22-May-2008 : It will be a test of resilience for KLCI again today

It will be a test of resilience for KLCI again today after less than initially expected yesterday. If so, then the benchmark index will likely crack under pressure to drop to around the 1,255 and 1,265 range ahead.

Fanning the negative mood is the overnight plunge on Wall Street, with its major stock indices declining between 1.6% and 1.8% on weak economic outlook and heightened inflationary pressures after the seemingly unstoppable crude oil prices jumped by another 2.2% to hit US$ 135.27 per barrel last night.

In terms of news flows, Malaysia’s international reserves level as at 15 May – whose fortnightly change has came in consistently positive since the start of the year to chalk up a cumulative increase of US$22.8b in four months despite our stock market decline – will be released this evening. Also due to be announced later today is Telekom Malaysia’s latest financial report card.