US/MALAYSIA MARKET MORNING QUOTES

MALAYSIA MARKET

Malaysian shares seen flat

MALAYSIAN shares are expected to open flat today, finding some support on seasonal factors but any gains are likely to be limited on concerns over the deepening global downturn.
“I would say buyers (could be) still on upside due to the traditional year-end (window) dressing but then again that kind of dressing may not happen across the board,” said a local dealer.
Wall Street slipped on Monday after Kuwait pulled out of a joint venture with Dow Chemical due to the deepening global recession, even as oil rose on the back of the Gaza crisis.
“(Wall) Street people are on holiday, mainly, so it looks like at this stage globally there is no big news, just minor news. Other than that I do not think our KLCI (Kuala Lumpur Composite Index) will react significantly.”

The Kuala Lumpur benchmark stock index fell 0.26 per cent to close at 867.35 points on Friday.
Malaysia’s financial markets were closed yesterday for a Muslim religious holiday. - Reuters

US MARKET

Stocks Pull Back Amid Middle East Tensions

Wall Street retreated Monday as continuing violence in the Middle East and a resulting jump in oil prices reminded investors that the market could face problems beyond the recession. The collapse of a Dow Chemical Co. joint venture, meanwhile, intensified Wall Street's economic worries.

Todd Leone, managing director of equity trading at Cowen & Co., said trading volume is extremely light and that is contributing to the market's swings. Low volume tends to skew price movements.

"What's going on in Israel didn't read well over the weekend," Leone said. "Beyond that, it is an incredibly quiet session. It's really not taking much to move the markets."

The Dow Jones industrial average fell 31.62, or 0.37 percent, to 8,483.93.

Dave Rovelli, managing director of trading at brokerage Canaccord Adams, said investors will be waiting to make big moves until after the Jan. 20 inauguration of President-elect Barack Obama. Wall Street is eager for details on his proposed stimulus package for the economy.

However, if companies release earnings warnings early in January, or if the first wave of fourth-quarter reports are disappointing, the market could see a return of heavy selling. Investors will be focusing on any word from companies deemed critical to the economy, especially from the beleaguered financial and retail sectors.