Daily Commentaries 28th September 2009

Last Friday, the FBM KLCI shed 0.67 pts to 1,217.4 pts as most investors were still away for the Hari Raya holidays and investors were cautious after consecutive losses on Wall Street. Market news was thin, with among others, Multi Sports to acquire land and factories in China, AZRB close to securing a RM50m dam-related project, Malaysia Airlines’ CEO dismissed news reports that the company is considering replacing its order for six Airbus A380s with smaller wide-body aircraft as unfounded, Malaysian Bulk Carriers Bhd’s subsidiary buys a vessel for US$23.8m, eBworx buys out SpringWorx and HELP International’s 3Q profit jumps 80%. US stocks fell 42.25 pts to 9,665.19 after disappointing housing and durable goods reports raised concerns that the market’s record six-month rally has outpaced the prospects of an economic recovery. While trading interest is likely to pick up this week as investors come back from the long vacation, the market’s performance will mainly depend on the regional market as we do not expect any major local news.