Outlook

	Local Market

	Malaysian Market 09-Jan-2001 17:02:27 KLCI failed to fulfill hopes of a year-end rally during the final fortnight for year 2000. The market merely enjoyed a short hike on the 18th December but was followed by a continuous tumble, which closed at a year-low of 679.64 by the end of the year. Trading volume was low due to the long holidays. The official launching of T+3 system on 20th December temporarily reduced trading volume for that day. The lack of positive sentiments continues to be a reason for the slide. The KLCI, unable to sustain the psychological 700 level, has caused most investors to avoid the market. The KLCI also had to struggle hard as negative vibes from the local as well as global regions become the dominant factor for the market's direction. Road Builder, for instance, succumbed to foreign selling when it was rumoured that it may not participate in the water project in Negeri Sembilan. Meanwhile, the semiconductor assemblers, MPI and Unisem, was badly effected by Nasdaq's plunge, positioning them at about 70%-80% off their year highs. Moreover, the bought over of Tajudin Ramli's stake in MAS by the government raised the topic of corporate governance issue which escalated further the bearish sentiments. With the festive mood setting in, investors seem to be taking a break from the market and hope for a more positive market for the year ahead.

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