Thursday, September 25, 2008

Black September - Malaysia and the UAE

Are we in another episode of Black September? Worse than 9/11?

Bush warns 'entire economy is in danger'

"Without immediate action by Congress, American could slip into a financial panic and a distressing scenario would unfold," Bush said in a 12-minute prime-time address delivered from the White House East Room that he hoped would help rescue his tough-sell bailout package. "Ultimately, our country could experience a long and painful recession."
Said Bush: "We must not let this happen."

According to Malaysiakini, Foreign direct investment (FDI) outflow in Malaysia has exceeded inflow for the first time ever, underscoring fears that investors might be losing confidence in the government and its economic policies.

According to the United Nations Conference on Trade and Development World Investment Report 2008 released today, FDI outflow in Malaysia surpassed inflow by RM8.99 billion in 2007.

Malaysian outflow had surged by 81.9 percent to RM38 billion in 2007 from RM20.89 billion the year before. Inflow, on the other hand, increased by only 39 percent to RM 29.07 billion versus RM20.91 billion in 2006.
Within the 10-member Asean trading bloc, Malaysia was glaring as the only country to record a negative flow.
This took place despite the fact that the Southeast Asian region recorded its highest ever FDI inflow - which leapt 81.1 percent to RM209.2 billion in 2007 from RM115.5 billion in 2006.

While here in the UAE, the news of the day is Perfect storm hits investors!

A staggering Dh110 billion has been wiped off UAE stock markets since the beginning of September as investors reel from a perfect storm of global uncertainty, yo-yoing commodity prices and a series of corruption scandals plaguing prominent real estate and financial corporations.

The Dubai Financial Market General Index dropped 3.97 per cent to close at 3,890.16. In the last three days alone, Dubai has lost 12.07 per cent. The Abu Dhabi Security Exchange Index yesterday fell 2.29 per cent to end at 3,811.08.

In KL, Star reports that Quiet start for Bursa, Asian bourses fall!

At 9.30am, the KL Composite Index was up just 0.37 point to 1,028.77.
Turnover was 59.68 million shares valued at RM52.3mil. There were 69 gainers,
110 losers and 86 counters unchanged.
Among Asian markets, Japan’s Nikkei 225 fell 207.58 points or 1.71% to 11,907.45, Shanghai’s A Share Index opened 0.19% lower at 2,323.78 and Singapore’s Straits Times Index declined 1.03% to 2,452.03.

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