According to HLeBroking, RM125 billion has left our country in the first half of 2008. In the whole of 2007, the total outflow was RM92.3 billion. This trend is worrying. The undesirable consequence is reflected in the downward trend of our blue chips.
Many of them are down a lot. A few examples are:
Bursa (14.01.08) High 16.30 (09.09.08) Close 6.60
IOICorp (15.01.08) High 8.60 (09.09.08) Close 4.85
Batu Kawan (24.08.08) High 13.10 (09.09.08) Close 7.85
Tanjong (09.01.08) High 18.50 (09.09.08) Close 13.20
Genting (11.07.08) High 8.05 (09.09.08) Closed 5.40
Unless the outflow of fund is stopped, the downward trend of our stock market is likely to continue. Unless and until foreign funds return, the possibility of a reversal is close to zero.
So what should we do now? Presently, the political situation of our country is in turmoil and, this is worsened by the irresponsible and racist remarks and action of some BN members. No thanks to Ahmad who started it all.
Our PM says that he is very displeased with Ahmad and that appropriate action will be taken against him. Let's wait and see how the later chapters unfold. Should 513 be replicated, the consequences can be devastating. It's the responsibility of everyone in the country to contribute to the harmony and integrity of our land.
We are not squatters here. We are the rightful and legal citizens of Malaysia. We have helped built this country and we have defended it with our blood and sweat as well. Malaysia is for its citizens! Viva Malaysia!!!
Insiders know very much more than what we know. Your candlesticks are your guiding lights. So, it's best you watch your charts closely.