Tuesday, February 19, 2013

The 13th General Election - What is the Impact on the Bursa Malaysia?

The election is around the corner. It is near and indeed very near. Selangor State will announce dissolution of the state assembly after Chap Goh Mei if there is no indication by our Prime Minister on when the parliament will be dissolved. (Source: NST News).

Since the GE13 is very near, I am wondering what had happened to our stock market in the previous GE12? I found some interesting information on Wikipedia. Apparently, GE12 had caused a turmoil in Bursa Malaysia where the first day of trading after the dissolution of parliament lead to a 9.5% big drop of 123 points in one day! The index drop from 1296.33 to 1173.22 points. (Source: WikiPedia)

What will happen to our Bursa Malaysia for this coming GE13? Will it be another big drop? I am a bit worry that some of the stocks in hand might drop a big gap and need some time to recover.

I still have some AIRASIA in hand and of course, AMFIRST is still in hand. If the market starts to react when it is nearing the GE13, I will have to sell off all the shares in hand to cut loss.

I have warned you. It is a risk to take, think before you jump on board on this uncertain time. Who knows Bursa might have a big rally during election? (Well, that might not happen because foreign investors are not going to come in during the election period.)

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