Economic Analysis | Malaysia Financial Blogger | Financial Freedom Ideas

Don’t Panic When Market Crash

Financial markets worldwide traded broadly lower in the month on August, which caused by the concerns over the health of US economy and Euro zone debt crisis. Now, I realize that we are actually experiencing nothing more than a correction. So, many believe that what had happen currently is not a bear market but just a correction. And, it will end very soon.

market crash

However, nobody will know the future. You must remember that anyone who tells you that he is absolutely certain that it’s a correction or the beginning of a bear market, then he is actually lying you.

August 19th, 2011 | Leave a Comment

Ringgit Hits New High Against US Dollar

Ringgit Malaysia rose to a new 14-year high of RM2.9432/USD 1 on last Wednesday, July 27. In the other words, Malaysian just needs to pay RM2.94 to buy US$ 1. The appreciation of ringgit is due to the stronger economic fundamentals and better economic growth prospect.

Ringgit Appreciate

I believe that the value of ringgit would further increase. This is because the US debt compared to GDP was still rising despite the end of the QE II. Besides that, there is speculation that Bank Negara Malaysia will raise the overnight policy rate (OPR) to curb inflation also. This will strengthen our ringgit value in the next couple months.

August 1st, 2011 | Leave a Comment

Will Stock Market Moving Up After Bersih 2.0 Rally?

Yesterday, 9th July 2011 would be a history day in Malaysia. It’d been to be the global headline as supporter of Bersih 2.0 can be found not only in Malaysia, but also other country like Melbourne, Thailand, Taiwan and etc.

institutional vs retailer investor

KLCI closed at a new high of 1595 with reduced volume last Friday. Apparently, the index was pushed up by institutional investors near the closing period. On the other hand, we can see that the volume traded decreased as the retail investors are worried about the outcome of the Bersih 2.0 rally.

July 10th, 2011 | Leave a Comment

Global Financial and Economic Outlook

In today’s new world, it’s becoming more and more apparent that the global economy is now headed down again. We can see from Asian to Europe and then to the US, all the importance economies data are rolling over and in some countries, it is even starting to smell like a double dip recession.

Global Economic Outlook

Following of the Moody’s which has recently downgraded Portugal’s sovereign debt to the junk status, it illustrates that there’re still lack of confidence of European politicians in resolving the growing European debt crisis.

July 8th, 2011 | Leave a Comment

FBM KLCI Ended With New High Again

Today, KLCI broke out of its yesterday high of 1579 to close at 1582 with a volume of 801 million shares. It has been decreased compared to yesterday which recorded 947 million of shares traded. Although it’s on uptrend but I believe that it may change direction or go into sideway if there’s no higher volume of at least 1 billion shares in the following days to set the firm uptrend.

FBMKLCI

I can see that not all the counters traded at their high. Lately, there’re few counters such as MAS, MUHIBAH, MAA, MYEG all tumbling to their lowest after having experience of a roller coaster ride. Thus, most of the time our KLCI was led higher by finance and plantation stocks.

July 1st, 2011 | Leave a Comment

List of Countries by Credit Rating

Country credit rating is an assessment of the credit worthiness of the country itself. It’s a published ranking where the financial analysis is based on the financial history of borrowing and repayment. The highest rating is usually AAA, and the lowest is D. Most of the time, lenders will use this information to decide whether to approve a loan.

credit rating

In this table you can see the credit ratings of some Asean and European countries. The credit ratings are the most recent ratings from Standard & Poor’s. From the table shown, we know that Greece currently has the lowest credit rating in the world. In the other words, it’s the world’s worst credit-worthy country. Besides that, several other developed economies such Italy and Spain also join in credit rating cut due to the Eurozone debt default.

June 25th, 2011 | Leave a Comment

Singapore Dollar Continues to Rise

While both the Singapore Dollar (SGD) and the Malaysian Ringgit (MYR) had appreciated against the US Dollar recently, the Singapore Dollar had also outperformed the Malaysian Ringgit at the same time.

SGD vs MYR

As of 21st June 2011, 1 SGD is trading at 2.46 MYR. This is close to the highest level seen in the past year. As we can see that the Singapore dollar has been on a steady moving upwards from its low in the 2008-2009 financial crisis.

June 22nd, 2011 | Leave a Comment