Losing Streak May Continue For Malaysia Stock Market

The Malaysia stock market has finished lower in back-to-back trading days, sinking almost 15 points or 1 percent along the way. The Kuala Lumpur Composite Index now rests just above the 1,520-point plateau and it may extend its losses on Thursday.

The global forecast for the Asian markets suggests consolidation on inflation concerns and a drop in crude oil prices. The European markets were up and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The KLCI finished slightly lower on Wednesday as losses from the plantations, financials and glove makers were mitigated by support from the industrials and a mixed picture from the telecoms.

For the day, the index slipped 3.29 points or 0.22 percent to finish at 1,520.74 after trading between 1,516.75 and 1,526.15. Volume was 3.432 billion shares worth 2.315 billion ringgit. There were 502 decliners and 428 gainers.

Among the actives, Axiata skidded 1.03 percent, while CIMB Group shed 0.40 percent, Dialog Group declined 0.69 percent, Digi.com added 0.71 percent, Genting sank 0.58 percent, Genting Malaysia tanked 1.25 percent, Hartalega Holdings tumbled 1.05 percent, IOI Corporation fell 0.26 percent, Kuala Lumpur Kepong eased 0.10 percent, MRDIY plummeted 1.35 percent, Petronas Chemicals and Petronas Gas both rose 0.12 percent, Petronas Dagangan advanced 0.99 percent, PPB Group surrendered 0.67 percent, Press Metal climbed 1.13 percent, Public Bank was down 0.25 percent, RHB Capital dropped 0.56 percent, Sime Darby Plantations retreated 0.74 percent, Telekom Malaysia gained 0.54 percent, Tenaga Nasional lost 0.31 percent, Top Glove plunged 1.29 percent and Sime Darby, Maybank, Maxis, MISC and IHH Healthcare were unchanged.

The lead from Wall Street is broadly negative as the major averages opened slightly lower on Wednesday but saw the losses accelerate as the day progressed to finish solidly under water.

The Dow tumbled 240.04 points or 0.66 percent to finish at 36,079.94, while the NASDAQ plunged 263.84 points or 1.66 percent to close at 15,622.71 and the S&P 500 sank 38.54 points or 0.82 percent to end at 4,646.71.

Concerns about inflation contributed to the weakness on Wall Street after the Labor Department released a report showing consumer prices increased by more than expected in October, lifting the annual rate of price growth to its highest level in over thirty years.

The acceleration in the rate of consumer price inflation raised concerns about the outlook for interest rates even though the Federal Reserve has signaled it will not be in a hurry to begin raising rates.

Also, a separate report from the Labor Department showed another modest decrease in first-time claims for U.S. unemployment benefits last week.

Crude oil prices declined sharply on Wednesday, snapping a three-day winning streak after data showed an increase in U.S. crude stockpiles last week. West Texas Intermediate Crude oil futures for December ended down by $2.81 or 3.3 percent at $81.34 a barrel.