Malaysian shares expected to open flat
MALAYSIAN shares are expected to open flat today, recovering from a sharp drop in the previous session following gains on most US markets after Citigroup backed changes to home foreclosure legislation.
That news offset a disappointing sales for December posted by retailer Wal-Mart Inc, which saw the Dow Jones close lower while the Nasdaq and the S&P 500 gained.
“I think (Malaysian) shares will trade pretty much sideways. Yesterday the KLCI (Kuala Lumpur Composite Index) was down pretty badly, so I expect some rebound today,” said a local dealer.
Stocks End Mostly Higher After Mortgage Deal
A deal to help head off more mortgage foreclosures pulled Wall Street out of a slump Thursday, giving stocks a mostly higher close. Democratic lawmakers reached an agreement with Citigroup Inc. on a plan to let bankruptcy judges alter loans in an effort to prevent homes from going into foreclosure. Other lenders are expected to follow suit.
The Dow ended down 27.24, or 0.31 percent, at 8,742.46 after being down as much as 119.
The market's fears about the economy have been focused on the job market. The Labor Department said the number of new claims for jobless benefits unexpectedly dipped last week, but the number of people continuing to file claims rose to a 26-year high. And economists believe the government will report on Friday another massive jobs loss for December.
As the economy worsens, most on Wall Street are hoping a stimulus package proposed by President-elect Barack Obama will win congressional approval. Obama said in a speech Thursday the recession could linger if Congress doesn't funnel unprecedented dollars into the economy. "In short, a bad situation could become dramatically worse," he said.
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