KUALA LUMPUR, Jan 28 (Bernama) -- Bursa Malaysia snapped its five-day winning streak to close lower on Wednesday, as investors took profit following a cumulative gain of 4.25 per cent over the past five sessions, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 14.76 points or 0.83 per cent to 1,756.49 from Tuesday’s close of 1,771.25. The market bellwether opened 1.46 points lower at 1,769.79, marking the day’s high, and hit a low of 1,750.05 during the mid-afternoon session. Market breadth was negative with losers trouncing gainers 876 to 384, while 525 counters were unchanged, 964 untraded and 94 suspended. Turnover improved to 3.65 billion units worth RM4.41 billion from Tuesday's 3.58 billion units worth RM4.46 billion.
The global economy crisis has led the central banks all over the world to reduce the interest rates to close to 0% which is the all time low. With interest rates that low, borrowing has been cheap which can indirectly spurs the economy - low interest rates, company can borrow to for company expansion, people can borrow more to buy properties and people are forced to spend their money or savings. In fact, the global stock market has been rallying non-stop since March 2009 because of low interest rates and this lead to the presumption that global economy has recovered, although the jobless in the United States stays at 10%. Some has the feeling that the stock market and commodities rally was led by low interest rate because people starting to treat stock market as just another legalized casino. Nevertheless, I do believe we are on the way of recovery but this road is expected to have a lot of potholes. With recovery on the way, central banks will be slowly starting to raise the interest...