KUALA LUMPUR: Key Asian markets are expected to open on a firmer note on Friday, Oct 1 as concerns eased about a double-dip recession in the US but concerns about the European fiscal debt crisis could keep the buying in check.
Reuters reported Wall Street wrapped up its best quarter in a year on Thursday, Sept 30 with the S&P and Nasdaq logging in the biggest monthly gains since April 2009, as data showed the economy isn't in such bad shape.
The Dow Jones industrial average slipped 47.23 points, or 0.44 percent, to 10,788.05. The Standard & Poor's 500 Index declined 3.53 points, or 0.31 percent, to 1,141.20. The Nasdaq Composite Index fell 7.94 points, or 0.33 percent, to 2,368.62.
However, the latest data out of the US showed the economy was not likely to succumb to a double-dip recession.
According to BIMB Securities Research head Rosnani Rasul said the Labor Department reported a drop in initial jobless claim. It dropped by 16,000 to a seasonally adjusted 435k but not good enough to indicate that employers are hiring.
'It needs to drop around 400,000 to 425,000 before the market can be convinced that the biggest economy in the world is on the right track of recovery.
'The investors will now turn to the tomorrow's critical economic releases (personal spending, consumer sentiment, ISM Manufacturing Index) before deciding on their next trading strategy. In the meantime, expect the local market to trade in tight range pattern again. The encouraging performance of Ringgit which reached its 13-year high level may reinforce investors' sentiment,' said Rosnani.
Stocks to watch on Friday include PBA Bhd, EQUATOR LIFE SCIENCE BHD [], oil and gas (O&G) counters and SILK Holdings Bhd.
Penang Water Supply Corporation Sdn Bhd announced on Thursday that trade consumers will have to pay 27% more for water and this comes into effect on Friday. This increase could see a rerating for the laggard PBA which has been in the doldrums since its listing.
The Edge FinancialDaily reports two directors and a major shareholder of Ace Market-listed Equator Life Science Bhd sold large blocks of shares and ceased to be substantial shareholders of the company.
At the same time, its managing director also sold a bulk of his interests in the bioTECHNOLOGY [] company.
O&G-related companies could see some interest after light crude oil rose to a seven-week high near US$80 a barrel on Thursday after lower U.S. jobless claims stoked optimism for economic recovery in the world's top oil consumer and as military and police protests thrust OPEC-member Ecuador into political unrest.
U.S. oil futures settled up $2.11 at $79.97. Oil posted an 11.2% gain in September, the largest monthly jump since May 2009. Oil rose 5.7% during the third quarter, which ends Thursday.
SILK's earnings jumped 146% to RM11.55 million for the fourth quarter ended July 31, 2010 from RM4.68 million a year ago, boosted by a one-off RM11.9 million negative goodwill and its highway division.
Revenue rose 32.4% to RM59.61 million from RM45 million.'' SILK said the higher revenue in 4Q10 was due to recognition of contribution from the highway division compared to a year ago when there was only the oil and gas division.
Reuters reported Wall Street wrapped up its best quarter in a year on Thursday, Sept 30 with the S&P and Nasdaq logging in the biggest monthly gains since April 2009, as data showed the economy isn't in such bad shape.
The Dow Jones industrial average slipped 47.23 points, or 0.44 percent, to 10,788.05. The Standard & Poor's 500 Index declined 3.53 points, or 0.31 percent, to 1,141.20. The Nasdaq Composite Index fell 7.94 points, or 0.33 percent, to 2,368.62.
However, the latest data out of the US showed the economy was not likely to succumb to a double-dip recession.
According to BIMB Securities Research head Rosnani Rasul said the Labor Department reported a drop in initial jobless claim. It dropped by 16,000 to a seasonally adjusted 435k but not good enough to indicate that employers are hiring.
'It needs to drop around 400,000 to 425,000 before the market can be convinced that the biggest economy in the world is on the right track of recovery.
'The investors will now turn to the tomorrow's critical economic releases (personal spending, consumer sentiment, ISM Manufacturing Index) before deciding on their next trading strategy. In the meantime, expect the local market to trade in tight range pattern again. The encouraging performance of Ringgit which reached its 13-year high level may reinforce investors' sentiment,' said Rosnani.
Stocks to watch on Friday include PBA Bhd, EQUATOR LIFE SCIENCE BHD [], oil and gas (O&G) counters and SILK Holdings Bhd.
Penang Water Supply Corporation Sdn Bhd announced on Thursday that trade consumers will have to pay 27% more for water and this comes into effect on Friday. This increase could see a rerating for the laggard PBA which has been in the doldrums since its listing.
The Edge FinancialDaily reports two directors and a major shareholder of Ace Market-listed Equator Life Science Bhd sold large blocks of shares and ceased to be substantial shareholders of the company.
At the same time, its managing director also sold a bulk of his interests in the bioTECHNOLOGY [] company.
O&G-related companies could see some interest after light crude oil rose to a seven-week high near US$80 a barrel on Thursday after lower U.S. jobless claims stoked optimism for economic recovery in the world's top oil consumer and as military and police protests thrust OPEC-member Ecuador into political unrest.
U.S. oil futures settled up $2.11 at $79.97. Oil posted an 11.2% gain in September, the largest monthly jump since May 2009. Oil rose 5.7% during the third quarter, which ends Thursday.
SILK's earnings jumped 146% to RM11.55 million for the fourth quarter ended July 31, 2010 from RM4.68 million a year ago, boosted by a one-off RM11.9 million negative goodwill and its highway division.
Revenue rose 32.4% to RM59.61 million from RM45 million.'' SILK said the higher revenue in 4Q10 was due to recognition of contribution from the highway division compared to a year ago when there was only the oil and gas division.
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