National Day or election rally around the corner?
Add BT as a preferred source
IT ISN'T very often that stocks perform as amazingly as CEFC International or Qingmei, posting massive percentage gains in high volume for several days in a row. Such superior outperformance gets the juices flowing, the adrenalin pumping and undoubtedly, contra players jumping in. The last time the local market enjoyed a meaningful, comparable penny boom was in early 2014 - almost 18 months ago.
So most players will be hoping that the penny game of the past week can continue at least a little longer, even if many stocks at the centre of the game have no fundamentals or have not made any concrete announcements to justify their gains.
If interest flags - or, if you prefer, if the house traders and syndicates who provided the early impetus start to withdraw - then we'd expect the market to revert to its familiar "steady state" of low volatility and low volume, both of which would then equate to low excitement.
