Disappointing 2008-KLCI drop 38.9%.

The KLCI rose to its historic high of 1,516.22 on Jan 11 but the euphoria proved unsustainable in the later part of last year, as investors’ sentiment was battered mainly by the US financial crisis, which saw the exit of foreign funds.

As at 31th December 2008,it ended the year with 4.88 points lower at 876.75, down from 1,435.68 on Jan 2. For the year, it had fallen 558.93 points.

This was the worst annual performance since the 1997/98 Asian financial crisis when the KLCI fell 51.7%. In 1997, the KLCI tumbled from 1,231.45 on Jan 3 to end the year at 594.44.

The KLCI hit a year-low of 829.41 on Oct 29 on heavy selling pressure, especially from foreign funds, which were repatriating their funds.

Hope that the Year of the Bull, which starts on Jan 26, will live up to its name.