(RTTNews) - The Malaysia stock market headed south again on Friday, one day after it had ended the two-day slide in which it had fallen more than 25 points or 1.6 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,495-point plateau although it may bounce higher again on Monday.
The global forecast for the Asian markets is mixed to slightly higher, with hopes for stimulus tempered by climbing coronavirus cases. The European markets were up and the U.S. bourses were mixed and the Asian markets figure to split the difference.
The KLCI finished slightly lower on Friday as losses from the telecoms, plantations and glove makers were mitigated by support from the financial sector.
For the day, the index dipped 4.16 points or 0.28 percent to finish at 1,494.64 after trading between 1,489.83 and 1,502.67. Volume was 6.925 billion shares worth 4.103 billion ringgit. There were 894 decliners and 311 gainers.
Among the actives, MISC surged 5.30 percent, while Petronas Dagangan plummeted 3.20 percent, Hartalega Holdings plunged 2.70 percent, Malaysia Airports Holdings soared 2.38 percent, Top Glove tanked 2.25 percent, AMMB Holdings tumbled 1.99 percent, Genting Malaysia spiked 1.99 percent, Public Bank rallied 1.80 percent, IHH Healthcare skidded 1.73 percent, Petronas Chemicals accelerated 1.71 percent, IOI Corporation retreated 1.59 percent, Sime Darby declined 1.21 percent, Axiata advanced 1.09 percent, Dialog Group surrendered 1.06 percent, Tenaga Nasional sank 0.89 percent, Sime Darby Plantations dropped 0.81 percent, Press Metal shed 0.71 percent, RHB Capital added 0.70 percent, CIMB Group collected 0.66 percent, PPB Group lost 0.52 percent, Maybank gained 0.28 percent, Digi.com fell 0.25 percent, Maxis slid 0.20 percent and Kuala Lumpur Kepong was unchanged.
The lead from Wall Street offers little guidance as stocks showed a lack of direction on Friday, bouncing back and forth across the unchanged line before ending mixed.
The Dow eased 28.09 points or 0.10 percent to finish at 28,335.57, while the NASDAQ gained 42.28 points or 0.37 percent to end at 11,548.28 and the S&P 500 rose 11.90 points or 0.34 percent to close at 3,465.39. For the week, the Dow shed 0.9 percent, the NASDAQ lost 1.1 percent and the S&P fell 0.5 percent.
The choppy trading on Friday came amid a lack of concrete news out of Washington regarding a new coronavirus stimulus bill. Traders have generally remained optimistic that a bill will eventually be passed, although they may be tired of waiting.
A steep drop by shares of Intel (INTC) weighed on the Dow, with the semiconductor giant plunging 10.6 percent after reporting Q3 earnings that beat estimates but on weaker than expected revenues for its Data Center Group. Credit card giant American Express (AXP) also tumbled after reporting Q3 earnings that missed expectations.
Crude oil prices drifted lower on Friday, weighed down by worries about energy demand due to the surge in coronavirus cases and lockdown measures in several countries. West Texas Intermediate Crude oil futures for December ended down by $0.79 or 1.9 percent at $39.85 a barrel.
Bill Pugliano/Stringer/Getty Images
Warren Buffett's Apple bet might not impress over the next decade, new research suggests.
Dimensional Fund Advisors tracked the largest 10 US stocks at the start of each decade since 1930, and found that on average, they underperformed the market by 1.1% over the next five years and 1.5% over 10 years.
Buffett's Berkshire Hathaway counts Apple, the most valuable US stock with a $2 trillion market capitalization, as the biggest holding in its equity portfolio.
The investor's company has more than tripled its money on Apple in less than five years, but might not gain significantly more for a long time.
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Warren Buffett's Apple shares could disappoint in the coming years, according to new research showing the most valuable stocks typically underperform after reaching the top of the market.
Dimensional Fund Advisors analyzed the largest 10 US stocks at the start of each decade since 1930. The asset manager found that on average, they outperformed the market by just 0.7% on an annualized basis over the next three years. Moreover, they underperformed by 1.1% over five years and 1.5% over 10 years.
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"Our research shows that top stocks have historically had much lower returns after joining the top 10, compared to the period of their ascent," Wes Crill, Dimensional's vice president, said in an email to Business Insider.
"From 1927 to 2019, the average annualized return for these stocks over the three years prior to joining the Top 10 was nearly 25% higher than the market," he continued. "In the three years after, the edge was less than 1%."
The most valuable US stocks today include Apple, Microsoft, and other "big tech" companies. Crill highlighted the fact that Apple and the other "FAANG" stocks - Facebook, Amazon, Netflix, and Google-owner Alphabet - returned over 30% per year on an annualized basis from September 2010 through August 2020.
Dimensional's findings suggest they will perform far worse over the next decade - a worrying trend for investors like Buffett, whose Berkshire Hathaway conglomerate counts Apple as the biggest holding in its stock portfolio.
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Berkshire owned about 981 million Apple shares at the last count, making it one of the tech titan's biggest shareholders. Its position was worth about $115 billion as of Tuesday's close, representing more than 40% of the total value of its portfolio.
Buffett's company spent about $35 billion between 2016 and 2018 to build its Apple stake, meaning it has more than tripled its money on paper. If the tech stock does lag the market over the next decade, as Dimensional's study suggests, its future gains could pale in comparison.
(RTTNews) - The Thai stock market has moved lower in three straight sessions, sliding more than 40 points or 3.3 percent along the way. The Stock Exchange of Thailand now sits just beneath the 1,235-point plateau and it's likely to move lower again Monday due to the ongoing pro-democracy protests.
The global forecast for Asian markets is murky, clouded by uncertainty regarding stimulus in the United States. The European markets were up and the U.S. bourses were mixed and the Asian markets figure to split the difference.
The SET finished modestly lower on Friday following losses from the energy producers and a mixed picture from the financial shares.
For the day, the index shed 9.28 points or 0.75 percent to finish at 1,233.68 after trading between 1,226.95 and 1,247.89. Volume was 18.804 billion shares worth 44.575 billion baht. There were 1,088 decliners and 405 gainers, with 438 stocks finishing unchanged.
Among the actives, Advanced Info skidded 1.14 percent, while Thailand Airport added 0.45 percent, Asset World plummeted 6.02 percent, Bangkok Dusit Medical dropped 1.08 percent, Bangkok Expressway gained 0.59 percent, CP All Public surrendered 1.27 percent, Charoen Pokphand Foods advanced 0.96 percent, Kasikornbank rose 0.34 percent, Krung Thai Bank collected 0.57 percent, PTT shed 0.76 percent, PTT Exploration and Production fell 0.31 percent, PTT Global Chemical retreated 1.20 percent, Siam Commercial Bank declined 1.55 percent, Siam Concrete tanked 2.05 percent and TMB Bank, Bangkok Bank and BTS Group were unchanged.
The lead from Wall Street is uninspired after stocks opened higher on Friday but faded as the day progressed, eventually ending mixed.
The Dow added 112.11 points or 0.39 percent to finish at 28,606.31, while the NASDAQ sank 42.34 points or 0.36 percent to end at 11,671.56 and the S&P 500 rose 0.47 points or 0.01 percent to close at 3,483.81. For the week, the Dow rose 0.1 percent, the NASDAQ gained 0.8 percent and the S&P was up 0.2 percent.
The late-day pullback on Wall Street reflected lingering uncertainty about a new stimulus bill, with the slump also being attributed to the expiration of equity options.
The rally in early trading came as better than expected retail sales data tempered concerns the economic recovery may be stalling. Also, the University of Michigan reported a bigger than expected improvement in consumer sentiment in October.
Buying interest was also generated after Pfizer (PFE) Chairman and CEO Albert Bourla said the drug giant will apply for emergency use of the Covid-19 vaccine it is developing with BioNTech (BNTX) soon after the safety milestone is achieved in the third week of November.
Crude oil prices ended marginally lower on Friday as worries about the demand outlook amid the continued surge in coronavirus cases weighed on the commodity. West Texas Intermediate Crude oil futures for November ended down $0.08 or 0.2 percent at $40.88 a barrel.