KLSE suspended after 10% decline!

Because of the great uncertainties surrounding the Malaysian economy after the election upset, it's beginning to take toll on the stock market. Investors are now worried whether the current project/previously announced project will proceed under 'really much change' government. It is important for Pak Lah to announce his new cabinet in order to restore back the market confidence, and all the new opposition MBs will have to decide publicly whether there are going to continue the previous government initiatives.

Ustaz Azizan, the new Kedah MB already said in his press conference yesterday that under the new PAS-PKR alliance, they'll continue all the previous government projects, but they might consider back the expenditure of each project. This is a good sign and hopefully all other opposition states will follow the same path for the sake of the Nation. In addition, Bernama reported that Anwar Ibrahim told the new CM and MBs not to waste money and spend wisely. I think this is the right thing to do since recession just around the corner.

We have to be prepared before it hit us. Let's now pray for a unite opposition and a stronger government. InsyaAllah we'll survive through the rough ride.

The Star

PETALING JAYA: The Securities Commission and Bursa Malaysia have assured the public that market integrity remains intact, in spite of the activation of a market-wide circuit breaker, which was implemented for an hour, from 2.58pm after the Kuala Lumpur Composite Index fell 10%.

Trading on Bursa Malaysia Securities Bhd and on the derivatives products on Bursa Malaysia Derivatives Bhd was halted.

Bursa said the circuit breaker was activated because the KLCI had fallen 130.01 points, or 10% from the previous close of 1,296.33 points.

“The trading halt is a temporary measure designed to maintain market stability and provide an opportunity for market participants to assess new information before making investment decisions,” it said.

The circuit breaker was implemented by Bursa Malaysia in March 2002 to trigger automatically when the KLCI records a 10% decline from the previous day’s closing level.

“The activation of the circuit breaker has not impeded the resilience of the market. Clearing and settlement, and depository operations continue to work as normal, and all trades and due for delivery and payment today will be honoured,” it said.

The SC and Bursa Malaysia said they were continuing to monitor the situation closely.