Malaysia Stock Market May Extend Losing Streak

The Malaysia stock market has moved lower in four straight sessions, dropping more than 45 points or 2.8 percent along the way. The Kuala Lumpur Composite Index now rests just above the 1,555-point plateau and it's looking at another red light for Wednesday's trade.

The global forecast for the Asian markets is soft due to the outlook for interest rates, despite encouraging data. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference.

The KLCI finished modestly lower on Tuesday following losses from the financial share, plantation stocks and glove makers.

For the day, the index sank 14.62 points or 0.93 percent to finish at 1,555.51 after trading between 1,548.89 and 1,573.18.

Among the actives, Press Metal cratered 3.96 percent, while RHB Capital plunged 2.19 percent, Kuala Lumpur Kepong plummeted 2.02 percent, Hong Leong Bank tanked 1.81 percent, Sime Darby Plantations tumbled 1.54 percent, Top Glove skidded 1.52 percent, Public Bank retreated 1.48 percent, CIMB Group declined 1.24 percent, Axiata surrendered 1.22 percent, Genting stumbled 1.20 percent, Tenaga Nasional weakened 0.97 percent, Petronas Chemicals sank 0.88 percent, Petronas Dagangan and Hap Seng both dropped 0.80 percent, Telekom Malaysia and Genting Malaysia both shed 0.66 percent, MISC added 0.57 percent, IOI Corporation lost 0.51 percent, Sime Darby fell 0.44 percent, PPB Group gained 0.44 percent, Dialog Group rose 0.38 percent, Hartalega Holdings increased 0.32 percent, Maxis was up 0.21 percent, Maybank eased 0.12 percent and MRDIY, IHH Healthcare and DiGi.com were unchanged.

The lead from Wall Street is negative as the major averages opened higher on Tuesday but quickly turned lower and finished in the red.

The Dow tumbled 292.06 points or 0.84 percent to finish at 34,577.57, while the NASDAQ sank 67.82 points or 0.45 percent to close at 15,037.76 and the S&P 500 fell 25.68 points or 0.57 percent to end at 4,443.05.

Stocks initially benefited from a positive reaction to a highly anticipated Labor Department report showing consumer prices increased less than expected in August. The relatively tame inflation data generated optimism that the Federal Reserve may delay plans to begin scaling back stimulus.

However, subsequent comments from economists suggested that the Fed is still likely to begin tapering its asset purchases as soon as December.

The Fed is scheduled to hold a monetary policy meeting next week, with many expecting the central bank to provide an update on the outlook for its asset purchase program.

Crude oil futures settled slightly higher Tuesday after the Labor Department said U.S. consumer prices increased less than expected last month, while traders also weighed the impact of tropical storm Nicholas. Crude oil futures settled at $70.46 a barrel, up a penny from the previous close.

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