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More Pain Predicted For Malaysia Stock Market

The Malaysia stock market has tracked lower in three straight sessions, sinking more than 50 points or 3.3 percent along the way. The Kuala Lumpur Composite Index now rests just beneath the 1,550-point plateau and it's tipped to open in the red again on Tuesday.

The global forecast for the Asian markets is soft on concerns over economic growth and the outlook for interest rates. The European and U.S. markets were sharply lower and the Asian bourses are tipped to open in similar fashion.

The KLCI finished sharply lower on Monday following losses from the financial shares, plantation stocks, telecoms and glove makers.

For the day, the index dropped 15.16 points or 0.97 percent to finish at 1,549.18 after trading between 1,546.64 and 1,563.80. Volume was 3.218 billion shares worth 2.034 billion ringgit. There were 827 decliners and 187 gainers.

Among the actives, Axiata stumbled 2.04 percent, while CIMB Group was down 0.39 percent, Dialog Group added 0.41 percent, Digi.com retreated 1.98 percent, Genting lost 1.08 percent, Hartalega Holdings declined 2.06 percent, IHH Healthcare dropped 1.55 percent, IOI Corporation plummeted 3.73 percent, Kuala Lumpur Kepong tumbled 2.50 percent, Maxis eased 0.27 percent, MISC slid 0.64 percent, Petronas Chemicals skidded 1.96 percent, PPB Group slumped 1.56 percent, Press Metal plunged 3.35 percent, Public Bank fell 0.65 percent, RHB Capital dipped 0.49 percent, Sime Darby sank 1.29 percent, Sime Darby Plantations tanked 3.34 percent, Telekom Malaysia shed 1.23 percent, Tenaga Nasional advanced 0.79 percent, Top Glove surrendered 2.47 percent and MRDIY, Maybank, INARI and Genting Malaysia were unchanged.

The lead from Wall Street is broadly negative as the major averages opened sharply lower on Monday and the losses only accelerated as the day progressed.

The Dow plunged 653.67 points or 1.99 percent to finish at 32,245.70, while the NASDAQ plummeted 521.41 points or 4.29 percent to close at 11,623.25 and the S&P 500 tumbled 132.10 points or 3.20 percent to end at 3,991.24.

Traders seem worried aggressive moves by global central banks to contain inflation could lead to a period of stagflation or an outright recession. Rising treasury yields also contributed to the selloff.

The extended sell-off on Wall Street also came as traders looked ahead to inflation data later this week. The latest snapshot of inflation could impact expectations regarding how aggressively the Federal Reserve plans to raise interest rates.

Crude oil prices slumped on Monday, weighed by concerns about outlook for energy demand amid the impact of the Ukraine war and a slowdown in Chinese economic growth. West Texas Intermediate Crude oil futures for June ended down by $6.68 or 6.1 percent at $103.09 a barrel.

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