US/MALAYSIA MARKET MORNING QUOTES

MALAYSIA MARKET

Malaysian shares seen edging up

MALAYSIAN shares are likely to be supported today, following a rise on Wall Street overnight, though gains could be limited as investors remain cautious amid global economic recession fears.
Major US stock indices all gained over 2 per cent, having earlier been in the red, though investor sentiment remained cautious after fresh data pointed to a weak economy.
“I think the market will remain rangebound, with the index moving in a narrow band but with a positive bias,” said a dealer at a local bank.
Dealers said fears of a global economic slowdown were keeping investors cautious.

“Investors are also in consolidating mood ahead of the year-end,” said another dealer.
Dealers said plantation stocks, one of the most heavily weighted on the benchmark index, were likely to see pressure medium-term as crude palm oil prices continue to slide.
Palm oil prices have already shed nearly two-thirds from a record high of RM4,486 a tonne in March. - Reuters

US MARKET

Stocks Finish Higher Despite Dismal Economic Data

Wall Street withstood another stream of bad economic readings Wednesday, closing sharply higher after investors shuttled between pessimism about the recession and hopes that the nation might start seeing relief soon. The major indexes saw big swings throughout the day, but all closed up more than 2 percent, giving the market its second straight advance.

Analysts largely believe that much of the bad news is already priced into the market, and they again said stocks remain in a bottoming process after the huge declines of the past two months.

"The market is beginning to look forward, and a lot of the selling pressure appears to be abating," said Peter Cardillo, chief market economist at New York-based brokerage house Avalon Partners. "Perhaps some of the hedge funds are becoming less aggressive in selling, and investors are starting to look at the future."

The Dow rose 172.60, or 2.05 percent, to 8,591.69. The blue chip index has gained more than 442 points in the past two session, wiping out more than half of Monday's slide.

While the market's recent advances are no doubt encouraging, analysts largely expect the turbulence to continue well into the future as Wall Street works to emerge from a bear market.

"I think these pops are not fundamentally driven," said Jeff Buetow, senior portfolio manager at Portfolio Management Consultants. "I think it's wishful thinking. I don't see any sustainable up move in the equity markets."