Sentiment was broadly negative after Wall Street’s overnight losses. The Dow Jones Industrial Average lost 184 points while the broader-based Standard & Poor's 500 index slipped below the 900-point mark.The sell off was triggered by worse than expected US retail sales numbers. The US Commerce Department reported a 0.4% drop in April retail sales while the fall in March was revised to 1.3%. The weaker than expected figures threw a wrench into expectations that a revival in consumer spending will lead the US out of its current downturn. A recovery in consumer consumption, which accounts for 70% of the economy, in 1Q09 had earlier buoyed hopes for a quick recovery for the world's largest economy.
Market sentiment was also dampened by another report indicating a troubling rise in US home foreclosures. Again, recent improvement in home sales figures had bolstered hopes that the housing market is nearing a bottom. The mixed bag economic reading gives a confusing picture of the health of the US economy.
Elsewhere, global consumer-centric companies such as Toyota Motor and Sony Corp also painted a grim outlook for any meaningful recovery this year. Both companies expect even bigger losses in the current financial year after falling into the red last year. Sellers overwhelmed buyers on the local bourse. Market breadth was in the red throughout the day.At the close, there were almost four losing stocks for every gaining one. The benchmark KL Composite Index lost 11 points to finish at 1,012 points. Some of the big losers include PPB, Tanjong and Genting.
On a more positive note, interest in lower liner stocks was still fairly robust. Some 2.69 billion shares changed hands Thursday. Scomi, Iris, KNM, Tejari Technologies and SAAG were among the most heavily traded counters for the day.HAPPY TRADING & GOODLUCK2ALL
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