US/MALAYSIA MARKET MORNING QUOTES

Malaysian shares set to open lower

MALAYSIAN shares are expected to open lower today following the slide in US stocks, with banks leading the decline.
"Maybank's rights issue is going to send the stock tumbling and that's going to send the market lower," said a local dealer.
Malaysia's top lender announced yesterday the issue price of its rights shares has been fixed at RM2.74 each.
"I do expect a narrow band, last few days we've seen a narrow band on the market with nearly 50 per cent of it untraded. I expect that trend to continue today," the dealer said.

Stocks Tumble as Investors Worry About Banks, GM

Investors retreated from Wall Street again, driven by worries about the nation's big banks and General Motors Corp.

Stocks slid to their lowest levels in more than 12 years Thursday, more than wiping out the previous session's rally. Investors wrestled with relentless uncertainty about the financial system and fresh concerns about GM. Short selling — bets that stocks will fall — ahead of the government's Friday employment report exacerbated the losses, slashing 281 points from the Dow Jones industrials and sending all the major indexes down more than 4 percent.

Stocks fell in every industry, with beleaguered banks posting some of the steepest drops. Citigroup Inc., still shaky despite receiving billions in government aid, at times sank below $1 and finished down 9.7 percent at $1.02. GM, meanwhile, ended with a loss of 15 percent at $1.86 as it warned of possible bankruptcy

The Dow fell 281.40, or 4.1 percent, to 6,594.44, its lowest close since April 1997. Broader indicators also tumbled. The S&P 500 index dropped 30.32, or 4.3 percent, to 682.55, its lowest close since September 1996.

Robert Pavlik, chief market strategist at Banyan Partners LLC in New York, agreed that short selling is driving the market and that the drubbing is keeping away investors who would be attracted by prices of beaten down stocks.

"With all the uncertainty that has been created, long-term investors are not stepping in," he said. "What incentive do long-term investors have stepping in? Traders rule the roost."

Stocks fell initially after China deflated investors' hope that it would take new steps to stimulate its economy, but the discouraging economic data sent stocks even lower. The hope that China would unveil more government spending to help its economy was a major factor behind the market's bounce Wednesday, which sent the Dow Jones industrials up nearly 150 points after a five-day slide.