Investor confidence is shakened. Unless there is some extraordinary positive economic data or some clarification of the geopolitical tension in the Middle East (Iran and Syria), the Kuala Lumpur Composite Index is expected to trend sideways in March.
All eyes are also on China ahead of their National People’s Congress (NPC) annual meeting on Monday. Will the Chinese carry out its rumoured threat to introduce a capital gains tax or take some other steps to rein in their liquidity? In the meantime, this graph says it all for Feb 2007.