Wednesday, April 13, 2011

Over reactions?

The market reacted negatively for no apparent reasons for the last few days. Up or down is just a natural rhythm of the market. It has been on the upward trend for 3 consecutive weeks, so taking a breather is natural but the degree of people dump stocks is quite severe. Read all over the places -- pundits and investors got a bit worried on coming April 16 pooling. They have good reasons to be worried because when BN did not get the 2/3 majority, Sarawak gave a them a big boost(see picture). Should Sarawakians begin to sway or rather got pissed off and turn their backs in coming GE 2013 or sooner, BN can be in a deep shit. This Saturday results will make a lot of people to extrapolate the results into the next GE results.

Let's see how the market react till this Friday. Should KLC drops below 1,500, the market is already pricing in a possibility that BN will lose in a big time but in reality, the situation may not be as bleak as many people thought.

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