With the announcement of Reserve Bank of Australia (first of G-20 central banks) to raise key cash rate by 25 basis points to 3.25%, this mark the worst danger for the economy had passed. Bank Negara Malaysia (BNM) should hold the Overnight Policy Rate (OPR) until the end of the year. But most of the financial stocks price had gone up before the adjustment.
For example, CIMB stock price increased 16% in a month from RM10.48 to RM12.22. And most of other FBM KLCI financial stocks are performing very well too. However, have them gone too far? Anyway, people don’t care much about it. They just know that when the bull is running, keep buying. Just make sure that you know how to sell when bear is backed.
By the way, when the central banks increase interest rate == financial stock will go up.
