Thursday, January 15, 2009

World Stock Markets Tumble in Morning Session.

Latest Updated for the KL Composite Index until Mid-Afternoon. Based on the chart the KL Composite Index touches the critical points. That should confirm that staying at the sidelines should be the right way to approach.

Critical moments like this shouldn't be treat as an opportunity to accumulate shares rather a moment to monitor the next course of world financial market. Rotational plays might emerge but it is not worth it if anything goes wrong with global financial crisis.

Many analysts have mention that most of the banks around the world still need more capital injection in order to stay alive and some of them might even report record losses. A loss that can wipe out the entire bank capital.

With the global recession hits around most of the countries it will hurt bank earnings because of bad debt. Yesterday sentiment was bad in Wall Street's after a U.S. government report showed retail sales dropped 2.7 percent last month, more than double the decline economists had expected and providing alarming evidence that American consumers are slashing their spending amid the global slump.

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