After much deliberation and haggling, the US Congress has finally passed a revised US$700b financial bailout plan.

Nonetheless, the bailout was deemed to be too little and too late to avert a looming global recession. By now, it is increasingly clear that what started out as a subprime crisis in the US has morphed into a global problem of epic proportion. As such, worldwide stocks and commodity markets continued to extend losses.

Previously thought to be fundamentally sound, European financial institutions were hard-hit during the past fortnight, with companies such as Fortis, Bradford & Bingley and Glitnir Bank emerging as the latest victims of the credit crunch.

Even though the US Federal Reserve and central banks in Europe have slashed key interest rates in an unprecedented coordinated effort to stem the damage of the worst global financial crisis since the Great Depression, confidence has already been severely undermined and investors are left wondering if more bank failures are coming their way.

On the local front, equities across the board have fallen to attractively low valuations. However, not all of them are worth investing in. In times like these, we should always scour around for those fundamentally mightier companies, blue chips and mid caps in particular. When the market embarks on a U-turn, be it for the short or long term, it is usually these companies that will be leading the pack.

Meanwhile, kudos must be given to Mainboard newcomer China Kunda Technology Holdings for braving the storm to stage a listing. In this issue, we take a closer look at this China-based company, which appears set to ride on the robust demand for automobiles and high-end electronics in PRC and abroad.

Due to concerns that demand is slowing as a result of the global financial crisis, oil prices have slipped below US$90 a barrel. In spite of this, prospects for corporations within the oil & gas industry remain bullish, as evident from the recent contract wins by certain constituents of the FTSE ST Oil & Gas Index (refer to page 10 for details).

For those readers who have yet to participate in our online survey, do visit survey.sharesinvestment.com and stand a chance to win a pair of complimentary movie tickets!