1000 Billion!? A trillion!? Yes, it is 1000 Billion the figures that appear daily in my new computer system to reflect the financial health level of our top 30 component stocks in Bursa Malaysia. It is the market capitalization of the total 30 largest stocks that is reflected in the FTSE Bursa Malaysia Kuala Lumpur Composite Index, or FBM KLCI index in short, at about 1800 level.
Believe it or not, FBM KLCI index may have impact to our daily life! For example, they (the 30 stocks) have issued shares and borrowed money from all investors (included all of us who purchased the shares) through the shares listing in Bursa Malaysia. When listed in Bursa Malaysia, they have their values (that is, shares prices). With the shares prices and the issued shares, we indirectly get the 1000 Billion value which is reflected in FBM KLCI index!
If FBM KLCI index at 1800 level, we may have 1050 Billion in value for all the 30 stocks, and if FBM KLCI index down to 1750, we have 1000 Billion in value. FBM KLCI index fluctuate everyday and so it the 1000 Billion value!
Just imagine: if the 1000 value is going down below 500? FBM KLCI index "crash boom bang"! The money we "lend" to the 30 stocks will lose half the value and it will affect our daily life too! Again, you may think you do not lend the money to them and will not be affected, you are wrong because your government agencies do invest in the 30 stocks using your "money"!!! (your "money" did go up from 500 to 1000 before that!!!)