It has to happen – Stocks drifted downwards

Since the run-up in stock markets on 26 March, stocks retreated over two days of trading.

 

The indices of some stock markets as at yesterday were:

 

                                       30.03.09  26.03.09    Change (%)   

 

Dow Jones (USA)             7522        7924             -5.1

S&P 500 (USA)                    787         832              -5.4  

FTSE100 (UK)                     3762        3925              -4.1

Nikkei 225 (Japan)          8236        8636              -4.6  

Shanghai Composite      2358       2361               -0.1  

Hang Seng (HK)              13,456    14,108             -4.6  

STI (Singapore)                 1673       1758               -4.8   

 

The declines for most markets, except for China, were above 4 per cent in just two days. The rally and subsequent drop is now too familiar. It has been like that since September last year, when Lehman Brothers Inc. gone into bankruptcy.

 

Those who have the holding power will be able to ride over the rally and decline cycle. They can hold onto the shares until they rise again before trading again. Trading on margin will not be advisable.

 

Written on 3/31/2009 4:15 PM

 

Copyright © 2009, the author known as LKT in Singapore.

 

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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