ZLBT Morning Views : Bursa Malaysia + Wall Street

Malaysian Market May Extend Losing Streak
The Malaysian stock market has finished lower now in consecutive trading days, although it has fallen just over a point in that span. The Kuala Lumpur Composite Index finished just above the 1,580-point plateau, and now analysts are forecasting continued if mild easing at the opening of trade on Wednesday.

The global forecast for the Asian markets is mixed with a hint of weakness following persistent debt concerns in Europe. Commodities figure to provide support - gold and crude oil, in particular - while airlines and financials are expected to slide under pressure. The European and U.S. markets finished mostly lower but little changed, and the Asian markets are tipped to follow that lead.

The KLCI finished flat again on Tuesday, nudged into the red by softness from the financial shares.

For the day, the index eased 0.50 points or 0.03 percent to finish at 1,581.85 after trading between 1,580.38 and 1,584.83. Volume was 728.6 million shares worth 1.46 billion ringgit. There were 386 decliners and 319 gainers, with 330 stocks finishing unchanged.

Among the actives, CIMB finished lower, while Maybank was unchanged and United Plantations and CI Holdings ended higher.

The lead from Wall Street provides little clarity as stocks showed a lack of direction throughout the trading day on Tuesday, with traders reluctant to make any significant moves following last week's rally. Light trading activity after the long holiday weekend also contributed to the lackluster performance.

In economic news, Malaysia's exports were up 5.4 percent year-on-year in May to 55.09 billion ringgit, the Ministry of Trade and Industry said on Tuesday, well below the 11 percent expansion forecast by economists. From April, exports fell by 4.7 percent. The monthly fall was mainly due to lower exports of liquefied natural gas and refined petroleum products.

At the same time, imports rose 5.6 percent annually. This was also weaker than the consensus forecast of 8.6 percent. On a monthly comparison, imports dipped 0.4 percent. A trade surplus of 8.49 billion ringgit was recorded in May, making it the 163rd consecutive month of trade surplus since November 1997. 

WALL STREET : DJIA Settle Shy of Breakeven

Light post-holiday volume kept U.S. stocks close to breakeven today, with the major market indexes sticking near the flat line through the final bell. Early in the session, a few buyers trickled in on the heels of a solid report on factory orders, though the resulting optimism was thin at best. Furthermore, a round of corporate deal-making barely fanned the bullish flames, with traders shrugging off acquisition-related news surrounding Southern Union (SUG), Immucor (BLUD), Western Union (WU), and OM Group (OMG), to name a few. Meanwhile, Moody's afternoon downgrade of Portugal's debt rating tipped the scales in the bears' favor, with the Dow Jones Industrial Average (DJIA) and S&P 500 Index (SPX) snapping their five-session winning streaks. However, not all was lost; the tech-rich Nasdaq Composite (COMP) ended in the black for the sixth straight session, while both crude oil and gold futures settled at multi-week highs.

The Dow Jones Industrial Average (DJIA – 12,569.87) finished a wishy-washy session with a loss of 12.9 points, or 0.1%. All but 10 of the Dow's 30 components ended lower, led by Hewlett-Packard's (HPQ) 1.6% drop. Meanwhile, Chevron Corp. (CVX) paced the bullish minority, following black gold higher for a gain of 1%.

The S&P 500 Index (SPX – 1,337.88) followed suit, surrendering 1.8 points, or 0.1%, by the closing bell. Like the Dow, the SPX hovered around breakeven for most of the session, though its upward momentum stalled in the 1,340 neighborhood. Finally, the Nasdaq Composite (COMP – 2,825.77) fared the best of its peers, adding 9.7 points, or 0.4%, to end at its highest price since May 31.

HAPPY TRADING