According to our Prime Minister, Dato' Seri Najib Tun Razak, the economic crisis affecting Greece will not adversely impact Malaysia as the country's exports to it was only 0.1% of total exports last year. Malaysia's financial status remains strong as the result of the government's continued efforts in keeping debts at a manageable level.
At present, 96% of the country's domestic debt is financed via local sources, thereby minimizing the foreign exchange risk. As of May 31, Malaysia's international reserves totalled RM312.2 Billion, sufficient to accommodate 4.4 times the external short term debt of the country.
But why is the Malaysian stock market (Bursa Saham Malaysia) is currently boring or weak? Why most of the counters are going down to the ground? Well, some says that it is because of the election and what I think might be the answer is something related to Greece. Whereby the investors have long acknowledged the possibility of a Greek withdrawal from the 17-nation euro currency union as the country struggles to meet harsh austerity targets that are condition of getting international bailout money. Former Greek Prime Minister, Lucas Papademos suggesting such a euro exit could be approaching, flustered market.
Another big worry for investors is a slowdown in Chinese growth, compounded in a reluctance of Chinese companies to borrow because of uncertainty of the economy. This affects Japan NIKKEI 225 index which fell 1.8 percent
So, Malaysian investors I believe are facing the same scenario whereby it got them worried as well.
Don't you think now would be the best time to shop for penny stocks which are currently down?
You call the shots.
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