We guess there is nothing much to write this week as we had sent out 2 special alerts [1] Dated: 30-June 2008 Special Alert: Political Risk Move Up Another Notch & [2] Dated: 3-July 2008 Special Alert: Blue Moon Shun Upon Bursa Malaysia Today. (If you would like to know more, you can always refer to these articles on the same week).
As for the review this week, KLCI dropped -52pts, erasing -2.8% settling at 1,134.14pts. Despite continuous political mudslinging, Malaysian stocks were also affected by external influences from regional stock market trends spurred by high oil prices and high inflation expected to be announced in the coming months. Regional market also showed weaknesses in terms of investor sentiments in expectation of inflation led by higher cost of basic materials (like metal, oil and food commodities).
Since we are already in the summer months (June-August), activities in the stock market will remain sluggish as investors in the West kick back and relax, enjoying, basking in the sun sipping cool magaritas and martinis. Well, seasonality like these are common, so don't alarm your friends and scare them to sell all their shares. It's an annual event. :)
Recommendations: The YouInvest team thinks in the next few months leading to August, investors should keep cool and stay on the sideline before more indicators unfolds in the economy, especially the aspects of politics and policy making. So, do like what the Western investors are doing, KICK BACK n RELAX. Go meet up with friends, catch up on old times, go for a holiday somewhere interesting to learn about things, get different view and broaden your perspectives. Anyways with all the political uncertainties surrounding the Malaysian stock market, its better to stay out than facing potential falling daggers of the stock market. With that note, YouInvest is going to yum char (have a cup of tea) with their friends catching up good times. :)
Since we are already in the summer months (June-August), activities in the stock market will remain sluggish as investors in the West kick back and relax, enjoying, basking in the sun sipping cool magaritas and martinis. Well, seasonality like these are common, so don't alarm your friends and scare them to sell all their shares. It's an annual event. :)
Recommendations: The YouInvest team thinks in the next few months leading to August, investors should keep cool and stay on the sideline before more indicators unfolds in the economy, especially the aspects of politics and policy making. So, do like what the Western investors are doing, KICK BACK n RELAX. Go meet up with friends, catch up on old times, go for a holiday somewhere interesting to learn about things, get different view and broaden your perspectives. Anyways with all the political uncertainties surrounding the Malaysian stock market, its better to stay out than facing potential falling daggers of the stock market. With that note, YouInvest is going to yum char (have a cup of tea) with their friends catching up good times. :)
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