Actual Headline - "Haze Not Choking The Stock Market" - (Malaysia)

[hatrack]

WHILE Malaysians rue the quality of air for the past few days, fund managers and analysts were still confident over the quality of the country’s shares. But investors are set to be more concerned if the choking haze persists over the next few weeks, a prolonged period that would hurt business and economic activity. The extremely poor air quality has already prompted the Government to declare emergency for two areas near Kuala Lumpur yesterday.

The stock market’s main indicator, the Kuala Lumpur Composite Index, has fallen 0.8 per cent this week, mostly due to concerns over surging oil prices and profit-taking after it hit a five-year high last week. Certain stocks could be affected, they said, like plantation firms, airlines, airport and port operators, as well as those involved in tourism.

But analysts said the impact could be temporary, and it is still too early to gauge how earnings would be affected as the haze has only been around for couple of days. “(It) depends very much on how long the haze lasts. If by next week we have clean air again, I doubt there will be much impact, but should the situation drag on for several weeks, then certain companies could be affected,” KLCS Asset Management Sdn Bhd assistant general manager Yong Yit Hin said.

EDIT

Head of research at AmSecurities Sdn Bhd Gan Kim Khoon dismissed concerns that the haze would weigh on the share market. “First of all we don’t know how long this will last. Unless this is going to last very long, then it will affect tourist arrivals, airlines, hotels and everything. But the API (Air Pollutant Index) has only stayed at this level for days. I don’t understand why people are reacting (so much),” Gan said.

EDIT

http://www.btimes.com.my/Current_News/BT/Friday/Corporate/20050812022902/Article/