Most of the Asian stock markets tumbled on Friday due to the fears of global credit crunch and the US market plunge overnight(i.e. on thursday). In Malaysia, KLCI was unable to be exempted from it too by dropping -26.12(i.e. -1.89%) to 1355.38.
To make matter worse, Wall Street extended its steep decline Friday, propelling the Dow Jones industrials down more than 500 points over two days after investors gave in to mounting concerns that borrowing costs would climb for both companies and homeowners. On Friday, the Dow fell 208.10, or 1.54 percent, to 13,265.47, with nearly 140 points of that loss coming in the final half-hour of trading. For the week, the index fell more than 585 points, or 4.23 percent. The week’s point decline was the worst in five years, while the percentage decline was the largest since late March 2003.
As a consequence, we expect that most of the Asian stocks will continue struggling and tumbling when the markets start their transactions on next week. Hence, investors should now be getting more cautious on their transactions that would be made next week. Although it would be now a good chance for those risks-taking investors to buy low and waiting for rebounding. However, if the Wall Street extended its steep decline on next week, the things will be going to be worse due to the market panic.
