As expected, the KLSE has dropped below the psychological barrier of 1,000 points amidst a time of financial and political uncertainty.
The KLSE managed to withstand breaching the 1,000 points barrier from US after the Lehman Brothers collapse. However, it seems to have bowed under the pressure of the uncertain political ground locally, together with the pulling out of Sabah’s component party, SAPP.
At Bursa Malaysia, HwangDBS Vickers Research said the KLCI which hit an intra-day low of 1,000.41 on Wednesday before closing at 1,002.99 faced more downside risk ahead, possibly testing and breaking below the support line of 990 next. (source)
Is this the best time to go bargain hunting? It’s hard to say. I guess a lot could depend on the outcome of Anwar’s press conference at 2pm, UMNO Supreme Council meeting today, the way the political situation pans out locally over the next few weeks and the financial situation in the US.
However, many believe the worst may be yet to come.
September 18th, 2008 at 2:28 pm
The worst has yet to come. We will only know in another 6 months. Cash is king now.
September 19th, 2008 at 11:59 am
Hi Pablo,
Cash is king but the high inflation rates are continuing to erode it