The Kuala Lumpur Composite Index closed today at 1196.45 points, down 40.63 from yesterday’s close. This means that it has breached the 1,200-point level on its downward journey.
Whatever you do, don’t panic. Especially if you are an investor. Who wouldn’t be worried about the stock market yesterday or today? Who wouldn’t be worried about the Unit Trust prices?
Yes, it’s natural to worry. After all, it’s either your hard-earned money that’s affected or the borrowed money that you have put into the market.
But again, don’t panic. In fact, you may even want to take advantage of the discounted prices to pick up a few choice buys. There are many to choose from.
Incidentally, the stormy market yesterday and especially today has prompted the Bursa malaysia CEO, Dato’ Yusli Mohamed Yusoff, to issue a statement reassuring investors that the market fundamentals remain strong.
“We maintain our optimistic outlook on our market’s performance over the medium-term,” he said, adding: “From our analysis, coupled with feedback from fund managers, analysts and brokers, it is clear that our market’s performance this morning is not an isolated incident.”
He attributed the sharp fall early today to a knee-jerk reaction.
“We will continue to monitor the situation but I am assured that our market will maintain its growth position in the long run. Our economy is stable and the outlook for 2007 remains positive. Our public-listed companies also continue to demonstrate progress and provide good returns to shareholders,” he added.
Indeed, ING Malaysia in its daily market commentary said that mid- to long-term investors should not be overly concerned and in fact, this is an excellent opportunity for long-term investors to search for value and tilt their portfolio to quality stocks.