Monday, March 10, 2008

Ding! Ding! Ding

... and stop! At 2.58pm today, a bell was rang. A bell known as the "circuit breaker". What's that huh? The circuit breaker is a mechanism implemented by the stock exchange, namely Bursa Malaysia when the KLCI records a 10% decline from the previous day's level. Hee... is there such a thing? Yes, and to add on, when the bell rings, boxers (namely the investors, speculators, aunties and uncles) will have to get to the ring side and breathe for an hour. Essentially, the trading in the stock exchange is halted for an hour.

The purpose of such mechanism is to act a temporary measure designed with the intention to maintain market stability and provides an opportunity for the "boxers" to access new information before making further investment "jabs" and "hooks".

Political instability is always a happening that is definitely not too "happening" to investors. Although many Malaysians would cheer with satisfactions with their support for oppositions turning into real takeovers of seats from the Barisan Nasional coalition, most are not smiling by now as KLCI has dropped 130.01 points at closing. Those who are smiling will be those waiting eagerly for the drop in KLCI. They are not wicked at heart but they are just like ordinary Malaysians waiting for sale at KLCC.

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