With reference to my e-mail in my alumni e-group 19-May, the market did react (KLCI dropped from 1,295 points 18-May to 1,281 yesterday) to TDM's decision to quit UMNO although that is not the sole reason share prices on Bursa Malaysia continued its downtrend since 16-May; the other reasons being the overnight Wall Street fall, as well as regional markets' slump due to investors taking profits on concerns over inflation resultant from the new record high crude oil price of USD134 pb as at today.
In all, political defections stand out a main concern for the stock market. Just as I predicted. Now that our political dimension has shifted totally beyond the figment of our imagination, our politicians must respond swiftly and positively, be it with regard to TDM or AI or anything for that matter. Failing which, some of us will have to bail out our own stock portfolio in no time.
In another development, equally if not more important is the decision regarding the 30-year old territorial dispute on Pulau Batu Putih between Malaysia and Singapore that will be announced tomorrow, 4pm Malaysian time. We can watch it live on RTM1.
Just for the record, the International Court of Justice (ICJ) decision could see Singapore win all their claim ie PBP together with Middle Rocks and South Ledge, get one of the islands or leave the table empty-handed. Coin flipped, the status quo may remain with Malaysia resuming her authority over PBP and Singapore being allowed to operate their lighthouse there.
As Malaysians, let's pray we'll win our claim because that's what we deserve.
And the decision favoring Malaysia may yet be the Government's trump card in restoring confidence among the stakeholders, especially the rakyat, hence the much-awaited recovery of our stock market and also the economy as a whole.
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