IT’S liquidity that is keeping the stock markets afloat. Not the real economy.
No amount of bad news – from rising unemployment to supply chain disruptions and rising tensions between the US and China – has had any impact on the stock market so far. Usually, in the month of May, fund managers sell off their positions and go for their summer break.
But it is not happening this year. Last week, trading volumes on Bursa Malaysia hit a record high of more than nine billion shares, buoyed by retail participation. Foreign investors, who usually would be the ones responsible for raising the tempo on Bursa, were net sellers.
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