Wall Street pulled back from its long running rally on profit-taking activities and ahead of the long-anticipated stress test on the health of the US banking sector. The two-month rally on Wall Street has pushed the S&P 500 index by some 36%. While there is optimism and increasing signs of an economic recovery ahead, some intermittent profit-taking activities are also to be expected.The stress test results, released after the US markets closed, showed that the banking sector was secure, but credit losses over the next two years could total US$600 billion, and 10 banks were ordered to raise US$75 billion in private capital over the next seven months.
According to the report, Bank of America will need to raise US$34 billion, Citigroup US$5 billion and Morgan Stanley US$1.8 billion.
Meanwhile, US economic data continue to better than expected, suggesting a moderation in the economy’s decline. New unemployment claims fell to 601,000 last week from a revised 635,000 the prior week, and against expectations of 635,000. This was a three-month low. All eyes will be on the April jobs reports, due on May , which will provide a better picture of the labour market.
According to the report, Bank of America will need to raise US$34 billion, Citigroup US$5 billion and Morgan Stanley US$1.8 billion.Meanwhile, US economic data continue to better than expected, suggesting a moderation in the economy’s decline. New unemployment claims fell to 601,000 last week from a revised 635,000 the prior week, and against expectations of 635,000. This was a three-month low. All eyes will be on the April jobs reports, due on May , which will provide a better picture of the labour market.
Following most of its regional counterparts, the local stock market opened lower, but later regained its footing to end in positive territory.
The KLCI fell as much as 9.5 points in the morning, but returned to the black just before the lunch break, and ended 3.3 points higher at 1,026.8.
Market breadth was positive with advancing stocks beating declining ones by a 3-to-1 margin. Trading volume remained high with 3.25 billion shares changing hands, although slightly lower than Thursday’s year high of 3.3 billion shares.
The KLCI fell as much as 9.5 points in the morning, but returned to the black just before the lunch break, and ended 3.3 points higher at 1,026.8.
Market breadth was positive with advancing stocks beating declining ones by a 3-to-1 margin. Trading volume remained high with 3.25 billion shares changing hands, although slightly lower than Thursday’s year high of 3.3 billion shares.
Actively traded stocks include Compugates, Iris, PDZ, SAAG, Ramunia, KNM and Patimas. Major gainers include BAT, Magna Prima, UEM Land and Bursa Malaysia. Losers include KL Kepong, DiGi, MISC-foreign and BCHB. 
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