12/8/2009 6:44 PM ET
(RTTNews) - The Malaysian stock market has finished lower now in three straight sessions, shedding nearly 10 points or 0.8 percent in the process. The Kuala Lumpur Composite Index finished just above support at 1,260 points, but now analysts are forecasting further weakness for the market when it opens for business on Wednesday.
The global forecast for the Asian markets is weak, thanks to solid declines in the prices for gold, oil and other commodities. Steel stocks also may fall under pressure, along with financials. The European and U.S. markets finished sharply lower, and the Asian bourses are also tipped to trend to the downside.
The KLCI finished slightly lower on Tuesday, as selling among the financials and the plantations was offset by gains in the industrial sector.
For the day, the index eased 3.90 points or 0.31 percent to finish at 1,261.46 after trading between 1,261.46 and 1,267.95. Volume was 640.53 million shares worth 828.92 million ringgit. There were 353 decliners and 265 gainers, with 257 stocks finishing unchanged.
Among the actives, Maybank, Maxis, Sime Darby, IOI Corp and Kuala Lumpur Kepong all finished lower, while Melewar Warrant, Talam Corp, Tanco Holdings and CIMBall ended higher.
The lead from Wall Street is sharply negative as stocks fell by notable margins on Tuesday, as traders taking the opportunity to do some profit taking. Some traders looked overseas, with concerns over the credit worthiness of Greece and faint concerns over the Dubai crisis also driving some selling pressure.
Equities saw initial weakness due in part to disappointing guidance from 3M Co. (MMM), which forecast 2009 adjusted earnings of $4.50 to $4.55 per share, below analyst estimates of $4.57 per share. The diversified manufacturer also predicted 2010 earnings toward the low end of analyst estimates.
In other corporate news, Bank of America (BAC) held a second day of meetings to discuss potential candidates to replace outgoing CEO Ken Lewis.
Also today, President Barack Obama urged Congress to extend programs aimed at boosting jobs, noting that money originally set aside to prop up the financial system can be used to help lower the unemployment rate. Obama called for investments in infrastructure and green energy, as well as loans and tax credits for small businesses in an effort to boost job creation in the U.S. economy.
The major averages all ended the day firmly in negative territory, although off their worst levels of the day. The Dow fell by 104.14 points or 1 percent to 10,285.97, the NASDAQ dropped by 16.62 points or 0.8 percent to 2,172.99 and the S&P 500 declined by 11.31 points or 1 percent to 1,091.94.
by RTT Staff Writer
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