Malaysia Stock Market Due For Profit Taking

The Malaysia stock market has moved higher in five straight sessions, collecting more than 40 points or 3.2 percent along the way. The Kuala Lumpur Composite Index now sits just beneath the 1,450-point plateau although investors are likely to cash in on Thursday.

The global forecast for the Asian markets is murky as investors digest Wednesday’s FOMC rate decision. The European markets were down and the U.S. bourses were mixed and little changed and the Asian markets figure to follow the latter lead.

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

For the day, the index advanced 12.50 points or 0.87 percent to finish at the daily high of 1,449.29 after trading as low as 1,436.70.

Among the actives, Axiata and Genting Malaysia both improved 0.78 percent, while Celcomdigi spiked 2.76 percent, CIMB Group advanced 0.92 percent, Dialog Group rallied 2.26 percent, Genting and Petronas Gas both strengthened 1.18 percent, IHH Healthcare perked 0.34 percent, IOI Corporation added 0.73 percent, Kuala Lumpur Kepong rose 0.43 percent, Maxis sank 0.50 percent, Maybank collected 0.22 percent, MISC fell 0.28 percent, MRDIY surged 4.20 percent, Petronas Chemicals soared 3.55 percent, PPB Group accelerated 0.72 percent, Press Metal climbed 1.01 percent, Public Bank increased 0.74 percent, RHB Capital gathered 0.35 percent, Sime Darby shed 0.46 percent, Sime Darby Plantations gained 0.44 percent, Telekom Malaysia was up 0.20 percent, Tenaga Nasional jumped 1.37 percent and Westports Holdings retreated 1.43 percent.

The lead from Wall Street offers little guidance as the major averages opened lower on Wednesday but recovered enough to finish mixed and little changed.

The Dow gained 82.05 points or 0.23 percent to finish at 35,520.12, while the NASDAQ fell 17.27 points or 0.12 percent to close at 14,127.28 and the S&P 500 dipped 0.71 points or 0.02 percent to end at 4,566.75.

The late-day action came after the Fed announced its widely expected decision to resume raising interest following a pause last month, raising the target range for the federal funds rate by 25 basis points from 5.25 to 5.50 percent. With the increase, the midpoint of the target range is the highest since early 2001.

The decision to increase rates came as the Fed noted inflation remains elevated, while U.S. economic activity has been expanding at a moderate pace and job gains have been robust in recent months.

In his post-meeting press conference Fed Chair Jerome Powell said it is possible the central bank could raise rates again in September or hold steady, noting the central bank plans to take a meeting by meeting approach.

Crude oil prices fell Wednesday, weighed down by data showing a smaller than expected drop in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for September fell $0.85 or 1.1 percent at $78.78 a barrel.