Oh no… Bursa Malaysia is in the red with over 1,000 counters in the red

Oh no… Bursa Malaysia is in the red with over 1,000 counters in the red

People buy shares for many reasons. Some believe it’s a good way to earn dividends and thus they will keep these for the long term. Some are buying because of some news saying that ithe price will rise or they have some belief based on their own analysis that the stock price will rise.

Some are full time traders, buying using some formulas or calculations which is derived from historical patterns. Of course there are some who just love the brand and they buy the stock. Some may even be buying because of the free gifts they receive during the shareholder meetings. Haha.

Did you buy into any Bursa Malaysia stocks lately? It has been pretty smooth sailing except maybe today, 2nd August 2024.

Article in thestar.com.my. Bursa Malaysia plunged further into the red as over 1,000 counters sank amid weak buying interest, with most investors staying on the sidelines.

The FBM KLCI ended 12.12 points, or 0.75% lower at 1,612.13, with 21 of the component stocks ending lower. The index hit an intra-morning low of 1,609.65.

Losers led gainers 1,162 to 127, while 271 counters were unchanged. Traded volume stood at 2.62 billion worth RM1.7bil.

TA Securities said the local market should trade sideways to lower ahead of the weekend, as investors await further leads from global economies on growth momentum, inflation and monetary policy. Do read the full article with more details here: Article in thestar.com.my.

When it comes to choosing a counter, is it about Value or Price?

Let’s take the property market as a learning to analyse the counters to buy. When an area is already very popular, it’s like a counter which is already very famous. Both would now be fully priced or even overpriced. That’s why some people kept saying that the statistics showing property price increasing is fake when they bought an overpriced property in the first place. Then again, overpriced can also be something people ignore totally and continue driving up the price. As long as the market continues to be hot, it will always be rosy yeah.

When we look at an area which is maybe nearby the popular area and has just started developing, this is like the stock counter in the industry which everyone likes to buy but this stock counter may not yet be as popular. So, the price still have upside potential, just like that area next to the popular area too. Perhaps this could also be worth a more serious look too. When I look at properties to buy, I always try and anticipate and will prefer to take a calculated risk in a potentially good area versus buying into something everyone already know and wishing it go higher.

Perhaps even Penny Stocks?

We can also look at penny stocks. Some of these have huge potential but people just do not believe them because most people are not yet interested with them yet. ViTrox Corporation Bhd for example was once upon a time as low as 30 sen per unit… The below is it’s current price AFTER many rounds of bonus share issuance. I repeat, MANY, MANY ROUNDS. Unfortunately I sold all way earlier. Sigh… But life goes on.

If you think this is the only one, then you are quite wrong. I love the stock market and will continue to dabble even if I love property market a lot more simply because I could use the swimming pools in those high-rise properties I own. Haha. Okay… I also have a higher Return on Investment (ROI) too. I am very sure many may have enjoyed higher returns from the stock market. Let’s keep enjoying what we love to invest into.

Do not worry too much about Bursa Malaysia being in the red yeah. There’s always that external factors we could not control. Just need to make sure we are buying into a company which has a good business plan versus just for speculative purpose. Cheers.

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