Malaysian shares set to open lower
MALAYSIAN shares are expected to open slightly lower today as investors turn their attention back to the global economy after
“Now that the dust has settled, and whether the mini-budget has met the people’s expectations or otherwise, it’s time to return to the basic problem, and that is the weak economic situation,” said an institutional dealer at a local investment bank.
“We’ll see more pain and hardship in the months to come. For
Stocks Extend Gains into Second Day
Stocks ended with modest gains Wednesday but the Dow Jones industrial average still recorded its first two-day climb since Feb. 5-6. The buying was far more subdued than on Tuesday when Citigroup Inc.'s upbeat assessment of its business sent investors rushing into the market, in part to cover bets that stocks would continue to slide. The Dow on Wednesday ended up nearly 4 points after jumping 379 the day before.
But analysts again cautioned that the market remains deeply troubled by the problems in the banking industry and the impact of the recession on companies in all industries. And, they noted that there was little conviction behind Tuesday's buying.
For there to be a sustained advance, there has to be "many, many days of positive tone and the market interpreting data and news as more positive than negative," said Roman Dubczak, head of equity capital markets at CIBC World Markets.
A bear market is defined as a drop of 20 percent from a market peak; Wall Street does have rallies during bear markets, but they tend to disappear quickly as investors remain pessimistic. Both the Dow and S&P are at levels less than half the record highs they reached in October 2007.
"The easiest thing to watch is the financials," Stanfield said. "We're not going to have a solid recovery beginning until we make a solid bottom on financials."
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