Malaysia Stock Market Tipped To Open In The Red

(RTTNews) - The Malaysia stock market turned lower again on Wednesday, one day after ending the five-day slide in which it had surrendered almost 50 points or 3.3 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,450-point plateau and it may extend its losses on Thursday.

The global forecast for the Asian markets is soft on renewed recession fears following another big rate hike from the FOMC. The European markets were up and the U.S. bourses were down and the Asian markets are tipped to follow the latter lead.

The KLCI finished modestly lower on Wednesday following losses from the telecoms and mixed performances from the financials, plantations and glove makers.

For the day, the index sank 13.92 points or 0.95 percent to finish at the daily low of 1,447.18 after peaking at 1,459.89. Volume was 2.343 billion shares worth 1.658 billion ringgit. There were 529 decliners and 296 gainers.

Among the actives, Axiata tumbled 3.18 percent, while CIMB Group fell 0.55 percent, Dialog Group tanked 4.00 percent, Digi.com dipped 0.29 percent, Genting was down 0.29 percent, Genting Malaysia climbed 1.39 percent, Hartalega Holdings added 0.65 percent, IHH Healthcare lost 0.65 percent, INARI stumbled 1.48 percent, IOI Corporation skidded 1.02 percent, Kuala Lumpur Kepong rose 0.18 percent, Maybank collected 0.34 percent, Maxis sank 0.81 percent, MISC rallied 2.44 percent, MRDIY dropped 0.98 percent, Petronas Chemicals weakened 1.03 percent, PPB Group shed 0.73 percent, Press Metal plunged 6.33 percent, Public Bank slumped 1.12 percent, RHB Capital eased 0.18 percent, Sime Darby declined 2.22 percent, Sime Darby Plantations surrendered 2.25 percent, Telekom Malaysia retreated 1.51 percent, Tenaga Nasional slid 0.45 percent, Top Glove plummeted 8.51 percent and Hong Leong Financial and Nestle were unchanged.

The lead from Wall Street ends up negative as the major averages were steady throughout Wednesday session until the FOMC's rate decision sent them tumbling, closing near daily lows.

The Dow plummeted 522.45 points or 1.70 percent to finish at 30,183.78, while the NASDAQ tumbled 204.86 points or 1.79 percent to close at 11,220.19 and the S&P sank 66.00 points or 1.71 percent to end at 3,789.93.

The late-day volatility came after the Fed raised interest rates by another three-quarters of a percentage point and signaled further aggressive rate hikes for the remainder of the year.

Citing its dual goals of maximum employment and inflation at a rate of 2 percent over the longer run, the Fed decided to raise its target range for the federal funds rate by 75 basis points to 3 to 3.25 percent.

The move marks the third straight 75 basis point rate hike by the Fed and lifts rates to their highest level since early 2008. With inflation remaining elevated, the Fed also said it expects that ongoing interest rate increases will be appropriate.

Crude oil prices drifted lower Wednesday amid concerns about the outlook for energy demand after the Federal Reserve's announcement of a sharp hike in interest rates raised fears about a recession. West Texas Intermediate Crude oil futures for November ended lower by $1.00 or 1.2 percent at $82.94 a barrel.