Investors stay sidelined from Bursa Malaysia

KUALA LUMPUR: Trading volume on the Bursa Malaysia fell to a new record low for the year on Monday. Investor confidence remains jittery on the back of a confluence of negative factors. Asian stock markets too closed mostly in the red. It does not appear that the prevailing sentiment will improve in the near term.

The no-confidence motion filed by the opposition against the Prime Minister, which was rejected by the house speaker, underscores the ongoing political sabre-rattling in the country. Such uncertainties have unsettled investors and many are staying firmly on the sidelines waiting for the dust to settle. However, there is no evidence of an imminent resolution, as yet.

News on the external front also gave investors little to cheer about. The Dow Jones Industrial Average recorded another triple-digit loss last Friday, falling briefly below the 11,000 mark for the first time in two years. Investor confidence was further buffeted by concerns that the credit crisis will continue to deepen despite the various emergency measures taken by the US government.

Meanwhile, crude oil prices resumed their unrelenting upward climb after a very brief retreat. Crude futures on the New York Mercantile Exchange touched fresh all-time high of US$147.27 (RM481.57) per barrel during trading at the end of last week and are currently hovering around US$145 per barrel.

The KL Composite Index opened weaker and stayed in the red throughout the day. Bargain hunting activities were limited despite recent price falls with the market's outlook remaining clouded. Market volume totaled less than 279 million shares, the lowest level recorded in 2008.

The benchmark index lost 6.4 points to finish at 1,144. Some of the top losers include Public Bank, Bursa Malaysia and Sime Darby. Market breadth was also in negative territory all day. At the close, losing counters outnumbered gaining ones by a ratio of roughly two to one.