Don't Be Fooled....

The Heng Send index fell by 13.7% on Friday and Monday. Its only up 5% or so at mid-day today (Wednesday) but percentages for large moves like this can be misleading. Assume that a index or stock trades at 100 and it falls by 13.7%. Its price is now 86.3. Assume that the price then rises by 13.7% and you will see that the stock or index has not recovered all of its losses:

86.3*1.137= 98.123

So, as you can see, despite falling 13.7% and subsequently rising by the same percentage, the position has still lost 2% of its value!