The Malaysia stock market has moved lower in consecutive trading days, easing almost 6 points or 0.4 percent along the way. The Kuala Lumpur Composite Index now rests just beneath the 1,390-point plateau and it may take further damage on Thursday.
The global forecast for the Asian markets is negative on pessimism over the outlook for interest rates. The European and U.S. markets were down and the Asian bourses are expected to open in similar fashion.
The KLCI finished slightly lower on Wednesday as losses from the financials and telecoms were mitigated by support from the plantations.
For the day, the index dipped 2.59 points or 0.19 percent to finish at the daily low of 1,389.90 after peaking at 1,395.82.
Among the actives, Axiata slumped 0.76 percent, while CIMB Group lost 0.38 percent, Dialog Group declined 1.38 percent, Genting and Sime Darby both added 0.49 percent, Genting Malaysia gained 0.41 percent, IOI Corporation rallied 0.79 percent, Kuala Lumpur Kepong surged 3.05 percent, Maxis shed 0.49 percent, MISC fell 0.28 percent, MRDIY plummeted 3.77 percent, Petronas Chemicals dropped 0.66 percent, Public Bank slid 0.26 percent, RHB Capital skidded 0.73 percent, Sime Darby Plantations spiked 1.63 percent, Telekom Malaysia tumbled 1.62 percent, Tenaga Nasional sank 0.55 percent, Westports Holdings retreated 1.10 percent and PPB Group, Press Metal, Maybank, IHH Healthcare, Celcomdigi and Hong Leong Bank were unchanged.
The lead from Wall Street is weak as the major averages opened lower on Wednesday and largely spent the day in the red, ending near session lows.
The Dow dropped 129.83 points or 0.38 percent to finish at 34,288.64, while the NASDAQ sank 25.12 points or 0.18 percent to close at 13,791.65 and the S&P 500 fell 8.77 points or 0.20 percent to end at 4,446.82.
The selling pressure came ahead of, and in response to, the latest batch of FOMC minutes which suggested a more hawkish tone for the outlook on interest rates than had been hoped.
The minutes also showed the members disagreed on rate hikes. After the June meeting, all but two of the 18 participants expected that at least one hike would be appropriate this year, and 12 expected two or more hikes.
In economic news, the Commerce Department released a report showing new orders for U.S. manufactured goods increased by much less than expected in May.
Crude oil futures settled sharply higher on Wednesday, buoyed by government data showing a significant jump in U.S. crude shipments last week. West Texas Intermediate Crude oil futures for August ended higher by $2.00 or 2.9 percent at $71.79 a barrel.
Closer to home, the central bank in Malaysia will wrap up its monetary policy meeting today and then announce its decision on interest rates. The central bank is expected to keep its benchmark lending rate steady at 3.00 percent.
Market Analysis
Soft Start Anticipated For Malaysia Stock Market
2023-07-05 23:30:02
