Bursa Malaysia Hurts by US Market Performance
Last night, Wall Street plunged pulling the Dow Jones industrial average down more than 360 points as investors found themselves confronted by two uncomfortable prospects: an end to interest rate cuts and a slowing economy.
Mindful of a warning from the Federal Reserve Wednesday about inflation, the market nervously watched the price of oil, which passed $96 a barrel overnight for the first time before dipping on profit-taking. The Fed, which cut interest rates a quarter point, said in a statement that inflation remained a concern, and oil’s ascent to another record raised the possibility not only that the Fed might stop cutting rates, but that it might even consider raising them if inflation accelerates.
Bursa Malaysia and other regional stock markets will follow the trend today as fear of more bad news coming out due to the rate cuts and increased in oil price. Yesterday, the Kuala Lumpur Composite Index (KLCI) closed at 1,409.16 points, dropped 4.49 points. Today, the index will stay in the bearish mode when more profit taking activities from the investors.
