The Malaysia stock market has closed lower now in two straight sessions, giving away more than 10 points or 0.6 percent along the way. The Kuala Lumpur Composite Index finished just below the 1,515-point plateau, and now analysts are forecasting continued selling pressure at the opening of trade on Tuesday.
The global forecast for the Asian markets suggests consolidation following continued concerns over the Greek debt problem, although bargain hunting may provide support later in the day. Steel stocks figure to fall under pressure, along with properties and technology shares. The European and U.S. markets finished firmly in the red, and the Asian markets are expected to open in similar fashion.
The KLCI finished modestly lower on Monday as losses from the industrial issues and plantation stocks were offset by gains from the financial shares. For the day, the index lost 7.35 points or 0.48 percent to finish at 1,513.55. Volume was 2.307 billion shares worth 1.841 billion ringgit. There were 460 gainers and 387 decliners, with 310 stocks finishing unchanged. Among the actives, Sime Darby, CIMB Group and Petronas Chemicals all finished higher, while Maybank was unchanged and Compugates ended lower.
The lead from Wall Street is modestly negative as stocks showed a substantial recovery on Monday after moving sharply lower in early trading. Stocks still finished in the red amid renewed concerns that the financial situation in Europe could lead to recession and its potential impact on the global economy.
Adding to the worries about Europe, Greek Finance Minister Evangelos Venizelos angrily rejected a German plan for the euro zone to impose a budget overseer on Greece in return for a new 130 billion euro bailout. Venizelos said the proposal would improperly force his country to choose between "financial assistance" and "national dignity." The report came as European leaders held a summit in Brussels regarding a permanent rescue fund for the euro zone.
Traders also reacted negatively to a report from the U.S. Commerce Department showing that personal spending came in nearly unchanged in December despite a notable increase in personal income. Personal income rose by 0.5 percent in December, although personal spending edged down by less than 0.1 percent. The savings rate reached a four-month high of 4.0 percent.
Selling pressure waned not long after the open, however, and stocks subsequently climbed well off their worst levels of the day. The rebound reflected the recent upward trend for the markets.
Among individual stocks, shares of Gannett (GCI) came under pressure on the day after the newspaper publisher reported a notable drop in advertising revenue at its newspaper division. Meanwhile, Thomas & Betts (TNB) moved sharply higher after the electrical components maker agreed to be acquired by Swiss engineering giant ABB Ltd. (ABB) for $3.9 billion in cash.
The major averages climbed well off their worst levels of the day but finished the day modestly below the unchanged line. The Dow edged down 6.74 points or 0.1 percent to finish at 12,653.72, while the NASDAQ slipped 4.61 points or 0.2 percent to 2,811.94 and the S&P 500 dropped 3.31 points or 0.3 percent to 1,313.02.
In economic news, Malaysia's central bank will on Tuesday conclude its monetary policy meeting and then announce its decision on interest rates. The bank is widely expected to keep rates on hold at 3.00 percent.
For comments and feedback contact: editorial@rttnews.com
Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.