Bursa Malaysia Market ends mid-year 2008 on jittery ground

Investor confidence remains on shaky ground on June 30. Investors are troubled by persistent uncertainties, both domestically and in the global financial market. There is no evidence to suggest that prevailing trading conditions are about to change anytime soon.

The KL Composite Index opened on a weaker footing and remained in negative territory throughout the day. The benchmark index eventually closed four points lower at 1,186.6 points. This brings its total losses for the first half of the year to nearly 18%.

Few investors are motivated to buy under current climate. Wall Street's sharp losses last week may portend more difficult times ahead. The upcoming corporate reporting season for 2Q08 could see more earnings downgrades. The financial sector, in particular, could witness more write-downs related to the credit crisis. Investors will also be looking closely at US jobs figures slated for release later in the week.

Crude oil futures traded on the New York Mercantile Exchange hit fresh all-time high of US$142.99 (RM471.87) per barrel -– adding further to investor concerns about rising inflationary pressures. Oil is currently trading nearly 48% higher from the start of 2008.

Unsurprisingly, key Asian stock markets too ended the mid-year on a nervous note. Most relevant bellwether indices in regional markets have lost between 12-20% for the year to date while the Shanghai Composite Index has fallen by some 48%.

Market breadth in the local bourse was in the red all through the day. At the close, the number of losing counters outpaced gaining ones by a ratio of roughly seven to three. Volume was low. Less than 371 million shares changed hands, one of the lowest recorded this year.

Some of the days' bigger losers were TM International, Tanjong plc, Public Bank, Bumiputra-Commerce and Bursa Malaysia. At the other end, shares for BAT, KL Kepong, Kulim, Lafarge Malayan Cement and IOI Corp finished higher on Monday.