The Malaysia stock market had finished lower in three straight sessions, sinking almost 40 points or 2.5 percent along the way. The Kuala Lumpur Composite Index now rests just above the 1,530-point plateau and it’s tipped to open under pressure again on Thursday.
The global forecast for the Asian markets suggests further consolidation as rising bond yields continue to hammer technology stocks – although support from crude oil may limit the downside. The European markets were up and the U.S. markets were down and the Asian markets figure to follow the latter lead.
The KLCI finished modestly lower on Wednesday following losses from the financials and mixed performances from the telecoms, plantations and glove makers.
For the day, the index sank 12.59 points or 0.82 percent to finish at 1,530.33 after trading between 1,525.55 and 1,541.70. Volume was 2.732 billion shares worth 1.806 billion ringgit. There were 770 decliners and 227 gainers.
Among the actives, CIMB Group tanked 3.27 percent, while Dialog Group jumped 1.12 percent, Digi.com tumbled 2.25 percent, Genting declined 1.74 percent, Genting Malaysia surrendered 2.07 percent, Hartalega Holdings surged 2.68 percent, INARI plunged 4.65 percent, IOI Corporation skidded 1.28 percent, Kuala Lumpur Kepong spiked 1.61 percent, Maybank stumbled 1.07 percent, Maxis added 0.45 percent, MISC rallied 1.01 percent, MRDIY lost 0.27 percent, Petronas Chemicals gained 0.33 percent, PPB Group perked 0.24 percent, Press Metal sank 0.68 percent, Public Bank weakened 0.95 percent, RHB Capital slumped 0.69 percent, Sime Darby dropped 0.44 percent, Sime Darby Plantations rose 0.25 percent, Telekom Malaysia retreated 1.73 percent, Tenaga Nasional was up 0.33 percent, Top Glove plummeted 4.68 percent and Axiata and IHH Healthcare were unchanged.
The lead from Wall Street is broadly negative as the major averages were unable to hold on to early gains on Wednesday, bouncing back and forth across the unchanged line before finishing in the red for the second straight session.
For the day, the Dow tumbled 339.82 points or 0.96 percent to finish at 35,028.65, while the NASDAQ dropped 166.64 points or 1.15 percent to close at 14,340.25 and the S&P 500 sank 44.35 points or 0.97 percent to end at 4.532.76.
The late slide on Wall Street came amid rising Treasury yields and worries over inflation and looming interest rate hikes after U.S. Treasury yields hit fresh two-year highs amid Fed rate hike expectations.
Most analysts believe a rate hike of at least 25 basis points from the FOMC is imminent, although some are now starting to think it may be a 50 bp boost.
In economic news, the Commerce Department said that U.S. homebuilding increased to a nine-month high in December amid a surge in multi-family housing projects.
Crude oil prices continued their recent upward surge on Wednesday, rising for the fifth straight day to a fresh seven-year high following supply issues in the Middle East. West Texas Intermediate for February contract jumped $1.22 or 1.43 percent to $86.65 per barrel.
Market Analysis
Losing Streak May Continue For Malaysia Stock Market
2022-01-19 23:31:23
