First Quarter GDP Contraction Of 6.2 Per Cent
Malaysia first quarter GDP contraction of 6.2 per cent was the sharpest decline since the third quarter of 1998 which recorded a -10.2 per cent growth rate. What will happen to Malaysia share market today?
Asia share market have continue in bull run over about 50 days and had unaffected by H1N1 news, economic report and North Korea threatens military action, and now what reaction will be in GDP?
if they need market go up than they will said compared with Singapore and Thailand which registered a negative growth of 10.1 and 7.1 per cent respectively, Malaysia was not doing too badly.
If market they want market to go down, they will said the economy to contract between two and three percent and attributes the much sharper reduction of 6.2 per cent to a lack of effect from the stimulus packages.
For me I think the market go up or down is base on how many inverter have jump in into the bull trap, if the amount is big enough then the smallest bad news will hits the market to drop. So back to the basic rule:- Buy when market is down with full of bad news and sell when market bull run full with good news.
if they need market go up than they will said compared with Singapore and Thailand which registered a negative growth of 10.1 and 7.1 per cent respectively, Malaysia was not doing too badly.
If market they want market to go down, they will said the economy to contract between two and three percent and attributes the much sharper reduction of 6.2 per cent to a lack of effect from the stimulus packages.
For me I think the market go up or down is base on how many inverter have jump in into the bull trap, if the amount is big enough then the smallest bad news will hits the market to drop. So back to the basic rule:- Buy when market is down with full of bad news and sell when market bull run full with good news.
1 comments:
Volume is fast decreasing. If this continues, we may see steep drop in prices of composite counters within 3 weeks time. Why this happens? If many players are holding in margin accounts, sure got top up calls. I think big players will not support current prices, coz no room to make big gains. Some more, since 1st quarter GDP really hit bottom, 2nd quarter will not be good or could be worse. I don't dare make predicting here, i also have doubt about Malaysia economy has hit bottom in 1st quarter. Maybe 2nd quarter also minus 6% and that can push panic button to almost all companies listed in Bursa. Bare in mind, many companies have big debts, only small number of companies are cash rich. My conclusion at the moment is SELL or UNLOAD. If you still holding, please sell if the losses is within 10%. You could buy back later at much more cheaper prices.
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