Malaysia Shares Tipped To Open In The Red

The Malaysia stock market has finished higher in back-to-back sessions, adding almost 10 points or 0.6 percent along the way. The Kuala Lumpur Composite Index now sits just above the 1,640-point plateau although it may spin its wheels on Wednesday.

The global forecast for the Asian markets is negative thanks to a combination of weak economic and earnings news, while profit taking may also be in order. The European and U.S. markets were down and the Asian bourses are expected to follow that lead.

The KLCI finished modestly higher on Tuesday as gains from the financials, plantations and telecoms were capped by weakness from the industrial and entertainment companies.

For the day, the index rose 5.43 points or 0.33 percent to finish at 1,641.97 after trading between 1,636.89 and 1,643.64.

Among the actives, Axiata gained 0.42 percent, while Celcomdigi advanced 0.55 percent, Genting skidded 1.00 percent, Genting Malaysia retreated 1.76 percent, IHH Healthcare and Tenaga Nasional both perked 0.28 percent, Kuala Lumpur Kepong added 0.47 percent, Maxis spiked 2.46 percent, Maybank jumped 1.14 percent, MISC tumbled 1.80 percent, MRDIY sank 0.42 percent, Nestle Malaysia surged 3.41 percent, Petronas Chemicals rose 0.36 percent, PPB Group slumped 1.11 percent, Press Metal dropped 0.62 percent, Public Bank rallied 2.05 percent, QL Resources climbed 0.86 percent, RHB Bank collected 0.16 percent, Sime Darby declined 1.63 percent, SD Guthrie soared 2.61 percent, Sunway accelerated 2.30 percent, Telekom Malaysia gathered 0.31 percent, YTL Corporation plummeted 6.10 percent, YTL Power plunged 4.84 percent and CIMB Group, IOI Corporation and Petronas Gas were unchanged.

The lead from Wall Street is soft as the major averages opened mixed on Tuesday but quickly turned lower and saw all of them finish well under water.

The Dow tumbled 324.80 points or 0.75 percent to finish at 42,740..42, while the NASDAQ slumped 187.10 points or 1.01 percent to close at 18,315.59 and the S&P 500 sank 44.59 points or 0.76 percent to end at 5,815.26.

The pullback on Wall Street reflected profit taking as traders looked to cash in on recent strength in the markets after the Dow and S&P hit record closing highs on Monday.

Corporate earnings also weighed, led lower by the likes of UnitedHealth (UNH) and Citigroup (C), although Walgreens Boots Alliance (WBA) rallied on its results.

On the U.S. economic front, the Federal Reserve Bank of New York reported that regional manufacturing activity has returned to contraction in October.

Oil prices fell sharply on Tuesday as fears about supply disruptions faded on reports that Israel will avoid targeting Iran’s oil sites. West Texas Intermediate crude oil futures for November sank $3.25 or 4.4 percent at $70.58 a barrel.