Bursa bleeds another RM31b in global carnage

By Yow Hong Chieh
The Malaysian Insider
Aug 08, 2011

KUALA LUMPUR, Aug 8 — Malaysian stocks continued tumbling today with an estimated RM31 billion in value shed from Bursa Malaysia, as jittery investors spooked by concerns about the global economic outlook continued to dump shares.

After the sustained sell-off today, sparked by concerns over Standard & Poor’s downgrading of the United States’ credit rating and Europe’s persistent debt woes, the KL share market is down an estimated RM65 billion in value from last Monday.

Losers overwhelmed gainers 1,051 to 67 today while the broad-based Emas index shed 2.39 per cent to settle at 10,227.95 — a five-month low.

The benchmark FBMKLCI slipped 1.8 per cent to 1496.99, also a five-month low.

OSK research head Chris Eng said that despite the possibility of a small rebound in coming days, markets were unlikely to climb back up to the levels seen in July and would remain volatile.

“We downgraded the market today thinking that in the mid-term it doesn’t look too good, especially after the S&P (Standard and Poor’s) downgrade (of US long-term credit rating).

“It’s prudent that investors start looking at more (alternative) defensive stocks,” he said, suggesting healthcare, media and some consumer stocks.

Eng added that while markets responded positively around mid-day to news that the European Central Bank (ECB) was buying Italian and Spanish bonds, he did not expect the optimism to last.

“It’s not enough what they’re doing at this point,” he said.

An estimated RM26 billion was wiped off the Kuala Lumpur stock exchange on Friday after investors took their cue from the regional meltdown following last week’s rout on Wall Street, the worst since Lehman Brothers collapsed in 2008.

Other Asian stocks continued to tumble today as S&P’s first-ever downgrade of US long-term credit rating on Friday continued to batter already weak sentiment.

Tokyo’s Nikkei stock average slid 2.2 per cent to 9,097.56 after dropping as low as 9,057.29, while the broader Topix fell 2.3 per cent to 782.86.

Hong Kong’s Hang Seng Index plunged more than four per cent to hit its lowest level in a year, while the Shanghai Composite Index dropped more than three per cent.

Singapore’s benchmark index fell by 3.39 per cent, Indonesia by 1.82 per cent and Thailand by 0.99 per cent.

An estimated US$2.7 trillion (RM8.13 trillion) was wiped off the value of world stocks last week, according to Reuters.

  1. #1 by boh-liao on Monday, 8 August 2011 - 7:52 pm

    O dear, $$ down d drain & a big fat sow still wants 2 buy more handbags n rings, can or not

  2. #2 by yhsiew on Monday, 8 August 2011 - 8:10 pm

    The market will get worse before it gets better.

  3. #3 by vsp on Monday, 8 August 2011 - 10:14 pm


  4. #4 by boh-liao on Tuesday, 9 August 2011 - 9:42 am

    Remember our BRILLIANT Tasek Gelugor MP NMY, Minister in d PM Dept said: “D European financial crisis n United States economic slowdown will NOT affect d country’s economy”
    Of cos our Bursa M’sia traders will tell NM to his face NIAMAH! TOKKOK!!

  5. #5 by Loh on Tuesday, 9 August 2011 - 11:20 am

    ///KUALA LUMPUR – Former prime minister Tun Dr Mahathir Mohamad gave the green light to the Transport Ministry to re-negotiate the terms for the purchase of a 405ha piece of land in Pulau Indah for the Port Klang Free Zone (PKFZ) project from landowner Kuala Dimensi Sdn Bhd (KDSB).

    Former Transport Ministry planning division deputy secretary-general Abdul Rahman Noor, 63, told the High Court yesterday that Dr Mahathir agreed to a re-negotiation in a letter dated April 8, 2002.///–MalaysiaInsider

    Is the Prime Minister authorized to reverse a cabinet decision without the approval of the cabinet in a subsequent sitting? The Cabinet can decide anything, right or wrong. But can the PM take it as if he is the Cabinet?

  6. #6 by Winston on Tuesday, 9 August 2011 - 3:35 pm

    How come this time around, no smart jackass comes out
    to tell us that our fundamentals are still strong!
    Unlike previous Bursa Burst!

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