Thursday, March 12, 2009

RM 60 Billion Stimulus Cannot Help The Equity Market.

Well the RM 60 billion stimulus already announced. Did the stimulus plan really help the equity market? I think most of us should know the answer. It didn't help much. Now we can see what really happen to our KL Composite Index. Today the afternoon market session closed down -12.15 points to close at 838.22 points. Most of the hard hits were the blue chips counters. Third liners counters movement still consider normal with a little bit minus only.

Now our share market is moving towards the south. It would be advisable to monitor how our market is going to react. If we want to compare the current chart with 1997 Asian Financial Crisis chart, we still have long way to go. Probably another three to four months before any significant accumulation can take place.

From my point of views, I would not say that the current market is not worth of buying. It is just that I feel the KL Composite Index still have a long journey to reach to their bottom. Some bloggers or some investments house already started to recommend which counter to buy because their prices look very attractive.

Form my opinion, no matter how attractive the prices are, if the KL Composite Index is moving down from the hills and towards the bottom, I would rather wait and search for the bottom. Remember the KL Composite Index will move just like a roller coaster, up and down. Basically it will depend on how our world financial market will behave. As I use to mention "TIMING" is very important.

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