Monday, November 3, 2008

Time to INVEST In Bursa Malaysia ? I'm Doubt About It.

As we can see last week share market was the most exiting moment. On Tuesday in the afternoon session we saw how KL Composite Index at one time drop sharply more than 55 points before it recover back. On Wednesday the share market is adjusting it self after the Tuesday sell off before it started to climb back on Thursday and Friday.

No doubt we can see that most of the share market around the world have bottom out, the question that we need to ask ourselves whether now is the right time to invest in the share market ? I'm doubt about it !

Although some of the prices look very attractive and many of us could not imagine that we might seen these kind of prices that we always dream of, still we have to remember that we are facing a financial meltdown. In months to come, Malaysia like all other economies that depend on the international trade, will not be spared from the effects of the global economic turmoil.

If the economic turmoil only happen to United States, we would have the European country to support our economic but now both of the strongest economics region were suffering the most from this disaster. From what I have seen here, my assumptions towards Malaysia economic is; it will turn from bad to worst after the first quarter in 2009.

Singapore and US are clearly entering into recession with some of the European country are starting to feel the impact and would eventually entering into the recession. Today we might said that the Genting Berhad share prices was attractive at the price of RM 4.50 per share but we have to remember if the financial meltdown still continue, I won't be surprised if Genting Berhad share prices drop to around RM 2.50 per share. Do you believe that we might one day see the KL Composite Index drop until 500 points ?

That was my main worried that I have at these moment because the impact from this financial crisis is not the same compared to what have happened during the 1997 Asian Financial Crisis. This is one of the most deadliest disaster of all. Greater than the 1929 Great Depression.


CP said...

Morning. I fully agreed. Yes, Geting could go below rm3 but i m pegging KLCI at 650, hopefully wont go to 500 points. I m expecting bottom to be next yr, may be after AUG and it might take 2/3 yrs before KLSE finding some ground again. What do u say? Just my opinions.


BH LEE said...

Basically if we want to compare with 1997 Asian Financial Crisis, it might happen accordingly but we have to remember that Malaysia Financial Instrument still intact and our financial banking still at its best.

So whatever going to happen in next year will depends how our country will fare this financial turmoil.

Prediction of KLCI is heading to some where around 650 points can be consider but as I said it will depend how our Asian Financial Market fare this turmoil.

CP said...

Yeah. Agreed. Thx for sharing opinions.