Wednesday, July 29, 2009

Shanghai fell 5%

Europe stock futures turned negative after Shanghai Stock Exchange composite index dropped more than 5% on concerns that Chinese banks to begin restrictions on lending. Asian markets are not spared either with KLCI drops 16 or 1.37% at 3.30pm before recovered slightly to close at 1,164.48 (-7.90 or 0.67%)

KLCI has gained 127 points or 12% from its recent low of 1,052 recorded on 8/7/09. The market may take this opportunity for a breather to retrace to 1130.

Bank Negara is likely to leave over night policy rate unchanged at 2% as inflation is under controlled while export market for electronic is still weak.

No comments:

Post a Comment