Friday, November 2, 2012



So how much do you know about the market? Market in this context would be the equity market in malaysia listed in Bursa. I am not a big fan of Bond or any fixed asset but this may be because i am still not well inform of that asset class. Whatever it is, its a knowledge worth knowing.

Bursa Malaysia :  is an exchange holding company approved under Section 15 of the Capital Markets and Services Act 2007. It operates a fully integrated exchange, offering the complete range of exchange-related services including trading, clearing, settlement and depository services. (Source Wikipedia)

Bursa Malaysia or before known as Kuala Lumpur Stock Exchange (KLSE) 1930. So this the place where all public company are listed and are trading while the SC or securities commissioner will regulate the market. What people not in this industry doesn't know is that like the Dow Jones in US, we also have our FBM100 or FBMKLCI where top 100 and top 30 company are listed. We then have the ACE market where the not so good or small/medium market cap are. So we as an investor look at these FBM100 and FBMKLCI graph to gauge the performance of the market.

Here you can see the graph of KLCI are pointing all high since January. KLCI consist of top 30 listed company in Malaysia. So if everyone is doing ok so the graph will keep going up. This position of the market is what we called the bull market.

Everything is going up and dong A-okay but as seen in the US market history and as told by Benjamin Graham the mentor of legendary Fund manager Warren Buffet, is that what ever goes up will goes down according to his book the Intelligent Investor.

So for me personally i wont take position of the market right now. The economy of Malaysia is going good especially with all the project underway and supported by the country's government. BUT! The election have not ended yet. The leadership can change hands and may lead to review of the award given to certain company and this may lead to a slow growth of the economy.

Well uncertainty is there but there many other things for us to concern. As a Malaysian i just hope the country doesn't not fall into people that want to take advantage of their position.


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