ZLBT Morning Views >>> Bursa Malaysia Pre-Opening

Little Changes Expected For Malaysian Shares

Ahead of Monday's market holiday for Labor Day, the Malaysian stock market had written a finish to the four-day winning streak in which it had risen more than a dozen points or 0.8 percent. The Kuala Lumpur Composite Index finished just below the 1,535-point plateau, and now analysts are expecting the market to ease slightly when it kicks off trade on Tuesday.

The global forecast for the Asian markets is mixed with a downside bias on falling commodity prices - although many of the regional bourses were closed on Monday and may get a positive burst at the open. Gold and oil stocks in particular figure to fall under pressure. The European markets ended slightly higher and the U.S. bourses were barely lower - and the Asian markets figure to split the difference.

The KLCI finished flat on Friday as losses from the financial shares were offset by gains from the plantation stocks.

For the day, the index eased 0.35 points or 0.02 percent to finish at 1,534.95 after trading between 1,529.63 and 1,540.55.

Among the actives, Kuala Lumpur Kepong finished sharply higher, while YTL and CIMB Holdings ended with mild losses.

The lead from Wall Street is slightly negative as stocks moved mostly lower over the course of the trading day on Monday after failing to sustain an early upward move. The downturn came as traders shrugged off several positive catalysts amid uncertainty about the ability of the markets to sustain their recent upward move.

Americans Jubilant Over Osama' s Demise But Not Wall Street

The major averages all ended the day in the red, although the Dow closed only just below the unchanged line. The Dow edged down 3.18 points or less than a tenth of a percent to 12,807.36, the NASDAQ fell 9.46 points or 0.3 percent to 2,864.08 and the S&P 500 slipped 2.39 points or 0.2 percent to 1,361.22.

The early strength in the markets was partly due to positive sentiment generated by news of the death of terrorist leader Osama bin Laden, who was killed by American forces in Pakistan. However, analysts have noted that bin Laden's role in leading al Qaeda has been diminished in recent years and have warned that terrorists may stage attacks to retaliate for his death. President Barack Obama acknowledged that Americans must remain vigilan.

Profit taking also contributed to the downturn by the markets, with traders cashing in on the recent strength in the markets. Resource stocks saw significant weakness after helping to lead the way higher in recent months amid rising commodities prices.

HAPPY TRADING