Malaysia Stock Market May Run Out Of Steam On Thursday

The Malaysia stock market has climbed higher in four straight sessions, gathering more than 40 points or 2.9 percent along the way. The Kuala Lumpur Composite Index now rests just above the 1,415-point plateau although investors may lock in gains on Thursday.

The global forecast for the Asian markets suggests consolidation following recent gains and rising treasury yields. The European and U.S. markets were down and the Asian bourses figure to open in similar fashion.

The KLCI finished sharply higher on Wednesday following gains from the financials and industrials, losses from the glove makers and telecoms and a mixed picture from the plantations.

For the day, the index climbed 14.74 points or 1.05 percent to finish at the daily high of 1,415.10 after trading as low as 1,400.28.

Among the actives, Axiata tumbled 2.65 percent, while CIMB Group rallied 2.67 percent, Dialog Group skidded 1.72 percent, Digi.com declined 1.74 percent, Genting lost 0.46 percent, Genting Malaysia gained 0.39 percent, Hartalega Holdings plummeted 4.17 percent, IHH Healthcare advanced 2.18 percent, INARI tanked 2.87 percent, IOI Corporation plunged 3.04 percent, Kuala Lumpur Kepong climbed 2.42 percent, Maybank collected 0.47 percent, Maxis retreated 2.31 percent, MISC rose 0.28 percent, MRDIY improved 2.07 percent, Petronas Chemicals added 0.94 percent, Petronas Dagangan strengthened 2,46 percent, Petronas Gas spiked 3.28 percent, PPB Group accelerated 2.86 percent, Press Metal surged 3.56 percent, Public Bank soared 3.33 percent, RHB Capital gathered 1.63 percent, Sime Darby increased 1.84 percent, Sime Darby Plantations jumped 2.66 percent, Telekom Malaysia dipped 0.18 percent, Tenaga Nasional sank 0.73 percent and Top Glove slumped 2.03 percent.

The lead from Wall Street is soft as the major averages were unable to hold early gains on Wednesday, slipping into the red in afternoon trade and ending in negative territory.

The Dow shed 99.99 points or 0.33 percent to finish at 30,423.81, while the NASDAQ sank 91.89 points or 0.85 percent to end at 10,680.51 and the S&P 500 lost 24.82 points or 0.67 percent to close at 3,695.16.

Profit taking contributed to the pullback on Wall Street, as traders cashed in on the strong gains on Monday and Tuesday. The major averages ended Tuesday’s trading well off their highs of the session, although the Dow still reached its best closing level in almost a month.

Lingering concerns about higher interest rates and the impact on the global economy also continued to weigh on the markets along with a jump in treasury yields. The yield on the benchmark 10-year note moved sharply higher following a modest pullback on Tuesday, reaching its highest levels in 14 years.

Stocks regained some ground following the release of the Federal Reserve’s Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts. The Beige Book said economic activity in the U.S. has expanded modestly since September, although conditions varied across industries and districts.

Crude oil prices rose sharply Wednesday as data showed declines in U.S. crude and gasoline stockpiles last week. West Texas Intermediate Crude oil futures for November ended higher by $2.73 or 3.3 percent at $85.55 a barrel.

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