US/MALAYSIA MARKET MORNING QUOTES

Malaysian shares seen rangebound

MALAYSIAN shares are seen rangebound today after US stocks fell overnight amid concerns that the Federal Reserve’s latest efforts to stem the US recession were too costly and untested.
Dealers said a lack of domestic corporate news inflow, as well as a weakening Malaysian economy, were also likely to keep the index in a narrow band.
“There is no trigger in the market and the turnover is also pretty thin,” said a local bank dealer.
“The index would move in a narrow band for now and will track the other markets in the region.”

Stock Rally Fades as Investors Assess Fed Moves

Banking and other financial shares pulled the market lower Thursday as investors worried the the Fed's plan would hurt the dollar and revive inflation. But energy stocks rose, getting a lift from soaring crude oil prices.

The retreat came a day after stocks surged in reaction to the Fed's aggressive plans to pump more than $1 trillion into the financial system by buying Treasury bonds and stepping up its purchases of other debt securities. The aim is to lower borrowing rates and stimulate lending.

But investors began to digest the possible downsides of the Fed's program, such as a potentially weaker dollar that can lead to higher prices for commodities such as oil and grains. And, eventually, staples like gas and food.

The Dow Jones industrial average fell 85.78, or 1.2 percent, to 7,400.80.

The broader Standard & Poor's 500 index fell 10.31, or 1.3 percent, to 784.04, while Nasdaq composite index fell 7.74, or 0.5 percent, to 1,483.48.

Wall Street's move lower ended, at least for now, a buying spree that has driven stocks sharply higher since last week. Even with Thursday's slide, the Dow is still up 13 percent and the S&P 500 index is up 15.9 percent over the past eight days. The gains are impressive considering that only a few weeks ago the market was trading at levels not seen in more than a decade.

Energy stocks bucked the market's slide as oil surged above $50 a barrel. Oil jumped as the dollar sank against other major currencies in response to the Fed announcement. When the greenback weakens it essentially makes crude cheaper in other currencies.