The Failure of Dubai World

Okay, we are experiencing a Black Friday today, with the index falling of 2-5% in a single day over the world stock markets. US and Malaysia are lucky because they are enjoying holiday today without any trading.

The bad index falling was due to after a proposal from the magnificent, Dubai to delay debt payments set off a slide in stocks and higher-yielding assets worldwide. The news was not only impact the stock slide, but also currency slide. The serious slide over the months. From reliable source, not only Dubai has financial crisis of owing USD60 billions.

The worst company affected would be the bank which was the underwriter of loans to Dubai World. The unlucky one would be Rotal Bank of Scotland Group(RBS), while Hong Kong Shanghai Bank Holdings (HSBC) has the most at risk in the United Arab Emirates. HSBC Holdings share was closed with -7.6% in Hong Kong stock exchange today. What a tragedy.

Well, we will handle our KLSE fate to US stock market on today. We definitely cannot avoid index and banks share price falling sharply on coming Monday, but we keep our finger cross and see is there any positive news from US stock market. If we look from another perspective, perhaps it's time to hunt and pick up lower price leader stock on coming Tuesday?
Happy trading, folks.

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