Market wrap: Week ended Jan16′09

WEEKLY HIGHLIGHTS
• The KLCI fell below 900 points on Thursday to close at 896.5 points
for a loss of 2.5% over the week.
• Regional markets fell on concerns over the impact of slower global
economy on Asia’s exports.
• The market is anticipated to move in tandem with overseas markets
as investors monitor the outlook for the U.S. credit market, global
economic growth and interest rates.

STOCKMARKET COMMENTARY
In tandem with the weaker performance of regional markets, the KLCI eased below 900 points and closed at 896.5 points for a loss of 2.5% over the week.

Over the week, the daily trading volume fell to 0.6 bil units from 0.7 bil units while average trading value fell to RM0.8 bil from RM0.9 bil over the same period.

On Wall Street, the Dow touched a 7-week low of 8,200.1 points on Wednesday on concerns over the outlook for the broader economy following a 9.8% decline in retail sales for December. The Dow closed
at 8,281 points for a loss of 3.7% while the Nasdaq registered a loss of 2.7% to 1,529 points over the fortnight.

Consumer spending in the U.S. worsened as retail sales declined the most in 15- years by 9.8% in December after contracting by 8.2% in November on lower sales of automobiles and food products. However, the University of Michigan consumer confidence index rose to 61.9 in January 2009 from 60.1 in December 2008 on lower gasoline prices.

The U.S. inflation rate fell to a 53-year low of 0.1% in December from 1.1% in November as transportation costs fell by 13.4% from a decline of 9% over the same period due to lower gasoline prices.