MALAYSIAN shares are expected to open lower today following steep losses on Wall Street. US stocks slid more than 3 per cent yesterday after weak results from Bank of America reignited concerns over the state of the banking industry and the economy.
Oil slid over 8 per cent to under US$46 a barrel yesterday, depressed by a rising US dollar and growing caution about the pace of any economic recovery and its impact on oil demand. “KLCI will probably see a pullback today looking at Dow Jones’ losses and the steep fall in crude oil prices.
We may see some buying support at the 959 points level and if that level breaks, the next support level will be 938 points.
"We think there will be more profit-taking on small-cap stocks than big-cap stocks because prices of small-cap stocks have gone up a lot due to retail interest,” said a trader from a top Malaysian brokerage. Elsewhere, Goldman Sachs said in a research note published today Tuesday that it is turning more positive on palm oil stocks due to supply squeeze.
“We still expect some short-term pullback in crude palm oil prices, but now believe the magnitude may not be substantial; we are more inclined to buy on dips given the longer-term positive trend we see,” said Goldman Sachs. - Reuters