The charts above are the KLCI (Bursa Malaysia Composite Index) and S&P 500 Index(Standard & Poor 500) Both index are considered the bellwether for the stock market activities in Malaysia and USA respectively.
The stock market is often viewed by economist as a barometer of business and consumer confidence regarding the future. A high and/or rising stock market may signal robust growth of business investment and consumer spending in the near future while a low and/or falling stock market may signal sluggish spending. For this reason, the above index is consider one of the Index of Leading Economic Indicators.
The charts showed that for the past six month up to yesterday, September 15 the KLCI moved in tandem with S&P 500. This is not surprising since our economy is highly correlated with US economy.
The financial meltdown in Wall Street due to the collapse of Lehman Bros was felt by Bursa Saham Malaysia. Since our stock market open 12 hours earlier than New York , the rumor of the impending collapse of Lehman Bros pull the KLCI to gap down from last Friday closing and closed at 22 month low at 1,031.63 .
Let see what happen today for the KLCI.........Oposite is intraday KLCI up to 11.am. The index fall heavily almost touching the 1,000 psychological level by 9.00 am.
Today is Malaysia Day....i.e when all of us ...Peninsular Malaysia, Sabah and Sarawak become as one nation..one dream and one aspiration...
But nope....the Imbecilic BN/UMNO just doesn't want to join the fête.
Today also is the promise of future by our Mr. Anwar.....
Let Pull Down the dimwits BN/UMNO just like Lehman Bros done to the market.
