Market Summary

Equities in KLSE began the week on a cautious note as uncertainty crept back into the market. The KLCI extends its losses for the 5th consecutive days. At 12.30 pm, the KLCI fell 8.15 points to 1599.73, slipped below the 1,600 support barrier. Losers led gainers by 477 to 143 while 273 remains unchanged with a total volume of 580 mil shares valued at RM575 mil. The KLCI had been trending down since early November.

On political front, the upcoming 13th general election is anticipated to be very closely contested and the results could go either way, with BN return to Federal Power or Pakatan Rakyat replacing BN to break Umno hegemony to form the central government in Putrajaya. Umno youth chief Khairy Jamaludin is confident that BN's performance in the 13th general election will fare better and will win with a higher majority than 2008.

Overseas, political turmoil in Egypt entered its fourth day Monday, after President Mohammed Morsi’s surprise power-grabbing decree galvanized the opposition and set off rounds of street violence, at a time when the nation needs unity to make difficult economic decisions. Egypt’s economy was already in trouble, with foreign reserves having fallen 40 percent since the uprising and growth projected to be less than 2 percent this year.
The market sentiment is anticipated to remain weak till the end of 2012. It is advisable to trade cautiously and protect your capital during this period. Don't get overly stressed. Chill out.

Below is a lovely song by Eric Clapton - Wonderful Tonight