The Malaysian stock market bounced right back up into positive territory again on Wednesday, one session after it had ended the two-day winning streak in which it had added just over 2 points. Now at a seven-month closing high, the Kuala Lumpur Composite Index finished just below the 1,570-point plateau, and now investors are bracing for renewed selling pressure when the market opens on Thursday.
The global forecast for the Asian markets suggests mild consolidation, with investors likely to lock in gains after stocks rallied earlier in the week - particularly among the gold and technology stocks. Remarks by U.S. Federal Reserve Chairman Ben Bernanke add to the cautious sentiment as the Fed chief refrained from discussing further quantitative easing while testifying before the House Financial Services Committee. The European and U.S. markets finished with mild losses, and the Asian markets are expected to follow suit.
The KLCI finished modestly higher on Wednesday following solid gains from the financial shares, industrial issues and plantation stocks.
For the day, the index climbed 12.92 points or 0.83 percent to finish at 1,569.65 after trading between 1,557.50 and 1,573.75. Volume was 1.94 billion shares worth 2.69 billion ringgit. There were 535 gainers and 297 decliners, with 300 stocks finishing unchanged.
Among the actives, Maybank, Sime Darby, CIMB Group, Key West Global Telecomm and YTL Corporation all finished higher, while IFCA MSC was unchanged and Petronas Chemicals and China Stationery ended lower.
The lead from Wall Street is negative as stocks showed a lack of direction for much of Wednesday before falling in late day trading and closing firmly in the red. The pullback by the markets was partly due to profit taking, with traders cashing in on recent strength amid ongoing questions about whether the global economic outlook supports the latest upward move.
Selling pressure was also generated by Bernanke's testimony before the House Financial Services Committee, as the Fed chief refrained from discussing further quantitative easing despite acknowledging that the pace of the U.S. economic expansion has been uneven and modest by historical standards. Bernanke also warned of lingering weakness in the labor market.
Traders largely shrugged off the release of a report from the Commerce Department showing that the U.S. economy expanded at an annual rate of 3.0 percent in the fourth quarter, reflecting an upward revision from the 2.8 percent growth that was initially estimated. The upward revision surprised economists, who had expected GDP growth to be unrevised.
A separate report from the Institute for Supply Management - Chicago showed that business activity in the Chicago-area expanded faster than expected in February. The ISM Chicago said its Chicago business barometer jumped to 64.0 in February from 60.2 in January, with a reading above 50 indicating an expansion. Economists had been expecting a reading of 61.0.
The major averages all ended the day in negative territory, with the Dow pulling back below the 13,000 level. The Dow fell 53.05 points or 0.4 percent to finish at 12,952.07, while the NASDAQ slid 19.87 points or 0.7 percent to 2,966.89 and the S&P 500 dropped 6.50 points or 0.5 percent to 1,365.68.
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Market Analysis
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.