MALAYSIAN stocks are set to drop today as weak sentiment from the sharply lower Wall Street crosses over to Asia with some profit-taking in big cap stocks such as the country’s biggest lender Maybank and Telekom Malaysia.
“If the market falls below 1,000 points or even 980 points, we are in for a sharp correction. We need that correction in order to perform better in the second half,” said a dealer with an investment bank. “Maybank and Telekom Malaysia earnings were rather lacklustre last night, so expect some heavy profit-taking.”
US stocks slid in a broad sell-off yesterday as investors, concerned about the US budget deficit, exited dollar-denominated assets across the board.
The Dow Jones industrial average closed down 129.91 points, or 1.54 per cent, at 8,292.13. The Standard & Poor’s 500 Index was down 15.14 points, or 1.68 per cent, at 888.33. The Nasdaq Composite Index was down 32.59 points, or 1.89 per cent, at 1,695.25. - Reuters