Oversold Malaysia Stock Market Still Called Lower

The Malaysia stock market has finished lower in six straight sessions, sinking more than 25 points or 1.5 percent along the way. The Kuala Lumpur Composite Index now rests just beneath the 1,585-point plateau and it’s looking at another soft start again on Thursday.

The global forecast for the Asian markets suggests consolidation, due mainly to profit taking and sinking crude oil prices. The European and U.S. markets were down and the Asian bourses are predicted to open in similar fashion.

The KLCI finished slightly lower on Wednesday following weakness from the glove makers and mixed performances from the financial shares and plantation stocks.

For the day, the index dipped 1.12 points or 0.07 percent to finish at 1,583.08 after trading between 1,581.76 and 1,591.64. Volume was 4.016 billion shares worth 2.503 billion ringgit. There were 632 decliners and 386 gainers.

Among the actives, Axiata and IOI Corporation both sank 0.74 percent, while CIMB Group climbed 0.57 percent, Dialog Group lost 0.33 percent, Digi.com shed 0.46 percent, Genting spiked 1.56 percent, Genting Malaysia jumped 0.94 percent, Hartalega Holdings plunged 1.89 percent, Kuala Lumpur Kepong added 0.36 percent, Maybank and Petronas Gas both gained 0.12 percent, MISC soared 1.85 percent, Petronas Chemicals and PPB Group both rose 0.11 percent, Petronas Dagangan surged 2.79 percent, Press Metal tanked 1.04 percent, RHB Capital dropped 0.53 percent, Sime Darby Plantations eased 0.02 percent, Tenaga Nasional fell 0.10 percent, Top Glove plummeted 2.21 percent and MRDIY, Sime Darby, Maxis, Public Bank, IHH Healthcare, Telekom Malaysia and Hong Leong Bank were unchanged.

The lead from Wall Street offers little clarity as the major averages took different paths on Wednesday. The NASDAQ opened higher and finished the same way, albeit barely. The Dow spent most of the session in the red and the S&P 500 hugged the unchanged line before both ended in negative territory.

The Dow dropped 266.19 points or 0.74 percent to finish at 35,490.69, while the NASDAQ rose 0.12 points or 0.00 percent to close at 15,235.84 and the S&P 500 fell 23.11 points or 0.51 percent to end at 4,551.68.

While a mixed reaction to the latest earnings news contributed to choppy trading, traders also looked to cash in on recent strength in the markets in late-day trading as the Dow and S&P eased from record highs.

Corporate earnings were mixed as companies like Twitter (TWTR) and General Motors (GM) disappointed, while Microsoft (MSFT) and Google parent Alphabet (GOOGL) beat the street.

On the U.S. economic front, the Commerce Department said durable goods orders pulled back by much less than expected in September.

Crude oil prices sank Wednesday after data showed a larger than expected increase in U.S. crude stockpiles last week. Oil prices were also weighed down by prospects of Iran freeing itself from U.S. sanctions and start selling oil to major importers again. West Texas Intermediate crude oil futures for December were down by $1.99 or 2.3 percent at $82.66 a barrel.