US/MALAYSIA MARKET MORNING QUOTES

MALAYSIA MARKET

KL shares seen flat; Ramunia in focus

MALAYSIAN shares are expected to trade sideways today following Wall Street’s mixed performance.
“I think the market will trade range-bound. With everything turning risky, sentiment is cautious and investors are not keen in taking up positions,” said a dealer from a leading local brokerage.
US stocks posted mild gains in trading yesterday after the Federal Reserve said it will buy billions of dollars worth of debt and mortgage-backed securities to increase the flow of credit for consumer loans.
The Dow Jones industrial average gained 0.43 per cent to 8,479.4 while the Standard & Poor’s 500 Index finished up 0.66 per cent to 857.39. But the Nasdaq Composite Index dropped 0.50 per cent to 1,464.73.

Malaysia’s benchmark share index ended 0.56 per cent higher yesterday at 860.18 points.
Among the stocks to watch, oil services provider Ramunia is expected to come under heavy selling pressure after state-owned shipping company MISC said it would not proceed with a reverse takeover bid for Ramunia.
“It’s going to be bad for Ramunia, and that in turn will hit retail sentiment. As for MISC, I don’t expect much volatility because the cancellation will not have a big impact on MISC,” said the dealer.
MISC, the world’s largest carrier of liquefied natural gas, said yesterday it scrapped the US$882 million takeover bid following unsatisfactory due diligence.
Trading in the two stocks were suspended yesterday ahead of MISC’s announcement. - Reuters

US MARKET

Wall Street Extends Dow's Rally to Third Day

Wall Street showed some signs of stability Tuesday as investors, heartened by government plans to aid consumer lending companies, selectively bought more stocks following a huge two-day rally. Gains in blue chips gave the Dow Jones industrials and the Standard & Poor's 500 index their first triple-session advance in more than two months.

Three straight days of gains for the Dow and S&P indicates an underlying strength in the market, particularly in the face of a weak technology sector, said Richard E. Cripps, chief market strategist for Stifel Nicolaus.

But it's "probably too premature" to say that the market has already hit its lowest level of the downturn, he said. "This bottoming phase is going to be a process

"We're getting more clarity about the federal assistance across the board, and I think that's being well received," said Arthur Hogan, chief market analyst at Jefferies & Co. "Most of the overhangs in the market are getting answers."

The Dow rose 36.08, or 0.43 percent, to 8,479.47. The index was up 164 points earlier in the session but also fell 161. The Dow last put a three-day advance together on Aug. 26-28.