be both exciting and frightening and certainly not for the faint hearted and risk-averse. This high index level is, by the way, reminiscent of the time before the crash in October 2008. Whatever it is I am sticking to my bluechips come what may.

It is  mood-elevating  that FBM KLCI has gone past 1500 as it brings back the market vibrancy but as investors we must not only know when to go in but also when to get out! I find the latter rather difficult as greed sometimes know no bounds.