Today the Kuala Lumpur Composite Index (KLCI) closed up 18.44 points or 1.4 percent at 1,378.27. Following hopes that an interest rate cut in the US at the Fed’s policy meeting next week. Trading volume was 1.53 billion shares, valued at 1.88 billion ringgit.

Yesterday, the Malaysian Institute of Economic Research (Mier) is revising downward its forecast for the country’s gross domestic productivity (GDP) growth next year to 5.4% from 5.8%, against the Government’s targeted 6%. It is, however, maintaining GDP growth for the year at 5.7%. They expected the ringgit strengthening to RM3.35 to the US dollar at year-end and perhaps to RM3 by the end of next year.

The Mier also reported that inflation had risen to 1.9% in August from 1.4% in June, mainly due to the revision in civil service salary and rising food and commodity prices. Inflation for the year is expected to average 2.2%, compared with 3.6% last year.

Today almost all regional stock markets including Bursa Malaysia affected by the big fall in Wall Street (2.64% last Friday).  At the same time oil price also jump to the highest point at more than US90 per barrel. The US sub prime mortgage issue also is the major concerned among the investors. Too many bad news. The short term of the stock market movement remain bearish.