The Malaysia stock market has closed lower in three straight sessions, dropping more than 70 points or 4.6 percent along the way. The Kuala Lumpur Composite Index now rests just beneath the 1,550-point plateau and it’s likely to be in for another wild ride again on Wednesday.
The global forecast for the Asian markets suggests volatility amid the ongoing Russian invasion of Ukraine and the resulting surge in crude oil prices. The European markets were mixed and flat and the U.S. markets were down and the Asian bourses figure to split the difference.
The KLCI finished sharply lower again on Tuesday following losses from the financial shares, plantation stocks, telecoms and glove makers.
For the day, the index lost 25.69 points or 1.63 percent to finish at 1,546.87 after trading between 1,540.90 and 1,566.84. Volume was 3.961 billion shares worth 3.771 billion ringgit. There were 794 decliners and 272 gainers.
Among the actives, Axiata retreated 2.66 percent, while CIMB Group stumbled 2.46 percent, Dialog Group weakened 1.87 percent, Digi.com slumped 2.26 percent, Genting was down 0.90 percent, Genting Malaysia jumped 1.76 percent, Hartalega Holdings surrendered 3.10 percent, IHH Healthcare and MISC both slipped 1.09 percent, INARI tanked 4.00 percent, IOI Corporation declined 2.89 percent, Kuala Lumpur Kepong skidded 2.53 percent, Maybank rose 0.11 percent, Maxis gave away 0.50 percent, MRDIY dropped 1.45 percent, Petronas Chemicals tumbled 3.96 percent, PPB Group dipped 1.14 percent, Press Metal plunged 4.37 percent, Public Bank eased 0.23 percent, RHB Capital lost 1.24 percent, Sime Darby shed 1.32 percent, Sime Darby Plantations slid 1.17 percent, Telekom Malaysia plummeted 5.26 percent, Tenaga Nasional fell 1.23 percent and Top Glove sank 1.58 percent.
The lead from Wall Street ends up negative as the major averages opened slightly higher on Tuesday but then bounced back and forth across the unchanged line, finally ending with modest losses.
The Dow dropped 184.74 points or 0.56 percent to finish at 32,632.64, while the NASDAQ lost 35.41 points or 0.28 percent to close at 12,795.55 and the S&P 500 shed 30.39 points or 0.72 percent to end at 4,170.70.
The volatility on Wall Street came as crude oil prices continued to skyrocket as President Joe Biden officially announced a U.S. ban on the import of Russian oil, liquefied natural gas, and coal in response to Russia’s unprovoked invasion of Ukraine.
Crude oil prices climbed higher on Tuesday amid concerns about global oil supply after Biden announced a ban on import of Russian energy products. West Texas Intermediate Crude oil futures for April ended higher by $4.30 or 3.6 percent at $123.70 a barrel.
Gas stations are raising prices along with the spike in oil futures, as AAA said the average price for a gallon of gas has reached a record high of $4.173. The national average gas price is up by nearly $0.11 a gallon from just yesterday and up more than $0.55 a gallon from a week ago.
The higher gas prices are likely to weigh on consumer spending in other areas, potentially leading to an economic slowdown even as the Federal Reserve prepares to begin raising interest rates.
Market Analysis
Soft Start Predicted For Malaysia Stock Market
2022-03-08 23:30:17
