KLCI Drop Below 1,070 Level Entery Correction Zone

Yesterday KLCI records biggest one day loss since March 30 this year 2009. The 1,070 level had been broken will show a sign that KLCI will correction to immediate 1,020 level in a week or two. However, Bursa Malaysia will play some technical sign by changing the 100 share in KLCI index to 30 by July next month, sure this will limited the KLCI from drop more that now.

Up to date, the 30 share will include in KLCI index still not final yet so I think Bursa will selected most stabil 30 share to include in new KLCI index to show Malaysia economic is ok but in real KLCI will not give a complete picture about Malaysia economic status.

USD/MYR currency is getting stronger, I think if reach RM3.60 per USD most of the foregin will put out from KLCI so the index will drop more if you still useing 100 share in KLCI index. For me I already set up all 100 share in KLCI index in exel to countinues to monitor the movement to show a better picture in Malaysia share direction.

The Malaysia economic status still full with bad news like

The sales value of the manufacturing sector in April 2009 declined 26.2 per cent or RM12.8 billion year-on-year to RM35.9 billion.
Sales value decreased significantly were the manufacture of refined petroleum products (36.9 per cent).
Salaries and wages paid in April 2009 fell 9.4 per cent or RM191.2 million year-on-year to RM1.840 billion.
The number of workers employed decreased by 10,368 persons or 1.1 per cent from 954,426 persons in March 2009.
Influenza A (H1N1) number is on the way up

This year is vary hard to make money in share market but as long as you did not lose money than you are the winner.

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My investment with RM5,000 initial capital have been growing since 2005.I found the stock market appears confusing and complicated, but it is most definitely based on logic "supply and demand". However, the laws of supply and demand as observed in the markets do not behave as one would expect. To be an effective trader, there is a great need to understand how supply and demand can be interpreted under different market conditions and how to take advantage of this Off Market Transactions in KLSE.

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2 comments:

Elvis2020 June 19, 2009 at 11:18 PM: If you are STILL holding shares, i pity you. STAY OUT OF THE MARKET, don't even look at it for the next few weeks. Reason been, it's going to be very tempting but since dollar going strong against ringgit, sure foreign funds pull out in the big way. If it touched 3.6 against the dollar, you better watchout. I think ringgit going for 3.8, but i am not good at exchange rate.
Elvis2020 June 20, 2009 at 11:46 PM: I really pity Malaysian workforce. Not only Malaysians are paid the lowest among asians counterpart but now have to lost jobs or got pay cuts even Najib brother handling CIMB asking staff to take a hike. Malaysia pay scale in private sectors have remain stagnant for decades even with increased in essential goods prices. I dont see much with BN direction lately. With Perak case, PAS, and several issue i.e. corruptions....Najib has in a way fail to meet people exceptations. And now foreign funds are not coming in....susahlah....

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