Malaysian shares outlook - Flat ahead of US interest rate decision |
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Tue, 18 Sep 2007 01:37
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KUALA LUMPUR (Thomson Financial) - Malaysian shares are expected to open flat Tuesday, repeating yesterday's sideways trading pattern as investors await the outcome of the Federal Reserve's monetary policy meeting tonight.'Market momentum seems strong and I see the Dow Jones Industrial Average Index's 39-point decline overnight as a not-too-bad performance given the current uncertainty about interest rate direction,' said TA Securities dealer Sean Tan.'But I think investors will remain sidelined in the absence of a strong lead in the market,' he said.In the event of a rate cut in the US, the impact on the stock market might be neutral as expectations have already been factored into share prices, he said.'However, if the Fed does not cut rate as expected, be prepared for a sharp sell-down,' Tan said.On Monday, the Kuala Lumpur Composite Index (KLCI) closed down 11.16 points or 0.9 percent at 1,278.34.The FTSE Bursa Malaysia 30-large cap index dropped 43.47 points or 0.5 percent to 8,140.10 points and the second board index was down 1.59 points or 1.5 percent at 103.11.(1 US dollar = 3.48 ringgit)aipeng.soo@thomson.comas/jgCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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