MALAYSIAN shares could open slightly higher after US stocks rose overnight but caution ahead of new Prime Minister Datuk Seri Najib Razak’s announcement of his Cabinet line-up will cap gains. Najib is scheduled to announce the names of his ministers at 3.00 pm Malaysian time.
“The market could open in positive territory but whether it will climb any higher would depend on who Najib picks to be in his team,” said a fund manager at a local insurance firm. “The composition of his team is crucial to send out the message that he means business when he talks about reforms. And after what happened on Tuesday’s by-elections, I think it is important to show that resolve,” he said.
Heavier than expected losses in key by-elections have increased pressure on Najib as he readies to name his Cabinet, raising the risk of a new bout of infighting in the main ruling party. Malaysia’s index yesterday fell 1.3 per cent to its lowest since April 3.
The Dow Jones industrial average added 47.55 points, or 0.61 per cent, to 7,837.11. The Standard & Poor’s 500 Index gained 9.61 points, or 1.18 per cent, to 825.16. The Nasdaq Composite Index shot up 29.05 points, or 1.86 per cent, to 1,590.66. - Reuters