CLOSING MARKET REPORT
Bank fears, AIG fallout fuel Wall Street sell-off

* Spike in inter-bank lending rate fuels worry
* US extends US$85b loan to bail out AIG
* Morgan Stanley, Goldman Sachs tumble
* Dow off 4.1%; S&P down 4.7%, Nasdaq off 4.9%

NEW YORK - US stocks tumbled to a three-year low on Wednesday as the US rescue of insurer AIG failed to calm a crisis of confidence in global markets and banks were scared to lend to each other.

The Dow fell almost 450 points and the Nasdaq fell nearly 5 per cent in its worst day since the aftermath of the Sept 11 attacks in 2001 as rattled investors worried about who could be the next victim of the global credit crisis.

Morgan Stanley shares sank 24.2 per cent to US$21.75 as investors worried whether it would survive as an independent investment bank in the current environment.

Shares of the other remaining major US investment bank, Goldman Sachs, dropped 13.9 per cent to US$114.50 and at one point fell below US$100 for the first time in more than three years.

The Dow Jones industrial average fell 449.36 points, or 4.06 per cent, to 10,609.66, its lowest level since November 2005. It was the blue-chip Dow average's biggest percentage drop since Monday, when it fell 504.48 points, or 4.42 per cent, the most since the aftermath of 9/11.

The S&P 500 fell 57.21 points, or 4.71 per cent, to 1,156.39, its lowest level since May 2005 and its biggest percentage drop since Sept 17, 2001, when the markets reopened after the Sept 11 attacks.

The Nasdaq also fell the most since Sept 17, 2001. It shed 109.05 points, or 4.94 per cent, to 2,098.85, its lowest level since August 2006.

The White House defended government actions to shore up troubled insurance company American International Group (AIG), saying it was to prevent broader harm and said it was 'concerned about other companies'.

Source: Singapore Business Times - 18 Sep 2008

CLOSING MARKET REPORT
Wall Street climbs on AIG rescue hopes

* Fed mulling loan package for AIG -Bloomberg report
* Fed keeps interest rates unchanged
* Dow up 1.3%, S&P up 1.8%, Nasdaq up 1.3%

NEW YORK - US stocks clawed back from their biggest drop in seven years on Tuesday on growing optimism that US authorities may finance a rescue of insurer American International Group (AIG).

A report late in the session that the Federal Reserve was considering a loan to AIG pulled the market out of a funk. The market had been lower after the US central bank disappointed investors by opting not to cut interest rates as many expected.

Financial shares, rebounding from their worst day ever on Monday, led the market higher after the Bloomberg report on possible Fed involvement in resolving the crisis surrounding AIG. The insurer's credit ratings were downgraded late on Monday, adding to concern about its ability to raise capital to help weather fast-mounting credit losses.

Adding to optimism, a source told Reuters that Barclays will buy the US broker-dealer business of Lehman Brothers Holdings, which filed for bankruptcy on Monday and helped trigger a global rout in equity markets.

The Federal Reserve held its key benchmark US interest rate steady on Tuesday, opting for the time being to soothe rattled financial markets with central bank lending facilities rather than rate cuts.

The Dow Jones industrial average rose 141.51 points, or 1.30 per cent, to 11,059.02, while the Standard & Poor's 500 Index gained 20.91 points, or 1.75 per cent, to 1,213.60. The Nasdaq Composite Index was up 27.99 points, or 1.28 per cent, at 2,207.90.

Financials continued to rally after the closing bell.

Morgan Stanley shares rose more than 7 per cent after reporting stronger-than-expected quarterly results.

AIG shares, under heavy pressure for days, hit a low of US$1.25 early in the session, but then pared the worst of its losses. It ended down 21.2 per cent at US$3.75.

At one time, AIG was the world's largest insurer based on market value.

Source: Singapore Business Times - 17 Sep 2008

CLOSING MARKET REPORT
Wall Sreett mauled by Lehman bankruptcy, AIG fears

* Wall Street has worst day since September 2001
* Lehman Brothers files for bankruptcy
* Bank of America buys Merrill Lynch
* AIG shares off over 60% on capital fears
* Dow off 4.4%, S&P down 4.7%, Nasdaq off 3.6%

NEW YORK - Wall Street had its worst day since markets reopened after the Sept 11 attacks as fears about the US financial system's stability surged on Monday after Lehman Brothers filed for bankruptcy and insurer AIG struggled for survival.

The day followed one of Wall Street's most agonizing weekends ever, which saw the demise of Lehman Brothers and forced Merrill Lynch to accept a takeover by Bank of America Corp (BOA).

But Sunday's barrage of shocking news was no exorcism for anxious investors and traders. As concerns about American International Group's (AIG) scramble for capital mounted, the Wall Street Journal reported that the US government has asked Goldman Sachs and JPMorgan Chase to lead a lending facility of US$70 billion to US$75 billion for the insurer.

Financial services companies' shares led a broad and steep decline in major indexes as investors worried about the impact of the latest twists in the credit crisis on the economy and the outlook for profits.

The benchmark Standard & Poor's 500 index fell 59.00 points, or 4.71 per cent, to 1,192.70 - posting its biggest percentage drop since the day that markets reopened after the Sept 11 attacks in 2001.

The S&P 500 also tumbled to its lowest close since October 2005, taking out a key technical support level as it fell.

The Dow Jones industrial average slid 504.48 points, or 4.42 per cent, to 10,917.51 - its biggest one-day point drop since September 2001.

The Nasdaq Composite Index dropped 81.36 points, or 3.60 per cent, to 2,179.91.

Lehman, weighed down by losses spawned by the US mortgage crisis, sought bankruptcy protection on Monday following a scramble over the weekend in which it failed to find a buyer.

Merrill Lynch, meanwhile, agreed to be bought by BOA, the No 2 US bank. Merrill's stock closed just 0.1 per cent higher at US$17.06, but BOA's shares dropped 21.3 per cent to US$26.55.

Source: Singapore Business Times - 16 Sep 2008

Singapore Straits Times Index (STI) broke the psychological support 2500 this morning, signaling more downsides in the short term.

Wall Street Prepares for Potential Lehman Bankruptcy

Sept. 14 (Bloomberg) -- Wall Street readied for a potential Lehman Brothers Holdings Inc. bankruptcy after Bank of America Corp. and Barclays Plc pulled out of talks to buy it and the government indicated it wouldn't provide funds to prevent a collapse.

Banks and brokers today held a session for netting derivatives transactions with Lehman, or canceling trades that offset each other, in case the New York-based firm files for bankruptcy before midnight.

``The purpose of this session is to reduce risk associated with a potential Lehman'' bankruptcy, the International Swaps and Derivatives Association said in a statement today. The ISDA includes 218 banks, brokerages, insurance companies and other financial institutions from the U.S. and abroad.

The step indicates Wall Street lacks confidence that three days of talks to find a buyer for Lehman, held at the Federal Reserve Bank of New York, will be successful. Treasury Secretary Henry Paulson, who has led the talks with New York Fed President Timothy Geithner, was adamant two days ago against using taxpayer funds to help a purchaser take Lehman over.

U.S. regulators are betting that the financial system will be able to withstand the failure of a large institution without severe disruptions to an already weak economy.

CLOSING MARKET REPORT
Wall Street ends flat amid Lehman vigil, oil a boost

* Financials drop as investors fret about Lehman
* Paulson 'adamant' no govt money in any Lehman deal
* Higher oil prices drive up energy shares
* August retail sales fall, but Sept consumer mood rises
* Dow off 0.1%, S&P up 0.2%, Nasdaq up 0.1%

NEW YORK - US stocks closed little changed on Friday in day of whipsaw moves as uncertainty over the fate of troubled investment bank Lehman Brothers kept investors anxious about the health of the US financial system.

But shares of natural resource companies and utilities gained as commodity prices rose, offsetting losses among financial and bank shares.

All three major indexes managed to finish the week higher.

Concerns about American International Group's large exposure to mortgages pushed the insurance company's shares down more than 30 per cent on Friday, making it the top drag on the Dow and S&P.

Lehman shares tumbled to a 14-year low amid uncertainty about what form a possible deal to rescue the firm would take, especially after a source said the Treasury was reluctant to provide financial backing in any deal.

A 5 per cent slide in General Electric (GE) shares added to the negative tone as investors feared the impact of ongoing financial sector turmoil on the conglomerate, which has a finance arm and commercial real estate interests. GE shares were a top drag on the Dow, falling to US$26.75.

The Dow Jones industrial average was down 11.72 points, or 0.10 per cent, at 11,421.99. The Standard & Poor's 500 Index was up 2.64 points, or 0.21 per cent, at 1,251.69. The Nasdaq Composite Index was up 3.05 points, or 0.14 per cent, at 2,261.27.

Source: Singapore Business Times - 13 Sep 2008

Good traders do not predict, they think in terms of probability.

CLOSING MARKET REPORT
Lehman buyout talk, oil, GM lift Wall Street

NEW YORK - US stocks rose on Thursday as a report that major US investment bank Lehman Brothers is shopping itself to possible suitors, including Bank of America (BOA), drove a last-minute rebound in financial shares.

A nearly US$2 retreat in the price of oil also boosted the market, easing concern about consumer and business spending and sending airline and retail shares higher.

General Motors was another standout, with shares rising more than 11 per cent on hopes that Washington may provide a financial lifeline for US automakers. Ford jumped nearly 5 per cent a share to US$4.68.

Financial shares rallied after The Wall Street Journal reported that Lehman was courting suitors, including BOA.

That sector had been under steady pressure on fears that Lehman would not be able to raise much-needed capital to cover mortgage-related losses. The S&P financial index was up 1.5 per cent after having fallen around 4 per cent.

Lehman shares ended down nearly 42 per cent at US$4.22, just above a 3-1/2-year low of US$3.80 hit earlier. Investor fears that Lehman would fail to raise enough capital to cover its mortgage-related losses have kept it under steady pressure all week. BOA shares closed up 2 per cent at US$33.06.

The Dow Jones industrial average ended up 164.79 points, or 1.46 per cent, at 11,433.71. The Standard & Poor's 500 Index closed up 17.01 points, or 1.38 per cent, at 1,249.05. The Nasdaq Composite Index finished up 29.52 points, or 1.32 per cent, at 2,258.22.

Sourcce: Singapore Business Times - 12 Sep 2008