U.S. Markets Trend Will Bring Bursa Malaysia Down
U.S. stocks fell for a third session on Friday after weakness in technology shares that helped send the Nasdaq down to its biggest weekly point loss since the Sept. 11, 2001, attacks. For the week, the Nasdaq lost 6.5 percent or 182 points. The Dow dropped 4.1 percent and the S&P 500 declined 3.7 percent. On Friday, Dow Jones industrial average was down 223.55 points, or 1.69 percent, at 13,042.74. The Standard & Poor’s 500 Index was down 21.07 points, or 1.43 percent, at 1,453.70. The Nasdaq Composite Index was down 68.06 points, or 2.52 percent, at 2,627.94. Qualcomm was among the bellwether tech stocks that led the Nasdaq lower with a decline of 4.2 percent to $38.10, while software maker Microsoft Corp fell 2.9 percent to $33.73.
Bursa Malaysia and other Asian markets will follow the U.S. market trend. Meanwhile, Kuala Lumpur Composite Index (KLCI) is expected to jump at the end of this month due to the listing of biggest plantation company, Synergy Drive Bhd. OSK Investment Bank is estimated the index could boost up to 30 points.
Google Stock in Bursa Malaysia
OSK Investment Bank Berhad will list the first Call Warrant on US based stock, the Google Inc. The issue price is at RM0.11. Google announced last month that its revenue rose more than 50% to over US$4bil in its third quarter ended Sept 30, with a net profit of more than US$1bil for the period. The share price rose up to more than USD723 from the Call Warrant reference price at USD677.07.
The Star reported that the Call Warrants are expected to surge in price when they make their debut on this November 14th.
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.
BNM warns of ‘excessive’ ringgit speculation
KUALA LUMPUR: Bank Negara Malaysia is monitoring the ringgit, which hit a fresh 10-year high on Monday, and its governor Tan Sri Dr Zeti Akhtar Aziz is cautioning that the central bank will act on “excessive” speculation.
She said yesterday Bank Negara wanted to ensure an “orderly market condition” for the ringgit, which rose to 3.3385 against the US dollar on Monday. It was up 4.88% since the start of the year and up 12.14% since it was depegged on July 21, 2005.
“We want to see stability in our currency versus other currencies of our major trading partners particularly in the Asean region. So far, that has happened.
“If there are excessive speculative flows, then there will be intervention,” she said after opening the Malaysia Financial Exhibition 2007 here….
Monetary and Financial Developments September 2007
Bank Negara Highlights
- Net financing of the private sector increased at a faster pace in September, reflecting an increase in loans outstanding to the business sector.
- The average lending rate of commercial banks was marginally lower in September.
- The ringgit appreciated against the US dollar.
- Headline inflation moderated to 1.8%.
- The net NPL ratio of banking institutions improved further to 3.5%.