Market Rebound Before Sarawak Election

Posted by Kris | Thursday, April 14, 2011 | | 0 comments »

KLCI now stands at 1535.59, after dropping hugely for 2 days. (drop around 20 point per day at one time).  Suddenly, from -7 , the KLCI rebounded quickly to close at +9 at the afternoon session. Traders/investors are taking a cautious stance as the Sarawak Election is nearing. 

Perhaps another "Tsunami" going to hit Sarawak, once considered as the government's fixed deposit. Overall, the market is fearing a "bank run" is going to happen at Sarawak.

Chances are slim for the opposition to capture Sarawak as the rural support is hard to grasp at. Most likely the urban city seats will fall. Nevertheless, the market is being cautious here.