ZLBT Chats

Tuesday, November 16, 2010

ZLBT's Pre-Opening Market Views

Malaysian Market Likely To Hold At 1,500 Level
The Malaysian stock market on Monday ended the two-day losing streak in which it had shed nearly 30 points or 2 percent. The Kuala Lumpur Composite Index finished just above the 1,500-point plateau, and now analysts are expecting to see the market hold steady in that neighborhood at the opening of trade on Tuesday.

The global forecast for the Asian markets is rudderless, thanks to conflicting economic data and no real other impetus. Properties and gold stocks are expected to decline, while financials could see support. The European markets were slightly higher and the U.S. bourses ended mixed - and the Asian markets are expected to fall right in between.

The KLCI finished barely higher on Monday as gains from the plantation stocks and industrials were wiped out by selling from the financials.

For the day, the index added 1.75 points or 0.12 percent to finish at 1,501.56 after trading between 1,497.04 and 1,503.56. Volume was 1.09 billion shares worth 1.26 billion ringgit.Among the actives, Maybank, Sime Darby and KNM Group finished lower and Jotech, Genting and CIMB ended higher.

WALL STREET : Bulls Take A Late-Day Hit; Bonds Selloff
U.S. stocks lost the bulk of their gains Monday as Treasury prices fell sharply, denting cheer that prevailed most of the day after a jump in retail sales and a large acquisition by Caterpillar Inc.

“Treasurys are getting splattered and 10-year yields are at three-month highs; if rates are going up, it’s not a good thing for equities. This is the Fed’s worst nightmare,” said a senior analyst.

Finishing about 80 points away from its session high, the Dow Jones Industrial Average (DJIA 11,202, +9.54, +0.09%) ended up 9.39 points at 11,201.97.
However, while the Dow clawed its way back above the 11,200 level, the blue-chip barometer failed to reclaim its 20-day moving average, marking the Dow's second straight finish south of this trendline. The blue-chip benchmark closed Friday at its lowest level since Nov. 2.
The S&P 500 Index (SPX 1,198, -1.46, -0.12%) lost 1.46 points to 1,197.75, with the financial sector performing best among its 10 industry groups and natural-resource companies faring the worst. Nevertheless, the broad-market index maintained its perch atop its own 20-day trendline.

The Nasdaq Composite Index (COMP 2,514, -4.39, -0.17%) declined 4.39 points to 2,513.82 marking its first finish south of its 20-day moving average since Sept. 1.

For every eight stocks that fell, about seven rose on the New York Stock Exchange, where nearly 880 million shares traded.

The Commerce Department reported that retail sales climbed 1.2% last month on increased appetite for automobiles. Consumer spending rose 1.2 percent last month thanks to higher demand for automobiles, the Commerce Department reported. The gain was nearly double what analysts were expecting. Shares of Ford Motor Co. rose 4.3 percent following the announcement.

Caterpillar Inc., the world's largest construction machinery maker, said it would buy mining equipment maker Bucyrus International Inc. for $7.6 billion in cash, a 32 percent premium over the company's closing price on Friday. Shares of Caterpillar rose 1 percent.

Crude futures ended fractionally lower today, as fears over Europe's sovereign debt fueled the U.S. dollar to a six-week high. Furthermore, talk of the restart of ConocoPhillips' (COP) massive New Jersey refinery triggered a late-stage sell-off of gasoline futures, which also weighed on black gold. Against this backdrop, December-dated crude oil futures shed $0.02, or 0.02%, at $84.86 per barrel.


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