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Renewed Selling Pressure Expected For Malaysia Stock Market

The Malaysia stock market on Tuesday wrote a finish to the five-day losing streak in which it had slumped more than 15 points or 1 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,515-point plateau although it figures to head south again on Wednesday.

The global forecast for the Asian markets suggests consolidation on continued COVID-19 worries and concerns over the outlook for interest rates. The European and U.S. markets were down and the Asian markets figure to open in similar fashion.

The KLCI finished slightly higher on Tuesday following gains from the plantations and mixed performances from the financials, telecoms and glove makers.

For the day, the index rose 3.41 points or 0.23 percent to finish at 1,513.98 after trading between 1,511.27 and 1,519.62. Volume was 5.669 billion shares worth 7.966 billion ringgit. There were 576 gainers and 464 decliners.

Among the actives, Axiata tumbled 2.01 percent, while CIMB Group added 1.37 percent, Dialog Group sank 0.39 percent, Digi.com rose 0.97 percent, Genting plunged 3.93 percent, Genting Malaysia tanked 3.15 percent, Hartalega Holdings advanced 1.41 percent, IHH Healthcare dropped 0.30 percent, IOI Corporation gained 1.10 percent, Kuala Lumpur Kepong spiked 4.47 percent, Maybank retreated 0.87 percent, Maxis surged 6.61 percent, MRDIY improved 0.86 percent, Petronas Chemicals jumped 3.53 percent, PPB Group soared 4.82 percent, Press Metal climbed 2.29 percent, Public Bank declined 0.51 percent, RHB Capital collected 0.38 percent, Sime Darby skidded 0.45 percent, Telekom Malaysia rallied 3.15 percent, Tenaga Nasional fell 0.22 percent, Top Glove plummeted 8.15 percent and MISC and Sime Darby Plantations were unchanged.

The lead from Wall Street is broadly negative as the major averages opened lower on Tuesday and remained largely under water throughout the trading day.

The Dow plummeted 652.22 points or 1.86 percent to finish at 34,483.72, while the NASDAQ tumbled 245.14 points or 1.55 percent to close at 15,537.69 and the S&P 500 dropped 88.26 points or 1.90 percent to end at 4,567.01.

The sell-off on Wall Street partly reflected renewed concerns about the new coronavirus variant after Moderna's (MRNA) CEO said in an interview that COVID-19 vaccines are likely to be less effective against Omicron.

Stocks saw further downside after Federal Reserve Jerome Powell suggested during Congressional testimony that the central bank would discuss accelerating the pace at which it reduces its asset purchases during the next monetary policy meeting to contend with inflation.

Crude oil prices declined sharply on Tuesday amid fresh concerns about the outlook for oil and jet fuel demand. West Texas Intermediate Crude oil futures for January ended down by $3.77 or 5.4 percent at $66.18 a barrel.

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