Malaysia Stock Market May Open Under Pressure

The Malaysia stock market has alternated between positive and negative finishes through the last four trading days since the end of the two-day slide in which it had slipped more than 10 points or 0.6 percent. The Kuala Lumpur Composite Index now sits just above the 1,545-point plateau and it may extend its losses on Thursday.

The global forecast for the Asian markets is one of caution ahead of key U.S. inflation data later today. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference.

The KLCI finished modestly lower on Wednesday following losses from the financial shares, plantation stocks and telecoms.

For the day, the index slumped 13.21 points or 0.85 percent to finish at the daily low of 1,545.59 after moving as high as 1,556.69.

Among the actives, Axiata weakened 1.40 percent, while Celcomdigi and Petronas Dagangan both shed 0.69 percent, CIMB Group dipped 0.31 percent, Genting tumbled 1.84 percent, Genting Malaysia retreated 1.71 percent, IOI Corporation lost 0.50 percent, Kuala Lumpur Kepong slid 0.36 percent, Maxis stumbled 1.57 percent, MISC climbed 1.07 percent, MRDIY surrendered 1.87 percent, Petronas Chemicals skidded 1.30 percent, PPB Group perked 0.13 percent, Press Metal sank 0.85 percent, Public Bank dropped 0.89 percent, QL Resources declined 1.68 percent, RHB Capital slumped 1.41 percent, Sime Darby Plantations fell 0.47 percent, Telekom Malaysia added 0.17 percent, Tenaga Nasional plummeted 4.03 percent, YTL Corporation tanked 2.58 percent, YTL Power plunged 3.37 percent and IHH Healthcare, Maybank and Sime Darby were unchanged.

The lead from Wall Street is weak as the major averages opened sharply lower on Wednesday, pared their losses as the day progressed but still ended in the red.

The Dow shed 23.39 points or 0.06 percent to finish at 38,949.02, while the NASDAQ dropped 87.56 points or 0.55 percent and the S&P 500 sank 8.42 points or 0.17 percent to end at 5,069.76.

The early weakness on Wall Street came as traders looked to cash in on the recent strength in the markets ahead of the release of closely watched readings on consumer price inflation later today.

With Federal Reserve officials saying they need greater confidence inflation is slowing before they consider cutting interest rates, the data could have a significant impact on the outlook for rates.

In economic news, the Commerce Department said the jump by real gross domestic product in the fourth quarter was downwardly revised to 3.2 percent from the previously reported 3.3 percent.

Oil prices fell on Wednesday after data showed a much larger than expected increase in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for April ended down $0.33 or 0.42 percent at $78.54 a barrel.

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