KLCI: Correction before the next supercycle

THE FTSE Bursa Malaysia Kuala Lumpur Composite Index (KLCI) has been the better performing index compared to its neighbour Singapore's FTSE Straits Times Index judging by the strong rally from 2008 to 2019.

KLCI has proven to be resilient by weathering through major financial crises - particularly the 1997 Asian financial crisis and the 2008 Great Recession. While it was badly hurt during the 1997 crisis, the index rebounded in 1998 and broke the 1,000 point mark by early 2000. It subsequently entered into a correction phase and rebounded at 550.00 thereafter.

The 2008 financial crisis was not much of a concern to the index, as it registered a fall of a mere 720 points compared to 1,027 points in 1997.