While regional markets break from a streak of bad days and rose, Bursa traded further into negative territory dropping below the purported 1050 support level. Sentiments was weak and volume was medium.Bursa's recent clampdown on stocks deemed to have been manipulated continue to have negative impact as 2nd liners and liquid stocks with recent sharp spike. These traded lower on heavy selling.
May be this is the type of day to go bargain hunting for good stocks. The contrarian players, I am sure, are out nibbling here and there.
Apart from prices running ahead of fundamentals that caused the recent sell-down, bearish news that the global recession will be deeper than previously fore-casted also played its role.
The World Bank said the world economy will contract 2.9 percent in 2009 versus an earlier forecast of a 1.7 percent decline and growth of 2 percent in 2010 versus a 2.3 percent prediction previously.
Meanwhile, in Taiwan the jobless rate rose to a record in May after new graduates failed to find jobs as companies tightened hiring because of a slump in global demand. The seasonally adjusted rate increased to 5.84 percent from 5.77 percent in
April.
On the other hand, Japanese business confidence improved for the first time in three quarters and demand for services rose. Sentiment among large manufacturers increased to minus 13.2 points compared with a record low of minus 66 three months ago.
So while the World Bank seems to project better figures for Malaysia, it has given the potential importers of Malaysian goods the low down.
Would that mean they will have also to re-adjust Malaysian expected growth rates down again?
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