The Malaysia stock market has finished lower in two straight sessions, dropping more than 45 points or 2.9 percent along the way. The Kuala Lumpur Composite Index now rests just above the 1,570-point plateau and it may extend its losses on Monday.
The global forecast for the Asian markets suggests further consolidation thanks to the ongoing Russian invasion of Ukraine and skyrocketing crude oi prices. The European and U.S. markets were down and the Asian bourses figure to open in similar fashion.
The KLCI finished sharply lower on Monday with heavy selling in all sectors, especially among the financials, plantations and glove makers.
For the day, the index declined 31.38 points or 1.96 percent to finish at 1,572.56 after trading between 1,565.57 and 1,606.56. Volume was 4.358 billion shares worth 3.751 billion ringgit. There were 1,085 decliners and 151 gainers.
Among the actives, Axiata weakened 2.08 percent, while CIMB Group plunged 3.94 percent, Digi.com dropped 1.97 percent, Genting surrendered 2.84 percent, Genting Malaysia retreated 2.74 percent, Hartalega Holdings declined 2.80 percent, IHH Healthcare slumped 2.27 percent, INARI plummeted 7.41 percent, IOI Corporation shed 1.96 percent, Kuala Lumpur Kepong eased 1.21 percent, Maybank stumbled 2.33 percent, Maxis slid 1.47 percent, MISC rose 0.14 percent, MRDIY cratered 3.62 percent, Petronas Chemicals added 0.60 percent, PPB Group sank 2.00 percent, Press Metal lost 1.66 percent, Public Bank skidded 2.49 percent, RHB Capital tanked 3.59 percent, Sime Darby was down 0.87 percent, Sime Darby Plantations gained 0.20 percent, Telekom Malaysia tumbled 3.52 percent, Tenaga Nasional dipped 1.44 percent, Top Glove fell 1.55 percent and Dialog Group was unchanged.
The lead from Wall Street is broadly negative as the major averages opened lower on Monday and saw the losses accelerate as the session progressed, ending near their worst levels of the day.
The Dow plummeted 797.42 points or 2.37 percent to finish at 32,817.38, while the NASDAQ plunged 482.48 points or 3.62 percent to close at 12,830.96 and the S&P 500 dropped 127.78 points or 2.95 percent to end at 4,201.09.
Concerns about the impact of the recent surge in oil prices contributed to the sell-off on Wall Street as crude for April delivery surged on Monday, lifted by concerns over global oil supplies amid talks the U.S. and its Western allies are likely to impose a ban on Russian oil. West Texas Intermediate Crude oil futures for April ended higher by $3.72 or 3.2 percent at $119.40 a barrel.
Higher crude oil prices are already impacting prices at the pump as the national average for a gallon of gas has reached a 14-year high of $4.065. The increase in gas prices is likely to weigh on consumers, who are already grappling with higher prices due to elevated inflation.
This all comes as the Federal Reserve prepares to raise interest rates by at least a quarter point at its monetary policy meeting next week.
Market Analysis
Malaysia Stock Market Expected To Open In The Red On Tuesday
2022-03-07 23:30:11
