The Malaysian economy felt the heat of the global economic slowdown as it only posted a 4.7 percent gross domestic product (GDP) growth in the third quarter of 2008, the slowest pace since the mid-2005, said the dealer.
The fourth quarter's growth has been projected at between 3.5-4.5 percent.
"Although the central bank has kept its overall growth forecast for 2008 to between 5-5.5 percent, it may take a while before investor sentiments improve as even the corporate sector is cutting its profit forecast," he said.
Among others, plantation giant Sime Darby, slashed its earnings forecast by nearly half due to falling palm oil prices and the global economic slowdown.
Sime Darby president and group chief executive Datuk Seri Ahmad Zubir Murshid said the group expects that it would take between six months and a year to reduce the high palm oil stock, now at over two million tonnes.
Genting saw its pre-tax profit for the nine months ended Sept 30, 2008 decline to RM1.843 billion from RM2.484 billion previously. However, revenue jumped to RM6.692 billion from RM6.234 billion.
"As corporate actions are not looking so positive, there might be continued selling pressure on the local market," said an analyst.
The market's support level is seen at 859 points, he said.
For the week ended, the market traded mostly lower, except for Thursday, when it rose 13.61 points led by heavyweight counters. However, it was not able to sustain the momentum and ended the week lower.
The KLCI closed the week at 866.14, down 0.74 of a point from last Friday's 866.88.
The Industrial Index lost 15.11 points to 2,088.17 from 2,103.28 but the Finance Index added 15.51 points to 6,616.45 from 6,600.94 and the Plantation Index increased 186.31 points to 3,913.48 from 3,727.17.
The FBMEmas declined 12.35 points to 5,676.57 from 5,688.92 and the FBM30 slipped 33.46 points to 5,593.27 from 5,626.73.
The FBM2BRD fell 300.71 points to 4,006.77 from 4,307.48 and the FBM-MDQ shed 100.45 points to 3,283.27 from 3,383.72.
Overall volume for the week declined to 2.59 billion shares worth RM3.563 billion compared with 2.881 billion shares worth RM3.386 billion the previous week.
The Main Board volume also fell to 2.087 billion shares worth RM3.422 billion as against 2.502 billion shares worth RM3.323 billion previously.
Volume on the Second Board went up to 301.508 million shares worth RM113.925 million versus 171.190 million shares worth RM40.738 million.
The Mesdaq Market volume dropped to 100.106 million shares worth RM15.94 million from 124.761 million units worth RM19.936 million.
Call warrants, however increased to 101.282 million shares worth RM1.437 billion from 72.012 million shares worth RM2.526 million.
Direct business deals jumped to 341.627 million shares worth RM517.078 million from 203.654 million units worth RM184.152 million previously.