US/MALAYSIA MARKET MORNING QUOTES

MALAYSIA MARKET

Gloomy day ahead for KL stocks?

MALAYSIAN shares are expected to open lower today after the Standard & Poor’s 500 index plunged to its lowest level in 11 years on worsening fears about the US economic slowdown.
The Standard & Poor’s 500 Index lost 54.14 points, or 6.71 per cent, to 752.44 after data showed the number of US workers on jobless rolls surged to the highest in a quarter century.
“Basically, we are looking at a gloomy, gloomy day for Malaysian stocks. There will be further downside pressure because the S&P 500 crashed to its lowest level since 1997,” said Stephen Soo, technical analyst at TA Securities.
“The US government’s possible bailout plan for the auto sector will definitely affect market in the region and we will not be able to escape that regional selldown,” he said.

The Dow Jones industrial average plunged 444.99 points, or 5.56 per cent, to 7,552.29. The Nasdaq Composite Index slid 70.30 points, or 5.07 per cent, to 1,316.12. - Reuters

US MARKET

Stocks Tumble for Second Day; Treasurys Surge

Stocks plunged for a second straight day Thursday, falling to a range not seen in more than five years as financial and energy stocks tumbled while demand for the safety of government debt spiked to historic levels.

Stocks saw the most intense selling late in the session after hopes faded that lawmakers would quickly put together an aid package for U.S. automakers and as the Standard & Poor's 500 index broke through lows established in 2002. That breach of a key technical threshold sent a shudder through the market and touched off further selling.

"Unrelenting gloom has taken over the markets," said Dana Johnson, chief economist at Comerica Inc. "The economic news, the concerns about some major financial institutions, the concerns about the auto sector, earnings reports, everything is coming out in a way that is just provoking a massive selling in the stock market."

"Back in October we were looking at a potential catastrophic meltdown of the credit markets, and that didn't happen," he said. "But that doesn't mean tremendous damage hasn't been done to the economy."

Those worries about the economy sent the Dow down 444.99, or 5.56 percent, to 7,552.29. It was the biggest percentage drop for the blue chips since Oct. 22 and the Dow's lowest close since March 12, 2003.