Malaysia Stock Market May Extend Wednesday’s Losses

The Malaysia stock market headed south again on Wednesday, one session after snapping the five-day losing streak in which it had slumped more than 15 points or 1 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,500-point plateau and it may take further damage on Thursday.

The global forecast for the Asian markets is soft on lockdown concerns resulting from the Omicron strain of COVID-19. The European markets were up and the U.S. bourses were sharply lower and the Asian markets figure to follow the latter lead.

The KLCI finished sharply lower on Wednesday following losses from the financial shares, plantation stocks, telecoms and glove makers.

For the day, the index dropped 17.05 points or 1.13 percent to finish at 1,496.93 after trading between 1,495.75 and 1,509.90. Volume was 3.642 billion shares worth 2.748 billion ringgit. There were 680 decliners and 293 gainers.

Among the actives, Axiata declined 2.31 percent, while CIMB Group surrendered 2.90 percent, Dialog Group lost 0.43 percent, Digi.com retreated 2.16 percent, Genting climbed 0.68 percent, Genting Malaysia gained 0.36 percent, Hartalega Holdings tumbled 3.08 percent, Hong Leong Bank collected 0.55 percent, IHH Healthcare eased 0.15 percent, IOI Corporation added 0.54 percent, Kuala Lumpur Kepong skidded 2.09 percent, Maybank fell 0.38 percent, Maxis plunged 4.91 percent, MISC dropped 0.75 percent, MRDIY slumped 0.85 percent, PPB Group tanked 4.26 percent, Press Metal shed 0.56 percent, Public Bank and RHB Capital both sank 0.76 percent, Sime Darby weakened 1.37 percent, Sime Darby Plantations jumped1.36 percent, Telekom Malaysia stumbled 1.62 percent, Tenaga Nasional was down 0.22 percent, Top Glove plummeted 6.48 percent and Petronas Chemicals was unchanged.

The lead from Wall Street ends up broadly negative as the major averages opened sharply higher on Wednesday but then plummeted deep into the red in the final hour of trade.

The Dow plunged 461.68 points or 1.34 percent to finish at 34,022.04, while the NASDAQ tumbled 283.64 points or 1.83 percent to close at 15,254.05 and the S&P 500 sank 53.96 points or 1.18 percent to end at 4,513.04.

The substantial downturn on Wall Street came after the Center for Disease Control and Prevention revealed the first confirmed case of Covid-19 caused by the new Omicron variant has been detected in the U.S.

“The individual, who was fully vaccinated and had mild symptoms that are improving, is self-quarantining and has been since testing positive,” the CDC said. “All close contacts have been contacted and have tested negative.”

Traders largely shrugged off the latest U.S. economic news, including a report from payroll processor ADP showing that private sector employment increased more than expected in November. Also, the Institute for Supply Management said manufacturing activity grew at a slightly faster rate last month.

Crude oil prices showed a strong move to the upside in early trading on Wednesday but came under pressure over the course of the session on news of the Omicron case. Crude for January delivery slumped $0.61 or 0.9 percent $65.57 a barrel, its lowest closing level in three months.