Bursa's sharp fall compared...

The recent sharp fall in the share price of Bursa can be compared to 2 other listed regional stock exchange companies, SGX & HKEX. From Chart 1 below, we can see that SGX has been dropping since recording a high of S$16.50 in October last year. Yesterday, SGX closed at S$7.64- dropping 55% over the past 5 months. In the process, SGX has broken below its medium-term uptrend line support of S$10.50 in January this year. It is now holding onto its strong horizontal support of S$7.50.


Chart 1: SGX's daily chart as at March 5, 2008 (source: SGX)

HKEX has similarly been trending lower since its November 2007 high of HK$272. Yesterday, it closed at HK$143.10- losing 47% over the past 4 months. HKEX is now testing its medium-term uptrend line support as well as its horizontal support at around HK$135-140 level. This means that HKEX has dropped by 47% over the past 4 months.


Chart 2: HKEX's daily chart as at March 5, 2008 (source: HKEX)

In comparison, Bursa dropped from its high of RM16.90 recorded on October 30, 2007 to close at RM10.10 yesterday. That means Bursa's recent sharp decline (of 40% from its peak) was in line with those of its regional peers.


Chart 3: Bursa's weekly chart as at March 6, 2008 (courtesy of Quickcharts)

The important question is whether Bursa's fall would eventually match those of SGX & HKEX. Only time will tell.