KUALA LUMPUR: Most investors are jittery on the outlook for equities in the near to medium term. There are big question marks over the health of the US and global economies as near-record high oil prices continue to fuel inflation worldwide. Uncertainties in the local political situation are acting as an additional deterrent to investors putting fresh money in the stock market right now.
Sentiment was hurt by more losses on Wall Street last Friday. The Dow Jones Industrial Average slumped below the psychological 12,000 level as investors worried over rising oil prices and more mortgage-related write downs for the financial sector.
Market volume on the Bursa Malaysia fell to one of its lowest levels recorded in the year to date. Just about 338 million shares changed hands Monday. There is no indication to suggest that the prevailing trading conditions will improve anytime soon.
Asian stock markets traded on a weaker footing at the start of the new week. Most relevant bellwether indices closed in the red. Chinese shares, in particular, fell sharply on fears of more credit tightening measures to rein in inflation.
The KL Composite Index opened lower and stayed in the red throughout the trading day. The benchmark index gave back all of last Friday's gains to close 11 points lower at 1,195.4 points. Gamuda was the most actively traded counter Monday. The stock closed 6 sen lower at RM2.13. Other actives include AirAsia, Bumiputra Commerce and IOI Corp.
Market breadth was also negative for the entire day. At the close, losing stocks outnumbered gaining ones by a ratio of about two to one. Some of the notable losers include DiGi, UMW Holdings, MAS, MISC, Sime Darby, RHB Capital and toll operator, PLUS. At the other end, Putrajaya Perdana was the day's top gainer. Its shares closed 4% higher at RM4.58.
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