Of Slow Start For KLCI & The Middle East Uprising

Posted by Kris | Tuesday, March 01, 2011 | , | 0 comments »

The KLCI dropped to a low of 1474 last week after it charted losses for 5 consecutive trading day. Today it managed to breach back to the 1504 mark.with RM1.5 billlions worth of share transacted and with low volume of 11M lots. Overall market sentiment is very weak. Not much good news to spur the local market.

Unrest at Middle East is causing jitters to the world market and sending oil prices to new time highs. I was wrong to assume that the Egypt uprising would not spread to countries like Bahrain & Libya. Even the Saudi Arabia government had to announce money concessions (pay hike of 15% !!! to government servants) to their people to avoid potential uprising. Corruption & high unemployment rate coupled with high prices really pissed these countries people off up to the point of revolting. The moral of the story: "Never pissed off people with hungry stomachs". I will not be surprised that in the years to come this people's power uprising and revolt in the Middle East will the classical study case in textbooks.

The internet and social network were hailed as the tool to spread the voice of revolt. It is no wonder China banned Facebook & Twitter through the Great Wall Firewall from the grasp of its citizen to prevent the people to voiced their dissatisfaction online as the gap between the rich and the poor increases.