The bears are back, causing Wall Street to tumble again last night

The bears are back, causing Wall Street to tumble again last night. Key U.S. equity indices slumped between 3.7% and 5.2% at the closing bell on mounting concerns that the global economic recovery would stall while European banks could face capital constraints.

The negative vibes will surely be felt across the region today. Back home, we expect the benchmark FBM KLCI to slip below its immediate support level of 1,495, possibly falling towards the next support mark of 1,465. In terms of corporate development, we may see interest from investors in: (a) Dialog Group, which has proposed a rights issue with warrants (on the basis of 2 rights shares and 1 warrant for every 10 shares held); and (b) Petra Energy, following a media
report saying that its parent Perdana Petroleum is looking to sell its 29.6% stake in the company.