From its high in January compare to its last day close recorded in December the index has lost nearly 640 points. It is quite a disaster for Malaysian share market but overall not many of them have been caught by this sharp downturn due to our country political turmoil. Thanks to the new political tsunami that happens in Malaysia during March 8, 2008 general election. Not only we face the political tsunami, many investors or individual stay at the sidelines when the Barisan Nasional government face a political mess with the leader of the Pakatan Rakyat party - Datuk Seri Anwar Ibrahim.
Lately if we read some of the news about the commodities around the world, there is some development in the commodity prices. Past these few days commodities prices has started to trade higher with some of the commodities prices trying to breaks its resistance. This I would call it as a technical rebound after the commodities prices has experiencing a sharp falls during the past 5 months.
We must remember that whenever there is a continuously fall in prices technically it will climb up a little bit to recover some of it losses. We still can remember that when the prices of crude palm oil started to tumble, the Malaysia share market experiencing a sharp falls. Today there is some sign that these commodities has started to recover and indeed it will help some the public listed company especially the plantation counters, oil and gas counters to move higher. With the recovery of these prices, it will help the recovery of share prices and these will lead up to push the KL Composite Index to move higher.
Lately we also can see that there is some recovery in crude oil prices. After staying below USD 40.oo a barrel for quite some time, now the crude oil prices is staying above the USD 40 level. It would be better if the crude oil prices can break the USD 45 level and stay above that level. This might be an opportunity for the KL Composite Index to make some recovery after facing huge losses last year.
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