By : Anti Wayang
Share Market closes below 1,700 points, 31st day of consecutive foreign selling and FOREX reserves down RM8.5 billion
(Screenshot from Malaysiastock)
Today was the 31st day of consecutive foreign selling of our share market. RM264.9 million left Malaysia today (Thursday) in addition to the RM238.8 million, RM555 million and RM383.96 million from Monday to Wednesday.
This means foreign investors have pulled RM9 billion out of our stock-market since beginning of May on top of the estimated RM20 billion foreign outflows from our bonds.
Our share market fell through the 1,700 points barrier and closed at 1,692 points today – down more than 200 points since the all-time high of 1,896 reached just before GE14.
BNM also reported today that their FOREX reserves have dropped RM8.5 billion since before GE14. Despite BNM using so much to defend our Ringgit, it continues to weaken to close at RM4.0157 versus the US Dollar.
(screenshot from Bloomberg)
Palm oil prices again charted another day of loss to close at RM2,050 per tonne which is a 2 year low. It’s been falling every day for the past month due to our new govt’s crazy decision to impose a 5% export tax, our attacks on China and our silence over the EU’s decision last week to stop all imports of palm-oil based bio-diesel.
Rubber prices in our top export market China also fell 7% to a record low of 10,050 yuan.
Things are not looking so good right now and we may be on the verge of a financial crisis if this trend continues. -TTKM-