Malaysia Stock Market May Find Traction On Thursday

The Malaysia stock market has moved lower in back-to-back sessions, sinking more than 25 points or 1.7 percent along the way. The Kuala Lumpur Composite Index now rests just beneath the 1,470-point plateau although it may stop the bleeding on Thursday.

The global forecast for the Asian markets is positive on easing concerns over the outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The KLCI finished modestly lower on Wednesday following losses from the plantations, while the financials and telecoms were mixed.

For the day, the index dipped 4.44 points or 0.30 percent to finish at the daily low of 1,469.55 after peaking at 1,476.14.

Among the actives, Axiata declined 1.68 percent, while CIMB Group slumped 0.88 percent, Dialog Group added 0.42 percent, Digi.com retreated 1.03 percent, Genting spiked 2.23 percent, Genting Malaysia climbed 1.10 percent, IHH Healthcare fell 0.33 percent, INARI advanced 0.76 percent, IOI Corporation shed 0.51 percent, Kuala Lumpur Kepong plunged 2.26 percent, MISC slid 0.28 percent, MRDIY lost 0.50 percent, Petronas Chemicals tumbled 1.74 percent, PPB Group perked 0.35 percent, RHB Capital sank 0.70 percent, Sime Darby jumped 1.82 percent, Sime Darby Plantations plummeted 3.33 percent, Tenaga Nasional improved 0.75 percent and Maybank, Maxis, Press Metal, Public Bank, Telekom Malaysia and Nestle were unchanged.

The lead from Wall Street is upbeat as the major averages shook off early weakness on Wednesday, moved firmly higher midday and ended solidly in the green.

The Dow jumped 133.40 points or 0.40 percent to finish at 33,269.77, while the NASDAQ climbed 71.78 points or 0.69 percent to close at 10,458.76 and the S&P 500 gained 28.83 points or 0.75 percent to end at 3,852.97.

The volatility on the day came as traders awaited and subsequently reacted to the minutes of the Federal Reserve’s December monetary policy, which reinforced expectations the central bank is likely to continuing raising interest rates.

The minutes reiterated that officials continue to anticipate that ongoing rate increases would be appropriate – although perhaps slower – to achieve the Fed’s dual objectives of maximum employment and price stability.

On the U.S. economic front, the Institute for Supply Management released a report showing U.S. manufacturing activity contracted at a slightly faster rate in the month of December.

Oil prices fell on Wednesday, extending recent losses as worries about energy demand amid rising fears of a global recession continued to weigh on the commodity. West Texas Intermediate Crude oil futures for February ended down $4.09 or 5.3 percent at $72.84 a barrel.

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