Local Market Leads:
♦ Undermined by a series of bearish external developments, the local market suffered another steep fall to its lowest level since mid-Feb on Tuesday.
♦ It was reported that North Korea’s army was put on alert for a possible war last week after South Korea blamed it for sinking its warship in Mar. Separately, the US announced to conduct joint anti-submarine exercises with South Korea yesterday. This stoked fears that a war is looming in the Korean Peninsula.
♦ Separately, in Spain, four commercial banks have proposed to merge, igniting fears that the state of Spain’s banking industry could be worse than expected.
♦ In response, Asian markets tanked more than 2% on steep selloff in KOSPI and the US futures market. KOSPI plummeted as much as 4.50%, before recouping its lost ground to 2.75%, while the US DJIA futures slid more than 200 pts in the afternoon session.
♦ Locally, the FBM KLCI has continued its losing streak and closed the day 23.56 pts or 1.85% lower to 1,250.13.
Turnover expanded to 941m shares from 662m shares a day earlier. Decliners overwhelmed advancers by a ratio of 10 to 1.
Market Technical Reading : More Corrections Expected Going Forward...-26/05/2010
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