Malaysian stocks seen easing

 

MALAYSIAN stocks are expected to open lower today after Wall Street plunged to its lowest level in five-and-a-half years on fears of a protracted downturn in the economy.

“It’s not going to be a very nice day. There hasn’t been any new catalyst to spur buying and perhaps due to the school holidays as well, the market will be very quiet,” a dealer at a local bank-backed brokerage said.

In the US, auto stocks were hit after executives predicted far-reaching implications for the sector without a government lifeline.

The Dow Jones Industrial Average lost 5.07 per cent, or 427.47 points, to 7,997.28 at the closing.

The Federal Reserve’s move to slash economic growth forecasts through 2009 unleashed a wave of selling late in the day.

“With so much uncertainties around and so many companies laying off staff, the outlook is certainly not very encouraging,” said the dealer. - Reuters